Document:

REGISTRATION RIGHTS
AGREEMENT

     

    This
Registration Rights Agreement (this “Agreement”) is made and
entered into effective as of __________, 2009 between La Cortez Energy, Inc., a
Nevada corporation (the “Company”) and the persons who
have executed the signature page(s) hereto (each, a “Purchaser” and collectively,
the “Purchasers”).

     

    RECITALS:

     

    WHEREAS,
to provide capital required by the Company for working capital and other
purposes, the Company has offered in compliance with Rule 506 of Regulation D
and/or Regulation S of the Securities Act (as defined herein), to investors in a
private placement transaction (the “PPO”), units (“Units”) of its securities,
each Unit consisting of one share of Common Stock (the “Investor Shares”) and a common
stock purchase warrant (the “Investor Warrants”) to
purchase one share of Common Stock; and

     

    WHEREAS,
the initial closing of the PPO will have taken place on or prior to the
Effective Date (as defined below); and

     

    WHEREAS,
in connection with the PPO, the Company agrees to provide certain registration
rights related to the Investor Shares, including “piggyback” registration rights
with respect to the shares of Common Stock issuable upon exercise of the
Investor Warrants, on the terms set forth herein;

     

    NOW,
THEREFORE, in consideration of the mutual promises, representations, warranties,
covenants, and conditions set forth herein, the parties mutually agree as
follows:

     

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

     

     “Approved Market”
means the Over-the-Counter Bulletin Board, the Nasdaq Stock Market, the New York
Stock Exchange or the American Stock Exchange.

     

    “Blackout Period”
means, with respect to a registration, a period, in each case commencing on the
day immediately after the Company notifies the Purchasers that they are
required, because of the occurrence of an event of the kind described in Section
4(f) hereof, to suspend offers and sales of Registrable Securities during which
the Company, in the good faith judgment of its board of directors, determines
(because of the existence of, or in anticipation of, any acquisition, financing
activity, or other transaction involving the Company, or the unavailability for
reasons beyond the Company’s control of any required financial statements,
disclosure of information which is in its best interest not to publicly
disclose, or any other event or condition of similar significance to the
Company) that the registration and distribution of the Registrable Securities to
be covered by such Registration Statement, if any, would be seriously
detrimental to the Company and its stockholders and ending on the earlier of (1)
the date upon which the material non-public information commencing the Blackout
Period is disclosed to the public or ceases to be material and (2) such time as
the Company notifies the selling Holders that sales pursuant to such
Registration Statement or a new or amended Registration Statement may
resume.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     “Business Day” means
any day of the year, other than a Saturday, Sunday, or other day on which the
Commission is required or authorized to close.

     

    “Commission” means the
U. S. Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

     

    “Common Stock” means
the common stock, par value $0.001 per share, of the Company and any and all
shares of capital stock or other equity securities of: (i) the Company which are
added to or exchanged or substituted for the Common Stock by reason of the
declaration of any stock dividend or stock split, the issuance of any
distribution or the reclassification, readjustment, recapitalization or other
such modification of the capital structure of the Company; and (ii) any other
corporation, now or hereafter organized under the laws of any state or other
governmental authority, with which the Company is merged, which results from any
consolidation or reorganization to which the Company is a party, or to which is
sold all or substantially all of the shares or assets of the Company, if
immediately after such merger, consolidation, reorganization or sale, the
Company or the stockholders of the Company own equity securities having in the
aggregate more than 50% of the total voting power of such other
corporation.

     

     “Effective Date” means
the date of the final closing of the PPO.

     

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

     

    “Family Member” means
(a) with respect to any individual, such individual’s spouse, any descendants
(whether natural or adopted), any trust all of the beneficial interests of which
are owned by any of such individuals or by any of such individuals together with
any organization described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended, the estate of any such individual, and any corporation,
association, partnership or limited liability company all of the equity
interests of which are owned by those above described individuals, trusts or
organizations and (b) with respect to any trust, the owners of the beneficial
interests of such trust.

     

     “Holder” means each
Purchaser or any of such Purchaser’s respective successors and Permitted
Assignees who acquire rights in accordance with this Agreement with respect to
any Registrable Securities directly or indirectly from a Purchaser or from any
Permitted Assignee.

     

    “Investor Shares” has
the meaning given it in the recitals of this Agreement.

     

    “Investor Warrants”
has the meaning given it in the recitals of this Agreement.

     

    “Majority Holders”
means at any time Holders representing a majority of the Registrable
Securities.

     

    “Permitted Assignee”
means (a) with respect to a partnership, its partners or former partners in
accordance with their partnership interests, (b) with respect to a corporation,
its stockholders in accordance with their interest in the corporation, (c) with
respect to a limited liability company, its members or former members in
accordance with their interest in the limited liability company, (d) with
respect to an individual party, any Family Member of such party, (e) an entity
that is controlled by, controls, or is under common control with a transferor,
or (f) a party to this Agreement.

     

    
      
         

      

      
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    “Piggyback Common Share
Registration” means, in any registration of Common Stock as set forth in
Section 3(b)(i), the ability of holders of Registrable Common Shares to include
Registrable Common Shares in such registration.

     

    “Piggyback
Registration” means, in any registration of Common Stock referenced in
Section 3(b), the right of each Holder to include the Registrable Securities of
such Holder in such registration.

     

    “Piggyback Warrant Share
Registration” means, in any registration of Common Stock as set forth in
Section 3(b)(ii), the ability of holders of the Registrable Warrant Shares to
include Registrable Warrant Shares in such registration.

     

    The terms
“register,”
“registered,”
and “registration” refer
to a registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     

    “Registrable Common
Shares” means the Investor Shares (and not including the Registrable
Warrant Shares) but excluding (i) any Registrable Common Shares that have been
publicly sold or may be sold immediately without volume or manner of sale
limitations and without registration under the Securities Act either pursuant to
Rule 144 of the Securities Act or otherwise; (ii) any Registrable Common Shares
sold by a person in a transaction pursuant to a registration statement filed
under the Securities Act, or (iii) any Registrable Common Shares that are at the
time subject to an effective registration statement under the Securities
Act.

     

    “Registrable
Securities” means the Registrable Common Shares together with the
Registrable Warrant Shares.

     

    “Registrable Warrant
Shares” means the shares of Common Stock issued or issuable to each
Purchaser upon exercise of the Investor Warrants but excluding (i) any
Registrable Warrant Shares that have been publicly sold or may be sold
immediately without volume or manner of sale limitations and without
registration under the Securities Act either pursuant to Rule 144 of the
Securities Act or otherwise; (ii) any Registrable Warrant Shares sold by a
person in a transaction pursuant to a registration statement filed under the
Securities Act, or (iii) any Registrable Warrant Shares that are at the time
subject to an effective registration statement under the Securities
Act.

     

    “Registration Default
Date” means the date that is 180 days after the Effective
Date.

     

    “Registration Default
Period” means the period following the Registration Default Date during
which any Registration Event occurs and is continuing.

     

    
      
         

      

      
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    “Registration Event”
means the occurrence of any of the following events:

     

    (a)           the
Company fails to file with the Commission the Registration Statement on or
before the Registration Filing Date;

     

    (b)           the
Registration Statement is not declared effective by the Commission on or before
the Registration Default Date;

     

    (c)           after
the SEC Effective Date, the Registration Statement ceases for any reason to
remain continuously effective or the Holders are otherwise not permitted to
utilize the prospectus therein to resell the Registrable Securities (including a
Blackout Period), for more than fifteen (15) consecutive calendar days, except
as excused pursuant to Section 3(a); or.

     

    (d)           the
Common Stock generally or the Registrable Common Shares specifically are not
listed or included for quotation on an Approved Market, or trading of the Common
Stock is suspended or halted on the Approved Market, which at the time
constitutes the principal market for the Common Stock, for more than two (2)
full, consecutive Trading Days; provided, however, a
Registration Event shall not be deemed to occur if all or substantially all
trading in equity securities (including the Common Stock) is suspended or halted
on the Approved Market for any length of time.

     

    “Registration Filing
Date” means the date that is 90 days after the Effective
Date.

     

    “Registration
Statement” means the registration statement that the Company is required
to file pursuant to Section 3(a) of this Agreement to register the Registrable
Common Shares.

     

    “Rule 145” means Rule
145 promulgated by the Commission under the Securities Act, as such rule may be
amended or supplemented from time to time, or any similar successor rule that
may be promulgated by the Commission.

     

    “Rule 144” means Rule
144 promulgated by the Commission under the Securities Act, as such rule may be
amended or supplemented from time to time, or any similar successor rule that
may be promulgated by the Commission.

     

    “Rule 415” means Rule
415 promulgated by the Commission under the Securities Act, as such rule may be
amended or supplemented from time to time, or any similar successor rule that
may be promulgated by the Commission.

     

     “Securities Act” means
the Securities Act of 1933, as amended, or any similar federal statute
promulgated in replacement thereof, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the
time.

     

    “SEC Effective Date”
means the date the Registration Statement is declared effective by the
Commission.

     

    “Trading Day” means
any day on which such national securities exchange, the Over-the-Counter
Bulletin Board or such other securities market or quotation system, which at the
time constitutes the principal securities market for the Common Stock, is open
for general trading of securities.

     

    
      
         

      

      
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    2.           Term.  This
Agreement shall terminate on the earlier of: (i) two years from the Effective
Date; (ii) such date on which all shares of Registrable Securities held or
entitled to be held upon conversion by such Holder may immediately be sold under
Rule 144 without regard to volume or manner of sale limitations; or (iii)
unless terminated sooner hereunder.

     

    3.           Registration.

     

    (a)           Registration on Form
S-1.  The Company shall file a Registration Statement within 90
days of the Effective Date on Form S-1, or other applicable form, relating to
the resale by the Holders of all of the Registrable Common Shares, and the
Company shall use its commercially reasonable efforts to cause such Registration
Statement to be declared effective prior to the Registration Default Date; provided, that the
Company shall not be obligated to effect any such registration, qualification or
compliance pursuant to this Section, or keep such registration effective
pursuant to the terms hereunder in any particular jurisdiction in which the
Company would be required to qualify to do business as a foreign corporation or
as a dealer in securities under the securities laws of such jurisdiction or to
execute a general consent to service of process in effecting such registration,
qualification or compliance, in each case where it has not already done
so.  Notwithstanding the foregoing, in the event that the Commission
limits the amount of Registrable Common Shares that may be sold, the Company may
scale back from the Registration Statement such number of Registrable Common
Shares on a pro-rata basis.  In such event, the Company shall give the
Purchasers prompt notice of the number of Registrable Common Shares excluded
therein.

     

    (b)           Piggyback
Registration.

     

    (i)           Piggyback Common Share
Registration.  If after the SEC Effective Date, the Company
shall determine to register for sale for cash any of its Common Stock, for its
own account or for the account of others (other than the Holders), other than
(i) a registration relating solely to employee benefit plans or securities
issued or issuable to employees, consultants (to the extent the securities owned
or to be owned by such consultants could be registered on Form S-8) or any of
their Family Members (including a registration on Form S-8) or (ii) a
registration relating solely to a Securities Act Rule 145 transaction or a
registration on Form S-4 in connection with a merger, acquisition, divestiture,
reorganization or similar event, the Company shall promptly give to the Holders
written notice thereof (and in no event shall such notice be given less than 20
calendar days prior to the filing of such registration statement), and shall,
subject to Section 3(c), include as a Piggyback Registration all of the
Registrable Common Shares specified in a written request delivered by the Holder
thereof within 10 calendar days after receipt of such written notice from the
Company to the extent such Registrable Common Shares have been subject to a
cutback comment from the SEC with respect to the registration statement
discussed in Section 3(a) above. However, the Company may, without the consent
of the Holders, withdraw such registration statement prior to its becoming
effective if the Company or such other stockholders have elected to abandon the
proposal to register the securities proposed to be registered
thereby.

     

    
      
         

      

      
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    (ii)           Piggyback Warrant Share
Registration.  If after the SEC Effective Date, the Company
shall determine to register for sale for cash any of its Common Stock, for its
own account or for the account of others (other than the Holders), other than
(i) a registration relating solely to employee benefit plans or securities
issued or issuable to employees, consultants (to the extent the securities owned
or to be owned by such consultants could be registered on Form S-8) or any of
their Family Members (including a registration on Form S-8) or (ii) a
registration relating solely to a Securities Act Rule 145 transaction or a
registration on Form S-4 in connection with a merger, acquisition, divestiture,
reorganization or similar event, the Company shall promptly give to the Holders
written notice thereof (and in no event shall such notice be given less than 20
calendar days prior to the filing of such registration statement), and shall,
subject to Section 3(c), include as a Piggyback Registration all of the
Registrable Warrant Shares specified in a written request delivered by the
Holder thereof within 10 calendar days after receipt of such written notice from
the Company. However, the Company may, without the consent of the Holders,
withdraw such registration statement prior to its becoming effective if the
Company or such other stockholders have elected to abandon the proposal to
register the securities proposed to be registered thereby.

     

    (c)           Underwriting.  If
a Piggyback Registration is for a registered public offering that is to be made
by an underwriting, the Company shall so advise the Holders of the Registrable
Common Shares and the Registrable Warrant Shares eligible for inclusion in such
Registration Statement pursuant to Sections 3(b)(i) and (ii),
respectively.  In that event, the right of any Holder to Piggyback
Registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Common Shares or
Registrable Warrant Shares in the underwriting to the extent provided herein.
All Holders proposing to sell any of their Registrable Securities through such
underwriting shall (together with the Company and any other stockholders of the
Company selling their securities through such underwriting) enter into an
underwriting agreement in customary form with the underwriter selected for such
underwriting by the Company or the selling stockholders, as
applicable.  Notwithstanding any other provision of this Section, if
the underwriter or the Company determines that marketing factors require a
limitation on the number of shares of Common Stock or the amount of other
securities to be underwritten, the underwriter may exclude some or all
Registrable Securities from such registration and underwriting.  The
Company shall so advise all Holders (except those Holders who failed to timely
elect to include their Registrable Securities through such underwriting or have
indicated to the Company their decision not to do so), and indicate to each such
Holder the number of shares of Registrable Securities that may be included in
the registration and underwriting, if any. The number of shares of Registrable
Securities to be included in such registration and underwriting shall be
allocated among such Holders as follows:

     

    (i)           If
the Piggyback Registration was initiated by the Company, the number of shares
that may be included in the registration and underwriting shall be allocated
first to the Company and then, subject to obligations and commitments existing
as of the date hereof, to all selling stockholders, including the Holders, who
have requested to sell in the registration on a pro rata basis according to the
number of shares requested to be included therein; and

     

    
      
         

      

      
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    (ii)           If
the Piggyback Registration was initiated by the exercise of demand registration
rights by a stockholder or stockholders of the Company (other than the Holders),
then the number of shares that may be included in the registration and
underwriting shall be allocated first to such selling stockholders who exercised
such demand and then, subject to obligations and commitments existing as of the
date hereof, to all other selling stockholders, including the Holders, who have
requested to sell in the registration on a pro rata basis according to the
number of shares requested to be included therein.

     

    No
Registrable Securities excluded from the underwriting by reason of the
underwriter’s marketing limitation shall be included in such registration. If
any Holder disapproves of the terms of any such underwriting, such Holder may
elect to withdraw such Holder’s Registrable Securities therefrom by delivering a
written notice to the Company and the underwriter.  The Registrable
Securities so withdrawn from such underwriting shall also be withdrawn from such
registration; provided, however, that, if by
the withdrawal of such Registrable Securities, a greater number of Registrable
Securities held by other Holders may be included in such registration (up to the
maximum of any limitation imposed by the underwriters), then the Company shall
offer to all Holders who have included Registrable Securities in the
registration the right to include additional Registrable Securities pursuant to
the terms and limitations set forth herein in the same proportion used above in
determining the underwriter limitation.

     

    (d)           Other
Registrations.  Before such date that is six months following
the SEC Effective Date, the Company will not, without the prior written consent
of the Majority Holders, file any other registration statement with the
Commission or request the acceleration of any other registration statement filed
with the Commission, and during any time subsequent to the SEC Effective Date
when the Registration Statement for any reason is not available for use by any
Holder for the resale of any Registrable Common Shares, the Company shall not,
without the prior written consent of the Majority Holders, file any other
registration statement or any amendment thereto with the Commission under the
Securities Act or request the acceleration of the effectiveness of any other
registration statement previously filed with the Commission, other than (i) any
registration statement on Form S-8 or Form S-4 and (ii) any registration
statement or amendment which the Company is required to file or as to which the
Company is required to request acceleration pursuant to any obligation in effect
on the date of execution and delivery of this Agreement.

     

    
      
         

      

      
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    (e)           Occurrence of Registration
Event.  If a Registration Event occurs, then the Company will
make payments to each Holder of Investor Shares (a “Qualified Purchaser”), as
liquidated damages for the amount of damages to the Qualified Purchaser by
reason thereof, at a rate equal to 1% of the purchase price per share paid by
such Holder in the PPO for the Registrable Common Shares then held by each
Qualified Purchaser for each full period of 30 days of the Registration Default
Period (which shall be pro-rated for any period less than 30 days); provided, however, if a
Registration Event occurs (or is continuing) on a date after which any of the
Investor Shares cease to be Registrable Common Shares (pursuant to the
availability of Rule 144, an alternate registration statement, or other
exclusions set forth in the definition of Registrable Common Shares), liquidated
damages shall be paid only with respect to that portion of the Qualified
Purchaser’s Registrable Common Shares that are then Registrable Common
Shares.  Notwithstanding the foregoing, the maximum amount of
liquidated damages that may be paid to any Qualified Purchaser pursuant to this
Section 3(e) shall be an amount equal to 10% of the purchase price per share
paid by such Holder in the PPO for the Registrable Common Shares held by such
Qualified Purchaser at the time of the first occurrence of a Registration
Event.  Each such payment shall be due and payable within five (5)
days after the end of each full 30-day period of the Registration Default Period
until the termination of the Registration Default Period and within five (5)
days after such termination.  Such payments shall constitute the
Qualified Purchaser’s exclusive remedy for such events.  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 8% 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 Registration Default Period
shall terminate upon (i) the filing of the Registration Statement in the case of
clause (a) of the definition of Registration Event, (ii) the SEC Effective Date
in the case of clause (b) of the definition of Registration Event, (iii) the
ability of the Qualified Purchaser to effect sales pursuant to the Registration
Statement in the case of clause (c) of the definition of Registration Event,
provided, however, that in the
case of clause (c) a Registration Event will not be deemed to have occurred
until the date on which the fifteen (15) day period is exceeded, (iv) the
listing or inclusion and/or trading of the Common Stock on an Approved Market,
as the case may be, in the case of clause (d) of the definition of Registration
Event, and (v) in the case of the events described in clauses (b) and (c) of the
definition of Registration Event, the earlier termination of the Registration
Default Period.  The amounts payable as liquidated damages pursuant to
this Section 3(e) shall be payable in lawful money of the United
States.  Amounts payable as liquidated damages to each Qualified
Purchaser hereunder with respect to each share of Registrable Common Shares
shall cease when the Qualified Purchaser no longer holds such Registrable Common
Shares or all such Investor Shares can be immediately sold by the Qualified
Purchaser in reliance on Rule 144 or are otherwise no longer Registrable Common
Shares as defined in this Agreement.  Notwithstanding the foregoing,
the Company will not be liable for the payment of liquidated damages described
in this Section 3(e) for any delay in registration of the Registrable Common
Shares that may be included and sold by the Qualified Purchasers in the
Registration Statement pursuant to Rule 415 solely as a result of a comment
received by the SEC requiring a limit on the number of Registrable Common Shares
included in such Registration Statement in order for such Registration Statement
to be able to avail itself of Rule 415.  In the event of any such
delay, the Company will use its commercially reasonable efforts at the first
opportunity that is permitted by the Commission to register for resale the
Registrable Common Shares that have been cut back from being registered pursuant
to Rule 415 only with respect to that portion of the Qualified Purchasers’
Registrable Common Shares that are then Registrable Common
Shares.  Notwithstanding anything to the contrary contained herein, in
no event shall the Company be liable for payment of liquidating damages in
connection with the Registrable Warrant Shares.

     

    (f)           Notwithstanding
the provisions of Section 3(e) above, (a) if the Commission does not declare the
Registration Statement effective on or before the Registration Default Date, or
(b) if the Commission allows the Registration Statement to be declared effective
at any time before or after the Registration Default Date, subject to the
withdrawal of certain Registrable Common Shares from the Registration Statement,
and the reason for (a) or (b) is the Commission’s determination that (x) the
offering of any of the Registrable Common Shares constitutes a primary offering
of securities by the Company, (y) Rule 415 may not be relied upon for the
registration of the resale of any or all of the Registrable Common Shares,
and/or (z) a Holder of any Registrable Common Shares must be named as an
underwriter, the Holders understand and agree that in the case of (b) the
Company may reduce, on a pro
rata basis, the total number of Registrable Common Shares to be
registered on behalf of each such Holder, and in the case of (a) or (b) the
Holder shall not be entitled to partial liquidated damages with respect to the
Registrable Common Shares not registered for the reason set forth in (a) or so
reduced on a pro rata
basis as set forth in (b).

     

    
      
         

      

      
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    4.           Registration Procedures for
Registrable Common Shares.  The Company will keep each Holder
reasonably advised as to the filing and effectiveness of the Registration
Statement.  At its expense with respect to the Registration Statement,
the Company will:

     

    (a)           prepare
and file with the Commission with respect to the Registrable Common Shares, a
Registration Statement on Form S-1, or any other form for which the Company then
qualifies or which counsel for the Company shall deem appropriate and which form
shall be available for the sale of the Registrable Common Shares in accordance
with the intended methods of distribution thereof, and use its commercially
reasonable efforts to cause such Registration Statement to become effective and
shall remain effective for a period of two years or for such shorter period
ending on the earlier to occur of (i) the sale of all Registrable Common Shares
and (ii) the availability under Rule 144 for each Holder to sell all of their
Registrable Common Shares (the “Effectiveness
Period”).  Each Holder agrees to furnish to the Company a
completed questionnaire in the form attached to this Agreement as Annex A (a “Selling Shareholder
Questionnaire”) not later than three (3) Business Days following the date
on which such Holder receives draft materials of such Registration
Statement;

     

    (b)           if
the Registration Statement is subject to review by the Commission, promptly
respond to all comments and diligently pursue resolution of any comments to the
satisfaction of the Commission;

     

    (c)           prepare
and file with the Commission such amendments and supplements to such
Registration Statement as may be necessary to keep such Registration Statement
effective during the Effectiveness Period;

     

    (d)           furnish,
without charge, to each Holder of Registrable Common Shares covered by such
Registration Statement (i) a reasonable number of copies of such Registration
Statement (including any exhibits thereto other than exhibits incorporated by
reference), each amendment and supplement thereto as such Holder may reasonably
request, (ii) such number of copies of the prospectus included in such
Registration Statement (including each preliminary prospectus and any other
prospectus filed under Rule 424 of the Securities Act) as such Holders may
reasonably request, in conformity with the requirements of the Securities Act,
and (iii) such other documents as such Holder may require to consummate the
disposition of the Registrable Common Shares owned by such Holder, but only
during the Effectiveness Period;

     

    (e)           use
its commercially reasonable efforts to register or qualify such registration
under such other applicable securities laws of such jurisdictions as any Holder
of Registrable Common Shares covered by such Registration Statement reasonably
requests and as may be necessary for the marketability of the Registrable Common
Shares (such request to be made by the time the applicable Registration
Statement is deemed effective by the Commission) and do any and all other acts
and things necessary to enable such Holder to consummate the disposition in such
jurisdictions of the Registrable Common Shares owned by such Holder; provided, that the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
paragraph, (ii) subject itself to taxation in any such jurisdiction, or (iii)
consent to general service of process in any such jurisdiction.

     

    
      
         

      

      
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    (f)           as
promptly as practicable after becoming aware of such event, notify each Holder
of Registrable Common Shares, the disposition of which requires delivery of a
prospectus relating thereto under the Securities Act, of the happening of any
event, which comes to the Company’s attention, that will after the occurrence of
such event cause the prospectus included in such Registration Statement, if not
amended or supplemented, to contain an untrue statement of a material fact or an
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading and the Company shall promptly
thereafter prepare and furnish to such Holder a supplement or amendment to such
prospectus (or prepare and file appropriate reports under the Exchange Act) so
that, as thereafter delivered to the purchasers of such Registrable Common
Shares, such prospectus shall not contain an 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 not misleading, unless suspension of the use of such
prospectus otherwise is authorized herein or in the event of a Blackout Period,
in which case no supplement or amendment need be furnished (or Exchange Act
filing made) until the termination of such suspension or Blackout
Period;

     

    (g)           comply,
and continue to comply during the Effectiveness Period, in all material respects
with the Securities Act and the Exchange Act and with all applicable rules and
regulations of the Commission with respect to the disposition of all securities
covered by such Registration Statement;

     

    (h)           as
promptly as practicable after becoming aware of such event, notify each Holder
of Registrable Common Shares being offered or sold pursuant to the Registration
Statement of the issuance by the Commission of any stop order or other
suspension of effectiveness of the Registration Statement;

     

    (i)           use
its commercially reasonable efforts to cause all the Registrable Common Shares
covered by the Registration Statement to be quoted on the OTC Bulletin Board or
such other principal securities market on which securities of the same class or
series issued by the Company are then listed or traded;

     

    (j)           provide
a transfer agent and registrar, which may be a single entity, for the shares of
Common Stock at all times;

     

    (k)           cooperate
with the Holders of Registrable Common Shares being offered pursuant to the
Registration Statement to issue and deliver, or cause its transfer agent to
issue and deliver, certificates representing Registrable Common Shares to be
offered pursuant to the Registration Statement within a reasonable time after
the delivery of certificates representing the Registrable Common Shares to the
transfer agent or the Company, as applicable, and enable such certificates to be
in such denominations or amounts as the Holders may reasonably request and
registered in such names as the Holders may request;

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (l)           during
the Effectiveness Period, refrain from bidding for or purchasing any Common
Stock or any right to purchase Common Stock or attempting to induce any person
to purchase any such security or right if such bid, purchase or attempt would in
any way limit the right of the Holders to sell Registrable Common Shares by
reason of the limitations set forth in Regulation M of the Exchange Act;
and

     

    (m)           take
all other reasonable actions necessary to expedite and facilitate the
disposition by the Holders of the Registrable Common Shares pursuant to the
Registration Statement during the term of this Agreement.

     

    5.           Suspension of Offers and
Sales.  Each Holder agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
4(f) hereof or of the commencement of a Blackout Period, such Holder shall
discontinue the disposition of Registrable Common Shares included in the
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4(f) hereof or notice
of the end of the Blackout Period, and, if so directed by the Company, such
Holder shall deliver to the Company (at the Company’s expense) all copies
(including, without limitation, any and all drafts), other than permanent file
copies, then in such Holder’s possession, of the prospectus covering such
Registrable Common Shares current at the time of receipt of such
notice.

     

    6.           Registration
Expenses.  The Company shall pay all expenses in connection
with any registration obligation provided herein, including, without limitation,
all registration, filing, stock exchange fees, printing expenses, all fees and
expenses of complying with applicable securities laws, and the fees and
disbursements of counsel for the Company and of its independent accountants;
provided, that,
in any underwritten registration, each party shall pay for its own underwriting
discounts and commissions and transfer taxes. Except as provided in this Section
and Section 9, the Company shall not be responsible for the expenses of any
attorney or other advisor employed by a Holder.

     

    7.           Assignment of
Rights.  No Holder may assign its rights under this Agreement
to any party without the prior written consent of the Company; provided, however, that any
Holder may assign its rights under this Agreement without such consent to a
Permitted Assignee as long as (a) such transfer or assignment is effected in
accordance with applicable securities laws; (b) such transferee or assignee
agrees in writing to become subject to the terms of this Agreement; and (c) such
Holder notifies the Company in writing of such transfer or assignment, stating
the name and address of the transferee or assignee and identifying the
Registrable Securities with respect to which such rights are being transferred
or assigned.

     

    8.           Information by
Holder.  Holders included in any registration shall furnish to
the Company such information as the Company may reasonably request in writing
regarding such Holders and the distribution proposed by such Holders including
an updated Selling Shareholder Questionnaire if requested by the
Company.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    9.           Indemnification.

     

    (a)           In
the event of the offer and sale of Registrable Securities under the Securities
Act, the Company shall, and hereby does, indemnify and hold harmless, to the
fullest extent permitted by law, each Holder, its directors, officers, partners,
each other person who participates as an underwriter in the offering or sale of
such securities, and each other person, if any, who controls or is under common
control with such Holder or any such underwriter within the meaning of Section
15 of the Securities Act, against any losses, claims, damages or liabilities,
joint or several, and expenses to which the Holder or any such director,
officer, partner or underwriter or controlling person may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue
statement of any material fact contained in any registration statement prepared
and filed by the Company under which Registrable Securities were registered
under the Securities Act, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment or supplement thereto, or
any omission to state therein a material fact required to be stated or necessary
to make the statements therein in light of the circumstances in which they were
made not misleading, and the Company shall reimburse the Holder, and each such
director, officer, partner, underwriter and controlling person for any legal or
any other expenses reasonably incurred by them in connection with investigating,
defending or settling any such loss, claim, damage, liability, action or
proceeding; provided, that such
indemnity agreement found in this Section 9(a) shall in no event exceed the net
proceeds from the PPO, received by the Company; and provided further,
that the Company shall not be liable in any such case (i) to the extent that any
such loss, claim, damage, liability (or action or proceeding in respect thereof)
or expense arises out of or is based upon an untrue statement in or omission
from such registration statement, any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in
conformity with written information furnished to the Company for use in the
preparation thereof or (ii) if the person asserting any such loss, claim,
damage, liability (or action or proceeding in respect thereof) who purchased the
Registrable Securities that are the subject thereof did not receive a copy of an
amended preliminary prospectus or the final prospectus (or the final prospectus
as amended or supplemented) at or prior to the written confirmation of the sale
of such Registrable Securities to such person because of the failure of such
Holder or underwriter to so provide such amended preliminary or final prospectus
and the untrue statement or omission of a material fact made in such preliminary
prospectus was corrected in the amended preliminary or final prospectus (or the
final prospectus as amended or supplemented). Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Holders, or any such director, officer, partner, underwriter or controlling
person and shall survive the transfer of such shares by the Holder.

     

    (b)           As
a condition to including Registrable Securities in any registration statement
filed pursuant to this Agreement, each Holder agrees to be bound by the terms of
this Section 9 and to indemnify and hold harmless, to the fullest extent
permitted by law, the Company, each of its directors, officers, partners, legal
counsel and accountants and each underwriter, if any, and each other person, if
any, who controls the Company within the meaning of Section 15 of the Securities
Act, against any losses, claims, damages or liabilities, joint or several, to
which the Company or any such director or officer or controlling person may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions or proceedings, whether commenced or
threatened, in respect thereof) that arises out of or is based upon an untrue
statement in or omission from such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information furnished by the Holder
for use in the preparation thereof, and such Holder shall reimburse the Company,
and such Holders, directors, officers, partners, legal counsel and accountants,
persons, underwriters, or control persons, each such director, officer, and
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating, defending, or settling any such loss, claim,
damage, liability, action, or proceeding; provided, however, that such
indemnity agreement found in this Section 9(b) shall in no event exceed the net
proceeds received by such Holder as a result of the sale of Registrable
Securities pursuant to such registration statement, except in the case of fraud
or willful misconduct.  Such indemnity shall remain in full force and
effect, regardless of any investigation made by or on behalf of the Company or
any such director, officer or controlling person and shall survive the transfer
by any Holder of such shares.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (c)           Promptly
after receipt by an indemnified party of notice of the commencement of any
action or proceeding involving a claim referred to in this Section (including
any governmental action), such indemnified party shall, if a claim in respect
thereof is to be made against an indemnifying party, give written notice to the
indemnifying party of the commencement of such action; provided, that the
failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under this Section, except to
the extent that the indemnifying party is actually prejudiced by such failure to
give notice.  In case any such action is brought against an
indemnified party, unless in the reasonable judgment of counsel to such
indemnified party a conflict of interest between such indemnified and
indemnifying parties may exist or the indemnified party may have defenses not
available to the indemnifying party in respect of such claim, the indemnifying
party shall be entitled to participate in and to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof, unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties arises in respect of such claim after the assumption of the
defenses thereof or the indemnifying party fails to defend such claim in a
diligent manner, other than reasonable costs of
investigation.  Neither an indemnified nor an indemnifying party shall
be liable for any settlement of any action or proceeding effected without its
consent.  No indemnifying party shall, without the consent of the
indemnified party, consent to entry of any judgment or enter into any
settlement, which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such indemnified party of a release from all
liability in respect of such claim or litigation.  Notwithstanding
anything to the contrary set forth herein, and without limiting any of the
rights set forth above, in any event any party shall have the right to retain,
at its own expense, counsel with respect to the defense of a claim. Each
indemnified party shall furnish such information regarding itself or the claim
in question as an indemnifying party may reasonably request in writing and as
shall be reasonably required in connection with defense of such claim and
litigation resulting therefrom.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (d)           If
an indemnifying party does or is not permitted to assume the defense of an
action pursuant to Sections 9(c) or in the case of the expense reimbursement
obligation set forth in Sections 9(a) and (b), the indemnification required by
Sections 9(a) and 9(b) shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as and when bills received or
expenses, losses, damages, or liabilities are incurred.

     

    (e)           If
the indemnification provided for in Section 9(a) or 9(b) is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect to
any loss, liability, claim, damage or expense referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall (i) contribute to the amount paid or payable by such indemnified party as
a result of such loss, liability, claim, damage or expense as is appropriate to
reflect the proportionate relative fault of the indemnifying party on the one
hand and the indemnified party on the other (determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or omission relates to information supplied by the indemnifying party or the
indemnified party and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission), or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law or provides a lesser sum to the indemnified party
than the amount hereinafter calculated, not only the proportionate relative
fault of the indemnifying party and the indemnified party, but also the relative
benefits received by the indemnifying party on the one hand and the indemnified
party on the other, as well as any other relevant equitable considerations. No
indemnified party guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
indemnifying party who was not guilty of such fraudulent
misrepresentation.

     

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

     

    (g)           Other
Indemnification.  Indemnification similar to that specified in
this Section (with appropriate modifications) shall be given by the Company and
each Holder of Registrable Securities with respect to any required registration
or other qualification of securities under any federal or state law or
regulation or governmental authority other than the Securities Act.

     

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

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    11.           Miscellaneous.

     

    (a)           Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
United States of America and the State of New York, both substantive and
remedial, without regard to New York conflicts of law principles. Any judicial proceeding brought against
either of the parties to this Agreement or any dispute arising out of this
Agreement or any matter related hereto shall be brought in the courts of the
State of New York, New York County, or in the United States District Court for
the Southern District of New York and, by its execution and delivery of this
Agreement, each party to this Agreement accepts the jurisdiction of such courts.
The foregoing consent to jurisdiction shall not be deemed to confer rights on
any person other than the parties to this Agreement.

     

    (b)           Remedies.  In
the event of a breach by the Company or by a Holder of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, shall be entitled to
specific performance of its rights under this Agreement.  The Company
and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall not assert
or shall waive the defense that a remedy at law would be adequate.

     

    (c)           Successors and
Assigns.  Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors,
Permitted Assignees, executors and administrators of the parties
hereto.

     

    (d)           No Inconsistent
Agreements.  The Company has not entered, as of the date
hereof, and shall not enter, on or after the date of this Agreement, 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.

     

    (e)           Entire
Agreement.  This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subjects
hereof.

     

    (f)           Notices, etc. All
notices or other communications which are required or permitted under this
Agreement shall be in writing and sufficient if delivered by hand, by facsimile
transmission, by registered or certified mail, postage pre-paid, by electronic
mail, or by courier or overnight carrier, to the persons at the addresses set
forth below (or at such other address as may be provided hereunder), and shall
be deemed to have been delivered as of the date so delivered:

     

    If to the
Company to:

    

    La Cortez
Energy, Inc.

    Calle 67
#7-35, Oficina 409

    Bogota,
Colombia

    Attention:  Andres
Gutierrez Rivera, Chief Executive Officer

    Facsimile:

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    with copy
to:

    

    Gottbetter
& Partners, LLP

    488
Madison Avenue, 12th
Floor

    New York,
NY  10022

    Attention:  Adam
S. Gottbetter, Esq.

    Facsimile:  (212)
400-6901

    

    If to the
Purchasers:

    

    To each
Purchaser at the address set forth on the signature page hereto;

    

    or at
such other address as any party shall have furnished to the other parties in
writing.

     

    (g)           Delays or
Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any Holder, upon any breach or default of the Company
under this Agreement, shall impair any such right, power or remedy of such
Holder nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of any similar breach or default thereunder
occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
Holder of any breach or default under this Agreement, or any waiver on the part
of any Holder of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement, or by law or otherwise
afforded to any holder, shall be cumulative and not alternative.

     

    (h)           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
enforceable against the parties actually executing such counterparts, and all of
which together shall constitute one instrument.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof.

     

    (i)           Severability. In the
case any provision of this Agreement shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     

    (j)           Amendments. The
provisions of this Agreement may be amended at any time and from time to time,
and particular provisions of this Agreement may be waived, with and only with an
agreement or consent in writing signed by the Company and the Majority Holders.
The Purchasers acknowledge that by the operation of this Section, the Majority
Holders may have the right and power to diminish or eliminate all rights of the
Purchasers under this Agreement.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (k)           Limitation on Subsequent
Registration Rights.  After the date of this Agreement, the
Company shall not, without the prior written consent of the Majority Holders,
enter into any agreement with any holder or prospective holder of any securities
of the Company that would grant such holder registration rights senior or equal
to those granted to the Holders hereunder.

     

    

     

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    This
Registration Rights Agreement is hereby executed as of the date first above
written.

     

    
      
        
          
            
              	 	COMPANY:	 
	 	 	 
	 	LA
      CORTEZ ENERGY, INC.	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	 	 
	 	Name:  	Andres
      Gutierrez Rivera	 
	 	Title: 	Chief
      Executive Officer	 

            

          

        

      

    

     

     

    [SIGNATURE
PAGE OF PURCHASER FOLLOWS]

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    This
Registration Rights Agreement is hereby executed as of the date first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          	 	PURCHASER
      (Individual)	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(Print Name)	 
	 	 	 
	 	PURCHASER
      (Entity)	 
	 	 	 	 
	
                                                                                   

                                                                                	
                                                                                  By:
      

                                                                                	 	 
	 	 	 	 
	 	 	 
	 	(Print
      Name)	 
	 	 	 
	 	 	 
	 	(Print
      Title)	 
	 	 	 
	 	 	 
	 	Address
      for notices:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	City                                      State                         Zip
      Code	 
	 	 	 	 

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    Annex
A

     

    LA
CORTEZ ENERGY, INC.

     

    Selling
Securityholder Notice and Questionnaire

     

    The
undersigned beneficial owner of Registrable Common Shares of La Cortez Energy,
Inc., a Nevada corporation (the “Company”), understands that
the Company intends to file with the Securities and Exchange Commission a
registration statement (the “Registration Statement”) for
the registration and resale under Rule 415 of the Securities Act of 1933, as
amended, of the Registrable Common Shares, in accordance with the terms of the
Registration Rights Agreement (the “Registration Rights
Agreement”) to which this document is annexed.  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 Common Shares 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 Common Shares hereby elects to include the Registrable Common Shares
owned by it 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 Common Shares are held:

              
	 	 	 
	 	 	 
	 	 	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                 
      

              	
                (c)

              	
                Full
      Legal Name of Natural Control Person (which means a natural person who
      directly or 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:	 	
                                                                                                         

                                        
	      
                                          Email:

                                        	 	 	 	 	 
	      
                                          Contact
      Person:

                                        	 	 	 	 	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
               
      

            	
              3.

            	
              Broker-Dealer
      Status:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Are
      you a broker-dealer?

            

    

     

    Yes   o                      No   o

     

    
      	
               
      

            	
              (b)

            	
              If
      “yes” to Section 3(a), did you receive your Registrable Common Shares as
      compensation for investment banking services to the
    Company?

            

    

     

    Yes   o                     No   o

     

    
      	
              Note:

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

            

    

     

    
      	
               
      

            	
              (c)

            	
              Are
      you an affiliate of a
broker-dealer?

            

    

     

    Yes   o                      No   o

     

    
      	
               
      

            	
              (d)

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

            

    

     

    Yes   o                      No   o

     

    
      	
              Note:

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

            

    

     

    
      	
              4.

            	
              Beneficial
      Ownership of Securities of the Company Owned by the Selling
      Securityholder:

            

    

     

    Except
as set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the securities
issuable pursuant to the PPO.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        	
                 
      

              	
                (a)

              	
                Type
      and Amount of other securities (other than the Registrable Common Shares)
      beneficially owned by the Selling Securityholder:

              
	 	 	 
	 	 	 
	 	 	 

      

    

     

    
      	
               
      

            	
              5.

            	
              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% or 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 5 and the inclusion of such
information in the Registration Statement and the related prospectus and any
amendments or supplements thereto.  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.

     

    IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this
Selling Securityholder 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:

    

    

    Gottbetter
& Partners, LLP

    488
Madison Avenue, 12th Floor

    New York,
NY  10022

    Attention:  Rachel
L. DeGenero

    Facsimile:  (212)
400-6901

     

    
      
         

      

      
        3Exhibit
10.5

     

    Agreement
for the Manufacturing of a Liposomal Formulation

    

    between

    

    Sign
Path Pharmaceuticals, Inc.

    45
Broadway 2nd Floor New York, NY 10006, USA

    

    -
hereinafter called „Principal“ -

    

    and

    

    Polymun
Scientific Immunbiologische Forschung GmbH

    Nussdorfer
Lände 11, A-1190 Vienna, Austria

    

    -
hereinafter called „Contractor“ -

     

    PREAMBLE

     

    
      	
              1.

            	
              Contractor
      is owner and authorized to dispose of the patents and patent applications
      listed in Annex 1 of this Agreement (hereinafter referred to as „Polymun
      liposome technology“).

            

    

    
      	
              2.

            	
              Furthermore,
      Contractor has technical and operational experience, knowledge, as well as
      other information and know-how in the field of development and utilization
      of the liposome technology (hereinafter referred to as
      „Polymun-know-how“).

            

    

    
      	
              3.

            	
              Principal
      disposes of a liposomal formulation of the active pharmaceutical
      ingredient curcumin.

            

    

    
      	
              4.

            	
              Contractor
      has no existing contractual relationship regarding curcumin to other
      parties than Principal at the date of signing this Agreement and will not
      enter into such contractual relationship during the term of this
      Agreement.

            

    

    
      	
              5.

            	
              The
      parties intend to apply the Polymun liposome technology and the
      Polymun-Know-how for the efficient production of a liposomal formulation
      of curcumin and to co-operate for that
purpose.

            

    

     

    
      	
              §
      1

            	
              DEFINITIONS

            

    

     

    
      	
              1.

            	
              “Agreement”
      means the body of this Agreement for the Manufacturing of
      a Liposomal Formulation, signed by both parties including all annexes and
      amendments thereto.

            

    

    
      	
              2.

            	
              “Ingredient”
      means the active pharmaceutical ingredient curcumin (diferuloyl-methane)
      that Principal intends to use in the kind of liposomes described in Annex
      2 of this Agreement.

            

    

    
      	
              3.

            	
              „Subject
      Matter of Agreement“ shall mean the development of an efficient production
      method for a liposomal formulation of the Ingredient and production of
      GMP-like material as well as GMP-compliant material by Contractor under
      application and utilization of the Polymun liposome technology and the
      Polymun-Know-how. For this purpose, Principal will make available the
      Ingredient and all relevant information about physical and chemical
      properties and descriptions of according analytical methods. Principal and
      Contractor will cooperate to issue specifications for the product to be
      manufactured and Contractor agrees to meet these specifications if
      possible by commercially reasonable
efforts.

            

    

    
      
         

      

      
        page 1 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              4.

            	
              „Contractual
      Intellectual Property Rights“ shall
mean

            

    

    
      	
               
      

            	
              a)

            	
              all
      patents and patent applications listed in Annex 1, as well as patents that
      will be issued following these patent
  applications;

            

    

    
      	
               
      

            	
              b)

            	
              all
      further intellectual property rights including additional patents, process
      patents, etc., which Contractor will file or acquire during the term of
      this Agreement in connection with the liposome
  technology.

            

    

    
      	
              5.

            	
              „Contractual
      Know-how“ shall mean all technical and operational experience, knowledge,
      results from development and experiments, especially data and knowledge
      about production, production procedures, application technologies,
      reports, modifications, improvements as well as other information and
      know-how of Contractor regarding the liposome technology
    that

            

    

    
      	
               
      

            	
              a)

            	
              exist
      directly and indirectly at signing of this Agreement at the Contractor
      and

            

    

    
      	
               
      

            	
              b)

            	
              are
      acquired during the term of this
Agreement.

            

    

     

    
      	
              §
      2

            	
              PROPRIETARY
      RIGHTS

            

    

     

    
      	
              1.

            	
              All
      Know-How and Proprietary Rights of Principal existing on September 6, 2007
      (thereinafter referred to as “Effective Date”) hereof or arising during
      the term of this Agreement from the separate and independent efforts of
      Principal (“Background Rights of Principal”) shall be the sole and
      exclusive property of Principal. Contractor shall have no right or license
      to use any such Background Rights of Principal except as may be necessary
      for performing hereunder.

            

    

    
      	
              2.

            	
              All
      Know-How and Proprietary Rights of Contractor existing on the Effective
      Date hereof or arising during the term of this Agreement from the separate
      and independent efforts of Contractor (“Background Rights of Contractor”)
      shall be the sole and exclusive property of Contractor. Principal shall
      have no right or license to use any such Background Rights of Contractor
      except as may be necessary for performing hereunder. Notwithstanding the
      foregoing, Contractor and Principal may negotiate in good faith license
      terms for Background Rights of Contractor at any further point in time.
      However, Contractor shall disclose in writing any such Background Rights
      of Contractor as soon as practicable or prior to use, whichever occurs
      first, Ingredient so that Principal may have the opportunity to accept its
      use, provide alternatives or terminate this Agreement at Principal’s sole
      discretion.

            

    

    
      	
              3.

            	
              All
      Proprietary Rights arising from Development Activities of Contractor
      and/or its agents and subcontractors, solely by Contractor or jointly or
      severally with the assistance activities of Principal regarding the
      Ingredient (“Ingredient Resulting Proprietary Rights”), shall be the sole
      and exclusive property of Principal. Principal shall have the right to
      prepare, file, prosecute, obtain and maintain at its sole expense patent
      applications and patents relating to Ingredient Resulting Proprietary
      Rights in countries of its choice. Both parties agree that each will
      identify and memorialize Ingredient Resulting Proprietary Rights for
      itself and the other party. Contractor hereby assigns and conveys to
      Principal all right, title, and interest in and to such Ingredient
      Resulting Proprietary Rights and agrees to execute any and all legal
      instruments reasonably requested by Principal to effect, acknowledge, or
      perfect such assignment and conveyance. Notwithstanding the limitations of
      existing and disclosed agreements with third parties, Contractor
      represents and warrants that each and every officer, employee, agent and
      subcontractor assigned to work for Principal hereunder shall have entered
      into an agreement with Contractor for the assignment of relevant
      Ingredient Resulting Proprietary Rights to Contractor. In addition,
      Contractor, its agents, and subcontractors shall treat such Ingredient
      Resulting Proprietary Rights confidentially under the provisions of § 8
      and shall have no right or license to use such Ingredient Resulting
      Proprietary Rights for any purpose other than as expressly set forth
      herein. Principal will name those employees and consultants of Contractor
      as inventors on patent applications who have substantially contributed to
      the according invention. However, Principal has no obligation whatsoever
      to compensate such inventors for their
  contribution.

            

    

    
      
         

      

      
        page 2 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              4.

            	
              All
      Proprietary Rights arising from Development Activities of Contractor
      and/or its agents and subcontractors, solely by Contractor or jointly or
      severally with the assistance activities of Principal regarding the
      Polymun liposome technology in general (“PLT Resulting Proprietary
      Rights”), shall be the sole and exclusive property of Contractor.
      Contractor shall have the right to prepare, file, prosecute, obtain and
      maintain at its sole expense patent applications and patents relating to
      PLT Resulting Proprietary Rights in countries of its choice. Both parties
      agree that each will identify and memorialize PLT Resulting Proprietary
      Rights for itself and the other party. Principal hereby assigns and
      conveys to Contractor all right, title, and interest in and to such PLT
      Resulting Proprietary Rights and agrees to execute any and all legal
      instruments reasonably requested by Contractor to effect, acknowledge, or
      perfect such assignment and conveyance. Notwithstanding the limitations of
      existing and disclosed agreements with third parties, Principal represents
      and warrants that each and every officer, employee, agent and
      subcontractor assigned to work for Principal hereunder shall have entered
      into an agreement with Principal for the assignment of relevant PLT
      Resulting Proprietary Rights to Principal. In addition, Principal, its
      agents, and subcontractors shall treat such PLT Resulting Proprietary
      Rights confidentially under the provisions of § 8 and shall have no right
      or license to use such PLT Resulting Proprietary Rights for any purpose
      other than as expressly set forth herein. Contractor will name those
      employees and consultants of Principal as inventors on patent applications
      who have substantially contributed to the according invention. However,
      Contractor has no obligation whatsoever to compensate such inventors for
      their contribution. Notwithstanding the foregoing, Contractor and
      Principal may negotiate in good faith license terms for PLT Resulting
      Proprietary Rights at any further point in time, for which Principal shall
      have a right of first refusal for PLT Resulting Proprietary Rights that
      includes Ingredient Resulting Proprietary Rights. However, Contractor
      shall disclose in writing any such PLT Resulting Proprietary Rights as
      soon as practicable or prior to use, whichever occurs first, with the
      Ingredient so that Principal may have the opportunity to accept its use,
      provide alternatives or terminate this Agreement at Principal’s sole
      discretion.

            

    

     

    
      	
              §
      3

            	
              DEVELOPMENT
      ACTIVITIES AND RELATED OBLIGATIONS

            

    

     

    
      	
              1.

            	
              Delivery
      of the Subject Matter of Agreement will be in form of one or more reports
      about the development and test samples of the liposomal formulation of the
      Ingredient produced according this development. A binding working schedule
      is given in Annex 2 of this Agreement. During the term of this Agreement,
      both parties shall cooperate closely and shall share Know-How pursuant the
      provisions of this Agreement.

            

    

    
      
         

      

      
        page 3 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              2.

            	
              Contractor
      shall apply and assign all necessary personnel, equipment, supplies, and
      all other appropriate resources at its disposal to perform its obligations
      under this Agreement. Contractor shall keep Principal regularly and
      periodically informed of the progress of the Development Activities via
      meetings and technical reviews. Should Contractor experience or anticipate
      any problems associated in performing this Agreement, Contractor shall
      immediately notify Principal in writing of such problems, its expected
      duration and the reasons thereof. The parties will consult and agree to a
      resolution to the problem.

            

    

     

    
      	
              §
      4

            	
              TERM
      AND TERMINATION

            

    

     

    
      	
              1.

            	
              The
      term of this Agreement begins at the Execution Date and ends on the
      31st
      of December 2009 and can be extended upon written agreement of both
      parties. Timelines are given in the working schedule described in Annex 2
      of this Agreement. The timeline for Part 1 of the working schedule as
      described in Annex 2 of this Agreement starts with the receipt of the
      Ingredient including all information and data according § 1.3., or at
      signing of this Agreement – whatever is
later.

            

    

    
      	
              2.

            	
              Principal
      or Contractor may terminate this Agreement upon fifteen (15) days prior
      written notice to the other party if (i) either Principal or Contractor
      shall become insolvent or (ii) make a general assignment for the benefit
      of creditors, or (iii) the opening of bankruptcy proceedings is denied for
      lack of assets. In case of termination by Principal upon causes defined in
      this paragraph 4.2., Principal will receive a perpetual, world wide,
      non-exclusive license to use any process technology owned by or licensed
      to Contractor to the extent required in order to produce the liposomal
      formulation of the Ingredient.

            

    

    
      	
              3.

            	
              Principal
      or Contractor may terminate this Agreement at any time for any material
      breach of any of the provisions hereof upon thirty (30) days prior written
      notice to the other party, provided that during such thirty (30) – day
      period the default is not cured to the reasonable satisfaction of the
      party giving notice.

            

    

    
      	
              4.

            	
              In
      the event of termination of this Agreement pursuant to any of the above
      provisions, Contractor shall have a duty to mitigate its damages,
      including (a) cease all Development Activities for Principal pursuant to
      this Agreement, (b) take all steps necessary to cancel or to limit to a
      minimum any commitments with third parties ancillary to the Development
      Activities pursuant to this Agreement, (c) inventory and provide a list to
      Principal of all work in progress and the results of the Development
      Activities pursuant to this Agreement (thereinafter referred to as “Work
      Product”) pursuant to this Agreement, (d) upon request of Principal,
      promptly deliver to Principal all Work Product and transfer to Principal
      all drawings, all partially or fully completed deliverables, and all other
      Know-How comprising or forming a basis for Ingredient and Jointly
      Resulting Proprietary Rights.

            

    

    
      	
              5.

            	
              Upon
      the successful conclusion of Contractor’s Development Activities under
      this Agreement, or any extensions thereof, or upon any earlier termination
      hereof, Contractor shall return all materials, documentation, substances,
      equipment delivered by or on behalf of Principal and/or shall transfer to
      Principal other tangible items which were created or procured pursuant to
      this Agreement and relate to the Resulting Proprietary Rights
      (“Materials”) that Contractor may have in its possession or control. Any
      Materials shall be the property of Principal and, for so long as such
      Materials are permitted to be in the possession or control of Contractor,
      shall be used by Contractor only as directed by Principal. In order to
      assist Principal in the disposition of such Materials, Contractor shall,
      promptly upon the conclusion or termination of this Agreement, provide
      Principal with a written inventory of all such Materials. Such inventory
      shall be in sufficient detail to enable Principal to identify and confirm
      the return of the Materials formerly delivered by Principal. Principal
      shall further be given reasonable access to the facilities of Contractor
      and any involved third party contractors of Contractor in order to
      identify and inspect such
Materials.

            

    

    
      
         

      

      
        page 4 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              §
      5

            	
              PRICE,
      PAYMENT AND DELIVERY

            

    

     

    
      	
              1.

            	
              The
      price for the Subject Matter of Agreement is given in Annex 2 of this
      Agreement including all applicable taxes except sales/use
    tax.

            

    

    
      	
              2.

            	
              Contractor
      shall send to Principal individual invoices with a reference to this
      Agreement within thirty (30) days after the condition for a payment is
      fulfilled (see § 3.1.). Principal shall pay the invoiced amount within
      thirty (30) days after receipt of a correct invoice. Payment shall be
      considered made on the date Principal transfers the payment to Contractor.
      Payments, that are not been received within sixty (60) days after
      Principal receiving the according invoice will be assessed interest at the
      rate of 1% per month commencing as on the 31st
      day after Principal receiving the according invoice. Principal’s payment
      obligation under this § 5 shall survive any termination or expiration of
      this Agreement. Payment shall not constitute acceptance of the delivery.
      Payment shall not prejudice Principal’s right to return a nonconforming
      delivery nor its right to receive credit or reimbursement for such
      nonconforming delivery.

            

    

    
      	
              3.

            	
              Reports
      will be delivered in form of electronic files as well as hard copies. Test
      samples, GMP-like material and GMP material will be stored and packaged at
      Polymun following all applicable guidelines. Transport will to Principal
      or to a third party indicated by Principal will be performed by Polymun
      FCA (“Free Carrier”) as defined by INCOTERMS 2000 by a transport service
      designated by Principal.

            

    

     

    
      	
              §
      6

            	
              WARRANTIES

            

    

     

    
      	
              1.

            	
              Contractor
      warrants, that he is the unrestricted owner of the Contractual
      Intellectual Property Rights and the Contractual Know-how and that he can
      freely dispose of it.

            

    

    
      	
              2.

            	
              Contractor
      warrants the completeness and accuracy of his information in context with
      the Contractual Intellectual Property Rights, the Contractual Know-how,
      and the Subject Matter of
Agreement.

            

    

    
      	
              3.

            	
              Contractor
      warrants that during the term of this Agreement he will not enter into an
      collaboration regarding the Ingredient with any other party than Principal
      and Principal’s partner for the
Ingredient.

            

    

    
      	
              4.

            	
              Principal
      warrants that to the best of his knowledge he is entitled to conclude this
      Agreement regarding the Ingredient and the liposomal formulation of the
      Ingredient.

            

    

     

    
      	
              §
      7

            	
              MAINTENANCE
      OF THE CONTRACTUAL INTELLECTUAL PROPERTY
RIGHTS

            

    

     

    Contractor
is obliged to maintain the Contractual Intellectual Property Rights during the
term of this Agreement at his own costs.

     

    
      	
              §
      8

            	
              CONFIDENTIALITY

            

    

     

    
      	
              1.

            	
              Contractor
      and Principal agree to strictly keep secret and to use only for the
      purpose of this Agreement any data, information, know-how, results etc.
      (“Information”) disclosed by and received from each other or developed
      under the terms of this Agreement. The Information will be transferred
      only to those employees to the extend necessary for the implementation of
      this Agreement, that are themselves obliged to
      confidentiality.

            

    

    
      
         

      

      
        page 5 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              2.

            	
              The
      obligation for confidentiality does not apply to Information
      that

            

    

    
      	
               
      

            	
              a)

            	
              was
      in the possession of a party at the time of the conclusion of this
      Agreement as shown by competent
evidence;

            

    

    
      	
               
      

            	
              b)

            	
              at
      the time of the conclusion of this Agreement was in the public
      domain;

            

    

    
      	
               
      

            	
              c)

            	
              after
      the conclusion of this Agreement becomes part of the public domain without
      a breach of this Agreement;

            

    

    
      	
               
      

            	
              d)

            	
              after
      singing of this Agreement is disclosed to a party by a third party not
      under direct or indirect confidentiality obligation to the other
      party;

            

    

    
      	
               
      

            	
              e)

            	
              was
      agreed between the parties for release to other
  parties.

            

    

    
      	
              3.

            	
              This
      confidentiality obligation is valid for ten (10) years from signing of
      this Agreement.

            

    

     

    
      	
              §
      9

            	
              FORCE
      MAJEURE

            

    

     

    No party
shall be liable to the other party in damages or otherwise by reason of any
failure or delay in performance of this Agreement if such delay or failure is
due to any event beyond the control of the parties, including, without
limitation, fire, explosion, weather, disease, war, acts of terrorism,
insurrection, civil strife, riots, government action or power failure, provided,
however, that the party who is unable to perform resumes performance as soon as
possible following the end of the event causing delay or failure. Any deadline
or time for performance specified in this Agreement which falls due during or
subsequent to the occurrence of any of the events referred to above shall be
automatically extended for a period of time equal to the period of delay caused
by any such event.

     

    
      	
              §
      10

            	
              GOVERNING
      LAW AND DISPUTE RESOLUTION

            

    

     

    Governing
Law and Arbitration. This Agreement shall be construed and governed in
accordance with the laws of Austria, without giving effect to conflict of law
provisions of any jurisdiction. In the event that a party to this Agreement
perceives the existence of a dispute with the other party concerning any right
or duty provided for herein, the President, Chief Executive Officer or designee
with authority to resolve the dispute completely, of each of the parties will,
as soon as practicable, confer in an attempt to resolve the dispute. Any and all
claims, disputes or controversies arising under, out of, or in connection with
this Agreement, which have not been resolved in good faith negotiations between
the parties shall be resolved in accordance with the rules, then in effect, of
the American Arbitration Association.   The parties shall share
equally the cost of the Arbitrators. Unless agreed in writing otherwise, the
dispute shall be resolved by a board of three (3) arbitrators. If the
Arbitration is brought by Principal, it shall take place in Vienna, Austria, and
if brought by Contractor, it shall take place in New York City, New York,
U.S.A.  Such independent arbitration shall be conducted by
arbitrator(s) of sufficient education, scientific experience and national
reputation to address such issues.  Unless agreed in writing
otherwise, the board shall be composed of one arbitrator selected by Principal,
one selected by Contractor and one selected by Principal and
Contractor.  If Principal and Contractor cannot agree upon the third
arbitrator within fourteen (14) days after the notice of arbitration, the third
arbitrator shall be selected by the American Arbitration Association in
accordance with its rules.  The decision of such panel shall be final
and binding upon the parties and enforceable in any court of competent
jurisdiction.

    
      
         

      

      
        page 6 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    
      	
              §
      11

            	
              MISCELLANEOUS

            

    

     

    
      	
              1.

            	
              This
      Agreement shall be executed in two (2) copies in English language. Each
      party shall receive a duly signed copy. Annex 1 and Annex 2 mentioned in
      this Agreement form an integral part
thereof.

            

    

    
      	
              2.

            	
              The
      acts to be taken by each party are undertaken by it as an independent
      contractor and not as an agent or partner of the other party. Neither
      party shall enter into or incur, or hold itself out to third parties as
      having authority to enter into or incur, on behalf of the other party, any
      contractual obligations, expenses, or liabilities
    whatsoever.

            

    

    
      	
              3.

            	
              Should
      any provision of this Agreement or any provision subsequently inserted
      into it be or become completely or partially invalid or impracticable, the
      validity of the remainder of the provisions of the Agreement shall not be
      affected thereby. The same shall apply should the Agreement contain an
      unintended gap. The invalid or impracticable provision shall be replaced
      by, and the gap shall be closed by an appropriate provision which to the
      extent legally permissible comes closest to what the parties wanted or
      would have wanted in view of the purpose and intent of this Agreement if
      they had considered the point when concluding this Agreement, or
      subsequently inserting the provision into
it.

            

    

    
      	
              4.

            	
              Without
      the prior written consent of Principal, Contractor is not entitled to
      transfer/assign any rights/obligations under this Agreement to a third
      party.

            

    

    
      	
              5.

            	
              Any
      notice of legal content must be sent in writing by registered mail or fax
      with a conformation copy by mail to the last named address of the other
      party for being legally valid. In case of a time limit, the date of the
      postmark is applied.

            

    

    
      	
              6.

            	
              No
      verbal subsidiary agreements have been made. Modifications/amendments to
      or extensions of this Agreement are only valid if in writing and signed
      for and on behalf of both parties.

            

    

    
      	
              7.

            	
              This
      Agreement supersedes all prior agreement, arrangements and undertakings,
      relating to the subject hereof between the
  parties.

            

    

    

    
      
        
          
            
              	
                      For
      Principal:

                    	 	
                      For
      Contractor:

                    
	 
      	 	 
      
	
                      /s/ Lawrence Helson M.D.
    9/6/07

                    	 	
                      /s/ H. Katinger

                    
	
                      (signature/date)

                    	 	
                      (signature/date)

                    
	 
      	 	 
      
	
                      Lawrence Helson M.D. CEO

                    	 	
                      H. Katinger CEO

                    
	
                      (name/position)

                    	 	
                      (name/position)

                    

            

          

        

      

    

    
      
         

      

      
        page 7 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

    

    Annex
1

    

    Patent

    Title:
Method and Device for Producing Lipid Vesicles

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Country/Region

                              	 	
                                Application Date

                              	 	
                                Patent No.

                              	 	
                                Date of Grant

                              	 	
                                Expiration Date

                              
	
                                Australia

                              	 	
                                31.
      October 2001

                              	 	
                                AU
      2002215987

                              	 	
                                10.
      August 2006

                              	 	
                                31.
      October 2021

                              
	
                                Canada

                              	 	
                                31.
      October 2001

                              	 	
                                CA
      2,427,640

                              	 	
                                5. September 2006

                              	 	
                                31.
      October 2021

                              
	
                                Europe

                              	 	
                                31.
      October 2001

                              	 	
                                EP
      1 337 322

                              	 	
                                9.
      June 2004

                              	 	
                                31.
      October 2021

                              
	
                                USA

                              	 	
                                28.
      August 2003

                              	 	
                                US
      6,843,942

                              	 	
                                18.
      January 2005

                              	 	
                                31.
      October
2021

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        page 8 of
9

        
          

        

      

      
         

      

    

    Exhibit
10.5

     

    Annex
2

     

    Working
Schedule

    
      
        
          
            
              
                
                  	
                          Part

                        	 	
                          Description

                        	 	
                          Time

                        	 	
                          Price

                        
	
                          1

                        	 	
                          The
      preparation of a liposomal formulation of the Ingredient employing a
      composition of lipids defined by Principal (DMPC:DMPG = 90:10 w/w) will be
      optimized applying Polymun’s preparation method in order to generate
      liposomes of the following specifications:

                          Average
      size: 100-125 nm

                          Polydispersity
      index: < 0.25

                          Drug
      / lipid ratio: 1:10 (w/w)

                          Final
      concentration of Ingredient: 5-10 mg/ml

                          Final
      buffer: 0.9% NaCl or another physiological buffer at neutral
      pH

                          All
      preparations will be analyzed with respect to size, zeta potential,
      drug/lipid and loading efficacy. Optimized formulations will be analyzed
      for integrity of lipids, drug and release. Principal will supply the
      GMP-compliant Ingredient and lipids or alternatively cover the costs of
      Ingredient and lipids procured by Contractor. Analytic procedures for the
      Ingredient will be supplied by Principal and established at Polymun. First
      stability testing will be performed. Test samples for analysis and animal
      trials will be prepared.

                          This
      part also includes the manufacture of a pilot batch of liposomes
      containing Ingredient for toxicology testing and a batch of liposomes
      without Ingredient and filled to glass vials. Written production
      procedures will be created for this purpose (“GMP-like material”). The
      maximal volume of this material in sum is 20 liters. Preliminary stability
      testing will be performed (6 months).

                        	 	
                          4
      months

                        	 	
                          €
      100.000

                        
	
                          Go
      / no-go decision by Principal

                        
	
                          2

                        	 	
                          This
      part includes the manufacture of first GMP-compliant material of liposomes
      containing Ingredient according specifications for clinical application.
      The maximal volume per batch is 100 liters. Principal will supply the
      GMP-compliant Ingredient and lipids or alternatively cover the costs of
      Ingredient and lipids procured by Contractor. Sterile filling of the
      material to a maximum of several hundred glass vials will be performed at
      Polymun. For higher numbers of vials a subcontractor will be organized by
      Contactor in agreement with Principal and such additional costs paid by
      Principal.

                          Stability
      studies for the GMP-compliant batch will be performed at Polymun at time
      points (in months): 0, 1, 2, 3, 6, 9, 12, 18 and 24. Stability testing
      will be performed at storage temperature. Additionally, accelerated
      stability studies will be performed. Sufficient documentation for IND or
      IMPD, respectively, will be provided by Contractor to
      Principal.

                        	 	
                          10
      weeks

                          (for
      GMP-

                          material)

                        	 	
                          €
      180.000

                        
	
                          3

                        	 	
                          Additional
      production runs for GMP-compliant material according Part 3 upon notice of
      Principal. Principal will supply the GMP-compliant Ingredient and lipids
      or alternatively cover the costs of Ingredient and lipids procured by
      Contractor.

                        	 	
                          10
      weeks

                        	 	
                          €
      130.000 

                          per
      

                          production

                        

                

              

            

          

        

      

    

     

    Payment
schedule:

     

    50% of
the costs for Part 1 upon signing of this Agreement

    50% of
the costs for Part 1 upon delivery of a summary report about Part 1 plus
material for preclinical studies

    Costs for
Part 2 upon delivery of GMP-compliant batch

    Costs for
Part 3 upon delivery of every additional GMP-compliant batch

    
      
         

      

      
        page 9 of
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