Document:

Exhibit
        10.1

      

      SUBSCRIPTION
        AGREEMENT

      

      THIS
        SUBSCRIPTION AGREEMENT (this “Agreement”) made as of the date set forth on the
        signature page hereof between VioQuest Pharmaceuticals, Inc., a Delaware
        corporation having a place of business at 180 Mount Airy Road, Suite 203,
        Basking Ridge, New Jersey 07920 (the “Company”), and the undersigned (the
“Subscriber”).

      

      WITNESSETH:

      

      WHEREAS,
        the Company is offering (the “Offering”) to a limited number of “accredited
        investors,” as that term is defined by Rule 501(a) of Regulation D (“Regulation
        D”) of the Securities Act of 1933, as amended (the “Securities Act”), shares
        (the “Shares”) of its common stock, par value $0.001 per share (“Common Stock”)
        and warrants to purchase shares of Common Stock (the “Warrants” and collectively
        with the Shares, the “Securities”) on terms and conditions described in this
        Agreement;

      

      WHEREAS,
        the Offering is contingent upon the Company making sales of a number of Shares
        which would provide
        the Company with aggregate gross proceeds of at least $2,500,000
        (the
“Minimum Offering”), and the
        Company
        will sell a maximum number
        of
        Shares which would result in aggregate gross proceeds of $5,000,000 (the
        “Maximum Offering”).

      

      WHEREAS,
        Paramount BioCapital, Inc., is acting as exclusive placement agent (the
“Placement Agent”) for the Offering; and

      

      WHEREAS,
        on the terms and conditions hereinafter set forth, the Subscriber desires
        to
        purchase from the Company, and the Company desires to sell to the Subscriber,
        a
        number of Shares and Warrants.

      

      NOW,
        THEREFORE, in consideration of the promises and the mutual representations
        and
        covenants hereinafter set forth, the parties hereto do hereby agree as
        follows:

      

      
        
          1.
            PURCHASE
            AND SALE OF SECURITIES.

        

      

       

      1.1 Offering.
        The
        Company is offering to a limited number of “accredited investors,” as that term
        is defined by Rule 501(a) of Regulation D of the Securities Act, the Securities
        on terms and conditions described in this Agreement. The Minimum Offering
        Amount
        will be offered on a “all or none, best efforts" basis. The Maximum Offering
        Amount will be offered on a “best efforts” basis. The Subscriber understands,
        however, that this purchase of the Securities is contingent upon the Company
        making aggregate sales equal to or exceeding the Minimum Offering. The per
        Share
        price shall be $0.50 (the
        “Purchase Price”).
        The
        minimum number of Shares purchasable by any single investor shall be equal
        to
        $100,000 divided by the Purchase Price, subject to the discretion of the
        Company
        and the Placement Agent to accept subscriptions for lesser amounts.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.2 Closing.
        At each
        closing (each a “Closing,” and the date thereof, the “Closing Date”), provided
        the Company has received the Minimum Offering Amount, the Company shall issue
        and sell to the Subscriber and the Subscriber shall purchase from the Company,
        a
        number of Shares equal to the quotient resulting from dividing (a) the total
        dollar amount of the Subscriber’s subscription as set forth on the signature
        page hereof that is accepted by the Company and the Placement Agent (the
        “Aggregate Purchase Price” as further defined below) by (b) the Purchase Price
        (the “Subscription Amount”), rounded down to the nearest whole share. In
        addition to the Shares, each Subscriber shall receive a Warrant to purchase
        a
        number of additional Shares of Common Stock (the “Warrant Shares”) equal to 35%
        of the number of Shares purchased in the Offering by such Subscriber. The
        Warrants shall be exercisable at any time prior to the fifth anniversary
        of the
        date of issuance and shall have a per share exercise price equal to the greater
        of (i) $0.73 or (ii) the last closing sale price of the Common Stock on the
        business day immediately preceding the first Closing Date, subject to adjustment
        (the “Warrant Exercise Price”). 

       

      1.3 Closing
        Mechanics.
        The
        Closing shall be held at a date and time designated by the Company and the
        Placement Agent prior to 11:59 p.m. Eastern Standard Time on August 31, 2006
        (subject to extension at the discretion of the Company and the Placement
        Agent
        without notice to the Subscriber of up to 60 days), which date shall be no
        later
        than five (5) Business Days (as defined in Article 5) after satisfaction
        or
        waiver of the closing conditions set forth in Article 4 hereof. The Closing
        shall occur at the offices of the Placement Agent, located at 787 Seventh
        Avenue, New York, New York 10019. Upon
        satisfaction or waiver of all conditions to the Closing, the Placement Agent
        and
        the Company shall instruct US Bank Trust National Association, as escrow
        agent
        (the “Escrow Agent”), to release the proceeds of the Offering to the Company,
        less fees and expenses due to the Placement Agent. Interest, if any, that
        has
        accrued with respect to the Aggregate Purchase Price while in escrow shall
        also
        be distributed to the Company at the Closing and the Subscriber will have
        no
        right to such interest, even if there is no Closing.

       

      1.4 Payment
        of Aggregate Purchase Price.
        Upon,
        or prior to, the execution of this Agreement by the Subscriber, the Subscriber
        shall deposit the amount of readily available funds equal to the Aggregate
        Purchase Price in a segregated escrow account with the Escrow Agent by check
        or
        wire transfer of immediately available funds pursuant to the instructions
        provided below. Subject to the terms and conditions of this Agreement
        (including, without limitation, the Company’s and the Placement Agent’s option,
        each at its sole discretion, to refuse to accept subscriptions, in whole
        or in
        part, from any Subscriber), the Subscriber hereby subscribes for and agrees
        to
        purchase from the Company such number of Securities and the Company agrees
        to
        sell such number of Securities to the Subscriber as is set forth upon the
        signature page hereof at the Aggregate Purchase Price as accepted by the
        Company
        and the Placement Agent.

       

      
        
          
          

        

        
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      US
        Bank Trust National Association

      ABA
        Routing Number: 091000022

      US
        Bank and Trust Corp. Account Number: 180121167365

      For:
        VioQuest/Paramount BioCapital

      SEI
        Number: 100447000

      Reference:
        [Investor Name]

      Attn:
        Angela Rieger

      

      The
        Subscriber must complete and return a duly executed, unaltered copy of this
        Agreement (including the completed Confidential Investor Questionnaire included
        in Article 7 hereof (the “Confidential Investor Questionnaire”)) to the
        Placement Agent at the Placement Agent’s address indicated in the Memorandum (as
        defined below) on or before the date indicated to the Subscriber by the
        Placement Agent to be eligible to participate in the Offering. The Company
        and
        the Placement Agent retain complete discretion to accept or reject any
        subscription unless and until the Company executes a counterpart to this
        Agreement that includes such Subscriber’s signature.

      

      1.5 Delivery
        of Certificates.
        The
        Company shall deliver, or cause to be delivered, the certificates representing
        the Securities purchased by the Subscriber hereunder as soon as practical
        after
        the Closing to the Subscriber’s residential or business address indicated on the
        signature page hereto.

       

      2. REPRESENTATIONS
        AND WARRANTIES OF SUBSCRIBER.

      

      The
        Subscriber hereby represents and warrants to the Company as of the date hereof
        and the Closing Date as follows:

      

      2.1 The
        Subscriber understands, acknowledges and agrees that the purchase of the
        Securities involves a high degree of risk including, but not limited to,
        the
        following: (i) an investment in the Company is highly speculative, and only
        investors who can afford the loss of their entire investment should consider
        investing in the Company and the Securities; (ii) the Subscriber may not
        be able
        to liquidate its investment; (iii) transferability of the Securities is
        extremely limited; (iv) in the event of a disposition of the Securities,
        the
        Subscriber could sustain the loss of its entire investment; and (v) since
        the
        Company has been a publicly-traded company, the Company has not paid any
        dividends on its Common Stock and does not anticipate the payment of dividends
        in the foreseeable future.

      

      2.2 The
        Subscriber is an “accredited investor” as such term is defined in Rule 501 of
        Regulation D promulgated under the Securities Act, as indicated by the
        Subscriber’s responses to the questions contained in the Confidential Investor
        Questionnaire, which are true and correct as of the date hereof and shall
        be
        true and correct as of the Closing Date, and that the Subscriber is able
        to bear
        the economic risk of an investment in the Company. If the Subscriber is a
        natural person, the Subscriber has reached the age of majority in the state
        or
        other jurisdiction in which the Subscriber resides, has adequate means of
        providing for the Subscriber’s current financial needs and contingencies, is
        able to bear the substantial economic risks of an investment in the Securities
        for an indefinite period of time, has no need for liquidity in such investment
        and, at the present time, could afford a complete loss of such
        investment.

       

      
        
          
          

        

        
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      2.3 The
        Subscriber understands, acknowledges and agrees that: (i) the Subscriber
        is
        knowledgeable, sophisticated and has experience in making, and is qualified
        to
        make, decisions with respect to investments representing an investment decision
        like that involved in the purchase of the Securities and has prior investment
        experience, including investment in securities which are non-listed,
        unregistered and/or not traded on the New York Stock Exchange, AMEX, the
        National Market or SmallCap Market of the National Association of Securities
        Dealers, Inc. (“NASD”) Automated Quotation System or any other national stock
        exchange; (ii) the investment in the Securities is of a highly speculative
        nature and involves a significant degree of risk, that the market price of
        the
        Common Stock has been and continues to be volatile and that Subscriber has
        carefully evaluated the risks of an investment in the Securities; and (iii)
        the
        Subscriber is able to bear the economic risk of an investment in the Securities
        and the potential loss of such investment, which risk the Subscriber hereby
        assumes.

      

      2.4 The
        Subscriber has received and carefully reviewed this Agreement, the Company’s
        Confidential Offering Memorandum dated July 28, 2006 (together with all
        exhibits, appendices, supplements or amendments thereto, the “Memorandum),
        including the following documents filed by the Company with the Securities
        and
        Exchange Commission (the “SEC”, and such documents, the “SEC Filings”) and
        included as exhibits to the Memorandum: Post-Effective
        Amendment to Registration Statement on Form SB-2 filed with the SEC on April
        14,
        2006; Quarterly Report on Form 10-QSB for the three months ended March 31,
        2006;
        Current Reports on Form 8-K filed April 6, 2006 and May 25, 2006, respectively;
        and Definitive Proxy Statement filed April 14, 2006. The
        Subscriber further represents that the Subscriber has been furnished by the
        Company during the course of this transaction with all information regarding
        the
        Company which the Subscriber, its investment advisor, attorney and/or accountant
        has requested or desired to know or which is otherwise relevant to an investment
        decision, has been afforded the opportunity to ask questions of and receive
        answers from duly authorized officers or other representatives of the Company
        concerning the terms and conditions of the Offering, and has received any
        additional information which the Subscriber or its advisors or agents has
        requested.

      

      2.5 (a) The
        Subscriber has relied solely upon the information provided by the Company
        in
        making the decision to invest in the Securities. The Subscriber is familiar
        with
        and understands the terms of the Offering, including the rights to which
        the
        Subscriber is entitled under this Agreement. In evaluating the suitability
        of an
        investment in the Company, the Subscriber has not relied upon any representation
        or other information (whether oral or written) from the Company, or any agent,
        employee or Affiliate of the Company other than as set forth in the Memorandum,
        in this Agreement or resulting from the results of the Subscriber’s own
        independent investigation. The Subscriber understands and acknowledges that
        nothing in this Agreement, the Memorandum or any other materials provided
        to the
        Subscriber in connection with the subscription for the Securities or sale
        of the
        Securities constitutes investment, tax or legal advice. To the extent deemed
        necessary or advisable by the Subscriber in its sole discretion, the Subscriber
        has retained, at its sole expense, and relied upon appropriate professional
        advice regarding the investment, tax and legal merits and consequences of
        this
        Agreement and its purchase of the Securities hereunder. 

       

      
        
          
          

        

        
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      (b) No
        Securities were offered or sold to the Subscriber by means of any form of
        general solicitation or general advertising, and in connection therewith
        the
        Subscriber did not: (A) receive or review any advertisement, article, notice
        or
        other communication published in a newspaper or magazine or similar media
        or
        broadcast over television or radio whether closed circuit, or generally
        available; or (B) attend any seminar meeting or industry investor conference
        whose attendees were invited by any general solicitation or general
        advertising.

      

      2.6 The
        Subscriber, either by reason of the Subscriber’s business or financial
        experience or the business or financial experience of the Subscriber’s
        professional advisors, has the capacity to protect the Subscriber’s own
        interests in connection with the transaction contemplated hereby. 

      

      2.7 The
        Subscriber understands, acknowledges and agrees that the Offering has not
        been
        reviewed, recommended or endorsed by the SEC or any state securities regulatory
        authority or other governmental body or agency, since the Offering is intended
        to be exempt from the registration requirements of Section 5 of the Securities
        Act pursuant to Regulation D promulgated under the Securities Act. The
        Subscriber shall not sell or otherwise transfer the Securities unless such
        transfer is registered under the Securities Act or unless an exemption from
        such
        registration is available. The Subscriber understands that if required by
        the
        laws or regulations or any applicable jurisdictions, the Offering contemplated
        hereby will be submitted to the appropriate authorities of such state(s)
        for
        registration of exemption therefrom. 

      

      2.8 The
        Subscriber understands, acknowledges and agrees that the Securities have
        not
        been registered under the Securities Act in reliance upon a claimed exemption
        under the provisions of the Securities Act which depends, in part, upon the
        Subscriber’s investment intention and the truth and accuracy of, and
        Subscriber’s compliance with, the representations, warranties, acknowledgments
        and covenants of Subscriber set forth herein. In this connection, the Subscriber
        hereby represents that the representations, warranties, acknowledgments and
        covenants of Subscriber set forth herein are true and correct, Subscriber
        will
        comply with the covenants set forth herein, and the Subscriber is purchasing
        the
        Securities for the Subscriber’s own account for investment purposes only and not
        with a view toward the resale or distribution to others and has no contract,
        undertaking, agreement or other arrangement, in existence or contemplated,
        to
        sell, pledge, assign or otherwise transfer the Securities to any other Person
        (as defined in Article 5). The Subscriber, if an entity, also represents
        that it
        was not formed for the purpose of purchasing the Securities. The Subscriber
        has
        no current plans to effect a “change of control” of the Company, as such term is
        understood in Rule 13d of the Exchange Act.

      

      2.9 The
        Subscriber understands that the Securities will not be registered or available
        for sale in the public markets except as specifically provided herein, and
        Rule
        144 promulgated under the Securities Act (“Rule 144”) requires, among other
        conditions, a one-year holding period prior to the resale (in limited amounts)
        of securities acquired in a non-public offering (and a two-year holding period
        for unlimited sales by non-Affiliates of the Company) without having to satisfy
        the registration requirements under the Securities Act. The Subscriber
        understands and hereby acknowledges that the Company is under no obligation
        to
        register any of the Securities under the Securities Act or any state securities
        or “blue sky” laws or assist the Subscriber in obtaining an exemption from
        various registration requirements, other than as set forth in Article 5 herein.
        

       

      
        
          
          

        

        
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      2.10 The
        Subscriber consents to the placement of a legend on any certificate or other
        document evidencing the Securities substantially as set forth below, that
        such
        Securities have not been registered under the Securities Act or any state
        securities or “blue sky” laws and setting forth or referring to the restrictions
        on transferability and sale thereof contained in this Agreement. The Subscriber
        is aware that the Company will make a notation in its appropriate records
        with
        respect to the restrictions on the transferability of the Securities.

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY
        STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
        RESALE AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
        EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
        ACT AND
        APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE
        AND SCOPE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT
        REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND APPLICABLE STATE
        SECURITIES LAWS.

       

      2.11 The
        Subscriber agrees to supply
        the Company, within five (5) days after the Subscriber receives the request
        therefor from the Company, with such additional information concerning the
        Subscriber as the Company deems necessary or advisable in order to establish
        or
        verify the Subscriber’s representations contained herein.

      

      2.12 The
        address of the Subscriber furnished by Subscriber on the signature page hereof
        is the Subscriber’s principal residence if Subscriber is an individual or its
        principal business address if it is a corporation or other entity.

      

      2.13 The
        Subscriber has full power and authority (corporate or otherwise) to execute,
        deliver, and perform this Agreement and to purchase the Securities and has
        taken
        all action necessary to authorize the execution, delivery and performance
        of
        this Agreement. This Agreement constitutes the legal, valid and binding
        obligation of the Subscriber, enforceable against the Subscriber in accordance
        with its terms, subject to laws of general application relating to bankruptcy,
        insolvency and the relief of debtors and rules of law governing specific
        performance, injunctive relief or other equitable remedies, and to limitations
        of public policy.

      

      2.14 If
        the
        Subscriber is a corporation, partnership, limited liability company, trust,
        employee benefit plan, individual retirement account, Keogh Plan, or other
        entity (a) it is authorized and qualified to become an investor in the Company
        and the Person signing this Agreement on behalf of such entity has been duly
        authorized by such entity to do so and (b) it is duly organized, validly
        existing and in good standing under the laws of the jurisdiction of its
        organization.

       

      
        
          
          

        

        
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      The
        Subscriber acknowledges that if he or she is a Registered Representative
        of an
        NASD member firm, he or she must give such firm the notice required by NASD
        Rule
        3050, receipt of which must be acknowledged by such firm in Section 7.4 below
        in
        accordance with such rules.

      

      2.16 The
        Subscriber understands, acknowledges and agrees that this subscription may
        be
        rejected, in whole or in part, by the Company or the Placement Agent, in
        each of
        their sole and absolute discretion, at any time before any Closing Date
        notwithstanding prior receipt by the Subscriber of notice of acceptance of
        the
        Subscriber’s subscription. The Subscriber hereby authorizes and directs the
        Company to return, without interest, any funds for unaccepted subscriptions
        to
        the same account from which the funds were drawn, including any customer
        account
        maintained by the Subscriber with the Placement Agent.

       

      2.17 The
        Subscriber understands, acknowledges and agrees with the Company that except
        as
        otherwise set forth herein, the subscription hereunder is irrevocable by
        the
        Subscriber, that, except as required by law, the Subscriber is not entitled
        to
        cancel, terminate or revoke this Agreement or any agreements of the Subscriber
        hereunder and that this Agreement and such other agreements shall survive
        the
        death or disability of the Subscriber and shall be binding upon and inure
        to the
        benefit of the parties and their heirs, executors, administrators, successors,
        legal representatives and permitted assigns. If the Subscriber is more than
        one
        Person, the obligations of the Subscriber hereunder shall be joint and several
        and the agreements, representations, warranties and acknowledgments herein
        contained shall be deemed to be made by and be binding upon each such Person
        and
        its heirs, executors, administrators, successors, legal representatives and
        permitted assigns.

      

      2.18 The
        Subscriber understands, acknowledges and agrees with the Company that, the
        Offering is intended to be exempt from registration under the Securities
        Act by
        virtue of Section 4(2) of the Securities Act and the provisions of Regulation
        D,
        and/or the provisions of Regulation S which is in part dependent upon the
        truth,
        completeness and accuracy of the statements made by the Subscriber.

      

      2.19 The
        Subscriber understands, acknowledges and agrees that there can be no assurance
        that the Subscriber will be able to sell or dispose of the Securities. It
        is
        understood than in order not to jeopardize the Offering’s exempt status under
        Section 4(2) of the Securities Act and Regulation D, in addition to any other
        restrictions on transfer set forth herein or in the Warrants, the Company
        may,
        at a minimum, require any transferee to fulfill the Subscriber suitability
        requirements thereunder and make the representations, warranties and covenants
        of Subscriber hereunder.

      

      2.20 The
        Subscriber represents and warrants that during the period commencing upon
        the
        date that the Subscriber was first contacted with respect to the Offering
        (the
“First Date”) the Subscriber has not, directly or indirectly, through related
        parties, Affiliates or otherwise, sold “short” or “short against the box” (as
        such terms are generally understood) and until the Registration Statement
        (as
        defined in Article VI) is declared effective, will not sell "short" or "short
        against the box" any equity security of the Company or take any action with
        respect to any equity security of the Company which would violate the Securities
        Act or the rules and regulations promulgated thereunder and from the First
        Date
        through the Closing Date or termination of this Agreement has not and will
        not
        take any action the intent or reasonably foreseeable effect of which is to
        reduce the trading price of the Common Stock.

       

      
        
          
          

        

        
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      2.21 The
        Subscriber understands, acknowledges and agrees that the existence of and
        information contained in this Agreement, the Memorandum or otherwise made
        available to the Subscriber by the Company (collectively, the “Confidential
        Information”) is to be used solely for the purpose of evaluating a possible
        investment in the Securities and is confidential and non-public and agrees
        that
        all such Confidential Information shall be kept in confidence by the Subscriber
        and neither used by the Subscriber for the Subscriber’s personal benefit (other
        than in connection with evaluating a possible investment in the Securities)
        nor
        disclosed to any third party for any reason and in any manner, notwithstanding
        that a Subscriber’s subscription may not be accepted by the Company;
provided,
        however,
        that
        this obligation shall not apply to any such Confidential Information that
        (i) is
        part of the public knowledge or literature and readily accessible at the
        date
        hereof (except as a result of a breach of this provision by any party) or
        (ii)
        becomes part of the public knowledge or literature and readily accessible
        by
        publication (except as a result of a breach of this provision by any
        party).

      

      2.22 If
        the
        Subscriber is purchasing the Securities in a fiduciary capacity for another
        Person, including without limitation a corporation, partnership, trust or
        any
        other entity, the Subscriber has been duly authorized and empowered to execute
        this Agreement and all other subscription documents, and such other Person
        fulfills all the requirements for purchase of the Securities as such
        requirements are set forth herein, concurs in the purchase of the Securities
        and
        agrees to be bound by the obligations, representations, warranties and covenants
        contained herein. Upon request of the Company, the Subscriber will provide
        true,
        complete and correct copies of all relevant documents creating the Subscriber,
        authorizing its investment in the Company and/or evidencing the satisfaction
        of
        the foregoing.

      

      2.23 No
        authorization, approval, consent or license of any Person is required to
        be
        obtained for the purchase of the Securities
        by the
        Subscriber, other than as have been obtained and are in full force and effect.
        The execution and delivery of this Agreement does not, and the consummation
        of
        the transactions contemplated hereby will not, result in any violation of
        or
        constitute a default under any material agreement or other instrument to
        which
        the Subscriber is a party or by which the Subscriber or any of its properties
        are bound, or to the best of the Subscriber’s knowledge, any permit, franchise,
        judgment, order, decree, statute, rule or regulation to which the Subscriber
        or
        any of its businesses or properties is subject.

      

      2.24 The
        Subscriber understands, acknowledges and agrees that the representations,
        warranties and agreements of the Subscriber contained herein (including the
        Confidential Investor Questionnaire), in the Registration Questionnaire attached
        hereto as Appendix A (the “Registration Questionnaire”) and in any other writing
        delivered in connection with the transactions contemplated hereby shall be
        true
        and correct on the date hereof and as of the Closing Date as if made on and
        as
        of such date (except for representations, warranties and agreements as of
        a
        specific date, which shall be true and correct as of such date) and shall
        survive the execution and delivery of this Agreement and the purchase of
        the
        Securities. The Subscriber agrees that the Placement Agent shall be entitled
        to
        rely on the representations, warranties and agreements of the Subscriber
        contained herein as if such representations, warranties and agreements were
        made
        or provided directly to the Placement Agent.

       

      
        
          
          

        

        
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      2.25 The
        Subscriber hereby covenants with the Company not to make any sale of the
        Securities under the Registration Statement without effectively causing the
        prospectus delivery requirements under the Securities Act to be satisfied,
        and
        further agrees to comply with reasonable requests of the Company or its transfer
        agent to provide additional information and representations concerning such
        sale.

      

      2.26 (a)
        The
        Subscriber agrees, acknowledges and understands that the Placement Agent
        is
        acting as placement agent for the Securities being offered hereby and will
        be
        compensated by the Company for acting in such capacity, including, but not
        limited to, by: (i) placement fees in cash equal to up to seven percent (7%)
        of
        the proceeds received by the Company at the Closing; and (ii) warrants (the
        “Placement Warrants”) to purchase a number of shares of Common Stock (the
“Placement Warrant Shares”) equal to ten percent (10%) of the number of Shares
        actually sold by the Company in connection with the Offering (not including
        shares of Common Stock issuable upon exercise or conversion of warrants or
        other
        securities for which no cash consideration was received upon issuance); and
        (iv)
        reimbursement of its reasonable, documented expenses (including reasonable
        legal
        fees) incurred in connection with the Offering (which reimbursement shall
        not
        exceed $30,000). The Placement Warrants shall have an exercise price per
        share
        equal to 110% of the Purchase Price per share. The Subscriber shall not be
        entitled to reimbursement of any expenses incurred by the Subscriber in
        connection with the Offering. The Placement Agent will receive the commissions
        and Placement Warrants discussed above on all subsequent investments in Company
        securities made by investors introduced to the Company by the Placement Agent
        in
        connection with this Offering for a period of twelve (12) months from the
        Final
        Closing Date.

      

      (b) The
        Subscriber agrees, acknowledges and understands that the Placement Agent
        may
        engage other Persons, selected by it in its discretion, who are members of
        the
        NASD or who are located outside the United States, to assist the Placement
        Agent
        in connection with this Offering. 

      

      3. REPRESENTATIONS
        BY AND COVENANTS OF THE COMPANY.

      

      The
        Company hereby represents and warrants to the Subscriber as of the date hereof
        and the Closing Date that:

      

      3.1 Organization,
        Good Standing and Qualification.
        The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware and has full corporate power and
        authority to conduct its business as currently conducted. The Company is
        duly
        qualified as a foreign corporation to do business and is in good standing
        in
        every jurisdiction in which the property owned or leased by it or the nature
        of
        the business conducted by it makes such qualification necessary, except to
        the
        extent that the failure to be so qualified or in good standing would not
        reasonably be expected to have, individually or in the aggregate, a material
        adverse effect on the business, operations, conditions (financial or otherwise),
        properties, assets, liabilities, or results of operations of that entity
        individually or of the Company and its Subsidiaries (as defined below) as
        a
        whole (a “Material
        Adverse Effect”).
        For
        purposes of this Section, “Subsidiary”
        means
        any corporation, partnership, limited liability company, association, or
        other
        business entity in which the Company owns or controls, directly or indirectly,
        any interest, including, without limitation, any joint venture, partnership,
        or
        similar arrangement.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      3.2 Capitalization.

      

      (a)
        The
        authorized capital stock of the Company consists of 100,000,000 shares of
        Common
        Stock and 10,000,000 shares of preferred stock. As of the date of the
        Memorandum, there were 46,729,519 shares of Common Stock issued and outstanding,
        all of which are duly authorized, validly issued, fully paid and non-assessable,
        and no shares of preferred stock outstanding. In addition, there are 18,643,971
        shares of Common Stock reserved for issuance pursuant to outstanding options
        and
        warrants. All of the securities issued by the Company have been issued in
        accordance with all applicable federal and state securities laws. Other than
        as
        set forth above, there are no other options, warrants, calls, rights,
        commitments or agreements of any character to which the Company is a party
        or by
        which the Company is bound or obligating the Company to issue, deliver, sell,
        repurchase or redeem, or cause to be issued, delivered, sold, repurchased
        or
        redeemed, any shares of the capital stock of the Company or obligating the
        Company to grant, extend or enter into any such option, warrant, call, right,
        commitment or agreement. Except as set forth in the Memorandum, there are
        no
        preemptive rights or rights of first refusal or similar rights which are
        binding
        on the Company permitting any Person to subscribe for or purchase from the
        Company shares of its capital stock pursuant to any provision of law, the
        Company’s Certificate of Incorporation as in effect on the date hereof (the
“Certificate of Incorporation”) or the Company’s By-laws, as in effect on the
        date hereof (the “By-laws”) or by agreement or otherwise. Except as set forth in
        the Memorandum, there are no securities or instruments containing anti-dilution
        or similar provisions that will be triggered by the issuance of the Securities
        as described in this Agreement. The Company has made available to the Placement
        Agent true, correct and complete copies of the Company’s Certificate of
        Incorporation and By-laws.

      

      (b) The
        Company’s only Subsidiaries are Chiral Quest, Inc. (including its subsidiary
        Chiral Quest Jiashan Ltd) and Greenwich Therapeutics Inc. The Company owns
        all
        of the issued and outstanding shares of capital stock of the Subsidiaries.
        There
        are no outstanding securities, options, warrants, rights or agreements or
        other
        commitments pursuant to which any Subsidiary is or may become obligated to
        issue
        any shares of its capital stock, or any securities convertible into or
        exercisable or exchangeable for such capital stock

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      3.3 Authorization;
        Enforceability.
        The
        Company has all corporate right, power and authority to enter into this
        Agreement and to consummate the transactions contemplated hereby. All corporate
        action on the part of the Company, its directors and stockholders necessary
        for
        the (i) authorization execution, delivery and performance of this Agreement
        by
        the Company; and (ii) authorization, sale, issuance and delivery of the
        Securities contemplated hereby and the performance of the Company's obligations
        hereunder has been taken. This Agreement has been duly executed and delivered
        by
        the Company and constitutes a legal, valid and binding obligation of the
        Company, enforceable against the Company in accordance with its terms, subject
        to laws of general application relating to bankruptcy, insolvency and the
        relief
        of debtors and rules of law governing specific performance, injunctive relief
        or
        other equitable remedies, and to limitations of public policy. The Shares,
        when
        issued and fully paid for in accordance with the terms of this Agreement,
        will
        be validly issued, fully paid and non-assessable. The Warrant Shares, when
        issued in accordance with the terms of the Warrants, will be validly issued,
        full paid and non-assessable. The issuance and sale of the Securities
        contemplated hereby will not give rise to any preemptive rights or rights
        of
        first refusal on behalf of any person which have not been waived in connection
        with this Offering.

      

      3.4 No
        Conflict; Governmental Consents.

      

      (a) Except
        as
        would not reasonably be expected to have a Material Adverse Effect, the
        execution and delivery by the Company of this Agreement and the consummation
        of
        the transactions contemplated hereby will not result in the violation of
        any
        law, statute, rule, regulation, order, writ, injunction, judgment or decree
        of
        any court or governmental authority to or by which the Company is bound,
        or of
        any provision of the Certificate of Incorporation or By-Laws of the Company,
        and
        will not conflict with, or result in a breach or violation of, any of the
        terms
        or provisions of, or constitute (with due notice or lapse of time or both)
        a
        default under, any lease, loan agreement, mortgage, security agreement, trust
        indenture or other agreement or instrument to which the Company is a party
        or by
        which it is bound or to which any of its properties or assets is subject,
        nor
        result in the creation or imposition of any lien upon any of the properties
        or
        assets of the Company.

      

      (b) No
        consent, approval, authorization or other order of any governmental authority
        or
        other third party is required to be obtained by the Company in connection
        with
        the authorization, execution and delivery of this Agreement or with the
        authorization, issue and sale of the Securities, except such filings as may
        be
        required to be made with the SEC and with any state or foreign blue sky or
        securities regulatory authority relating to an exemption from registration
        thereunder.

      

      3.5 Licenses.
        Except
        as otherwise set forth in the Memorandum or as would not reasonably be expected
        to have a Material Adverse Effect, the Company has sufficient licenses, permits
        and other governmental authorizations currently required for the conduct
        of its
        business or ownership of properties and is in all material respects complying
        therewith.

      

      3.6 Litigation.
        There
        is no pending, or to the Company’s knowledge, threatened legal or governmental
        proceedings against the Company which (i) adversely questions the validity
        of
        this Agreement or any agreements related to the transactions contemplated
        hereby
        or the right of the Company to enter into any of such agreements, or to
        consummate the transactions contemplated hereby or thereby or (ii) could,
        if
        there were an unfavorable decision, have a Material Adverse Effect. There
        is no
        action, suit, proceeding or investigation by the Company currently pending
        in
        any court or before any arbitrator or that the Company intends to
        initiate.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      3.7 Investment
        Company
        The
        Company is not an “investment company” within the meaning of such term under the
        Investment Company Act of 1940, as amended, and the rules and regulations
        of the
        SEC thereunder.

      

      3.8 Financial
        Statements.
        The
        financial statements of the Company included in the SEC Filings (the
"Financial
        Statements")
        fairly
        present in all material respects the financial condition and position of
        the
        Company at the dates and for the periods indicated; and have been prepared
        in
        conformity with generally accepted accounting principles in the United States
        (“GAAP”)
        consistently applied throughout the periods covered thereby, except as may
        be
        otherwise specified in such Financial Statements or the notes thereto and
        except
        that unaudited financial statements may not contain all footnotes required
        by
        GAAP, and fairly present in all material respects the financial position
        of the
        Company as of and for the dates thereof and the results of operations and
        cash
        flows for the periods then ended, subject, in the case of unaudited statements,
        to normal, immaterial, year-end audit adjustments. Since the date of the
        most
        recent balance sheet included as part of the Financial Statements, there
        has not
        been to the Company’s knowledge: (i) any change in the business, conditions
        (financial or otherwise), properties, assets, liabilities, or results of
        operations of the Company from that reflected in the Financial Statements,
        other
        than changes in the ordinary course of business, none of which individually
        or
        in the aggregate would reasonably be expected to have a Material Adverse
        Effect;
        or (ii) any other event or condition of any character that, either individually
        or cumulatively, would reasonably be expected to have a Material Adverse
        Effect,
        except for the expenses incurred in connection with the transactions
        contemplated by this Agreement.

      

      3.9 Title
        to Properties and Assets; Liens, Etc.
        The
        Company has good and marketable title to its properties and assets, including
        the properties and assets reflected in the most recent balance sheet included
        in
        the Financial Statements, and good title to its leasehold estates, in each
        case
        subject to no mortgage, pledge, lien, lease, encumbrance or charge, other
        than
        (a) those resulting from taxes which have not yet become delinquent; (b)
        liens
        and encumbrances which do not materially detract from the value of the property
        subject thereto or materially impair the operations of the Company; (c) those
        that have otherwise arisen in the ordinary course of business; and (d) those
        that would not reasonably be expected to have a Material Adverse Effect.
        The
        Company is in compliance with all material terms of each lease to which it
        is a
        party or is otherwise bound.

      

      3.10 Obligations
        to Related Parties.
        Except
        as disclosed in the Memorandum or as would not reasonably be expected to
        have a
        Material Adverse Effect, there are no obligations of the Company to officers,
        directors, stockholders, or employees of the Company other than (a) for payment
        of salary or other compensation for services rendered, (b) anti-dilution
        provisions in favor of the Company’s Chief Executive Officer, as described in
        the Memorandum under the caption “The Offering and Related Matters - Option
        Grant to Chief Executive Officer”, (c) reimbursement for reasonable expenses
        incurred on behalf of the Company, (d) standard indemnification provisions
        in
        the certificate of incorporation and by-laws, and (e) for other standard
        employee benefits made generally available to all employees (including stock
        option agreements outstanding under any stock option plan approved by the
        Board
        of Directors of the Company). Except as may be disclosed in the Financial
        Statements, the Company is not a guarantor or indemnitor of any indebtedness
        of
        any other person, firm or corporation.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      3.11 Employee
        Relations; Employee Benefit Plans.
        The
        Company is not a party to any collective bargaining agreement or union contract.
        The Company believes that its relations with its employees are good. No
        executive officer (as defined in Rule 501(f) of the Securities Act) of the
        Company has notified the Company that such officer intends to leave the Company
        or otherwise terminate such officer's employment with the Company. The Company
        is in compliance with all federal, state, local and foreign laws and regulations
        respecting employment and employment practices, terms and conditions of
        employment and wages and hours, except where failure to be in compliance
        would
        not, either individually or in the aggregate, reasonably be expected to result
        in a Material Adverse Effect. Except as disclosed in the Memorandum, the
        Company
        does not maintain any compensation or benefit plan, agreement, arrangement
        or
        commitment (including, but not limited to, "employee benefit plans", as defined
        in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
        amended ("ERISA"))
        for
        any present or former employees, officers or directors of the Company or
        with
        respect to which the Company has liability or makes or has an obligation
        to make
        contributions, other than any such plans, agreements, arrangements or
        commitments made generally available to the Company’s employees.

      

      3.12 Environmental
        Laws.
        To the
        knowledge of the Company, it (i) is in compliance with any and all Environmental
        Laws (as hereinafter defined), (ii) has received all permits, licenses or
        other
        approvals required of it under applicable Environmental Laws to conduct its
        business and (iii) is in compliance with all terms and conditions of any
        such
        permit, license or approval where, in each of the foregoing clauses (i),
        (ii)
        and (iii), the failure to so comply would reasonably be expected to have,
        individually or in the aggregate, a Material Adverse Effect. The term
"Environmental
        Laws"
        means
        all federal, state, local or foreign laws relating to pollution or protection
        of
        human health or the environment (including, without limitation, ambient air,
        surface water, groundwater, land surface or subsurface strata), including,
        without limitation, laws relating to emissions, discharges, releases or
        threatened releases of chemicals, pollutants, contaminants, or toxic or
        hazardous substances or wastes (collectively, "Hazardous
        Materials")
        into
        the environment, or otherwise relating to the manufacture, processing,
        distribution, use, treatment, storage, disposal, transport or handling of
        Hazardous Materials, as well as all authorizations, codes, decrees, demands
        or
        demand letters, injunctions, judgments, licenses, notices or notice letters,
        orders, permits, plans or regulations issued, entered, promulgated or approved
        thereunder.

      

      3.13 Tax
        Status.
        To the
        knowledge of the Company, it (i) has made or filed all federal and state
        income
        and all other tax returns, reports and declarations required by any jurisdiction
        to which it is subject, (ii) has paid all taxes and other governmental
        assessments and charges that are material in amount, shown or determined
        to be
        due on such returns, reports and declarations, except those being contested
        in
        good faith and (iii) has set aside on its books provision reasonably adequate
        for the payment of all taxes for periods subsequent to the periods to which
        such
        returns, reports or declarations apply. There are no unpaid taxes in any
        material amount claimed to be due by the taxing authority of any jurisdiction,
        and the officers of the Company know of no basis for any such
        claim.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      3.14 Proprietary
        Rights.
        To the
        Company’s knowledge, the Company owns or possesses adequate and enforceable
        rights to use all patents, patent applications, trademarks, trade names,
        corporate names, copyrights, trade secrets, licenses, inventions, formulations,
        technology and know-how and other intangible property used in the conduct
        of its
        business as described in the Memorandum (the “Proprietary
        Rights”).
        Except as described in the Memorandum, to the Company’s knowledge, the Company
        has not received any notice of, and there are no facts known to the Company
        that
        reasonably indicate the existence of (i) any infringement or misappropriation
        by
        any third party of any of the Proprietary Rights or (ii) any claim by a third
        party contesting the validity of any of the Proprietary Rights. The Company
        has
        not received any notice of any infringement, misappropriation or violation
        by
        the Company or any of its employees of any Proprietary Rights of third
        parties

       

      3.15 Absence
        of Certain Changes.
        Except
        as set forth in the Memorandum, since the date of the Memorandum, there has
        been
        no material adverse change in the business, operations, conditions (financial
        or
        otherwise), prospects, assets or results of operations of the Company or
        any of
        its Subsidiaries.

       

      3.16 Disclosure.
        The
        information set forth in the Memorandum as of the date hereof contains no
        untrue
        statement of a material fact nor omits to state a material fact necessary
        in
        order to make the statements contained therein, in light of the circumstances
        under which they were made, not misleading.

      

      4. CONDITIONS
        TO OBLIGATIONS OF EACH PARTY.

      

      4.1 Conditions
        to Obligations of the Company.
        The
        Company’s obligation to complete the sale and issuance of the Securities and
        deliver the Securities to the Subscriber at the Closing is subject to the
        fulfillment on or prior to the Closing of the following conditions, which
        conditions may be waived at the option of the Company to the extent permitted
        by
        law:

      

      (a) Representations
        and Warranties Correct.
        The
        representations and warranties made by the Subscriber in Article 2 hereof
        shall
        be true and correct when made, and shall be true and correct on and as of
        the
        Closing Date (except for any representation or warranty that speaks as of
        a
        specific date, which shall be true and correct as of such date).

      

      (b) Covenants.
        All
        covenants, agreements and conditions contained in this Agreement to be performed
        by the Subscriber on or prior to such sale and issuance shall have been
        performed or complied with in all material respects.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      (c) No
        Legal Order Pending.
        There
        shall not then be in effect any legal or other order enjoining or restraining
        the transactions contemplated by this Agreement.

      

      (d) No
        Law
        Prohibiting or Restricting Such Sale.
        There
        shall not be in effect any law, rule or regulation prohibiting or restricting
        the issuance and sale of the Securities or requiring any consent or approval
        of
        any Person which shall not have been obtained to issue or sell the Securities,
        or in either case to otherwise consummate the transactions contemplated hereby
        (except as otherwise provided in this Agreement).

      

      (e) Payment
        of Consideration.
        The
        Company shall have received the full amount of the Aggregate Purchase Price
        for
        the Securities being purchased hereunder at the Closing.

      

      (f) Questionnaires.
        The
        Subscriber shall have completed, executed and delivered to the Company the
        Confidential Investor Questionnaire and the Registration Questionnaire, which
        questionnaires shall be true and correct as of the Closing and shall be
        satisfactory to the Placement Agent and the Company, each in their sole
        discretion.

      

      (g) Minimum
        Offering.
        The
        Company shall have received duly executed subscriptions and corresponding
        readily available funds shall have been deposited into the Escrow Account
        from
        Subscribers equal to or in excess of the Minimum Offering.

      

      4.2 The
        Subscriber’s obligation to purchase the Securities at the Closing is subject to
        the fulfillment on or prior to the Closing of the following conditions, which
        conditions may be waived at the option of each Subscriber to the extent
        permitted by law:

      

      (a) Representations
        and Warranties Correct.
        The
        representations and warranties made by the Company in Article 3 hereof shall
        be
        true and correct when made, and shall be true and correct on and as of the
        Closing Date (except for any representation or warranty that speaks as of
        a
        specific date, which shall be true and correct as of such date).

      

      (b) Covenants.
        All
        covenants, agreements and conditions contained in this Agreement to be performed
        by the Company on or prior to such purchase shall have been performed or
        complied with in all material respects.

      

      (c) No
        Legal Order Pending.
        There
        shall not then be in effect any legal or other order enjoining or restraining
        the transactions contemplated by this Agreement.

      

      (d) No
        Law
        Prohibiting or Restricting Such Sale.
        There
        shall not be in effect any law, rule or regulation prohibiting or restricting
        the issuance and sale of the Securities or requiring any consent or approval
        of
        any Person which shall not have been obtained to issue or sell the Securities,
        or in either case to otherwise consummate the transactions contemplated hereby
        (except as otherwise provided in this Agreement).

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      (e) Minimum
        Offering.
        The
        Company shall have received duly executed subscriptions and corresponding
        readily available funds in the Escrow Account from Subscribers equal to or
        in
        excess of the Minimum Offering Amount.

      

      5. REGISTRATION
        RIGHTS.

      

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

      

      (a) “Affiliate”
shall
        mean, with respect to any Person (as defined below), any other Person
        controlling, controlled by or under direct or indirect common control with
        such
        Person (for the purposes of this definition “control,” when used with respect to
        any specified Person, shall mean the power to direct the management and policies
        of such Person, directly or indirectly, whether through ownership of voting
        securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have meanings correlative to the foregoing).

      

      (b) “Business
        Day”
shall
        mean a day Monday through Friday on which banks are generally open for business
        in New York, New York.

      

      (c) “Holders”
shall
        mean the Subscribers and any Person holding Registrable Securities or any
        Person
        to whom the rights under Article 5 have been transferred in accordance with
        Section 5.9 hereof.

      

      (d) “Person”
shall
        mean any person, individual, corporation, limited liability company,
        partnership, trust or other nongovernmental entity or any governmental agency,
        court, authority or other body (whether foreign, federal, state, local or
        otherwise).

      

      (e) The
        terms
“register,”
        “registered”
and
        “registration”
refer
        to the 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.

      

      (f) “Registrable
        Securities”
shall
        mean the Shares, the Warrant Shares and the Placement Warrant Shares and
        any
        shares of Common Stock issued as a dividend or distribution with respect
        to or
        in replacement of the Common Stock issued, directly or indirectly, in connection
        with this Offering; provided,
        however,
        that
        securities shall only be treated as Registrable Securities if and only for
        so
        long as they (i) have not been sold (A) pursuant to a registration statement;
        (B) to or through a broker, dealer or underwriter in a public distribution
        or a
        public securities transaction; and/or (C) in a transaction exempt from the
        registration and prospectus delivery requirements of the Securities Act under
        Section 4(1) thereof so that all transfer restrictions and restrictive legends
        with respect thereto, if any, are removed upon the consummation of such sale;
        (ii) are not held by a Holder or a permitted transferee; and (iii) are not
        eligible for sale pursuant to Rule 144(k) (or any successor thereto) under
        the
        Securities Act. 

      

      (g) “Registration
        Expenses”
shall
        mean all expenses incurred by the Company in complying with Section 5.2 hereof,
        including, without limitation, all registration, qualification and filing
        fees,
        printing expenses, escrow fees, fees and expenses of counsel for the Company,
        blue sky fees and expenses and the expense of any special audits incident
        to or
        required by any such registration (but excluding the fees of legal counsel
        for
        any Holder).

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      (h) “Selling
        Expenses”
shall
        mean all underwriting discounts and selling commissions applicable to the
        sale
        of Registrable Securities and, except to the extent set forth in the definition
        of Registration Expenses, all fees and expenses of legal counsel for any
        Holder.

      

      (i) “Subsidiary”
shall
        mean, with respect to any Person, any other Person of which more than fifty
        percent (50%) of the shares of stock or other interests entitled to vote
        in the
        election of directors or comparable Persons performing similar functions
        (excluding shares or other interests entitled to vote only upon the failure
        to
        pay dividends thereon or other contingencies) are at the time owned or
        controlled, directly or indirectly through one or more Subsidiaries, by such
        Person.

      

      5.2 Subject
        to the terms, conditions and limitations set forth herein, the Company will
        use
        its reasonable best efforts to (a) file a registration statement with the
        SEC
on
        the
        appropriate form (the
        “Registration Statement”) within 30 days following the final Closing Date (the
“Filing Date”) to allow the resale of the Registrable Securities under the
        Securities Act, and use its reasonable best efforts to have such Registration
        Statement declared effective by the SEC prior to the date which is 120 days
        after the Filing Date (the “Registration Effective Date”); and (b) cause such
        Registration Statement to remain effective (the “Registration Period”) until the
        earlier of (i) the date on which such Registrable Securities are eligible
        for
        resale under Rule 144(k) of the Securities Act; or (ii) such time as all
        Securities held by the Subscriber and registered under the Registration
        Statement have been sold. To the extent permissible, such Registration Statement
        also shall include, or subsequently be amended to include, to the extent
        allowable under the Securities Act and the rules promulgated thereunder
        (including Rule 416 under the Securities Act), such indeterminate number
        of
        additional shares of Common Stock resulting from stock splits, stock dividends
        or similar transactions with respect to the Registrable Securities. In the
        event
        (x) the Company has not filed the Registration Statement by the Filing Date,
        or
        (y) such Registration Statement has not been declared effective by the
        Registration Effective Date, then in either case the Company shall make
        compensatory payments to the Holder in an amount equal to one percent (1%)
        of
        the Aggregate Purchase Price paid by the Subscriber for each monthly period
        (or
        prorated portion thereof) in which the Company is in default of its obligations
        under clause (a) of this Section 5.2. Notwithstanding
        anything to the contrary contained herein, in no event shall the amount of
        compensatory payments payable by the Company pursuant to this Section 5.2
        exceed
        ten percent (10%) of the Aggregate Purchase Price paid by each
        Subscriber.

      

      5.3 All
        Registration Expenses incurred in connection with any registration,
        qualification, exemption or compliance pursuant to Section 5.2 shall be borne
        by
        the Company. All Selling Expenses relating to the sale of securities registered
        by or on behalf of Holders shall be borne by such Holders.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      

      5.4 In
        the
        case of the registration, qualification, exemption or compliance effected
        by the
        Company pursuant to this Agreement, the Company shall, upon reasonable request,
        inform each Holder as to the status of such registration, qualification,
        exemption and compliance. At its expense the Company shall: 

      

      (a) use
        commercially reasonable efforts to keep such registration, and any
        qualification, exemption or compliance under state or federal securities
        laws
        which the Company determines to obtain, continuously effective until the
        termination of the Registration Period; 

      

      (b) advise
        the Holders as soon as practicable:

      

      (i) when
        the
        Registration Statement or any amendment thereto has been filed with the SEC
        and
        when the Registration Statement or any post-effective amendment thereto has
        become effective;

      

      (ii) of
        any
        request by the SEC for amendments or supplements to the Registration Statement
        or the prospectus included therein or for additional information;

      

      (iii) of
        the
        issuance by the SEC of any stop order suspending the effectiveness of the
        Registration Statement or the initiation of any proceedings for such
        purpose;

      

      (iv) of
        the
        receipt by the Company of any notification with respect to the suspension
        of the
        qualification of the Registrable Securities included therein for sale in
        any
        jurisdiction or the initiation or threatening of any proceeding for such
        purpose; and

      

      (v) of
        the
        happening of any event that requires the making of any changes in the
        Registration Statement or the prospectus so that, as of such date, the
        statements therein are not misleading and do not omit to state a material
        fact
        required to be stated therein or necessary to make the statements therein
        (in
        the case of the prospectus, in the light of the circumstances under which
        they
        were made) not misleading (which notice will be accompanied by an instruction
        to
        suspend the use of the prospectus until such changes have been
        made);

      

      (c) make
        every reasonable effort to obtain the withdrawal of any order suspending
        the
        effectiveness of any Registration Statement at the earliest possible
        time;

      

      (d) furnish
        to each Holder, without charge, at least one copy of such Registration Statement
        and any post-effective amendment thereto, including financial statements
        and
        schedules, and, if the Holder so requests in writing, all exhibits (including
        those incorporated by reference) in the form filed with the SEC;

      

      (e) during
        the Registration Period, deliver to each Holder, without charge, as many
        copies
        of the prospectus included in such Registration Statement and any amendment
        or
        supplement thereto as such Holder may reasonably request; and the Company
        consents to the use, consistent with the provisions hereof, of the prospectus
        or
        any amendment or supplement thereto by each of the selling Holders of
        Registrable Securities in connection with the offering and sale of the
        Registrable Securities covered by the prospectus or any amendment or supplement
        thereto.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      

      (f) prior
        to
        any public offering of Registrable Securities pursuant to the Registration
        Statement, register or qualify or obtain an exemption for offer and sale
        under
        the securities or blue sky laws of such jurisdictions as any such Holders
        reasonably request in writing, provided that the Company shall not for any
        such
        purpose be required to qualify generally to transact business as a foreign
        corporation in any jurisdiction where it is not so qualified or to consent
        to
        general service of process in any such jurisdiction, and do any and all other
        acts or things reasonably necessary or advisable to enable the offer and
        sale in
        such jurisdictions of the Registrable Securities covered by such Registration
        Statement in the sole discretion of the Company;

      

      (g) to
        the
        extent permitted under applicable rules and regulations promulgated under
        the
        Securities Act, cooperate with the Holders to facilitate the timely preparation
        and delivery of certificates representing Registrable Securities to be sold
        pursuant to any Registration Statement free of any restrictive legends to
        the
        extent not required at such time and in such denominations and registered
        in
        such names as Holders may request at least five (5) Business Days prior to
        sales
        of Registrable Securities pursuant to such Registration Statement;

      

      (h) upon
        the
        occurrence of any event contemplated by Section 5.4(b)(v) above, the Company
        shall promptly prepare a post-effective amendment to the Registration Statement
        or a supplement to the related prospectus, or file any other required document
        so that, as thereafter promptly delivered to purchasers of the Registrable
        Securities included therein, the prospectus will not include any untrue
        statement of a material fact or omit to state any material fact necessary
        to
        make the statements therein, in the light of the circumstances under which
        they
        were made, not misleading; and

      

      (i) use
        commercially reasonable efforts to comply with all applicable rules and
        regulations of the SEC, and use commercially reasonable efforts to make
        generally available to its security holders not later than 45 days (or 90
        days
        if the fiscal quarter is the fourth fiscal quarter) after the end of its
        fiscal
        quarter in which the first anniversary date of the effective date of the
        Registration Statement occurs, an earnings statement satisfying the provisions
        of Section 11(a) of the Securities Act.

      

      Notwithstanding
        the foregoing, it shall be a condition precedent to the obligations of the
        Company to take any action pursuant to paragraphs (a) through (i) of this
        Section 5.4, that the Holder shall furnish to the Company such information
        regarding itself, the Securities to be sold by the Holder and the intended
        method of disposition of such Securities as shall be required to effect the
        registration of the Securities, all of which information shall be furnished
        to
        the Company in writing specifically for use in the Registration
        Statement.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      

      5.5 The
        Holders shall have no right to take any action to restrain, enjoin or otherwise
        delay any registration pursuant to Section 5.2 hereof as a result of any
        controversy that may arise with respect to the interpretation or implementation
        of this Agreement. 

       

      5.6 (a) To
        the
        extent permitted by law, the Company shall indemnify each Holder with respect
        to
        which any registration, qualification or compliance has been effected pursuant
        to this Agreement, against all claims, losses, damages and liabilities (or
        actions in respect thereof), including any of the foregoing incurred in
        settlement of any litigation, commenced or threatened (subject to Section
        5.6(c)
        below), arising out of or based on any untrue statement (or alleged untrue
        statement) of a material fact contained in the Registration Statement, or
        any
        amendment or supplement thereof, incident to any such registration,
        qualification or compliance, or based on any omission (or alleged omission)
        to
        state therein a material fact required to be stated therein or necessary
        to make
        the statements therein not misleading, in light of the circumstances in which
        they were made, or (ii) any violation or alleged violation by the Company
        of the
        Securities Act, the Exchange Act, or any rule or regulation promulgated under
        the Securities Act, or the Exchange Act, and will reimburse each Holder for
        reasonable legal and other expenses reasonably incurred in connection with
        investigating or defending any such claim, loss, damage, liability or action
        as
        incurred; provided,
        that
        the Company will not be liable in any such case to the extent that any such
        claim, loss, damage, liability or action arises out of, relates to or is
        based
        upon: (i) any untrue statement or omission or allegation thereof is made
        in
        reliance upon and in conformity with written information furnished to the
        Company by or on behalf of such Holder and stated to be specifically for
        use in
        preparation of such Registration Statement, prospectus or offering circular;
        or
        (ii) the failure of the Holder to comply with the covenants and agreements
        contained in this Agreement respecting sales of Registrable Securities.
        Notwithstanding the foregoing, the Company will not be liable in any such
        case
        where the claim, loss, damage, liability or actions arises out of or is related
        to the failure of the Holder to comply with the covenants and agreements
        contained in this Agreement respecting sales of Registrable Securities, and
        except that the foregoing indemnity agreement is subject to the condition
        that,
        insofar as it relates primarily to any such untrue statement or alleged untrue
        statement or omission or alleged omission made in the preliminary prospectus
        but
        eliminated or remedied in the amended prospectus on file with the SEC at
        the
        time the Registration Statement becomes effective or in the amended prospectus
        filed with the Commission pursuant to Rule 424(b) or in the prospectus subject
        to completion under Rule 434 promulgated under the Securities Act, which
        together meet the requirements of Section 10(a) of the Securities Act (the
        “Final Prospectus”), such indemnity agreement shall not inure to the benefit of
        any such Holder, any such underwriter or any such controlling Person, if
        a copy
        of the Final Prospectus furnished by the Company to the Holder for delivery
        was
        not furnished by the Holder to the Person or entity asserting the loss,
        liability, claim, damage or at or prior to the time such furnishing is required
        by the Securities Act and the Final Prospectus would have cured the defect
        giving rise to such loss, liability, claim, damage or action.

      

      (b) Each
        Holder will severally, if Registrable Securities held by such Holder are
        included in the securities as to which such registration, qualification or
        compliance is being effected, indemnify the Company, each of its directors
        and
        officers, each underwriter of the Registrable Securities and each Person
        who
        controls the Company within the meaning of Section 15 of the Securities Act,
        against all claims, losses, damages and liabilities (or actions in respect
        thereof), including any of the foregoing incurred in settlement of any
        litigation, commenced or threatened (subject to Section 5.6(c) below), arising
        out of or based on any untrue statement (or alleged untrue statement) of
        a
        material fact contained in any registration statement, prospectus or offering
        circular, or any amendment or supplement thereof, incident to any such
        registration, qualification or compliance, or based on any omission (or alleged
        omission) to state therein a material fact required to be stated therein
        or
        necessary to make the statements therein not misleading, in light of the
        circumstances in which they were made, and will reimburse the Company, such
        directors and officers, each underwriter of the Registrable Securities and
        each
        Person controlling the Company for reasonable legal and any other expenses
        reasonably incurred in connection with investigating or defending any such
        claim, loss, damage, liability or action as incurred, in each case to the
        extent, but only to the extent, that such untrue statement or omission or
        allegation thereof is made in reliance upon and in conformity with written
        information furnished to the Company by or on behalf of the Holder and stated
        to
        be specifically for use in preparation of such registration statement,
        prospectus or offering circular. Notwithstanding the foregoing, in no event
        shall a Holder be liable for any such claims, losses, damages or liabilities
        in
        excess of the net proceeds received by such Holder in the offering, except
        in
        the event of fraud or intentional misrepresentation by such Holder.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      

      (c) Each
        party entitled to indemnification under this Section 5.6 (the “Indemnified
        Party”) shall give notice to the party required to provide indemnification (the
        “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge
        of any claim as to which indemnity may be sought, and shall permit the
        Indemnifying Party to assume the defense of any such claim or any litigation
        resulting therefrom, provided that counsel for the Indemnifying Party, who
        shall
        conduct the defense of such claim or litigation, shall be approved by the
        Indemnified Party (whose approval shall not unreasonably be withheld), and
        the
        Indemnified Party may participate in such defense at such Indemnified Party’s
        expense, and provided further that the failure of any Indemnified Party to
        give
        notice as provided herein shall not relieve the Indemnifying Party of its
        obligations under this Agreement, unless such failure is materially prejudicial
        to the Indemnifying Party in defending such claim or litigation. An Indemnifying
        Party shall not be liable for any settlement of an action or claim effected
        without its written consent (which consent will not be unreasonably
        withheld).

      

      (d) If
        the
        indemnification provided for in this Section 5.6 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 therein, then the Indemnifying
        Party, in lieu of indemnifying such Indemnified Party thereunder, shall
        contribute to the amount paid or payable by such Indemnified Party as a result
        of such loss, liability, claim, damage or expense in such proportion as is
        appropriate to reflect the relative fault of the Indemnifying Party on the
        one
        hand and of the Indemnified Party on the other in connection with the statements
        or omissions which resulted in such loss, liability, claim, damage or expense
        as
        well as any other relevant equitable considerations. The relative fault of
        the
        Indemnifying Party and of the Indemnified Party shall be determined by reference
        to, among other things, whether the untrue or alleged untrue statement of
        a
        material fact or the omission to state a material fact relates to information
        supplied by the Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information and opportunity to correct
        or
        prevent such statement or omission. The Company and the Holders agree that
        it
        would not be just and equitable if contribution pursuant to this Section
        5.6(d)
        was based solely upon the number of entities from whom contribution was
        requested or by any other method of allocation which does not take account
        of
        the equitable considerations referred to above in this Section 5.6(d). The
        amount paid or payable by an Indemnified Party as a result of the losses,
        claims, damages and liabilities (or actions in respect thereof) referred
        to
        above in this Section 5.6(d) shall be deemed to include any legal or other
        expenses reasonably incurred by such Indemnified Party in connection with
        investigating or defending any such action or claim, subject to the provisions
        of Section 5.6(d) hereof. The parties agree that it would not be just and
        equitable if contributions pursuant to this Section 5.6 were determined by
        pro
        rata allocation or by any other method of allocation which does not take
        account
        of the equitable considerations as set forth in this Section 5.6.
        Notwithstanding the provisions of this Section 5.6(d), in no event shall
        a
        Holder be required to contribute any amount or make any other payments under
        this Agreement which in the aggregate exceed the net proceeds received by
        such
        Holder from the sale of Registrable Securities covered by such Registration
        Statement. No Person guilty of fraudulent misrepresentation (within the meaning
        of the Securities Act) shall be entitled to contribution from any Person
        who was
        not guilty of such fraudulent misrepresentation. 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      

      5.7 (a) Each
        Holder agrees that, upon receipt of any notice from the Company of (i)
the
        need
        for an amendment or supplement to the Registration Statement or the prospectus
        forming a part thereof, (ii) that the Board of Directors has determined in
        good
        faith that offers and sales pursuant to the prospectus forming part of the
        Registration Statement should not be made by reason of the presence of material
        undisclosed circumstances or developments with respect to which the disclosure
        that would be required in the Registration Statement would be premature or
        would
        have a Material Adverse Effect or (iii) in
        connection with a primary underwritten offering of equity securities of the
        Company,
        each
        Holder will forthwith discontinue disposition of Registrable Securities pursuant
        to the Registration Statement contemplated by Section 5.2 until its receipt
        of
        copies of the supplemented or amended prospectus from the Company or
        confirmation of the filing of such report with the SEC by the Company, any
        such
        prospectus to be forwarded promptly to the Holder by the Company, and, if
        so
        directed by the Company, each Holder shall deliver to the Company all copies,
        other than permanent file copies then in such Holder’s possession, of the
        prospectus covering such Registrable Securities current at the time of receipt
        of such notice; provided,
        that
        the Company, may suspend the disposition of Registrable Securities pursuant
        to
        the Registration Statement pursuant to clause (ii) above not more
        than
        one time (not to exceed 30 days) during any
        three
        month period, nor
        more
        than two times (not to exceed 30 days each) in any twelve-month period.

       

      (b) As
        a
        condition to the inclusion of its Registrable Securities, each Holder shall
        furnish to the Company such information regarding such Holder and the
        distribution proposed by such Holder as the Company may reasonably request
        in
        writing or as shall be required in connection with any registration,
        qualification or compliance referred to in this Article 5, including the
        information required by the Registration Questionnaire attached hereto as
        Appendix
        A.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

      (c) Each
        Holder hereby covenants with the Company not to make any sale of the Registrable
        Securities without effectively causing the prospectus delivery requirements
        under the Securities Act to be satisfied.

      

      (d) Each
        Holder acknowledges and agrees that the Registrable Securities sold pursuant
        to
        the Registration Statement described in this Section are not transferable
        on the
        books of the Company unless the stock certificate submitted to the transfer
        agent evidencing such Registrable Securities is accompanied by a certificate
        reasonably satisfactory to the Company to the effect that (i) the
        Registrable Securities have been sold in accordance with such Registration
        Statement and (ii) the requirement of delivering a current prospectus has
        been satisfied.

      

      (e) Each
        Holder agrees not to take any action with respect to any distribution deemed
        to
        be made pursuant to such registration statement which would constitute a
        violation of Regulation M under the Exchange Act or any other applicable
        rule,
        regulation or law. 

      

      (f) At
        the
        end of the period during which the Company is obligated to keep the Registration
        Statement current and effective as described above, the Holders of Registrable
        Securities included in the Registration Statement shall discontinue sales
        of
        shares pursuant to such Registration Statement upon receipt of notice from
        the
        Company of its intention to remove from registration the shares covered by
        such
        Registration Statement which remain unsold, and such Holders shall notify
        the
        Company of the number of shares registered which remain unsold immediately
        upon
        receipt of such notice from the Company.

      

      5.8 With
        a
        view to making available to the Holders the benefits of certain rules and
        regulations of the SEC which at any time permit the sale of the Registrable
        Securities to the public without registration, the Company shall use
        commercially reasonable efforts to:

      

      (a) make
        and
        keep public information available, as those terms are understood and defined
        in
        Rule 144 under the Securities Act, at all times;

      

      (b) file
        with
        the SEC in a timely manner all reports and other documents required of the
        Company under the Exchange Act; and 

      

      (c) so
        long
        as a Holder owns any unregistered Registrable Securities, furnish to such
        Holder, upon any reasonable request, a written statement by the Company as
        to
        its compliance with Rule 144 under the Securities Act, and of the Exchange
        Act, a copy of the most recent annual or quarterly report of the Company,
        and
        such other reports and documents of the Company as such Holder may reasonably
        request in availing itself of any rule or regulation of the SEC allowing
        a
        Holder to sell any such securities without registration.

      

      5.9 The
        right
        to cause the Company to register Registrable Securities granted to the Holders
        by the Company under Section 5.2 may be assigned in full by a Holder in
        connection with a transfer by such Holder of its Registrable Securities,
        but
        only if: (i) such transfer may otherwise be effected in accordance with
        applicable securities laws; (ii) such Holder gives prior written notice of
        the
        proposed transfer to the Company including the name and address of such
        transferee and a copy of the transfer documents and agreements; (iii) such
        transferee agrees in writing with the Company to be bound by and comply with
        the
        terms and provisions of this Agreement; (iv) the transferee is an “accredited
        investor” as that term is defined in Rule 501 of Regulation D; and (v) such
        transfer is otherwise in compliance with this Agreement. Except as specifically
        permitted by this Section 5.9, the rights of a Holder with respect to
        Registrable Securities as set out herein shall not be transferable to any
        other
        Person, the Company may impose stop transfer orders with respect to any such
        transfer or attempted transfer, and any such transfer or attempted transfer
        shall be null and void. 

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      

      5.10 The
        Company shall use commercially reasonable efforts to cause all Registrable
        Securities covered by a Registration Statement to be listed on each securities
        exchange, interdealer quotation system or other market on which similar
        securities issued by the Company are then listed.

      

      5.11 With
        the
        written consent of the Company and the Holders holding at least a majority of
        the Registrable Securities that are then outstanding, any provision of this
        Article 5 may be waived (either generally or in a particular instance, either
        retroactively or prospectively and either for a specified period of time
        or
        indefinitely) or amended. Upon the effectuation of each such waiver or
        amendment, the Company shall promptly give written notice thereof to the
        Holders, if any, who have not previously received notice thereof or consented
        thereto in writing.

      

      6. MISCELLANEOUS.

      

      6.1 The
        Company reserves the right to reject the subscription made hereby in its
        sole
        discretion. Unless terminated earlier in the Placement Agent’s or the Company’s
        sole discretion, the Offering will expire on August 31, 2006, (as such date
        may
        be extended by agreement of the Placement and the Company in their sole
        discretion without notice to the Subscribers for an additional 60 days (the
        “Termination
        Date”),
        if
        the conditions to closing set forth in Article 4 have not been satisfied
        or
        waived by such time.

      

      6.2 The
        Company’s agreement with each Subscriber is a separate agreement and each sale
        of the Securities to each Subscriber is a separate sale.

      

      6.3 All
        notices, requests and other communications under this Agreement shall be
        in
        writing, and shall be sufficiently given if delivered to the addressees in
        person or by recognized overnight courier, mailed by certified or registered
        mail, return receipt requested, or by facsimile or e-mail transmission, as
        follows: 

      

      
        	
                If
                  to the Company:

              	
                VioQuest
                  Pharmaceuticals, Inc.

              
	 	
                180
                  Mount Airy Road, Suite 203

              
	 	
                Basking
                  Ridge, New Jersey 07920

              
	 	
                Facsimile:
                  (908)766-4455

              
	 	
                Attn:
                  Chief Financial Officer

              
	 	
                Email:
                  brian.lenz@vioquestpharm.com

              

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                With
                  a copy to:

              	
                Maslon
                  Edelman Borman & Brand, LLP

              
	 	
                3300
                  Wells Fargo Center

              
	 	
                90
                  South 7th Street

              
	 	
                Minneapolis,
                  Minnesota 55402

              
	 	
                Facsimile:
                  (612) 642-8343

              
	 	
                Attn:
                  Christopher J. Melsha, Esq.

              
	 	
                Email:
                  chris.melsha@maslon.com

              

      

      

      If
        to a
        Subscriber, at such address as such Subscriber shall have provided in writing
        to
        the Company or such other addresses as such Subscriber furnishes by notice
        given
        in accordance with this Section 7.1 or
        such
        other address as may be designated in writing hereafter, in the same manner,
        by
        such Person. 

      

      6.4 Except
        as
        provided in Section 5.11 above, this Agreement shall not be changed, modified
        or
        amended except by a writing signed by the parties to be charged, and this
        Agreement may not be discharged except by performance in accordance with
        its
        terms or by a writing signed by the party to be charged.

      

      6.5 Subject
        to the provisions of Section 5.9, this Agreement shall be binding upon and
        inure
        to the benefit of the parties hereto and to their respective heirs, legal
        representatives, successors and assigns. This Agreement sets forth the entire
        agreement and understanding between the parties as to the subject matter
        hereof
        and merges and supersedes all prior discussions, agreements and understandings
        of any and every nature among them.

      

      6.6 Upon
        the
        execution and delivery of this Agreement by the Subscriber, this Agreement
        shall
        become a binding obligation of the Subscriber with respect to the purchase
        of
        the Securities as herein provided; subject, however, to the right hereby
        reserved to the Company to reject this subscription in accordance with Section
        2.16, enter into the same agreements with other subscribers and to add and/or
        delete other Persons as subscribers. 

      

      6.7 Notwithstanding
        the place where this Agreement may be executed by any of the parties hereto,
        the
        parties expressly agree that all the terms and provisions hereof shall be
        construed in accordance with and governed by the laws of the State of New
        York
        without regard to principles of conflicts of law.

      

      6.8 The
        holding of any provision of this Agreement to be invalid or unenforceable
        by a
        court of competent jurisdiction shall not affect any other provision of this
        Agreement, which shall remain in full force and effect. If any provision
        of this
        Agreement shall be declared by a court of competent jurisdiction to be invalid,
        illegal or incapable of being enforced in whole or in part, such provision
        shall
        be interpreted so as to remain enforceable to the maximum extent permissible
        consistent with applicable law and the remaining conditions and provisions
        or
        portions thereof shall nevertheless remain in full force and effect and
        enforceable to the extent they are valid, legal and enforceable, and no
        provisions shall be deemed dependent upon any other covenant or provision
        unless
        so expressed herein.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      6.9 It
        is
        agreed that a waiver by either party of a breach of any provision of this
        Agreement shall not operate, or be construed, as a waiver of any subsequent
        breach by that same party.

      

      6.10 The
        parties agree to execute and deliver all such further documents, agreements
        and
        instruments and take such other and further action as may be necessary or
        appropriate to carry out the purposes and intent of this Agreement.

      

      6.11 This
        Agreement may be executed in two or more counterparts each of which shall
        be
        deemed an original, but all of which shall together constitute one and the
        same
        instrument.

      

      6.12 (a) The
        Subscriber agrees not to issue any public statement with respect to the
        Subscriber’s investment or proposed investment in the Company or the terms of
        any agreement or covenant between them and the Company without the Company’s
        prior written consent, except such disclosures as may be required under
        applicable law or under any applicable order, rule or regulation.

      

      (b) The
        Company agrees not to disclose the names, addresses or any other information
        about the Subscriber, except as required by law or court order and to satisfy
        its obligations under Article 5.

      

      6.13 The
        Subscriber represents and warrants that it has not engaged, consented to
        nor
        authorized any broker, finder or intermediary to act on its behalf, directly
        or
        indirectly, as a broker, finder or intermediary in connection with the
        transactions contemplated by this Agreement (other than the Placement Agent).
        The Subscriber hereby agrees to indemnify and hold harmless the Company from
        and
        against all fees, commissions or other payments owing to any such Person
        (other
        than the Placement Agent) acting on behalf of the Subscriber
        hereunder.

       

      6.14 This
        Agreement (including all exhibits, schedules and amendments hereto) (i)
        constitutes the entire Agreement and understandings of the parties hereto
        and
        supersedes all prior agreements and understandings, both written and oral,
        between the parties hereto with respect to the subject matter hereof and
        (ii) is
        not intended to confer upon any other Person other than the parties hereto
        any
        rights or remedies hereunder (except for the holders of Registrable Securities
        as set forth in Article 5).

      

      [REMAINDER
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        7. CONFIDENTIAL
          INVESTOR QUESTIONNAIRE.

        

        7.1 The
          Subscriber represents and warrants that he, she or it comes within one
          category
          marked below, and that for any category marked, he, she or it has truthfully
          set
          forth, where applicable, the factual basis or reason the Subscriber comes
          within
          that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT
          STRICTLY
          CONFIDENTIAL except as otherwise required by law or as necessary for inclusion
          in the Registration Statement. The undersigned agrees to furnish any additional
          information which the Company deems necessary in order to verify the answers
          set
          forth below.

        

          
            	
                    Category
                      A  ____

                  	 	
                    The
                      undersigned is an individual (not a partnership, corporation,
                      etc.) whose
                      individual net worth, or joint net worth with his or her spouse,
                      presently
                      exceeds $1,000,000.

                  
	 	 	 
	 	 	
                    Explanation:
                      In calculating net worth you may include equity in personal
                      property and
                      real estate, including your principal residence, cash, short-term
                      investments, stock and securities. Equity in personal property
                      and real
                      estate should be based on the fair market value of such property
                      less debt
                      secured by such property.

                  
	 	 	 
	
                    Category
                      B  ____

                  	 	
                    The
                      undersigned is an individual (not a partnership, corporation,
                      etc.) who
                      had an income in excess of $200,000 in each of the two most
                      recent years,
                      or joint income with his or her spouse in excess of $300,000
                      in each of
                      those years (in each case including foreign income, tax exempt
                      income and
                      full amount of capital gains and losses but excluding any income
                      of other
                      family members and any unrealized capital appreciation) and
                      has a
                      reasonable expectation of reaching the same income level in
                      the current
                      year.

                  
	 	 	 
	
                    Category
                      C  ____

                  	 	
                    The
                      undersigned is a director or executive officer of the Company
                      which is
                      issuing and selling the Securities.

                  
	 	 	 
	
                    Category
                      D  ____

                  	 	
                    The
                      undersigned is a bank; a savings and loan association; insurance
                      company;
                      registered investment company; registered business development
                      company;
                      licensed small business investment company (“SBIC”); or employee benefit
                      plan within the meaning of Title 1 of ERISA and (a) the investment
                      decision is made by a plan fiduciary which is either a bank,
                      savings and
                      loan association, insurance company or registered investment
                      advisor, or
                      (b) the plan has total assets in excess of $5,000,000 or (c)
                      is a self
                      directed plan with investment decisions made solely by persons
                      that are
                      accredited investors. (describe entity)

                  
	 	 	 
	 	 	 
	 	 	 

          

           

          
            
              
              

            

            
              27

              
                

              

            

            
              
              

            

          

           

          
            	
                    Category
                      E  ____

                  	 	
                    The
                      undersigned is a private business development company as defined
                      in
                      section 202(a)(22) of the Investment Advisors Act of 1940.
                      (describe
                      entity) 

                  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                    Category
                      F  ____

                  	 	
                    The
                      undersigned is either a corporation, partnership, Massachusetts
                      business
                      trust, or non-profit organization within the meaning of Section
                      501(c)(3)
                      of the Internal Revenue Code, in each case not formed for the
                      specific
                      purpose of acquiring the Securities and with total assets in
                      excess of
                      $5,000,000.(describe entity)

                  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                    Category
                      G  ____

                  	 	
                    The
                      undersigned is a trust with total assets in excess of $5,000,000,
                      not
                      formed for the specific purpose of acquiring the Securities,
                      where the
                      purchase is directed by a “sophisticated investor“ as defined in
                      Regulation 506(b)(2)(ii) under the Securities Act.

                  
	 	 	 
	
                    Category
                      H  ____

                  	 	
                    The
                      undersigned is an entity (other than a trust) in which all
                      of the equity
                      owners are “accredited investors” within one or more of the above
                      categories. If relying upon this Category alone, each equity
                      owner must
                      complete a separate copy of this Agreement. (describe
                      entity)

                  
	 	 	 
	 	 	 
	
                    Category
                      I  ____

                  	 	
                    The
                      undersigned is not within any of the categories above and is
                      therefore not
                      an accredited investor.

                  

          

        

         

        
          The
            undersigned agrees that the undersigned will notify the Company at any
            time on
            or prior to the Closing Date in the event that the representations and
            warranties in this Agreement shall cease to be true, accurate and
            complete.

          

          7.2 SUITABILITY
            (please
            answer each question)

          

          (a)
            For
            an individual Subscriber, please describe your current employment, including
            the
            company by which you are employed and its principal business:

           

        

        
          
            

          

           

        

        
          

        

         

        
          

        

         

      

    

    
      

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      

      (b)
        For
        an individual Subscriber, please describe any college or graduate degrees
        held
        by you:

    

     

    
      

    

     

    
      

    

     

    
      

    

     

    
      (c)
        For
        all Subscribers, please state whether you have you participated in other
        private
        placements
        before:

      

      YES_______   NO_______

      

      (d)
        If
        your answer to question (d) above was “YES”, please indicate frequency of such
        prior participation in private
        placements
        of:

      

      
        	 	 	
                Public
                  Companies

              	 	
                Private
                  Companies

              	 	
                Public
                  or Private
                  Biopharmaceutical Companies

              	 
	 	 	 	 	 	 	 	 
	
                Frequently

              	 	 	
                           
                  

              	 	 	
                      
                  

              	 	 	
                 

              	 
	
                Occasionally

              	 	 	
                   
                  

              	 	 	
                   
                  

              	 	 	
                 

              	 
	
                Never  
                  

              	 	 	
                      
                  

              	 	 	
                    
                  

              	 	 	
                         
                  

              	 

      

       

      (e)
        For
        individual Subscribers, do you expect your current level of income to
        significantly decrease in the foreseeable future:

      

      YES_______   NO_______

      

      (f)
        For
        trust, corporate, partnership and other institutional Subscribers, do you
        expect
        your total assets to significantly decrease in the foreseeable future:

      

      YES_______   NO_______

      

      (g)
        For
        all Subscribers, do you have any other investments or contingent liabilities
        which you reasonably anticipate could cause you to need sudden cash requirements
        in excess of cash readily available to you: 

      

      YES_______   NO_______

      

      (h)
        For
        all Subscribers, are you familiar with the risk aspects and the non-liquidity
        of
        investments such as the securities for which you seek to subscribe?

      

      YES_______   NO_______

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      (h) For
        all
        Subscribers, do you understand that there is no guarantee of financial return
        on
        this investment, that an investment in the Securities is highly speculative
        and
        risky and that you run the risk of losing your entire investment?

      

      YES_______   NO_______

      

      (j)
         For
        all
        Subscribers, will you have sufficient readily available cash to fund your
        obligation to purchase Securities at the Closing pursuant to your subscription
        if and when the Closing occurs?

      

      YES_______   NO_______

      

      7.3 MANNER
        IN WHICH TITLE IS TO BE HELD.
        (circle
        one)

      

      
        	
                (a)

              	
                Individual
                  Ownership

              
	
                (b)

              	
                Community
                  Property

              
	
                (c)

              	
                Joint
                  Tenant with Right of Survivorship
                  (both parties must sign)

              
	
                (d)

              	
                Partnership*

              
	
                (e)

              	
                Tenants
                  in Common

              
	
                (f)

              	
                Corporation*

              
	
                (g)

              	
                Trust*

              
	
                (h)

              	
                Limited
                  Liability Company*

              
	
                (i)

              	
                Other

              

      

      

      *If
        Securities are being subscribed for by an entity, the attached Certificate
        of
        Signatory must also be completed.

      

      7.4 NASD
        AFFILIATION.

      

      Are
        you
        affiliated or associated with an NASD member firm (please check
        one):

      

      Yes
        _________  No
        __________

      

      If
        Yes,
        please describe:

      _________________________________________________________

      _________________________________________________________

      _________________________________________________________

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      *If
        Subscriber is a Registered Representative with an NASD member firm, have
        the
        following acknowledgment signed by the appropriate party:

      The
        undersigned NASD member firm acknowledges receipt of the notice required
        by NASD
        Rule 3050.

      
        
          	 	 	 	 
	 	 	 	 
	
                  
                    
Name
                    of NASD Member Firm

                	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	
                
	
                	
                  
Authorized
                  Officer	 	
                
	
                	 	 	
                

        

      

      Date:
        ____________________________

      

      7.5 The
        undersigned is informed of the significance to the Company of the foregoing
        representations and answers contained in the Confidential Investor Questionnaire
        contained in this Section 7 and such answers have been provided under the
        assumption that the Company will rely on them.

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

      SIGNATURE
        PAGE TO FOLLOW]

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      [Signature
        Page]

      

      $_____________________
        / Purchase Price = ______________________ Shares

      

      
        	 	 	
                 

              
	
                Signature

              	 	
                Signature
                  (if purchasing jointly)

              
	 	 	 
	 	 	
                 

              
	
                Name
                  Typed or Printed

              	 	
                Name
                  Typed or Printed

              
	 	 	 
	 	 	
                 

              
	
                Entity
                  Name

              	 	
                Entity
                  Name

              
	 	 	 
	 	 	
                 

              
	
                Address

              	 	
                Address

              
	 	 	 
	 	 	
                 

              
	
                City,
                  State and Zip Code

              	 	
                City,
                  State and Zip Code

              
	 	 	 
	 	 	
                 

              
	
                Telephone-Business

              	 	
                Telephone—Business

              
	 	 	 
	 	 	
                 

              
	
                Telephone-Residence

              	 	
                Telephone—Residence

              
	 	 	 
	 	 	
                 

              
	
                Facsimile-Business

              	 	
                Facsimile—Business

              
	 	 	 
	 	 	
                 

              
	
                Facsimile-Residence

              	 	
                Facsimile—Residence

              
	 	 	 
	 	 	 
	
                Email
                  Address

              	 	
                Email
                  Address 

              
	 	 	 
	 	 	
                 

              
	
                Tax
                  ID # or Social Security # 

              	 	
                Tax
                  ID # or Social Security # 

              
	 	 	 
	
                Name
                  in which securities should be issued:

              	 	 

      

       

      Dated:
        _____________________,
        2006

       

      
        	INVESTORS:	
                PLEASE
                  COMPLETE THE REGISTRATION QUESTIONNAIRE ATTACHED HERETO AS APPENDIX
                  A.

              

      

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      This
        Subscription Agreement is agreed to and accepted by the Company as of
        _____________, 2006.  

      
        	 	 	 
	 	
                VIOQUEST
                  PHARMACEUTICALS, INC.

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                
Name: Brian
                Lenz 
	 	Title:
                 Chief
                Financial Officer 

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      

      CERTIFICATE
        OF SIGNATORY

      

      (To
        be
        completed if Securities are

      being
        subscribed for by an entity)

      

      I,____________________________,
        am the____________________________ of __________________________________________
        (the “Entity”).

      

      I
        certify
        that I am empowered and duly authorized by the Entity to execute and carry
        out
        the terms of the Subscription Agreement and to purchase and hold the Securities,
        and certify further that the Subscription Agreement has been duly and validly
        executed on behalf of the Entity and constitutes a legal and binding obligation
        of the Entity.

      

      IN
        WITNESS WHEREOF, I have set my hand this ______ day of _________________,
        2006.

      
        	 	 	 	 
	 	 	 	 
	
              	 	 	
              
	
              	 	 	
                

                (Signature)

              
	
              	 	 	
              

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      APPENDIX
        A

      

      VioQuest
        Pharmaceuticals, Inc.

      

      REGISTRATION
        QUESTIONNAIRE 

      FOR

      SELLING
        STOCKHOLDERS

       

      Name:
        ________________________________

      (Please
        Print)

      

      This
        questionnaire is intended to provide information for a registration statement
        (the “Registration Statement”) to be filed by VioQuest Pharmaceuticals, Inc.
        (the “Company”) covering the resale of the Shares and Warrant Shares acquired by
        you as contemplated by the accompanying Subscription Agreement. Please complete
        (attaching separate sheets if additional space is needed), date and sign
        this
        questionnaire and return it together with your completed subscription agreement.
        

      

      PLEASE
        ANSWER EVERY QUESTION. If a question is inapplicable to you, please so state
        by
        inserting “N/A.” If you are in doubt whether a particular question requires an
        affirmative response from you, please furnish full particulars so that those
        persons responsible for preparing the Registration Statement and Prospectus
        can
        determine whether any disclosure based on your answer is required. Information
        requested in this questionnaire is as of the date you complete the
        questionnaire, unless otherwise indicated. Your furnishing such information
        does
        not necessarily mean that such information will be disclosed.

      

      DEFINITIONS

      

      Your
        answers to this questionnaire should be made upon the basis of the following
        definitions of terms used in this questionnaire:

      

      The
        term
“beneficial
        owner”
of
        a
        security includes any Person who, directly or indirectly, through any contract,
        arrangement, understanding, relationship or otherwise has or shares
        (1) voting
        power,
        which
        includes the power to vote, or direct the voting of, such security or
        (2) investment
        power,
        which
        includes the power to dispose or direct the disposition of such security.
        A
        Person may be regarded as having voting power of a security which is owned
        (i)
        by his spouse or minor children or by any of his relatives or his spouse’s
        relatives who share the same home with him, (ii) a partnership of
        which he is a partner or (iii) a corporation of which he is a substantial
        shareholder. A Person is also deemed to be the beneficial owner of shares
        which
        that Person has the right to acquire within 60 days, including but not limited
        to any right to acquire through the exercise of an option, through conversion
        of
        a security, pursuant to the power to revoke a trust or pursuant to the automatic
        termination of a trust. Please also disclose any other rights, which you
        have to
        acquire securities of the Company on or before December 31, 2006.

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      

      The
        term
“material,”
when
        used to qualify a requirement for the furnishings of information as to any
        subject, limits the information required to those matters about which the
        average prudent investor should reasonably be informed before buying or selling
        the securities of the Company. If you are in doubt as to the materiality
        of
        certain information, you should relate sufficient facts to enable the Company
        and its advisors to reach a conclusion as to its materiality.

      

      The
        term
“Person”
means
        any person, individual, corporation, limited liability company, partnership,
        trust or other governmental agency, court, authority or other body (whether
        foreign, federal, state, local or otherwise.

      

      QUESTIONS

      

      QUESTION
        1:

      

      State
        your present position or positions with the Company (if any), including
        membership on any audit, personnel, compensation or similar committee or
        committees; any positions with the Company held by you during the previous
        three
        years; and any positions with the Company to which you have been elected
        or
        appointed but the duties of which you have not yet assumed. For each position,
        list the term or expected term of office.

      

      ANSWER:

      

      QUESTION
        2:

      

      Other
        than Shares and Warrant Shares that you will acquire in connection with the
        Offering,
        provide
        below information regarding the equity securities of the Company of which
        you
        are the “beneficial owner.” Please
        refer to the definition of “beneficial owner,” above.
        Under
        the column “Nature of Ownership,” please indicate amounts of securities for
        which you have (a) sole voting power, (b) shared voting power, (c) sole
        investment power, or (d) shared investment power. If your response covers
        any
        securities included because you have the right to acquire them on or before
        December 31, 2006, please separately indicate the amount of such securities.
        Also, if you hold more than 5% of the Company’s securities pursuant to a voting
        trust or similar agreement, please separately state the amount of such
        securities held or to be held pursuant to the trust or agreement, the duration
        of the agreement and the names and addresses of the voting trustees, outlining
        briefly their voting rights and other powers under the trust or agreement.
        

      

      ANSWER
        (attach additional pages if necessary):

       

      
        	
                Number
                  of
                  Shares

              	 	
                Nature
                  of
                  Ownership

              	 	
                Title
                  of Securities

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

      

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

       

      QUESTION
        3:

      

      If
        you
        plan to offer your shares of Common Stock through the selling efforts of
        brokers
        or dealers, describe the terms (and attach copies) of any agreement,
        arrangement, or understanding entered into with broker(s) or dealer(s),
        including volume limitations on sales, parties to the agreement and the
        conditions under which the agreement may be terminated. If known, identify
        the
        broker(s) or dealer(s), which will participate in the offering and state
        the
        amount to be offered through each.

      

      ANSWER:

      

      QUESTION
        4:

      

      Describe
        below any information known to you, and if none state “none,” pertaining to
        underwriting compensation and arrangements or any dealings between any
        underwriter or related person, member of the NASD or a person associated
        with a
        member of the NASD, and the Company or any controlling stockholder thereof
        since
        January 1, 2004.

       

      ANSWER:

      

      QUESTION
        5:

      

      State
        below whether you or any of your associates are a member of NASD, a controlling
        shareholder of a member, a person associated or affiliated with a member
        or an
        underwriter or related person with respect to the proposed offering. If you
        responded “yes,” describe such relationship:

      

      ANSWER:

      

      QUESTION
        6:

      

      Are
        you a
        broker-dealer?

      

      ANSWER:

      

      Yes
        ______ No______

       

      
        
          
          

        

        
          A-3

          
            

          

        

        
          
          

        

      

       

      QUESTION
        7:

      

      If
        you
        are not a broker-dealer, are you affiliated with a broker-dealer?

      

      ANSWER:

      

      Yes
        ______ No______

      

      QUESTION
        8:

      

      If
        you
        are a broker-dealer or are affiliated with a broker-dealer, did you purchase
        the
        securities in the ordinary course of business?

      

      ANSWER:

      

      Yes
        ______ No______

      

      QUESTION
        9:

      

      If
        you
        are a broker-dealer or are affiliated with a broker-dealer, did you have
        any
        agreements or understandings, directly or indirectly, with any person to
        distribute the securities at the time that you purchased the
        securities?

      

      ANSWER:

      

      Yes
        ______ No______

       

      Please
        note that the SEC takes the position that if you are a broker-dealer, you
        are to
        be identified in the Registration Statement as an underwriter. In the “Plan of
        Distribution,” the Registration Statement will provide substantially as
        follows:

      

      “The
        selling stockholders and any broker-dealers, agents or underwriters that
        participate with the selling stockholders in the distribution of the issued
        and
        outstanding shares of common stock or the shares of stock issuable upon exercise
        of warrants may be deemed to be "underwriters" within the meaning of the
        Securities Act, in which event any commissions received by these broker-dealers,
        agents or underwriters and any profits realized by the selling stockholders
        on
        the resales of the securities may be deemed to be underwriting commissions
        or
        discounts under the Securities Act. If the selling stockholders are deemed
        to be
        underwriters, the selling stockholders may be subject to certain statutory
        and
        regulatory liabilities, including liabilities imposed pursuant to Sections
        11,
        12 and 17 of the Securities Act and Rule 10b-5 under the Exchange Act.”

      

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

       

      QUESTION
        10:

       

      Are
        their
        specific individuals who have voting or investment control over the securities?
        If you are an entity, you must answer “yes” to this question and identify such
        individual(s) by name below.

       

      ANSWER:

      

      Yes
        ______ No______

      

      If
        you
        answered “yes”, please list the names of such individuals: 

       

      
        

      

    

     

    
      
        

      

       

      The
        answers to the foregoing questions are true and correct to the best of the
        undersigned’s knowledge, information and belief. The undersigned agrees to
        promptly notify the Company in writing in care of the Chief Financial Officer,
        with a copy to Maslon Edelman of (a) any transfer by you of your Shares or
        Warrants, (b) sales of common stock of the Company (giving the number of
        shares
        sold and the name of the broker-dealer used) and (c) any other changes in
        the
        answers to this questionnaire that should be made as a result of any material
        development occurring subsequent to the date hereof.

      

      Dated:
        ___________, 2006.

      
        	 	 	 	 
	
              	 	 	
              
	
              	 	 	
                

                Signature

              
	
              	 	 	
              

      
        
          
          

        

        
          A-5Exhibit 10.1

                           CONSENT AND AMENDMENT NO. 1

                                       TO

                           LOAN AND SECURITY AGREEMENT

            THIS CONSENT AND AMENDMENT NO. 1 (this "Amendment") is entered into
as of August 14, 2006, by and among BUCYRUS INTERNATIONAL, INC., a corporation
organized under the laws of the State of Delaware ("Bucyrus"), MINSERCO, INC., a
corporation organized under the laws of the State of Delaware ("Minserco"), and
BOONVILLE MINING SERVICES, INC., a corporation organized under the laws of the
State of Delaware ("Boonville"); (Bucyrus, Minserco and Boonville, each a
"Borrower" and collectively, the "Borrowers"), BUCYRUS CANADA LIMITED, a
corporation organized under the laws of the Province of Ontario ("Bucyrus
Canada" and a "Guarantor"), the financial institutions set forth on the
signature pages hereto (each a "Lender" and collectively, "Lenders"), GMAC
COMMERCIAL FINANCE LLC, a limited liability company organized under the laws of
the State of Delaware ("GMAC CF"), as administrative agent and collateral agent
for the Lenders (GMAC CF, in such capacities, the "Agent") and as sole lead
arranger, JPMORGAN CHASE BANK, N.A. as Documentation Agent, and LASALLE BANK
NATIONAL ASSOCIATION as Syndication Agent.

                                   BACKGROUND

      Borrowers, Agent and Lenders are parties to an Amended and Restated Loan
and Security Agreement dated as of May 27, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the "Loan Agreement")
pursuant to which Agent and Lenders provide Borrowers with certain financial
accommodations.

      Borrowers have requested that Agent and Lenders consent to an increase in
the Maximum Revolving Advance Amount to $135,000,000, and Agent and Lenders are
willing to do so on the terms and conditions hereafter set forth.

      NOW, THEREFORE, in consideration of any loan or advance or grant of credit
heretofore or hereafter made to or for the account of Borrowers by Agent and
Lenders, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

      1. Definitions. All capitalized terms not otherwise defined herein shall
have the meanings given to them in the Loan Agreement.

      2. Consent. Subject to satisfaction of the conditions precedent set forth
in Section 4 below, each Lender hereby consents to the increase of the Maximum
Revolving Advance Amount from $120,000,000 to $135,000,000 and the increase of
its revolving commitment amount from $40,000,000 to $45,000,000.

<PAGE>

      3. Amendment to Loan Agreement. Subject to satisfaction of the conditions
precedent set forth in Section 4 below, the Loan Agreement is hereby amended as
follows:

            (a) Section 1.2 is amended as follows:

                  (i) the following defined term is amended in its entirety to
provide as follows:

                  "Maximum Revolving Advance Amount" shall mean $135,000,000;
provided, however, upon receipt by Agent of a written request from Borrowing
Agent to Agent, the Maximum Revolving Advance Amount shall be reduced in
increments of not less than $10,000,000 to the amount specified by Borrowing
Agent from time to time; and provided, further, upon receipt by Agent of a
written request from Borrowing Agent to Agent at a time when no Default or Event
of Default shall have occurred and is continuing and subject to the prior
written approval of each Lender, the Maximum Revolving Advance Amount shall be
increased (x) in increments of not less than $10,000,000 (y) not more than two
(2) times, and (z) so that the total of such increments do not exceed an
aggregate amount of $15,000,000. In no event shall the Maximum Revolving Advance
Amount exceed $150,000,000.

      4. Conditions of Effectiveness. This Amendment shall become effective upon
satisfaction of the following conditions precedent: Agent shall have received
(i) four (4) copies of this Amendment executed by Borrowers and Lenders and
consented and agreed to by Guarantor, (ii) the Second Amended and Restated
Notes, in the form of Exhibit A attached hereto, duly executed and delivered by
Borrowers, and (iii) and such other certificates, instruments, documents,
agreements and opinions of counsel as may be required by Agent or its counsel,
each of which shall be in form and substance satisfactory to Agent and its
counsel.

      5. Representations and Warranties. Each Borrower hereby represents and
warrants as follows:

            (a) This Amendment and the Loan Agreement, as amended hereby,
constitute legal, valid and binding obligations of Borrowers and are enforceable
against Borrowers in accordance with their respective terms.

            (b) Upon the effectiveness of this Amendment, each Borrower hereby
reaffirms all covenants, representations and warranties made in the Loan
Agreement to the extent the same are not amended hereby and agree that all such
covenants, representations and warranties shall be deemed to have been remade as
of the effective date of this Amendment.

            (c) No Event of Default or Default has occurred and is continuing or
would exist after giving effect to this Amendment.

            (d) No Borrower has any defense, counterclaim or offset with respect
to the Loan Agreement.

      6. Effect on the Loan Agreement.

<PAGE>

            (a) Upon the effectiveness of Section 2 hereof, each reference in
the Loan Agreement to "this Agreement," "hereunder," "hereof," "herein" or words
of like import shall mean and be a reference to the Loan Agreement as amended
hereby.

            (b) Except as specifically amended herein, the Loan Agreement, and
all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

            (c) The execution, delivery and effectiveness of this Amendment
shall not operate as a waiver of any right, power or remedy of Agent or Lenders,
nor constitute a waiver of any provision of the Loan Agreement, or any other
documents, instruments or agreements executed and/or delivered under or in
connection therewith.

      7. Governing Law. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns and
shall be governed by and construed in accordance with the laws of the State of
New York.

      8. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

      9. Counterparts; Facsimile. This Amendment may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed an original
and all of which when taken together shall constitute one and the same
agreement. Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

<PAGE>

      IN WITNESS WHEREOF, this Amendment has been duly executed as of the day
and year first written above.

                                    BUCYRUS INTERNATIONAL, INC.

                                    By: /s/ T. W. Sullivan
                                       -----------------------------------------
                                    Name:  T. W. Sullivan
                                    Title: CEO & President

                                    MINSERCO, INC.

                                    By: /s/ T. W. Sullivan
                                       -----------------------------------------
                                    Name:  T. W. Sullivan
                                    Title: CEO, President & Chairman
                                           of the Board

                                    BOONVILLE MINING SERVICES, INC.

                                    By: /s/ T. W. Sullivan
                                       -----------------------------------------
                                    Name:  T. W. Sullivan
                                    Title: CEO, President & Chairman
                                           of the Board

                                    GMAC COMMERCIAL FINANCE LLC,
                                    as Agent and Lender

                                    By: /s/ Frank DiCeglie
                                       -----------------------------------------
                                    Name:  Frank DiCeglie
                                    Title: Director

                                    Commitment Percentage:  33.3333%

                                    JPMORGAN CHASE BANK, NATIONAL
                                    ASSOCIATION, as Lender

                                    By: /s/ Jane W. Mezera
                                       -----------------------------------------
                                    Name:  Jane W. Mezera
                                    Title: Vice President

                                    Commitment Percentage:  33.3333

<PAGE>

                                    LASALLE BANK NATIONAL ASSOCIATION, as Lender

                                    By: /s/ D. Marinovic
                                       -----------------------------------------
                                    Name:  Dusko Marinovic
                                    Title: Vice President

                                    Commitment Percentage:  33.3333%

CONSENTED AND AGREED TO:

/s/ T. W. Sullivan
-------------------------------
BUCYRUS CANADA LIMITED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]