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    SECURITIES
      PURCHASE AGREEMENT

    

    

    SECURITIES
      PURCHASE AGREEMENT dated as of September ___, 2006 (the “Agreement”),
      between BioMetrx, Inc., a Delaware corporation (the “Company”),
      and
____________________,
      (the
“Investor”).

    

    WHEREAS,
      the
      Company is offering up to $400,000 aggregate principal amount, 10% notes due
      March 15, 2007 (the “Notes”),
      without discount, 400,000 five year warrants (the “Warrants”)
      to
      purchase shares of the Company’s common stock, $.0001 par value (“Common
      Stock”)
      and
      160,000 shares of Common Stock ( the “Shares”). 

    

    WHEREAS,
      each
      $100.00 principal amount is offered together with one hundred (100) Warrants
      and
      40 shares of our Common Stock.

    

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall issue and sell to the Investor, and the Investor
      shall
      purchase from the Company, (i) the principal amount of the Notes set forth
      on
      the signature page hereto (ii) the number of Warrants determined by dividing
      such principal amount by $100 and multiplying by 100 and (iii) the number of
      Shares determined by dividing such principal amount by $100 and multiply by
      .40.

     

    WHEREAS,
      such
      investments will be made in reliance upon the provisions of Section 4(2)
      (“Section
      4(2)”)
      and/or
      Section 4(6) (“Section
      4(6)”)
      of the
      United States Securities Act of 1933, as amended, and/or Regulation D
(“Regulation
      D”)
      and the
      other rules and regulations promulgated thereunder (the “Securities
      Act”),
      and/or
      upon such other exemption from the registration requirements of the Securities
      Act as may be available with respect to any or all of the investments in
      securities to be made hereunder.

     

    NOW,
      THEREFORE,
      the
      parties hereto agree as follows:

    

    ARTICLE
      I

    

    Certain
      Definitions

    

    In
      addition to the definitions set forth in the text of this Agreement, the
      following capitalized terms shall have the meanings ascribed to them
      below:

    

    “Capital
      Shares”
      shall
      mean the Common Stock and any shares of any other class of common stock, whether
      now or hereafter authorized, having the right to participate in the distribution
      of earnings and assets of the Company.

    

    “Closing”
      shall
      mean each closing of the purchase and sale of the Notes, Warrants, and Shares
      pursuant to Section 2.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Closing
      Date”
      shall
      mean each date on which (x) all conditions to Closing have been satisfied or
      waived as provided in Section 2.1(b) hereof and (y) a Closing shall have
      occurred.

    

    “Common
      Stock”
      shall
      mean the Company’s common stock, $.0001 par value per share.

    

    “Damages”
      shall
      mean any loss, claim, damage, judgment, penalty, deficiency, liability, costs
      or
      expenses (including, without limitation, reasonable attorneys’ fees and
      disbursements and reasonable costs and expenses of expert witnesses and
      investigation).

    

    “Disclosure
      Schedule”
      shall
      mean the written disclosure schedule delivered on or prior to the date hereof
      by
      the Company to the Investor that is arranged in paragraphs corresponding to
      the
      numbered and lettered paragraphs contained in this Agreement.

    

    “Environmental
      Laws”
      shall
      mean foreign, Federal, state and local laws and regulations relating to the
      protection of human health and safety, the environment, hazardous or toxic
      substances or wastes, pollutants or contaminants.

    

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

    

    “Finders”
      shall
      mean one or more finders that are either registered broker-dealers or, if the
      Investor is not a U.S. Person, otherwise qualified to accept a payment for
      introducing the Investor to the Company. 

    

    “GAAP”
      shall
      mean United States generally accepted accounting principles as shall be in
      effect from time to time.

    

    “Intellectual
      Property”
      shall
      mean all trademarks, trade names, service marks, service mark registrations,
      service names, patents, patent rights, copyrights, inventions, licenses,
      approvals, governmental authorizations, trade secrets, know-how (including
      trade
      secrets and other unpatented and/or unpatentable proprietary or confidential
      information, systems or procedures) and other similar proprietary rights,
      information and knowledge.

    

    “Legend”
      shall
      mean the legend set forth in Section 9.1.

    

    “Material
      Adverse Effect”
      shall
      mean any effect on the business, operations, properties, prospects, stock price
      or financial condition of the Company that is material and adverse to the
      Company and its subsidiaries and affiliates, taken as a whole, or any condition,
      circumstance, or situation that would prohibit or otherwise interfere with
      the
      ability of the Company to enter into and perform any of its obligations under
      any of the Transaction Documents in any material respect.

    

    “Notes”
      shall
      mean the Company’s 10% Notes due March 15, 2007, substantially in the form of
Exhibit
      A
      hereto.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Outstanding,”
      when
      used with reference to any Capital Shares, shall mean, at any date as of which
      the number of such Capital Shares is to be determined, all issued and
      outstanding Capital Shares, and shall include all such Capital Shares issuable
      in respect of outstanding scrip or any certificates representing fractional
      interests in such Capital Shares; provided,
      however,
      that
“Outstanding” shall not mean any such Capital Shares then directly or indirectly
      owned or held by or for the account of the Company.

    

    “Person”
      shall
      mean an individual, a corporation, a partnership, a limited liability company,
      an association, a trust or other entity or organization, including a government
      or political subdivision or an agency or instrumentality thereof.

    

    “Principal
      Amount”
      shall
      mean, at any time, the unpaid principal balance of one or more
      Notes.

    

    “Principal
      Market”
      shall
      mean the American Stock Exchange, the New York Stock Exchange, the NASDAQ
      National Market, or the NASDAQ SmallCap Market, whichever is at the time the
      principal trading exchange or market for the Common Stock, based upon share
      volume, or if the Common Stock is not traded on an exchange or The Nasdaq Stock
      Market, the OTC Bulletin Board.

    

    “Purchase
      Price”
      shall
      mean the Principal Amount of the Notes purchased.

    

    “Registrable
      Securities”
      shall
      mean the Shares and the Warrant Shares until the Registration Statement has
      been
      declared effective by the SEC. 

    

    “Registration
      Statement”
      shall
      mean a registration statement on Form SB-2 if use of such form is then available
      to the Company pursuant to the rules of the SEC and, if not, on such other
      form
      promulgated by the SEC for which the Company then qualifies and which counsel
      for the Company shall deem appropriate, and which form shall be available for
      the resale by the Investor of the Registrable Securities to be registered
      thereunder in accordance with the provisions of this Agreement and the Warrants
      and in accordance with the intended method of distribution of such securities,
      for the registration of the resale by the Investor of the Registrable Securities
      under the Securities Act.

    

    “Regulation
      D”
      shall
      have the meaning set forth in the recitals of this Agreement.

    

    “SEC”
      shall
      mean the Securities and Exchange Commission.

    

    “SEC
      Documents”
      shall
      mean the Company’s Annual Report on Form 10-KSB for the fiscal year ended
      December 31, 2005 and each report, proxy statement and registration statement
      filed by the Company with the SEC pursuant to the Exchange Act or the Securities
      Act since the filing of such Annual Report through the date hereof.

    

    “Section
      4(2)”
      and
      “Section
      4(6)”
shall
      have the meanings set forth in the recitals of this Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Securities”
      shall
      mean the Notes, the Warrants and the Warrant Shares, individually and
      collectively.

    

    “Securities
      Act”
      shall
      have the meaning set forth in the recitals of this Agreement.

    

    “Subsidiary”
      shall
      mean any entity in which the Company, directly or indirectly, owns capital
      stock
      or holds an equity or similar interest.

    

    “Trading
      Day”
      shall
      mean any day during which the Principal Market shall be open for
      business.

    

    “Transaction
      Documents”
      shall
      mean this Agreement, the Notes, the Warrants, and each of the other agreements
      entered into by the parties hereto in connection with the transactions
      contemplated by this Agreement.

    

    “Warrants”
      shall
      mean the warrants to purchase Common Stock substantially in the form of
Exhibit
      B
      to be
      issued to the Investor hereunder.

    

    “Warrant
      Shares”
      shall
      mean all shares of Common Stock or other securities issued or issuable pursuant
      to exercise of the Warrants.

     

    ARTICLE
      II 

    

    Purchase
      and Sale of Notes, Shares and Warrants

    

    Section
      2.1.    Investment.

    

    (a)    Upon
      the
      terms and subject to the conditions set forth herein, on the Closing Dates
      set
      forth below the Company agrees to sell to the Investor, and the Investor agrees
      to purchase from the Company, the principal amount of Notes, Shares and related
      Warrants set forth beside the Investor’s signature below, as
      follows:

    

    (i)    Concurrently
      with the execution and delivery of this Agreement, the Investor shall deliver
      the Purchase Price, in immediately available funds, to the Company. The Company
      shall immediately thereafter deliver to each investor an executed original
      Note,
      Warrant and Certificate representing the Shares.

     

    (b)    Each
      Closing shall be subject to the satisfaction of the conditions to Closing set
      forth below:

    

    (i)    The
      obligation of the Company hereunder to issue and sell the Note(s) and issue
      the
      Shares and Warrant(s) to the Investor at a Closing is subject to the
      satisfaction, at or before the relevant Closing Date, of each of the following
      conditions, provided that these conditions are for the Company’s sole benefit
      and may be waived by the Company at any time in its sole discretion by providing
      the Investor with prior written notice thereof:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (A)    The
      Investor shall have executed each of the Transaction Documents to be executed
      by
      it and delivered the same to the Company.

    

    (B)    The
      Investor shall have delivered to the Company the Purchase Price for the Notes,
      Shares and Warrants being purchased by the Investor at the Closing by wire
      transfer of immediately available funds pursuant to the written wire
      instructions provided by the Company.

    

    (C)    The
      representations and warranties of the Investor shall be true and correct as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date),
      and the Investor shall have performed, satisfied and complied with the
      covenants, agreements and conditions required by the Transaction Documents
      to be
      performed, satisfied or complied with by it at or prior to the Closing
      Date.

    

    (ii)    The
      obligation of the Investor hereunder to purchase the Note(s), Share(s), and
      Warrant(s) at the Closing is subject to the satisfaction, at or before the
      relevant Closing Date, of each of the following conditions, provided that these
      conditions are for the Investor’s sole benefit and may be waived by the Investor
      at any time in its sole discretion:

    

    (A)    The
      Company shall have executed each of the Transaction Documents to be executed
      by
      it and delivered copies of the same to the Investor.

    

    (B)    The
      Common Stock shall be authorized for quotation on a Principal Market, trading
      in
      the Common Stock shall not have been suspended by such Principal Market or
      the
      SEC at any time beginning on the date hereof and through and including the
      Closing Date, and, except as set forth on the Disclosure Schedule, the Company
      shall not have been notified of any pending or threatened proceeding or other
      action to delist or suspend the Common Stock.

    

    (C)    The
      representations and warranties of the Company shall be true and correct as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date)
      and
      the Company shall have performed, satisfied and complied with the covenants,
      agreements and conditions required by the Transaction Documents to be performed,
      satisfied or complied with by the Company at or prior to the Closing Date.
      The
      Investor shall have received a certificate, executed by the Company’s Chief
      Executive Officer, dated as of the Closing Date, to the foregoing effect and
      as
      to such other matters as may be reasonably requested by the
      Investor.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (D)    The
      Company shall have executed and delivered to the Closing Agent the Note(s)
      (in
      such denominations as the Investor shall request) being purchased by the
      Investor at the Closing.

    

    (E)    The
      Company shall have executed and delivered to the Closing Agent the Share(s)
      and
      Warrant(s) (in such denominations as the Investor shall request) being purchased
      by the Investor at such Closing.

    

    (F)    The
      Board
      of Directors of the Company shall have adopted resolutions consistent with
      Section 4.2 below (the “Resolutions”).

    

    (G)    As
      of the
      Closing Date, the Company shall have reserved out of its authorized and unissued
      Common Stock, for the purpose of effecting the exercise of the Warrants, 400,000
      shares of Common Stock.

     

    Section
      2.2.    Reserved.
      

     

    ARTICLE
      III

    

    Representations
      and Warranties of the Investor

    

    The
      Investor represents and warrants to the Company that:

    

    Section
      3.1.    Intent.
      The
      Investor is entering into this Agreement for its own account and not with a
      view
      to or for sale in connection with any distribution of the Securities. The
      Investor has no present arrangement (whether or not legally binding) at any
      time
      to sell the Securities to or through any person or entity; provided, however,
      that by making the representations herein, the Investor does not agree to hold
      such Securities for any minimum or other specific term and reserves the right
      to
      dispose of the Securities at any time in accordance with Federal and state
      securities laws applicable to such disposition.

    

    Section
      3.2.    Sophisticated
      Investor.
      The
      Investor is an accredited investor (as defined in Rule 501 of Regulation D),
      and
      the Investor has such experience in business and financial matters that it
      has
      the capacity to protect its own interests in connection with this transaction
      and is capable of evaluating the merits and risks of an investment in the
      Securities. The Investor acknowledges that an investment in the Securities
      is
      speculative and involves a high degree of risk.

    

    Section
      3.3.    Authority.
      This
      Agreement and each of the Transaction Documents that are required to be executed
      by the Investor have been duly authorized and validly executed and delivered
      by
      the Investor and are valid and binding agreements of the Investor enforceable
      against it in accordance with their terms, subject to applicable bankruptcy,
      insolvency, or similar laws relating to, or affecting generally the enforcement
      of, creditors’ rights and remedies or other equitable principles of general
      application.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      3.4.    Not
      an
      Affiliate.
      The
      Investor is not an officer, director or “affiliate”
(as
      that term is defined in Rule 405 of the Securities Act) of the
      Company.

    

    Section
      3.5.    Absence
      of Conflicts.
      The
      execution, delivery and performance of this Agreement and each other Transaction
      Document, and the consummation of the transactions contemplated hereby and
      thereby, and compliance with the requirements hereof and thereof by the
      Investor, will not violate any law, rule, regulation, order, writ, judgment,
      injunction, decree or award binding on the Investor or (a) violate any provision
      of any indenture, instrument or agreement to which the Investor is a party
      or is
      subject, or by which the Investor or any of its assets is bound; (b) conflict
      with or constitute a material default thereunder; (c) result in the creation
      or
      imposition of any lien pursuant to the terms of any such indenture, instrument
      or agreement, or constitute a breach of any fiduciary duty owed by the Investor
      to any third party; or (d) require the approval of any third party (which has
      not been obtained) pursuant to any material contract, agreement, instrument,
      relationship or legal obligation to which the Investor is subject or to which
      any of its assets, operations or management may be subject.

    

    Section
      3.6.    Disclosure;
      Access to Information.
      The
      Investor has received all documents, records, books and other publicly available
      information pertaining to the Investor’s investment in the Company as the
      Investor has requested. The Investor acknowledges that the Company is subject
      to
      the periodic reporting requirements of the Exchange Act, and the Investor has
      reviewed copies of all SEC Documents deemed relevant by the Investor.

    

    Section
      3.7.    Manner
      of Sale.
      At no
      time was Investor presented with or solicited by or through any leaflet, public
      promotional meeting, television advertisement or any other form of general
      solicitation or advertising. 

    

    Section
      3.8    Acknowledgment
      Regarding Investor’s Purchase of Notes.
      The
      Investor acknowledges and agrees that it is acting solely in the capacity of
      arm’s-length purchaser with respect to the Transaction Documents and the
      transactions contemplated thereby. The Investor further acknowledges that it
      is
      not acting as a financial advisor or fiduciary of the Company (or in any similar
      capacity) with respect to the Transaction Documents and the transactions
      contemplated thereby and any advice given by the Investor or any of its
      representatives or agents in connection with the Transaction Documents and
      the
      transactions contemplated thereby is merely incidental to the Investor’s
      purchase of Securities. The Investor further represents to the Company that
      the
      Investor’s decision to enter into the Transaction Documents has been based
      solely on the independent evaluation by the Investor and its
      representatives.

    

    Section
      3.9    No
      Misrepresentation.
      The
      representations and warranties of the Investor contained in this Agreement,
      any
      schedule, annex or exhibit hereto and any agreement, instrument or certificate
      furnished by the Investor to the Company pursuant to this Agreement, do not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not
      misleading.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IV

    

    Representations
      and Warranties of the Company

    

    The
      Company represents and warrants to the Investor that, except as set forth on
      the
      Disclosure Schedule prepared by the Company and attached hereto:

    

    Section
      4.1.    Organization
      of the Company.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Delaware and has all requisite corporate
      authority to own its properties and to carry on its business as now being
      conducted. The Company’s Subsidiaries are corporations duly incorporated and
      validly existing in good standing under the laws of the jurisdiction in which
      they are incorporated and have the requisite corporate power and authority
      to
      own their properties and to carry on their business as now being conducted.
      The
      Company and each of its Subsidiaries is duly qualified and is in good standing
      as a foreign corporation to do business in every jurisdiction in which the
      nature of the business conducted or property owned by it makes such
      qualification necessary, other than those in which the failure so to qualify
      would not have a Material Adverse Effect.

    

    Section
      4.2.    Authority.
      (i) The
      Company has the requisite corporate power and corporate authority to enter
      into
      and perform its obligations under the Transaction Documents and to issue the
      Securities pursuant to their respective terms; (ii) the execution, issuance
      and
      delivery of the Transaction Documents, the Notes, the Shares and the Warrants
      by
      the Company and the consummation by it of the transactions contemplated hereby
      have been duly authorized by all necessary corporate action and no further
      consent or authorization of the Company or its Board of Directors or
      stockholders is required, and (iii) the Transaction Documents have been duly
      executed and delivered by the Company and constitute valid and binding
      obligations of the Company enforceable against the Company in accordance with
      their terms, except as such enforceability may be limited by applicable
      bankruptcy, insolvency, or similar laws relating to, or affecting generally
      the
      enforcement of, creditors’ rights and remedies or other equitable principles of
      general application. The Company has duly and validly authorized and reserved
      for issuance shares of Common Stock sufficient in number for the exercise of
      the
      Warrants. The Company understands and acknowledges the potentially dilutive
      effect on the Common Stock of the issuance of the Warrant Shares. The Company
      further acknowledges that its obligation to issue Warrant Shares upon exercise
      of the Warrants in accordance with this Agreement, the Notes and/or the Warrants
      is absolute and unconditional regardless of the dilutive effect that such
      issuance may have on the ownership interests of other stockholders of the
      Company and notwithstanding the commencement of any case under 11 U.S.C. § 101
      et seq. (the “Bankruptcy
      Code”).
      

    

    Section
      4.3.    No
      Pre-Emptive Rights.
      The
      Company is not a party to any agreement granting preemptive rights to any person
      with respect to any of its equity or debt securities. 

    

    Section
      4.4.    Common
      Stock.
      The
      Company has registered its Common Stock pursuant to Section 12(b) or (g) (or
      files periodic reports pursuant to Section 15(d)) of the Exchange Act and is
      in
      full compliance with all reporting requirements of the Exchange Act, and the
      Company is in compliance with all requirements for the continued listing or
      quotation of its Common Stock, and such Common Stock is currently listed or
      quoted on, a Principal Market. As of the date hereof, the Principal Market
      is
      the OTC Bulletin Board, and except as set forth in the SEC Documents, the
      Company has not received any notice regarding, and to its knowledge there is
      no
      threat of, the termination or discontinuance of the eligibility of the Common
      Stock for such listing.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Section
      4.5.    SEC
      Documents.
      The
      Company is subject to the reporting requirements of the Exchange Act and has
      timely filed with the SEC the SEC Documents. The Company is not aware of any
      event occurring or expected to occur on or prior to the Closing Date (other
      than
      the transactions effected thereby) that would require the filing of, or with
      respect to which the Company intends to file, a current report on Form 8-K
      after
      the Closing. The Company has delivered to the Investor, by reference to the
      SEC
      Website and “EDGAR” therender, true and complete copies of the SEC Documents.
      The Company has not provided the Investor any information that, according to
      applicable law, rule or regulation, should have been disclosed publicly prior
      to
      the date hereof by the Company, but which has not been so disclosed. As of
      their
      respective dates, the SEC Documents complied in all material respects with
      the
      requirements of the Securities Act or the Exchange Act, as the case may be,
      and
      rules and regulations of the SEC promulgated thereunder, and the SEC Documents
      did not contain any untrue statement of a material fact or omit to state a
      material fact required to be stated therein or necessary in order to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. The financial statements of the Company included in the SEC
      Documents complied in all material respects with applicable accounting
      requirements and the rules and regulations of the SEC or other applicable rules
      and regulations with respect thereto at the time of such inclusion. Such
      financial statements have been prepared in accordance with GAAP applied on
      a
      consistent basis during the periods involved (except (i) as may be otherwise
      indicated in such financial statements or the notes thereto or (ii) in the
      case
      of unaudited interim statements, to the extent they exclude footnotes or may
      be
      condensed or summary statements) and fairly present in all material respects
      the
      financial position of the Company as of the dates thereof and the results of
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited interim statements, to normal year-end audit adjustments). Neither
      the
      Company nor any of its subsidiaries has any material indebtedness, obligations
      or liabilities of any kind (whether accrued, absolute, contingent or otherwise,
      and whether due or to become due) that would have been required to be reflected
      in, reserved against or otherwise described in the financial statements or
      in
      the notes thereto in accordance with GAAP, which was not fully reflected in,
      reserved against or otherwise described in the financial statements or the
      notes
      thereto included in the SEC Documents or was not incurred in the ordinary course
      of business consistent with the Company’s past practices since the last date of
      such financial statements. No other information provided by or on behalf of
      the
      Company to the Investor that is not included in the SEC Documents, including,
      without limitation, information referred to in Section 3.6 of this Agreement,
      contains any untrue statement of a material fact or omits to state any material
      fact necessary in order to make the statements therein, in the light of the
      circumstance under which they are or were made, not misleading. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Section
      4.6.    Exemption
      from Registration; Valid Issuances.
      Subject
      to the accuracy of the Investor’s representations in Article III, the Company’s
      sale of the Notes and its issuance of the Shares and Warrants under this
      Agreement does not, and the Company’s issuance of the Warrant Shares on the
      exercise of the Warrants will not, require registration under the Securities
      Act
      and/or any applicable state securities law, except as provided for in the
      Registration Rights Agreement. When issued in accordance with the terms of
      the
      Agreement and the Warrants, the Shares and the Warrant Shares, as the case
      may
      be, will be duly and validly issued, fully-paid, and nonassessable. Neither
      the
      sales of the Securities pursuant to, nor the Company’s performance of its
      obligations under, the Transaction Documents will (i) result in the creation
      or
      imposition by the Company of any liens, charges, claims or other encumbrances
      upon any of the Securities or, except as contemplated herein, any of the assets
      of the Company, or (ii) entitle the holders of Outstanding Capital Shares to
      preemptive or other rights to subscribe for or acquire the Capital Shares or
      other securities of the Company. None of the Securities will subject the
      Investor to personal liability to the Company or its creditors by reason of
      the
      Investor’s possession thereof.

    

    Section
      4.7.    No
      General Solicitation or Advertising in Regard to this
      Transaction.
      Neither
      the Company nor any of its affiliates nor any person acting on its or their
      behalf (i) has conducted or will conduct any general solicitation (as that
      term
      is used in Rule 502(c) of Regulation D) or general advertising with respect
      to
      the sale of the Notes, the Shares or the Warrants, or (ii) has made any offers
      or sales of any security or solicited any offers to buy any security under
      any
      circumstances that would require registration of the Securities under the
      Securities Act.

    

    Section
      4.8.    No
      Conflicts.
      The
      Company’s execution, delivery and performance of the Transaction Documents, the
      Company’s performance of its obligations under the Notes, and the Company’s
      consummation of the transactions contemplated hereby and thereby do not and
      will
      not (i) result in a violation of the Company’s Certificate of Incorporation or
      By-Laws or (ii) result in a violation of any law, rule, regulation, order,
      judgment or decree (including Federal and state securities laws and regulations
      and the rules and regulations of the Principal Market) that may require the
      Company to obtain the approval of its stockholders, applicable to the Company
      or
      by which any property or asset of the Company is bound or affected. The Company
      is not otherwise in violation of any term of or in default under its Certificate
      of Incorporation or By-laws. The Company’s business is not being conducted in
      violation of any law, ordinance or regulation of any governmental entity, except
      for possible violations that either singly or in the aggregate would not result
      in a Material Adverse Effect. Except as specifically contemplated by this
      Agreement and as required by the Securities Act, the Company is not required
      to
      obtain any consent, authorization or order of, or make any filing or
      registration with, any court or governmental agency or any regulatory or
      self-regulatory organization, in order for it to execute, deliver or perform
      any
      of its obligations under or contemplated by the Transaction Documents, in each
      case in accordance with the terms hereof or thereof. All consents,
      authorizations, orders, filings and registrations that the Company is required
      to obtain pursuant to the preceding sentence have been obtained or effected
      on
      or prior to the date hereof. The Company is not in violation of the listing
      requirements of the Principal Market as in effect on the date hereof and is
      not
      aware of any facts which would reasonably lead to delisting of the Common Stock
      by the Principal Market in the foreseeable future.

     

    
      
        
        

      

      
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    Section
      4.9.    No
      Material Adverse Change.
      Since
      August 15, 2006, no Material Adverse Effect has occurred or exists with respect
      to the Company, except as disclosed in any SEC Documents filed at least five
      (5)
      days prior to the date hereof and available on EDGAR or can reasonably be
      expected to have occurred as the result of continuing losses. The Company has
      not taken any steps, and does not currently expect to take any steps, to seek
      protection pursuant to the Bankruptcy Code or any law generally affecting
      creditors’ rights nor does the Company have any knowledge or reason to believe
      that its creditors intend to initiate involuntary bankruptcy
      proceedings.

     

    Section
      4.10.    No
      Undisclosed Liabilities.
      No
      liability has occurred or exists with respect to the Company or its Subsidiaries
      or their respective businesses, properties, operations or financial condition,
      that would be required to be disclosed by the Company under applicable
      securities laws on a registration statement filed with the SEC relating to
      an
      issuance and sale by the Company of its Common Stock and that has not been
      publicly announced.

    

    Section
      4.11.    No
      Integrated Offering.
      The
      Company has not, directly or indirectly, made any offers or sales of any
      security, or solicited any offers to buy any security, under circumstances
      that
      would require registration of any of the Securities under the Securities Act
      or
      cause this offering of Securities to be integrated with prior offerings of
      securities by the Company for purposes of the Securities Act or any applicable
      stockholder approval provisions, including, without limitation, under the rules
      and regulations of the Principal Market; nor will the Company or any of its
      Subsidiaries, to the best of its ability, take any action or steps that would
      require registration of the Securities under the Securities Act or cause the
      offering of the Securities to be integrated with other offerings.

    

    Section
      4.12.    Litigation
      and Other Proceedings.
      Except
      as disclosed in the SEC Documents, there are no lawsuits or proceedings pending
      or, to the knowledge of the Company, threatened, against the Company or any
      Subsidiary or any of their officers or directors in their capacities as such,
      nor has the Company received any written or oral notice of any such action,
      suit, proceeding or investigation, which could reasonably be expected to have
      a
      Material Adverse Effect. Except as set forth in the SEC Documents, no judgment,
      order, writ, injunction or decree or award has been issued by or, to the
      knowledge of the Company, requested of any court, arbitrator or governmental
      agency that could result in a Material Adverse Effect.

    

    Section
      4.13.    Intellectual
      Property.
      Each of
      the Company and its Subsidiaries owns or possesses adequate and enforceable
      rights or licenses to use all Intellectual Property necessary for the conduct
      of
      its business as now being conducted. None of the Company’s or any Subsidiary’s
      Intellectual Property necessary to conduct its business as now conducted or
      as
      proposed to be conducted has expired or terminated, or is expected to expire
      or
      terminate within two years from the date of this Agreement. To the Company’s
      knowledge, except as disclosed in the SEC Documents, neither the Company nor
      any
      of its subsidiaries is infringing upon or in conflict with any right of any
      other person with respect to any Intellectual Property. Except as disclosed
      in
      the SEC Documents, no adverse claims have been asserted by any person to the
      ownership or use of any Intellectual Property, and the Company has no knowledge
      of any basis for such claim.

     

    
      
        
        

      

      
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    Section
      4.14.    Internal
      Controls and Procedures.
      The
      Company maintains books and records and internal accounting controls that
      provide reasonable assurance that (i) all transactions to which the Company
      or
      any Subsidiary is a party or by which its properties are bound are executed
      with
      management’s authorization; (ii) the recorded accounting of the Company’s
      consolidated assets is compared with existing assets at regular intervals;
      (iii)
      access to the Company’s consolidated assets is permitted only in accordance with
      management’s authorization; and (iv) all transactions to which the Company or
      any Subsidiary is a party or by which its properties are bound are recorded
      as
      necessary to permit preparation of the financial statements of the Company
      in
      accordance with GAAP.

    

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

    

    Section
      4.16.    Environmental
      Laws.
      The
      Company and its Subsidiaries (i) are in compliance with any and all applicable
      Environmental Laws, (ii) have received all permits, licenses or other approvals
      required of them under applicable Environmental Laws to conduct their respective
      businesses and (iii) are in compliance with all terms and conditions of any
      such
      permit, license or approval where, in each of the three foregoing cases, the
      failure to so comply would have, individually or in the aggregate, a Material
      Adverse Effect.

    

    Section
      4.17.    Regulatory
      Permits.
      The
      Company and its Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate Federal, state or foreign regulatory
      authorities necessary to conduct their respective businesses, except where
      the
      failure to possess such items would not have, individually or in the aggregate,
      a Material Adverse Effect, and neither the Company nor any such Subsidiary
      has
      received any notice of proceedings relating to the revocation or modification
      of
      any such certificate, authorization or permit.

    

    Section
      4.18.    No
      Materially Adverse Contracts, Etc.
      Neither
      the Company nor any of its Subsidiaries is subject to any charter, corporate
      or
      other legal restriction, or any judgment, decree, order, rule or regulation
      that
      in the judgment of the Company’s officers has a Material Adverse Effect. Neither
      the Company nor any of its Subsidiaries is a party to any contract or agreement
      that in the reasonable judgment of the Company’s officers has or is expected to
      have a Material Adverse Effect.

    

    Section
      4.19.    No
      Other Agreements.
      The
      Company has not, directly or indirectly, made any agreements with any Investor
      relating to the terms or conditions of the transactions contemplated by the
      Transaction Documents, except as set forth in the Transaction
      Documents.

     

    
      
        
        

      

      
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    Section
      4.20.    No
      Misrepresentation.
      The
      representations and warranties of the Company contained in this Agreement,
      any
      schedule, annex or exhibit hereto and any agreement, instrument or certificate
      furnished by the Company to the Investor pursuant to this Agreement, do not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not
      misleading.

     

    ARTICLE
      V

    

    Covenants
      of the Investor

    

    Section
      5.1.    Best
      Efforts.
      The
      Investor covenants with the Company that it shall use its best efforts to timely
      satisfy each of the conditions to be satisfied by it as provided in Article
      II
      of this Agreement.

    

    Section
      5.2.    Certain
      Selling Restrictions.
      So long
      as the Company is in compliance in all material respects with its obligations
      to
      the Investor under this Agreement, the Note and Warrant, the Investor agrees
      on
      its behalf and on behalf of its Affiliates (as defined in Rule 405 under the
      Securities Act) that it will not short sell, or engage in any short sales with
      respect to, any shares of Common Stock on any Principal Market where the Common
      Stock is then listed for trading.

    

    ARTICLE
      VI

    

    Covenants
      of the Company

    

    Section
      6.1.    Best
      Efforts.
      The
      Company shall use its best efforts to timely satisfy each of the conditions
      to
      be satisfied by it as provided in Article II of this Agreement.

    

    Section
      6.2.    Registration
      Rights.
      The
      Company shall cause the Registration Rights Agreement to remain in full force
      and effect, and the Company shall comply in all material respects with the
      terms
      thereof.

    

    Section
      6.3.    Reservation
      of Common Stock.
      The
      Company shall at all times keep reserved and available, for the purpose of
      enabling the Company to issue the Warrant Shares pursuant to any or exercise
      of
      the Warrants, the number of shares of Common Stock needed to provide for the
      issuance of the Warrant Shares. 

    

    Section
      6.4.    Listing
      of Common Stock.
      The
      Company shall use its best efforts to maintain the listing of the Common Stock
      on a Principal Market and, as soon as required by the rules of the Principal
      Market and any other national securities exchange or automated quotation system,
      if any, upon which shares of Common Stock are listed, shall list the Shares
      and
      the Warrant Shares on the Principal Market and each such other exchange or
      system. The Company further agrees, if the Company applies to have the Common
      Stock traded on any other Principal Market, that it will include in such
      application the Warrant Shares, and will take such other action as is necessary
      or desirable in the opinion of the Investor to cause the Warrant Shares to
      be
      listed on such other Principal Market as promptly as possible. 

     

    
      
        
        

      

      
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    Section
      6.5.    Reserved.
      

    

    Section
      6.6.    Legends.
      The
      certificates evidencing the Registrable Securities shall be free of legends,
      except as set forth in Article IX.

    

    Section
      6.7.    Corporate
      Existence; Conflicting Agreements.
      The
      Company will take all steps necessary to preserve and continue its corporate
      existence. The Company shall not enter into any agreement, the terms of which
      agreement would restrict or impair the right or ability of the Company to
      perform any of its obligations under this Agreement or any of the other
      Transaction Documents.

    

    Section
      6.8.    Consolidation;
      Merger.
      The
      Company shall not, at any time after the date hereof, effect any merger or
      consolidation of the Company with or into, or a transfer of all or substantially
      all of the assets of the Company to, another entity (a “Consolidation
      Event”)
      unless
      the resulting successor or acquiring entity (if not the Company) assumes by
      written instrument or by operation of law the obligation to deliver to the
      Investor such shares of stock and/or securities as the Investor are entitled
      to
      receive pursuant to this Agreement and the Notes.

    

    Section
      6.9.    Issuance
      of Notes and Warrant Shares.
      To the
      best of the Company’s knowledge the sale of the Notes and the Warrants and the
      issuance of the Warrant Shares pursuant to exercise of the Warrants shall be
      made in accordance with the provisions and requirements of Section 4(2), Section
      4(6) or Regulation D and any applicable state securities law. The Company shall
      file a Form D with respect to the Notes as required under Regulation D and
      provide a copy thereof to the Investor promptly after such filing. The Company
      shall take such action as reasonably necessary to qualify the Notes for, or
      obtain exemption for the Notes for, sale to the Investor at the Closing pursuant
      to this Agreement under applicable securities or “Blue Sky” laws of the states
      of the United States, and shall provide evidence of any such action so taken
      to
      the Investor on or prior to the Closing Date. The Company shall make all filings
      and reports relating to the offer and sale of the Securities required under
      the
      applicable securities or “Blue Sky” laws of the states of the United States
      following the Closing Date.

    

    Section
      6.10.    Relief
      in Bankruptcy.
      The
      Company shall not seek judicial relief from its obligations hereunder, except
      pursuant to the Bankruptcy Code. In the event the Company is a debtor under
      the
      Bankruptcy Code, the Company hereby waives to the fullest extent permitted
      any
      rights to relief it may have under 11 U.S.C. § 362 in respect of the conversion
      of the Notes and the exercise of the Warrants. The Company agrees, without
      cost
      or expense to the Investor, to take or consent to any and all action necessary
      to effectuate relief under 11 U.S.C. § 362.

    

    Section
      6.11.    Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Notes for general working
      capital purposes and in the operation of the Company’s business. None of the
      proceeds will be used, directly or indirectly, to make any loan to or investment
      in any other Person (other than financing the Company’s Subsidiaries in the
      ordinary course of business or in connection with an acquisition of another
      corporation or business or assets of another corporation or business).

     

    
      
        
        

      

      
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    Section
      6.12.    Financial
      Information.
      Until
      all Registrable Securities may be sold without registration under the Securities
      Act, the Company shall send the following to each holder of Registrable
      Securities if
      not
      available via the Internet through EDGAR or any similar service: (i) within
      five
      (5) business days after the filing thereof with the SEC, a copy of its Annual
      Report on Form 10-KSB, its Quarterly Reports on Form 10-QSB, any Current Reports
      on Form 8-K and any registration statements or amendments (other than on Form
      S-8) filed pursuant to the Securities Act; and (ii) copies of any notices and
      other information made available or given to the stockholders of the Company
      generally, contemporaneously with the making available or giving thereof to
      the
      stockholders.

     

    ARTICLE
      VII

    

    Survival;
      Indemnification

    

    Section
      7.1.    Survival.
      The
      representations, warranties and covenants made by each of the Company and the
      Investor in this Agreement, the annexes, schedules and exhibits hereto and
      in
      each instrument, agreement and certificate entered into and delivered by them
      pursuant to this Agreement, shall survive the Closing and the consummation
      of
      the transactions contemplated hereby. In the event of a breach or violation
      of
      any of such representations, warranties or covenants, the party to whom such
      representations, warranties or covenants have been made shall have all rights
      and remedies for such breach or violation available to it under the provisions
      of this Agreement, irrespective of any investigation made by or on behalf of
      such party on or prior to the Closing Date.

    

    Section
      7.2.    Indemnity
      by Company.
      To the
      extent permitted by law, the Company shall indemnify and hold harmless the
      Investor, their respective Affiliates and their respective officers, directors,
      partners and members (each an “Indemnified Party”), from and against any and all
      Damages, and shall reimburse the Indemnified Parties for all reasonable
      out-of-pocket expenses (including the reasonable fees and expenses of legal
      counsel), in each case promptly as incurred by such Indemnified Party and to
      the
      extent arising out of or in connection with:

    

    
      	 	 	
              (i)

            	
              any
                misrepresentation, omission of fact or breach of any of the Company’s
                representations or warranties contained in any of the Transaction
                Documents, the annexes, schedules or exhibits thereto or any instrument,
                agreement or certificate entered into or delivered by the Company
                pursuant
                hereto or thereto; or

            

    

    

    
      	 	 	
              (ii)

            	
              any
                failure by the Company to perform in any material respect any of
                its
                covenants, agreements, undertakings or obligations set forth in any
                of the
                Transaction Documents, the annexes, schedules or exhibits thereto
                or any
                instrument, agreement or certificate entered into or delivered by
                the
                Company pursuant hereto or thereto;
                or

            

    

     

    
      
        
        

      

      
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              (iii)

            	
              any
                action instituted against the Investor, or any of them, by any stockholder
                of the Company who is not an Affiliate of the Investor, with respect
                to
                any of the transactions contemplated by the Transaction
                Documents.

            

    

     

    provided,
      however, that the indemnity agreement contained in this Section 7.2 shall not
      apply to amounts paid in settlement of any such loss, claim, damage, liability,
      or action if such settlement is effected without the consent of the Company
      (which consent shall not be unreasonably withheld, conditioned or delayed),
      and
      that the Company shall not be liable in any such case for any such loss, claim,
      damage, liability, or action to the extent that it arises out of or is based
      upon a statement, omission, or violation which occurs in reliance upon and
      in
      conformity with written information furnished in a certificate expressly for
      use
      in connection with such registration by any such Investor, or controlling person
      thereof.

     

    Section
      7.3    Contribution.
      If a
      court of competent jurisdiction holds that the foregoing indemnity is
      unavailable, then the indemnifying party shall contribute to the amount paid
      or
      payable by the indemnified party as a result of such losses, claims, damages,
      liabilities or expenses (i) in such proportion as is appropriate to reflect
      the
      relative benefits received by the indemnifying party on the one hand and the
      indemnified party on the other (taking into consideration, among other things,
      the fact that the provision of the registration rights and indemnification
      hereunder is a material inducement to the Investors to purchase Registrable
      Securities) or (ii) if the allocation provided by clause (i) above is not
      permitted by applicable law or provides a lesser sum to the indemnified party
      than the amount hereinafter calculated, in such proportion as is appropriate
      to
      reflect not only the relative benefits received by the indemnifying party on
      the
      one hand and the indemnified party on the other (taking into consideration,
      among other things, the fact that the provision of the registration rights
      and
      indemnification hereunder is a material inducement to the Investors to purchase
      Registrable Securities) but also the relative fault of the indemnifying party
      and the indemnified party as well as any other relevant equitable
      considerations. The relative fault shall be determined by reference to, among
      other things, whether the untrue or alleged untrue statement of a material
      fact
      or the omission or alleged omission to state a material fact relates to
      information supplied by or on behalf of the indemnifying party or the
      indemnified party and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such untrue statement or
      omission. No Person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the Securities Act) shall be entitled to contribution from
      any Person who was not guilty of such fraudulent misrepresentation.
      Notwithstanding anything to the contrary in this Section 7.3, no Investor shall
      be required, pursuant to this Section 7.3, to contribute any amount in excess
      of
      the net proceeds received by such indemnifying party from the sale of securities
      in the offering to which the losses, claims, damages, liabilities or expenses
      of
      the indemnified party relate.

     

    
      
        
        

      

      
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    Section
      7.4.    Notice.
      Promptly after receipt by an Indemnified Party seeking indemnification pursuant
      to Section 7.2 or Section 7.3 of written notice of any investigation, claim,
      proceeding or other action in respect of which indemnification is being sought
      (each, a “Claim”),
      the
      Indemnified Party promptly shall notify the other party of the commencement
      thereof; but the omission so to notify the other party shall not relieve it
      from
      any liability that it otherwise may have to the Indemnified Party, except to
      the
      extent that the other party is actually prejudiced by such omission or delay.
      In
      connection with any Claim as to which both the Indemnified Party and the other
      party are parties, the other party shall be entitled to assume the defense
      thereof. Notwithstanding the assumption of the defense of any Claim by the
      other
      party, the Indemnified Party shall have the right to employ separate legal
      counsel and to participate in the defense of such Claim, and the other party
      shall bear the reasonable fees, out-of-pocket costs and expenses of such
      separate legal counsel to the Indemnified Party if (and only if): (x) the other
      party shall have agreed to pay such fees, out-of-pocket costs and expenses,
      (y)
      the Indemnified Party reasonably shall have concluded that representation of
      the
      Indemnified Party and the other party by the same legal counsel would not be
      appropriate due to actual or, as reasonably determined by legal counsel to
      the
      Indemnified Party, potentially differing interests between such parties in
      the
      conduct of the defense of such Claim, or if there may be legal defenses
      available to the Indemnified Party that are in addition to or disparate from
      those available to the other party, or (z) the other party shall have failed
      to
      employ legal counsel reasonably satisfactory to the Indemnified Party within
      a
      reasonable period of time after notice of the commencement of such Claim. If
      the
      Indemnified Party employs separate legal counsel in circumstances other than
      as
      described in clauses (x), (y) or (z) above, the fees, costs and expenses of
      such
      legal counsel shall be borne exclusively by the Indemnified Party. Except as
      provided above, the other party shall not, in connection with any Claim in
      the
      same jurisdiction, be liable for the fees and expenses of more than one firm
      of
      legal counsel for the Indemnified Party (together with appropriate local
      counsel). The other party shall not, without the prior written consent of the
      Indemnified Party (which consent shall not unreasonably be withheld), settle
      or
      compromise any Claim or consent to the entry of any judgment that does not
      include an unconditional release of the Indemnified Party from all liabilities
      with respect to such Claim or judgment.

    

    Section
      7.5.    Direct
      Claims.
      In the
      event an Indemnified Party should have a claim for indemnification that does
      not
      involve a claim or demand being asserted by a third party, the Indemnified
      Party
      promptly shall deliver notice of such claim to the other party. If the other
      Party disputes the claim, such dispute shall be resolved by mutual agreement
      of
      the Indemnified Party and the other party or by binding arbitration conducted
      in
      accordance with the procedures and rules of the American Arbitration Association
      as set forth in Article X. Judgment upon any award rendered by any arbitrators
      may be entered in any court having competent jurisdiction thereof.

     

    ARTICLE
      VIII

    

    Due
      Diligence Review; Non-Disclosure of Non-Public
      Information.

    

    Section
      8.1.    Due
      Diligence Review.
      Subject
      to Section 8.2, the Company shall make available for inspection and review
      by
      the Investor, advisors to and representatives of the Investor (who may or may
      not be affiliated with the Investor and who are reasonably acceptable to the
      Company), any underwriter participating in any disposition of the Registrable
      Securities on behalf of the Investor pursuant to the Registration Statement,
      any
      such registration statement or amendment or supplement thereto or any blue
      sky,
      Nasdaq or other filing, all SEC Documents and other filings with the SEC, and
      all other publicly available corporate documents and properties of the Company
      as may be reasonably necessary for the purpose of such review, and cause the
      Company’s officers, directors and employees to supply all such publicly
      available information reasonably requested by the Investor or any such
      representative, advisor or underwriter in connection with such Registration
      Statement (including, without limitation, in response to all questions and
      other
      inquiries reasonably made or submitted by any of them), prior to and from time
      to time after the filing and effectiveness of the Registration Statement for
      the
      sole purpose of enabling the Investor and such representatives, advisors and
      underwriters and their respective accountants and attorneys to conduct initial
      and ongoing due diligence with respect to the Company and the accuracy of the
      Registration Statement. 

     

    
      
        
        

      

      
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    Section
      8.2.    Non-Disclosure
      of Non-Public Information.

    

    (a)    The
      Company shall not further disclose material non-public information to the
      Investor, advisors to or representatives of the Investor unless prior to
      disclosure of such information the Company identifies such information as being
      non-public information and provides the Investor, such advisors and
      representatives with the opportunity to accept or refuse to accept such
      non-public information for review. Other than disclosure of any comment letters
      received from the SEC staff with respect to the Registration Statement, the
      Company may, as a condition to disclosing any non-public information hereunder,
      require the Investor’ advisors and representatives to enter into a
      confidentiality agreement in form and content reasonably satisfactory to the
      Company and the Investor. With respect to material non-public information
      disclosed to Investor prior to Closing under Confidentiality Agreement, Investor
      shall remain bound by the terms of that Confidentiality Agreement.

    

    (b)    Nothing
      herein shall require the Company to disclose material non-public information
      to
      the Investor or their advisors or representatives, and the Company represents
      that, outside of disclosures made pursuant to written confidentiality
      agreements, it does not disseminate material non-public information to any
      investors who purchase stock in the Company in a public offering, to money
      managers or to securities analysts; provided, however, that notwithstanding
      anything herein to the contrary, the Company will, as hereinabove provided,
      promptly notify the advisors and representatives of the Investor and, if any,
      underwriters, of any event or the existence of any circumstance (without any
      obligation to disclose the specific event or circumstance) of which it becomes
      aware, constituting material non-public information (whether or not requested
      of
      the Company specifically or generally during the course of due diligence by
      such
      persons or entities), which, if not disclosed in the prospectus included in
      the
      Registration Statement would cause such prospectus to include a material
      misstatement or to omit a material fact required to be stated therein in order
      to make the statements therein, in light of the circumstances in which they
      were
      made, not misleading. Nothing contained in this Section 8.2 shall be construed
      to mean that such persons or entities other than the Investor (without the
      written consent of the Investor prior to disclosure of such information as
      set
      forth in Section 8.2(a)) may not obtain non-public information in the course
      of
      conducting due diligence in accordance with the terms of this Agreement and
      nothing herein shall prevent any such persons or entities from notifying the
      Company of their opinion that based on such due diligence by such persons or
      entities, that the Registration Statement contains an untrue statement of a
      material fact or omits a material fact required to be stated in the Registration
      Statement or necessary to make the statements contained therein, in light of
      the
      circumstances in which they were made, not misleading.

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IX

    

    Legends;
      Transfer Agent Instructions

    

    Section
      9.1.    Legends.
      Unless
      otherwise provided below, each certificate representing Registrable Securities
      will bear the following legend or equivalent (the “Legend”):

    

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
      APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION
      FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER
      SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
      OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT FROM SUCH
      REGISTRATION.

    

    Section
      9.2.    No
      Other Legend or Stock Transfer Restrictions.
      No
      legend other than the one specified in Section 9.1 has been or shall be placed
      on the share certificates representing the Registrable Securities and no
      instructions or “stop transfer orders,” “stock transfer restrictions,” or other
      restrictions have been or shall be given to the Company’s transfer agent with
      respect thereto other than as expressly set forth in this Article
      IX.

    

    Section
      9.3.    Investor’
      Compliance.
      Nothing
      in this Article shall affect in any way the Investor’s obligations to comply
      with all applicable securities laws upon resale of the Common Stock including
      delivery of the resale prospectus to the purchaser of such securities.

    

    Section
      9.4.    Transfers
      without Registration.
      If the
      Investor provides the Company with an opinion of counsel, in generally
      acceptable form, that registration of a resale by the Investor of any Securities
      is not required under the Securities Act, the Company shall permit the transfer
      and, in the case of the Warrant Shares, promptly instruct its transfer agent
      to
      issue one or more certificates in such name and in such denominations as
      specified by the Investor and, if such opinion provides that such legends can
      be
      removed, without any restrictive legends. 

    

    Section
      9.5.    Injunctive
      Relief.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to the Investor by vitiating the intent and purpose of the
      transaction contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for a breach of its obligations under this Article XI will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Article XI, that the Investor shall be
      entitled, in addition to all other available remedies, to an injunction
      restraining any breach and requiring immediate issuance and transfer, without
      the necessity of showing economic loss and without any bond or other security
      being required.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      X

    

    Choice
      of Law; Jurisdiction

    

    Section
      10.1.    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to contracts made in the State of Delaware without
      regard to its principles of conflicts of laws. 

    

    Section
      10.2.    Jurisdiction.
      Each of
      the parties consents to the jurisdiction of the United States District Court
      for
      the Southern District of New York or the state courts of the State of New York
      located in New York City, New York in connection with any dispute arising under
      this Agreement and hereby waives, to the maximum extent permitted by law, any
      objection, including any objection based on forum non conveniens, to the
      bringing of any such proceeding in such jurisdictions.

    

    Section
      10.3.    Waiver
      of Jury Trial.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
      OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT. EACH
      PARTY HERETO (1) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
      OF
      THE OTHER PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY OF THE
      OTHER
      PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
      WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
      INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
      AND CERTIFICATIONS IN THIS SECTION 10.3.

    

    ARTICLE
      XI

    

    Assignment

    

    Neither
      this Agreement nor any rights of the Investor or the Company hereunder may
      be
      assigned by any party to any other person. Notwithstanding the foregoing, (a)
      the provisions of this Agreement shall inure to the benefit of, and be
      enforceable by, any permitted transferee of any Securities, and (b) upon the
      prior written consent of the Company, which consent shall not unreasonably
      be
      withheld or delayed, the Investor’s interest in this Agreement may be assigned
      at any time, in whole or in part, to any other Person (including any affiliate
      of the Investor) who agrees to make the representations and warranties contained
      in Article III and who agrees to be bound by the terms of this
      Agreement.

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      XII

    

    Notices

    

    All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) hand delivered, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by facsimile, addressed as set forth below or to such other address
      as such party shall have specified most recently by written notice. Any notice
      or other communication required or permitted to be given hereunder shall be
      deemed effective (a) upon hand delivery or delivery by facsimile, with accurate
      confirmation generated by the transmitting facsimile machine, at the address
      or
      number designated below (if delivered on a business day during normal business
      hours where such notice is to be received), or the first business day following
      such delivery (if delivered other than on a business day during normal business
      hours where such notice is to be received) or (b) on the first business day
      following the date of sending by reputable courier service, fully prepaid,
      addressed to such address, or (c) upon actual receipt of such mailing, if
      mailed. The addresses for such communications shall be:

     

    
      	
              If
                to the Company:

            	BioMetrx, Inc.
              500
                North Broadway, Suite 204

              Jericho,
                NY 11753 

              Attn:
                Mark Basile, CEO

              Tel:
                (516) 937-2828

              Fax:
                (516) 983-4828

            
	 	 
	
              with
                a copy to:

              (which
                shall not constitute notice)

            	Sommer & Schneider LLP
              595
                Stewart Avenue, Suite 710

              Garden
                City, NY 11530

              Attention:
                Joel C. Schneider, Esq.

              Telephone:
                (516) 228-8181

              Facsimile:
                (516) 228-8211

            
	 	 
	If to the Investor: 	As set forth on the signature page
              hereto

    

     

    Either
      party hereto may from time to time change its address or facsimile number for
      notices under this Article XII by giving written notice of such changed address
      or facsimile number to the other party hereto as provided in this Article
      XII.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XIII

    

    Miscellaneous

    

    Section
      13.1.    Counterparts/
      Facsimile/ Amendments.
      This
      Agreement may be executed in multiple counterparts, each of which may be
      executed by fewer than all of the parties, and shall be deemed to be an original
      instrument that shall be enforceable against the parties actually executing
      such
      counterparts and all of which together shall constitute one and the same
      instrument. Except as otherwise stated herein, in lieu of the original
      documents, a facsimile transmission or copy of the original documents shall
      be
      as effective and enforceable as the original. This Agreement may be amended
      only
      by a writing executed by all parties.

    

    Section
      13.2.    Entire
      Agreement.
      This
      Agreement, the other Transaction Documents, which include, but are not limited
      to, the Notes and the Warrants, set forth the entire agreement and understanding
      of the parties relating to the subject matter hereof and supersede all prior
      and
      contemporaneous agreements, negotiations and understandings between and among
      the parties, both oral and written, relating to the subject matter hereof.
      The
      terms and conditions of all Exhibits to this Agreement are incorporated herein
      by this reference and shall constitute part of this Agreement as is fully set
      forth herein.

    

    Section
      13.3.    Severability.
      In the
      event that any provision of this Agreement becomes or is declared by a court
      of
      competent jurisdiction to be illegal, unenforceable or void, this Agreement
      shall continue in full force and effect without such provision; provided that
      such severability shall be ineffective if it materially changes the economic
      benefit of this Agreement to any party.

    

    Section
      13.4.    Headings.
      The
      headings used in this Agreement are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement. 

    

    Section
      13.5.    Number
      and Gender.
      One or
      more Investor may be parties to this Agreement, which Investor may be natural
      persons or entities. All references to plural Investor shall apply equally
      to a
      single Investor if there is only one Investor, and all references to the
      Investor as “it” shall apply equally to a natural person.

    

    Section
      13.6.    Reporting
      Entity for the Common Stock.
      The
      reporting entity relied upon for the determination of the trading price or
      trading volume of the Common Stock on any given Trading Day for the purposes
      of
      this Agreement shall be Bloomberg, L.P. or any successor thereto. The written
      agreement of the Investors holding more than a majority of the Registrable
      Securities and the Company shall be required to employ any other reporting
      entity.

    

    Section
      13.7.    Replacement
      of Certificates.
      Upon
      (i) receipt of evidence reasonably satisfactory to the Company of the loss,
      theft, destruction or mutilation of a certificate representing any Securities
      and (ii) in the case of any such loss, theft or destruction of such certificate,
      upon delivery of an indemnity agreement or security reasonably satisfactory
      in
      form to the Company (which shall not include the posting of any bond) or (iii)
      in the case of any such mutilation, on surrender and cancellation of such
      certificate, the Company at its expense will execute and deliver, in lieu
      thereof, a new certificate of like tenor.

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Section
      13.8.    Fees
      and Expenses.
      Each of
      the Company and the Investor agrees to pay its own expenses incident to the
      performance of its obligations hereunder.

    

    Section
      13.9.    Brokerage.
      Each of
      the parties hereto represents that it has had no dealings in connection with
      this transaction with any finder or broker who will demand payment of any fee
      or
      commission from the other party except for the Finders, whose fee shall be
      paid
      by the Company. The Company on the one hand, and the Investor, on the other
      hand, each agree to indemnify the other against and hold the other harmless
      from
      any and all liabilities to any person claiming brokerage commissions or finder’s
      fees on account of services purported to have been rendered on behalf of the
      indemnifying party in connection with this Agreement or the transactions
      contemplated hereby.

    

    Section
      13.10.    Publicity.
      The
      Company agrees that it will not issue any press release or other public
      announcement of the transactions contemplated by this Agreement without the
      prior consent of the Investor, which shall not be unreasonably withheld nor
      delayed by more than two (2) Trading Days from their receipt of such proposed
      release. No release shall name the Investor without their express consent.
      Notwithstanding the foregoing, the Company may file such information as is
      required by the rules and regulations of the SEC, in the reasonable opinion
      of
      the Company’s counsel.

    

    Section
      13.11.    Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

    

    Section
      13.12.    Termination.
      If the
      initial Closing shall not have occurred on or before fifteen (15) business
      days
      from the date hereof due to the Company’s or the Investor’s failure to satisfy
      the conditions set forth in Article II above (and the nonbreaching party’s
      failure to waive such unsatisfied condition(s)), the nonbreaching party shall
      have the option to terminate this Agreement with respect to such breaching
      party
      at the close of business on such date without liability of any party to any
      other party. Upon such termination, the Closing Agent will return funds
      deposited by Investor in the Closing Agent’s account, promptly after Investors
      provide Closing agent with a copy of such notices of termination, and
      appropriate written instructions as to the account to which such funds should
      be
      returned.

    

    Section
      13.13.    No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

    

    Section
      13.14.    Remedies.
      The
      Investor and each holder of Securities shall have all rights and remedies set
      forth in this Agreement and the Notes and all rights and remedies that such
      Investor and holders have been granted at any time under any other agreement
      or
      contract and all of the rights that such Investor and holders have under any
      law. Any person or entity having any rights under any provision of this
      Agreement shall be entitled to enforce such rights specifically (without posting
      a bond or other security), to recover damages by reason of any breach of any
      provision of this Agreement and to exercise all other rights granted by
      law.

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

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

     

    14.   REGISTRATION
      RIGHTS. 

    

    The
      Investor shall have the rights of registration set forth in this Section 14
      with
      respect to any or all of the Shares and Warrant Shares.

     

    14.1    Demand
      Registrations.
      If at
      any time after the 120-day period following the Closing hereunder, any Investors
      holding 25% of the Shares or Warrant Shares issued pursuant to this Agreement
      or
      the Warrant requests that the Company file a registration statement on Form
      SB-2, S-1, S-2, or S-3 or any successors thereto for a public offering of all
      or
      any portion of the Shares or the Warrant Shares held by such Investor, then
      the
      Company shall use its best efforts to register under the Securities Act on
      Form
      SB-2, S-1, S-2, or S-3 or any successors thereto (a “Demand
      Registration”),
      for
      public sale in accordance with the method of disposition specified in such
      notice, the number of shares of Common Stock specified in such notice;
provided,
      however,
      that
      the Company shall have no obligation to undertake more than two Demand
      Registrations in any twelve month period. The initiating Investor(s) shall
      be
      entitled to request an aggregate of two (2) Demand Registrations on Form S-1.
      Other than as set forth above, there is no limitation on the number of
      registrations pursuant to this Section 14.1 that the Company is obligated to
      effect. The Company shall not be obligated to effect any Demand Registration
      within six (6) months after the effective date of a previous Demand
      Registration, or within three (3) months of a previous S-3 registration or
      a
      previous registration under which the initialing Investor had piggyback rights
      pursuant to Section 14.2 hereof wherein the Initiating Holders were permitted
      to
      register, and sold, at least fifty percent (50%) of the shares of Common Stock
      requested to be included therein.

     

    14.2    Joining
      Registration Statements.
      If at
      any time or times, the Company proposes to file one or more Registration
      Statements (except for the Registration Statement for the First Montauk
      Investors) on Form SB-2, S-1, S-2, S-3 or other appropriate form for the
      registration of its Common Stock or other equity securities under the Act for
      a
      public offering, whether or not underwritten (excluding the issuance of shares
      pursuant to employees' options, incentive or similar plans, or in connection
      with an acquisition, merger or exchange of securities which involves no
      distribution for cash), it shall give a Notice of Registration to the Investor
      and shall include in each Registration Statement referred to in such notice
      all
      such Shares and Warrant Shares with respect to which the Investor shall have
      delivered to the Company a Notice of Intent to Sell within 20 days after the
      Company has given its Notice of Registration. Such Notice of Registration shall
      be given not later than ten days prior to the filing of any such Registration
      Statement and such Registration Statement will not be filed unless the Investor
      has at least ten days actual notice. All expenses incurred by the Company in
      complying with the foregoing registration requirements (except fees and
      disbursements of counsel for the Investor; underwriting discounts, commissions
      or similar expenses to be incurred in connection with the sale of Shares and
      Warrant Shares to be registered for the Investor) shall be borne by the Company.
      The Company shall have no obligation to register any Securities under this
      Section 7.1 unless the Investor agrees to join in the underwriting arrangements,
      if any, proposed for the other securities being registered on the same terms
      as
      other similarly situated participants in the distribution, unless such
      underwriters decline to include the Shares and Warrant Shares therein in which
      event the Company may delay the delivery of prospectuses to the Investor and
      the
      Investor will agree not to sell the Shares or Warrant Shares registered for
      a
      period not in excess of 90 days from the effective date of such Registration
      Statement. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    14.3    Notice
      of Intent to Sell and Notice of Registration.“Notice
      of Intent to Sell” shall mean a written notice signed by the Investor (i)
      setting forth the number of Shares which the Investor desires to have registered
      for sale, (ii) representing that the Investor has a present intention to sell
      the same, (iii) setting forth the intended method by which such sale will be
      effected and the names of the underwriters, if any; whose services are intended
      to be used to effect such sale, and (iv) agreeing to execute all consents,
      powers of attorneys, registration statements, and other documents required
      in
      order to permit such Registration Statement to be made effective and carry
      out
      the distribution. “Notice of Registration” shall mean a written notice signed by
      an officer of the Company and setting forth the approximate date on which it
      intends to file a Registration Statement on Form SB-2, S-1, S-2 or S-3 or other
      appropriate form for the registration of its Common Stock pursuant to the Act,
      and the approximate date on which it contemplates such Registration Statement
      will become effective whether the Registration Statement is being
      filed.

     

    14.4    Indemnification.The
      obligation of the Company to register Shares and Warrant Shares for the Investor
      pursuant to this Agreement shall be subject to the receipt by the Company of
      an
      agreement from the Investor and each underwriter of any securities registered
      for the Investor, in form and substance satisfactory to the Company,
      indemnifying the Company against liability arising out of or based upon any
      untrue statement or alleged untrue statement of a material fact in the
      Registration Statement or the omission or alleged omission to state therein
      any
      material fact required to be stated therein or necessary in order to make the
      statements therein not misleading, if such statement or omission was made by
      the
      Company in reliance upon and in conformity with written information furnished
      to
      the Company specifically for use in such Registration Statement by or on behalf
      of the Investor with respect to the Investor or any underwriter of any
      securities registered for the Investor. In connection with registration under
      the Act of securities owned by the Investor, the Company hereby agrees to
      indemnify the Investor and each underwriter of any securities registered for
      the
      Investor against liability arising out of or based upon any untrue statement
      or
      alleged untrue statement of a material fact in a Registration statement filed
      by
      the Company pursuant hereto, or the omission or alleged omission to state in
      such Registration Statement any material fact required to be stated therein
      or
      necessary in order to make the statement therein not misleading, other than
      any
      such statement included in, or omission from, such Registration Statement by
      the
      Company in reliance upon and in conformity with written information furnished
      to
      the Company, specifically for use therein by or on behalf of the Investor with
      respect to the Investor or by any underwriter of the securities included therein
      and to join in an underwriting agreement having usual and customary terms,
      including customary representations, warranties and agreements (in addition
      to
      the indemnification agreements provided by this Section 14.4).

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    14.5    
Certain
      Terms and Conditions.The
      following provisions shall be applicable to all registration rights granted
      in
      this Section 14:

    

    
      	 	
              (a)

            	
              the
                Company shall have the right to require the Investor, as a condition
                to
                the Investor exercising its rights under 14.2 to make offerings in
                the
                same manner as other shares registered therein for sale by the Company
                by
                way of a firm underwriting;

            

    

    

    
      	 	
              (b)

            	
              in
                the event that the Investor was afforded an opportunity to join in
                a
                Registration Statement under Section 14.2 (pursuant to which sales
                were
                consummated), and either declined to join therein or included securities
                therein, then the Investor may not request to be included in a
                Registration Statement under Section 14.1 for a period of six (6)
                months
                after the Investor received the Notice of Registration with respect
                to the
                Registration Statement in which the Investor participated or declined
                to
                participate;

            

    

    

    
      	 	
              (c)

            	
              the
                Company shall not be required to maintain any Registration Statement
                under
                Section 14.2 in effect for a period of more than nine months; provided,
                however, that this period shall be extended at the request of the
                Investor;

            

    

    

    
      	 	
              (d)

            	
              the
                Company need not include Shares or Warrant Shares owned by the Investor
                in
                any Registration Statement provided for under Section 14.2 if in
                the
                opinion of counsel for the Company satisfactory to counsel for the
                Investor, registration of such Shares under the Act is not necessary
                for
                the Investor to dispose of such Shares and/or Warrant Shares in a
                public
                offering and distribution in the open market in compliance with the
                Act;
                provided, in such case the opinion of such counsel shall be in writing
                addressed to the Investor and shall be rendered within twenty (20)
                days
                after the Notice of Intent to Sell is received by the Company;
                and

            

    

    

    
      	 	
              (e)

            	
              the
                Company shall have the right to delay the effective date or withdraw
                any
                Registration Statement it files.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    14.6    
Rule
      144 and Other Exemption Requirements.
      The
      Company agrees to:

    

    
      	 	
              (a)

            	
              make
                and keep available adequate current public information with respect
                to the
                Company, as those terms are understood and defined in Rule 144 under
                the
                Act;

            

    

    

    
      	 	
              (b)

            	
              file
                with the Commission in a timely manner all reports and other documents
                required of the Company under the Act and the Securities Exchange
                Act of
                1934 (the “Exchange Act”);

            

    

    

    
      	 	
              (c)

            	
              furnish
                to Investor, upon request, a written statement by the Company as
                to its
                compliance with the reporting requirements of said Rule 144, and
                the Act
                and 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 the
                Investor may reasonably request to avail itself of any similar rule
                or
                regulation of the Commission allowing it to sell any such securities
                without registration; and

            

    

    

    
      	 	
              (d)

            	
              the
                Company will transfer the Shares and Warrant Shares at the request
                of
                Investor provided it receives an opinion of counsel, reasonably acceptable
                to the Company, that such transfer would not violate the Act or applicable
                state securities laws and will remove the restrictive legend from
                the
                certificate for the shares at the request of Investor provided it
                receives
                an opinion of counsel reasonably satisfactory to the Company that
                the
                presence of such legend is not required to assure compliance with
                the Act
                or applicable state securities
                laws.

            

    

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      the undersigned, thereunto duly authorized, as of the date first set forth
      above.

     

    
      	 	 	 
	 	BioMetrx,
              Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                

              Title:
                

            

    

    
      	 	 	 
	
               

            	
              Closing Date:

            	
            
	 	 	
              

            

    

    
      	 	Investor: 	 
	 	 	
              

            

    

    
      	 	By: 	 
	 	 	
              
Name:
              ___________________________________________

    

     

     

    
      	
              Jurisdiction
                of Incorporation 

              or
                Residence: _________________________

               

              Principal
                Amount of Notes 

              Purchased:
                _________

               

              Number
                of Warrants: ________

               

              Number
                of Shares: ________

               

              Purchase
                Price (principal amount of 

              Notes
                Purchased): $_______

            	
              Address
                of Investor:

               

               

               

               

               

              Facsimile:
                ________________________

              E-Mail
                Address:____________________

            

    

    

    Exhibits:

    

    Exhibit
      A
      - Note

    Exhibit
      B
      - Warrant 

    

    
      
        
        

      

      
        28NEITHER
      THESE WARRANTS NOR THE COMMON STOCK ISSUABLE UPON EXERCISE OF THESE WARRANTS
      HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD,
      PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      FOR
      SUCH SECURITIES UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION
      IS
      AVAILABLE.

     

    No.
      ___

     

    
      	Original Issuance: September
              ___,
              2006	
              Warrants
                _________

            

    

         

    BIOMETRX,
      INC.

     

    WARRANTS

     

    BioMetrx,
      Inc., a Delaware corporation (“BioMetrx”),
      certifies that, for value received, _______________, or registered assigns
      (the
“Holder”),
      is
      the owner of _________________ (_________) Warrants of BioMetrx (the
“Warrants”).
      Each
      Warrant entitles the Holder to purchase from BioMetrx at any time prior to
      the
      Expiration Date (as defined below) one share of the common stock of BioMetrx
      (the “Common
      Stock”)
      for
      $1.00 per share (the “Exercise
      Price”),
      on
      the terms and conditions hereinafter provided. The Exercise Price and the number
      of shares of Common Stock purchasable upon exercise of each Warrant are subject
      to adjustment as provided in this Certificate. The Warrants have been issued
      as
      part of an authorized class of 400,000 warrants of like tenor. 

     

    1.    Expiration
      Date; Exercise

     

    1.1 Expiration
      Date.
      The
      Warrants shall expire on September 15, 2011 (the “Expiration
      Date”).

     

    1.2 Manner
      of Exercise.
      The
      Warrants are exercisable, in whole or in part, by delivery to BioMetrx of the
      following (the “Exercise
      Documents”):
      (a)
      this Certificate (b) a written notice of election to exercise the Warrants;
      and
      (c) payment of the Exercise Price in cash or by check. Within three business
      days following receipt of the foregoing, BioMetrx shall execute and deliver
      to
      the Holder: (a) a certificate or certificates representing the aggregate number
      of shares of Common Stock purchased by the Holder, and (b) if less than all
      of
      the Warrants evidenced by this Certificate are exercised, a new certificate
      evidencing the Warrants not so exercised.

     

    1.3 Automatic
      Exercise.
      Immediately before the expiration or termination of this Warrant, to the extent
      this Warrant is not previously exercised, and at such time the fair market
      value
      of one share of the Company's Common Stock subject to this Warrant is greater
      than the Exercise Price, then in effect as adjusted pursuant to this Warrant,
      this Warrant shall be deemed automatically exercised pursuant to Section 1.1
      above, even if not surrendered. For purposes of such automatic exercise, the
      fair market value of the Company's Common Stock upon such expiration shall
      be
      determined pursuant to Section 2.3 herein. To the extent this Warrant or any
      portion thereof is deemed automatically exercised pursuant to this Section
      1.3,
      the Company agrees to promptly notify the Holder of the number of shares of
      Common Stock, if any, the Holder hereof is to receive by reason of such
      automatic exercise and the Holder shall tender the Exercise Price to the Company
      within 10 days of receipt of such notice or forfeit the right to the Common
      Stock in connection with such automatic exercise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Warrant
      Exercise Limitation.
      Notwithstanding any other provision of this Certificate, or the total number
      of
      shares of Common Stock otherwise available for purchase by Holder hereunder,
      if
      as of the date of exercise BioMetrx has a class of securities registered under
      Section 12 of the Securities Exchange Act of 1934, as amended, Holder may not
      exercise any Warrants under this Section 1 if immediately following such
      exercise Holder would beneficially own 5% or more of the outstanding Common
      Stock of BioMetrx. For this purpose, a representation of the Holder that
      following such exercise it would not beneficially own 4.99% or more of the
      outstanding Common Stock of BioMetrx shall be conclusive and binding upon
      BioMetrx.

     

    2.    Adjustments
      of Exercise Price and Number and Kind of Conversion Shares

     

    2.1 In
      the event that BioMetrx
      shall at any time hereafter (a) pay a dividend in Common Stock or securities
      convertible into Common Stock; (b) subdivide or split its outstanding Common
      Stock; (c) combine its outstanding Common Stock into a smaller number of shares;
      then the number of shares to be issued immediately after the occurrence of
      any
      such event shall be adjusted so that the Holder thereafter may receive the
      number of shares of Common Stock it would have owned immediately following
      such
      action if it had exercised the Warrants immediately prior to such action and
      the
      Exercise Price shall be adjusted to reflect such proportionate increases or
      decreases in the number of shares.

     

    2.2 In
      case of any reclassification
      of the outstanding shares of Common Stock (other than a change covered by
      Section 2.1 hereof or a change which solely affects the par value of such
      shares) or in the case of any merger or consolidation or merger in which
      BioMetrx is not the continuing corporation and which results in any
      reclassification or capital reorganization of the outstanding shares), the
      Holder shall have the right thereafter (until the Expiration Date) to receive
      upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property receivable upon such reclassification,
      capital reorganization, merger or consolidation, by a Holder of the number
      of
      shares of Common Stock obtainable upon the exercise of the Warrants immediately
      prior to such event; and if any reclassification also results in a change in
      shares covered by Section 2.1, then such adjustment shall be made pursuant
      to both this Section 2.2 and Section 2.1 (without duplication). The
      provisions of this Section 2.2 shall similarly apply to successive
      reclassifications, capital reorganizations and mergers or consolidations, sales
      or other transfers.

     

    
      
        
        

      

      
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    2.3 Certain
      Anti-Dilution Adjustments.
      If
      at any
      time while any portion of this Warrant remains outstanding, the Company shall
      issue shares of Common Stock (or rights, warrants, or other securities
      convertible into or exchangeable for shares of Common Stock, other than
      issuances covered by Sections 2.1 or 2.2 above, at a price per share (or having
      an exercise, conversion, or exchange price per share) less than the Exercise
      Price in effect as of the date of issuance of such shares or of such rights,
      warrants, or other convertible or exchangeable securities, then, and in each
      such case, the Exercise Price shall be reduced (but not increased) to a price
      determined by dividing (A) an amount equal to the sum of (x) the number of
      shares of Common Stock outstanding immediately prior to such issue (determined
      on a fully-diluted basis; i.e., treating as outstanding all shares of Common
      Stock issuable upon exercise, exchange or conversion of all outstanding options
      (to the extent then vested and exercisable), warrants, or other securities
      exercisable or exchangeable for or convertible into, directly or indirectly,
      shares of Common Stock) multiplied by the then existing Exercise Price, plus
      (y)
      the consideration, if any received by the Company upon such issue, by (B) the
      total number of shares of Common Stock outstanding immediately after such issue
      or sale (determined on a fully-diluted basis as aforesaid). For the purpose
      of
      determining the consideration received by the Company upon any such issue
      pursuant to clause (y) above, if the consideration received by the Company
      is
      other than cash, its value will be deemed its fair market value, which if not
      readily determinable shall be determined in good faith by the Board of Directors
      of the Company. An adjustment made pursuant to the paragraph shall be made
      on
      the next business day following the date on which any such issuance is made
      and
      shall be effective retroactively immediately after the close of business on
      such
      date. Notwithstanding anything contrary in this Section 2.3, there shall be
      no
      reduction to the Exercise Price pursuant to this Section with respect to (i)
      the
      issuance or sale of options to purchase shares of Common Stock to employees,
      consultants and directors, pursuant to a stock option plan approved by the
      Board
      of Directors, (ii) the issuance of securities pursuant to the conversion or
      exercise of convertible or exercisable securities as of the date of this
      Warrant, (as adjusted for recapitalizations, stock splits, and the like) which
      are currently outstanding as of the date of this Warrant or (iii) the
      issuance of securities as consideration for a bona fide business acquisition
      of
      or by the Company, whether by merger, consolidation, sale of assets, sale or
      exchange of stock or otherwise, which involves a third party which is not
      affiliated with the Company or its current stockholders or in a strategic
      allowance. 

     

    2.4 No
      Impairment.
      The
      Company will not, by amendment of its Certificate of Incorporation or any other
      organizational or registration rights documents of the Company, or through
      any
      reorganization, recapitalization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, seek
      to
      avoid the observance or performance of any of the terms to be observed or
      performed hereunder by the Company, but will at all times in good faith assist
      in the carrying out of all the provisions of this Section 2 and in the taking
      of
      all such action as may be necessary or appropriate in order to protect the
      rights of the holder of this Warrant against impairment

     

    3.    Reservation
      of Shares.
      BioMetrx shall at all times reserve and keep available out of its authorized
      but
      unissued shares of Common Stock, such number of shares of Common Stock as shall
      from time to time be issuable upon exercise of the Warrants. If at any time
      the
      number of authorized but unissued shares of Common Stock shall not be sufficient
      to permit the exercise of the Warrants, BioMetrx shall promptly seek such
      corporate action as may necessary to increase its authorized but unissued shares
      of Common Stock to such number of shares as shall be sufficient for such
      purpose.

     

    4.    Certificate
      as to Adjustments.
      In each
      case of any adjustment in the Exercise Price, or number or type of shares
      issuable upon exercise of these Warrants, the Chief Financial Officer of
      BioMetrx shall compute such adjustment in accordance with the terms of these
      Warrants and prepare a certificate setting forth such adjustment and showing
      in
      detail the facts upon which such adjustment is based, including a statement
      of
      the adjusted Exercise Price. BioMetrx shall promptly send (by facsimile and
      by
      either first class mail, postage prepaid or overnight delivery) a copy of each
      such certificate to the Holder.

     

    
      
        
        

      

      
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    5.    Loss
      or Mutilation.
      Upon
      receipt of evidence reasonably satisfactory to BioMetrx of the ownership of
      and
      the loss, theft, destruction or mutilation of this Certificate, and of indemnity
      reasonably satisfactory to it, and (in the case of mutilation) upon surrender
      and cancellation of these Warrants, BioMetrx will execute and deliver in lieu
      thereof a new Certificate of like tenor as the lost, stolen, destroyed or
      mutilated Certificate.

     

    6.    Representations
      and Warranties of BioMetrx.
      BioMetrx hereby represents and warrants to Holder that:

     

    6.1 Due
      Authorization.
      All
      corporate action on the part of BioMetrx, its officers, directors and
      shareholders necessary for (a) the authorization, execution and delivery of,
      and
      the performance of all obligations of BioMetrx under, these Warrants, and (b)
      the authorization, issuance, reservation for issuance and delivery of all of
      the
      Common Stock issuable upon exercise of these Warrants, has been duly taken.
      These Warrants constitute a valid and binding obligation of BioMetrx enforceable
      in accordance with their terms, subject, as to enforcement of remedies, to
      applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
      affecting creditors’ rights generally and to general equitable
      principles.

     

    6.2 Organization.
      BioMetrx is a corporation duly organized, validly existing and in good standing
      under the laws of the State referenced in the first paragraph of this
      Certificate and has all requisite corporate power to own, lease and operate
      its
      property and to carry on its business as now being conducted and as currently
      proposed to be conducted.

     

    6.3 Valid
      Issuance of Stock.
      Any
      shares of Common Stock issued upon exercise of these Warrants will be duly
      and
      validly issued, fully paid and non-assessable.

     

    6.4 Governmental
      Consents.
      All
      consents, approvals, orders, authorizations or registrations, qualifications,
      declarations or filings with any federal or state governmental authority on
      the
      part of BioMetrx required in connection with the consummation of the
      transactions contemplated herein have been obtained.

     

    7.    Representations
      and Warranties of Holder.
      Holder
      hereby represents and warrants to BioMetrx that:

     

    7.1 Holder
      is acquiring the
      Warrants for its own account, for investment purposes only.

     

    7.2 Holder
      understands that an
      investment in the Warrants involves a high degree of risk, and Holder has the
      financial ability to bear the economic risk of this investment in the Warrants,
      including a complete loss of such investment. Holder has adequate means for
      providing for its current financial needs and has no need for liquidity with
      respect to this investment.

     

    
      
        
        

      

      
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    7.3 Holder
      has such knowledge and
      experience in financial and business matters that it is capable of evaluating
      the merits and risks of an investment in the Warrants and in protecting its
      own
      interest in connection with this transaction.

     

    7.4 Holder
      understands that the
      Warrants have not been registered under the Securities Act or under any state
      securities laws. Holder is familiar with the provisions of the Securities Act
      and Rule 144 thereunder and understands that the restrictions on transfer on
      the
      Warrants may result in Holder being required to hold the Warrants for an
      indefinite period of time.

     

    7.5 Holder
      agrees not to sell,
      transfer, assign, gift, create a security interest in, or otherwise dispose
      of,
      with or without consideration (collectively, “Transfer”)
      any of
      the Warrants except pursuant to an effective registration statement under the
      Securities Act or an exemption from registration. As a further condition to
      any
      such Transfer, except in the event that such Transfer is made pursuant to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to BioMetrx any Transfer of the Warrants by the contemplated
      transferee thereof would not be exempt from the registration and prospectus
      delivery requirements of the Securities Act, BioMetrx may require the
      contemplated transferee to furnish BioMetrx with an investment letter setting
      forth such information and agreements as may be reasonably requested by BioMetrx
      to ensure compliance by such transferee with the Securities Act.

     

    8.    Notices
      of Record Date.

     

    In
      the
      event:

     

    8.1
      BioMetrx shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of these Warrants),
      for
      the purpose of entitling them to receive any dividend or other distribution,
      or
      any right to subscribe for or purchase any shares of stock of any class or
      any
      other securities or to receive any other right; or

     

    8.2
      of
      any consolidation or merger of BioMetrx with or into another corporation, any
      capital reorganization of BioMetrx, any reclassification of the capital stock
      of
      BioMetrx, or any conveyance of all or substantially all of the assets of
      BioMetrx to another corporation in which holders of BioMetrx’s stock are to
      receive stock, securities or property of another corporation; or

     

    8.3
      of
      any voluntary dissolution, liquidation or winding-up of BioMetrx;
      or

     

    8.4
      of
      any redemption or conversion of all outstanding Common Stock;

     

    then,
      and
      in each such case, BioMetrx will mail or cause to be mailed to the Holder a
      notice specifying, as the case may be, (a) the date on which a record is to
      be
      taken for the purpose of such dividend, distribution or right, or (b) the date
      on which such reorganization, reclassification, consolidation, merger,
      conveyance, dissolution, liquidation, winding-up, redemption or conversion
      is to
      take place, and the time, if any is to be fixed, as of which the holders of
      record of Common Stock (or such stock or securities as at the time are
      receivable upon the exercise of these Warrants), shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities), for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, dissolution, liquidation or winding-up.
      BioMetrx shall use all reasonable efforts to ensure such notice shall be
      delivered at least 5 days prior to the date therein specified.

     

    
      
        
        

      

      
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    9.    Registration
      Rights. 

     

    9.1
      Piggyback
      Registration.
      If
      BioMetrx shall determine to register any Common Stock under the Securities
      Act
      for sale in connection with a public offering of Common Stock (other than
      pursuant to an employee benefit plan or a merger, acquisition or similar
      transaction), BioMetrx will give written notice thereof to Holder and will
      include in such Registration Statement any of the Registrable Shares which
      Holder may request be included (“Included
      Shares”)
      by a
      writing delivered to BioMetrx within 15 days after the notice given by BioMetrx
      to Holder; provided, however, that if the offering is to be firmly underwritten,
      and the representative of the underwriters of the offering refuse in writing
      to
      include in the offering all of the shares of Common Stock requested by BioMetrx
      and others, the shares to be included shall be allocated first to BioMetrx
      and
      any shareholder who initiated such Registration and then among the others based
      on the respective number of shares of Common Stock held by such persons. If
      BioMetrx decides not to, and does not, file a Registration Statement with
      respect to such Registration, or after filing determines to withdraw the same
      before the effective date thereof, BioMetrx will promptly so inform Holder,
      and
      BioMetrx will not be obligated to complete the registration of the Included
      Shares included therein. 

     

    9.2
      Certain
      Covenants.
      In
      connection with any Registration: 

     

    9.2.1
      BioMetrx shall take all lawful action such that the Registration Statement,
      any
      amendment thereto and the prospectus forming a part thereof does not contain
      an
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein, in light of
      the
      circumstances under which they are made, not misleading. Upon becoming aware
      of
      the occurrence of any event or the discovery of any facts during the
      Registration Period that make any statement of a material fact made in the
      Registration Statement or the related prospectus untrue in any material respect
      or which material fact is omitted from the Registration Statement or related
      prospectus that requires the making of any changes in the Registration Statement
      or related prospectus so that it will not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the statements
      therein, in light of the circumstances under which they are made, not misleading
      (taking into account any prior amendments or supplements), BioMetrx shall
      promptly notify Holder, and, as soon as reasonably practicable prepare (but
      in
      no event more than five business days in the case of a supplement or seven
      business days in the case of a post-effective amendment) and file with the
      SEC a
      supplement or post-effective amendment to the Registration Statement or the
      related prospectus or file any other required document so that, as thereafter
      delivered to a purchaser of Shares from Holder, such prospectus will not contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make the statements therein, in light of the circumstances under
      which they were made, not misleading. BioMetrx shall use its reasonable best
      efforts to keep the Registration Statement effective at all times during the
      period continuing until the earliest of (i) the date that is nine months after
      the last day of the calendar month following the month in which the Registration
      Statement is declared effective, (ii) the date when the Holder may sell all
      Registrable Securities under Rule 144 without volume or other restrictions
      or
      limits or (iii) the date the Holder no longer owns any of the Registrable
      Securities,

     

    
      
        
        

      

      
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    9.2.2
      At
      least three business days prior to the filing with the SEC of the Registration
      Statement (or any amendment thereto) or the prospectus forming a part thereof
      (or any supplement thereto), BioMetrx shall provide draft copies thereof to
      Holder and shall consider incorporating into such documents such comments as
      Holder (and its counsel) may propose to be incorporated therein. Notwithstanding
      the foregoing, no prospectus supplement, the form of which has previously been
      provided to Holder, need be delivered in draft form to Holder.

     

    9.2.3
      BioMetrx shall promptly notify Holder upon the occurrence of any of the
      following events in respect of the Registration Statement or the prospectus
      forming a part thereof: (i) the receipt of any request for additional
      information from the SEC or any other federal or state governmental authority,
      the response to which would require any amendments or supplements to the
      Registration Statement or related prospectus; (ii) the issuance by the SEC
      or
      any other federal or state governmental authority of any stop order suspending
      the effectiveness of the Registration Statement or the initiation of any
      proceedings for that purpose; or (iii) the receipt of any notification with
      respect to the suspension of the qualification or exemption from qualification
      of any of the Shares for sale in any jurisdiction or the initiation or
      threatening of any proceeding for such purpose.

     

    9.2.4
      BioMetrx shall furnish to Holder with respect to the Included Shares registered
      under the Registration Statement (and to each underwriter, if any, of such
      Shares) such number of copies of prospectuses and such other documents as Holder
      may reasonably request, in order to facilitate the public sale or other
      disposition of all or any of the Included Shares by Holder pursuant to the
      Registration Statement.

     

    9.2.5
      In
      connection with any registration pursuant to Section 9.2, BioMetrx shall file
      or
      cause to be filed such documents as are required to be filed by BioMetrx for
      normal Blue Sky clearance in states specified in writing by Holder; provided,
      however,
      that
      BioMetrx shall not be required to qualify to do business or consent to service
      of process in any jurisdiction in which it is not now so qualified or has not
      so
      consented.

     

    9.2.6
      BioMetrx shall bear and pay all expenses incurred by it and Holder (other than
      underwriting discounts, brokerage fees and commissions and fees and expenses
      of
      more than one law firm) in connection with the registration of the Shares
      pursuant to the Registration Statement. 

     

    9.2.7
      As
      a condition to including Registrable Shares in a Registration Statement, Holder
      must provide to BioMetrx such information regarding itself, the Registrable
      Shares held by it and the intended method of distribution of such Shares as
      shall be required to effect the registration of the Registrable Shares and,
      if
      the offering is being underwritten, Holder must provide such powers of attorney,
      indemnities and other documents as may be reasonably requested by the managing
      underwriter.

     

    
      
        
        

      

      
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    9.2.8
      Following the effectiveness of the Registration Statement, upon receipt from
      BioMetrx of a notice that the Registration Statement contains an untrue
      statement of material fact or omits to state any material fact required to
      be
      stated therein or necessary to make the statements therein not misleading in
      light of the circumstances under which they were made, Holder will immediately
      discontinue disposition of Included Shares pursuant to the Registration
      Statement until BioMetrx notifies Holder that it may resume sales of Included
      Shares and, if necessary, provides to Holder copies of the supplemental or
      amended prospectus. 

     

    9.3
      Rule
      144. With a view to making available to Holder the benefits of Rule 144,
      BioMetrx agrees, during the period from September 30, 2008 until September
      30,
      2009, unless the shares issuable to the Holder may be sold pursuant to an
      effective Registration Statement, to:

     

    9.3.1
      comply with the provisions of paragraph (c)(1) of Rule 144; and

     

    9.3.2
      file with the SEC in a timely manner all reports and other documents required
      to
      be filed by BioMetrx pursuant to Section 13 or 15(d) under the Exchange Act;
      and, if at any time it is not required to file such reports but in the past
      had
      been required to or did file such reports, it will, upon the request of a
      Holder, make available other information as required by, and so long as
      necessary to permit sales of its Shares pursuant to, Rule 144.

     

    9.4
      BioMetrx
      Indemnification.
      BioMetrx agrees to indemnify and hold harmless Holder, and its officers,
      directors and agents, and each person, if any, who controls Holder within the
      meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
      from and against any and all losses, claims, damages and liabilities caused
      by
      (i) any violation or alleged violation by BioMetrx of the Securities Act,
      Exchange Act, any state securities laws or any rule or regulation promulgated
      under the Securities Act, Exchange Act or any state securities laws, (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      registration statement or prospectus relating to the Included Shares (as amended
      or supplemented if BioMetrx shall have furnished any amendments or supplements
      thereto) or any preliminary prospectus, or (iii) caused by 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 under which they were made, except insofar as such losses, claims,
      damages or liabilities are caused by any such untrue statement or omission
      or
      alleged untrue statement or omission based upon information furnished in writing
      to BioMetrx by Holder or on Holder’s behalf expressly for use
      therein.

     

    9.5
      Holder
      Indemnification.
      Holder
      agrees to indemnify and hold harmless BioMetrx, its officers, directors and
      agents and each person, if any, who controls BioMetrx within the meaning of
      either Section 15 of the Securities Act or Section 20 of the Exchange Act to
      the
      same extent as the foregoing indemnity from BioMetrx to Holder, but only with
      respect to information furnished in writing by Holder or on Holder’s behalf
      expressly for use in any registration statement or prospectus relating to the
      Registrable Shares, or any amendment or supplement thereto, or any preliminary
      prospectus. Notwistanding anything to the contrary contained herein, holder’s
      obligation to indemnify shall not be in an amount in excess of the net proceeds
      received by the holder from the same of the Registration Securities in the
      offering in which the indemnification claim relates.

     

    
      
        
        

      

      
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    9.6
      Indemnification
      Procedures.
      In case
      any proceeding (including any governmental investigation) shall be instituted
      involving any person in respect of which indemnity may be sought pursuant to
      this Section 9, such person (an “Indemnified
      Party”)
      shall
      promptly notify the person against whom such indemnity may be sought (the
“Indemnifying
      Party”)
      in
      writing and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to such Indemnified Party,
      and
      shall assume the payment of all fees and expenses; provided that the failure
      of
      any Indemnified Party so to notify the Indemnifying Party shall not relieve
      the
      Indemnifying Party of its obligations hereunder except to the extent (and only
      to the extent that) that the Indemnifying Party is materially prejudiced by
      such
      failure to notify. In any such proceeding, any Indemnified Party shall have
      the
      right to retain its own counsel, but the fees and expenses of such counsel
      shall
      be at the expense of such Indemnified Party unless (i) the Indemnifying Party
      and the Indemnified Party shall have mutually agreed to the retention of such
      counsel or (ii) in the reasonable judgment of such Indemnified Party
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential differing interests between them. It is understood that
      the
      Indemnifying Party shall not, in connection with any proceeding or related
      proceedings in the same jurisdiction, be liable for the reasonable fees and
      expenses of more than one separate firm of attorneys (in addition to any local
      counsel) at any time for all such Indemnified Parties (including in the case
      of
      Holder, all of its officers, directors and controlling persons) and that all
      such fees and expenses shall be reimbursed as they are incurred. In the case
      of
      any such separate firm for the Indemnified Parties, the Indemnified Parties
      shall designate such firm in writing to the Indemnifying Party. The Indemnifying
      Party shall not be liable for any settlement of any proceeding effected without
      its written consent (which consent shall not be unreasonably withheld or
      delayed), but if settled with such consent, or if there be a final judgment
      for
      the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
      Indemnified Parties from and against any loss or liability (to the extent stated
      above) by reason of such settlement or judgment. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending or threatened proceeding in respect of which any
      Indemnified Party is or could have been a party and indemnity could have been
      sought hereunder by such Indemnified Party, unless such settlement includes
      an
      unconditional release of such Indemnified Party from all liability arising
      out
      of such proceeding.

     

    9.7
      Contribution.
      To the
      extent any indemnification by an Indemnifying Party is prohibited or limited
      by
      law, the Indemnifying Party agrees to make the maximum contribution with respect
      to any amounts for which, he, she or it would otherwise be liable under this
      Section 9.6 to the fullest extent permitted by law; provided, however, that
      (i)
      no contribution shall be made under circumstances where a party would not have
      been liable for indemnification under this Section 9.6 and (ii) no seller of
      Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning used in the Securities Act) shall be entitled to contribution from
      any
      party who was not guilty of such fraudulent misrepresentation.

     

    10.    Nontransferability.
      Holder
      may not sell or transfer any Warrants to any person without registration under
      the Securities Act or providing an opinion of counsel reasonably acceptable
      to
      the Company that such transfer may lawfully be made without such registration.
      Any such purported transfer shall not be effective as between such purported
      transferee and BioMetrx. 

     

    
      
        
        

      

      
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    11.    Severability.
      If any
      term, provision, covenant or restriction of these Warrants is held by a court
      of
      competent jurisdiction to be invalid, void or unenforceable, the remainder
      of
      the terms, provisions, covenants and restrictions of these Warrants shall remain
      in full force and effect and shall in no way be affected, impaired or
      invalidated.

     

    12.    Notices.
      All
      notices, requests, consents and other communications required hereunder shall
      be
      in writing and shall be effective when delivered or, if delivered by registered
      or certified mail, postage prepaid, return receipt requested, shall be effective
      on the third day following deposit in United States mail: to the Holder, at
      the
      Holder’s address of record in the Company’s warrant register; and if addressed
      to BioMetrx, at BioMetrx, Inc., 500 North Broadway, Suite 204, Jericho, NY
      11753, or such other address as BioMetrx may designate in writing.

     

    13.    No
      Rights as Shareholder.
      The
      Holder shall have no rights as a shareholder of BioMetrx with respect to the
      shares issuable upon exercise of the Warrants until the receipt by BioMetrx
      of
      all of the Exercise Documents.

     

    14.    Waivers
      and Modifications.
      Any
      term or provision of this Warrant may be waived only by written document
      executed by the party entitled to the benefits of such terms or provisions.
      The
      terms and provisions of this Warrant may be modified or amended only by written
      agreement executed by the parties hereto. 

     

    15.    Governing
      Law.
      This
      Warrant will be governed by and construed in accordance with and governed by
      the
      laws of the State of New York, without giving effect to the conflict of law
      principles thereof.

     

    16.    Consent
      to Jurisdiction.
      Each
      party hereto
      hereby
      irrevocably and unconditionally submits to the jurisdiction of any federal
      or
      state court sitting in the County of New York in the State of New York and
      irrevocably agrees that all actions or proceedings arising out of or relating
      to
      this Note shall be litigated exclusively in such court. Each party hereto agrees
      not to commence any legal proceeding related hereto or thereto except in such
      courts. Each party hereto irrevocably waives any objection which it may now
      or
      hereafter have to the laying of the venue of any such proceeding in any such
      court and hereby further irrevocably and unconditionally waives and agrees
      not
      to plead or claim in any such court that any such action, suit or proceeding
      brought in any such court has been brought in an inconvenient forum. Each party
      hereto consents to process being served in any such action or proceeding by
      mailing a copy thereof by registered or certified mail.

     

    17.    Waiver
      of Jury Trial.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
      OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT. EACH
      PARTY HERETO (1) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
      OF
      THE OTHER PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY OF THE
      OTHER
      PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
      WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
      INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
      AND CERTIFICATIONS IN THIS SECTION 17.

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      duly
      authorized officer as of the date first set forth above.

     

    
      	 	 	 
	 	BioMetrx,
              Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Mark Basile, Chief Executive Officer 

            
	 	 

    
      
        
        

      

      
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    EXHIBIT
      “A”

    NOTICE
      OF EXERCISE

    (To
      be signed only upon exercise of the Warrants)

     

    To: BioMetrx,
      Inc.

     

    The
      undersigned hereby elects to purchase shares of Common Stock (the “Warrant
      Shares”)
      of
      BioMetrx, Inc. (“BioMetrx”),
      pursuant to the terms of the enclosed warrant certificate (the “Certificate”).
      The
      undersigned tenders herewith payment of the exercise price pursuant to the
      terms
      of the Certificate. 

     

    The
      undersigned hereby represents and warrants to, and agrees with, BioMetrx as
      follows: 

     

    1.    Holder
      is
      acquiring the Warrant Shares for its own account, for investment purposes
      only.

     

    2.    Holder
      understands that an investment in the Warrant Shares involves a high degree
      of
      risk, and Holder has the financial ability to bear the economic risk of this
      investment in the Warrant Shares, including a complete loss of such investment.
      Holder has adequate means for providing for its current financial needs and
      has
      no need for liquidity with respect to this investment.

     

    3.    Holder
      has such knowledge and experience in financial and business matters that it
      is
      capable of evaluating the merits and risks of an investment in the Warrant
      Shares and in protecting its own interest in connection with this
      transaction.

     

    4.    Holder
      understands that the Warrant Shares have not been registered under the
      Securities Act or under any state securities laws. Holder is familiar with
      the
      provisions of the Securities Act and Rule 144 thereunder and understands that
      the restrictions on transfer on the Warrant Shares may result in Holder being
      required to hold the Warrant Shares for an indefinite period of
      time.

     

    5.    Holder
      agrees not to sell, transfer, assign, gift, create a security interest in,
      or
      otherwise dispose of, with or without consideration (collectively, “Transfer”)
      any of
      the Warrant Shares except pursuant to an effective registration statement under
      the Securities Act or an exemption from registration. As a further condition
      to
      any such Transfer, except in the event that such Transfer is made pursuant
      to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to BioMetrx any Transfer of the Warrant Shares by the
      contemplated transferee thereof would not be exempt from the registration and
      prospectus delivery requirements of the Securities Act, BioMetrx may require
      the
      contemplated transferee to furnish BioMetrx with an investment letter setting
      forth such information and agreements as may be reasonably requested by BioMetrx
      to ensure compliance by such transferee with the Securities Act.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Each
      certificate evidencing the Warrant Shares will bear the following
      legend:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND
      MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS
      AN
      EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

     

    6.    Immediately
      following this exercise of Warrants, if as of the date of exercise BioMetrx
      has
      a class of securities registered under Section 12 of the Securities Exchange
      Act
      of 1934, as amended, the undersigned will not beneficially own five percent
      (5%)
      or more of the then outstanding Common Stock of BioMetrx (based on the number
      of
      shares outstanding set forth in the most recent periodic report filed by
      BioMetrx with the Securities and Exchange Commission and any additional shares
      which have been issued since that date of which Holder is aware have been
      issued).

     

    

     

     

     

    Number
      of
      Warrants Exercised: ______________

     

    

     

    Dated:
      ____________________   

     

    ___________________________________________________

     

     

    
      
        
        

      

      
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