Document:

Investor:
      _______________________ 

    Amount:
      $
      USD

     

    

      SECURITIES
        PURCHASE AGREEMENT

      

      

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

      

      WHEREAS,
        the
        Company is offering up to $25,000 aggregate principal amount, 10% notes due
        March 15, 2007 (the “Notes”),
        without discount, 25,000 five year warrants (the “Warrants”)
        to
        purchase shares of the Company’s common stock, $.0001 par value (“Common
        Stock”)
        and
        10,000 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, 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 (i) 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 Notes, the Warrants
        or
        the Shares (collectively 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 a sophisticated investor (as described in Rule 506(b)(2)(ii)
        of
        Regulation D) and 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 a 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.

       

      
        
           

        

        
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      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 organized 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 does not have any Subsidiaries and does not own more than fifty percent
        (50%) of or control any other business entity except as set forth in the
        SEC
        Documents. 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”).
        

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      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.

      

      Section
        4.5. SEC
        Documents.
        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
        Warrants 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 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.
        As of
        the date hereof, the Company has reserved, 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).

      

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      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), 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, underwriter or controlling
        person.

      

      Section
        7.3 Indemnity
        by Investor.
        To the
        extent permitted by law, each Investor will indemnify and hold harmless the
        Company, each of its directors and officers, any underwriters (as defined
        in the
        Securities Act) for the Company, each person, if any, who controls the Company
        or any such underwriter within the meaning of the Securities Act or the 1934
        Act, and any Investor selling securities in such registration statement or
        any
        of its directors or officers or any person who controls such Investor (each
        an
“Indemnified Party”) against any losses, claims, damages, or liabilities (or
        actions in respect thereto) which arise out of or are based upon any of the
        following statements, omissions or violations (“Violation”), in each case to the
        extent (and only to the extent) that such Violation occurs in reliance upon
        and
        in conformity with written information furnished by such Investor in a
        certificate expressly for use in connection with such registration; and each
        such Investor will reimburse any legal or other expenses reasonably incurred
        by
        the Company or any such director, officer, any person who controls the Company,
        any underwriter or controlling person of any such underwriter, any other
        such
        Investor, officer, director, or controlling person in connection with
        investigating or defending any such loss, claim, damage, liability, or action;
        provided however, that the indemnity agreement contained in this Section
        7.3
        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
        Investor (which consent shall not be unreasonably withheld), and provided
        further that the obligations of each selling Investor of the shares sold
        by each
        such selling Investor pursuant to such registration. 

      

      Section
        7.4 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., no Investor
        shall
        be required, pursuant to this Section 7., 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
        7.5. Notice.
        Promptly after receipt by an Indemnified Party seeking indemnification pursuant
        to Section 7.2 or Section 7.4 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
        7.6. 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
        Indemnified 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.

      

      
        
           

        

        
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      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. 

      

      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.

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

       

      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 Conversion 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.

       

      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.

      

      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:

                	
                  Sommer
                    & Schneider LLP

                
	
                  (which
                    shall not constitute notice)

                	
                  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
        Registration Rights 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, within a reasonable amount
        of time 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
        Holders have been granted at any time under any other agreement or contract
        and
        all of the rights that such 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 enforce or exercise their 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 Joining
        Registration Statements.
        If at
        any time or times, the Company proposes to file one or more Registra-tion
        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 securi-ties 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. 

      

      14.2 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 con-sents,
        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.

      

      
        
           

        

        
          24

          
            

          

        

        
           

        

         

      

      14.3 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 14.3).

      

      14.4 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 14.1 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 opportuni-ty to join
                  in a
                  Registration Statement under Section 14.1 (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;

              

      

       

      
        
           

        

        
          25

          
            

          

        

        
           

        

         

      

      
        	 	
                (c)

              	
                the
                  Company shall not be required to maintain any Registration Statement
                  under
                  Section 14.1 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 14.1 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

          
            

          

        

        
           

        

      

      14.5 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
              30,
              2006	
              Warrants
                [_______]

            

    

         

     

    BIOMETRX,
      INC.

     

    WARRANTS

     

     

    BioMetrx,
      Inc., a Delaware corporation (“BioMetrx”),
      certifies that, for value received, Barry and ___________________, 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 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
      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.

     

    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.

     

    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.

     

    
      
         

      

      
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          2 -

        
          

        

      

      
         

      

    

     

    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.

     

    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.

     

    
      
         

      

      
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          3 -

        
          

        

      

      
         

      

    

     

    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.

     

    9.  Registration
      Rights.
      

     

    9.1  Piggyback
      Registration.
      If, on
      or prior to the one-year anniversary of the original issuance of this Warrant
      (and except for the Registration Statement to be filed for the First Montauk
      Investors), 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. 

     

    
      
         

      

      
        -
          4 -

        
          

        

      

      
         

      

       

    

    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,

     

    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.

     

    
      
         

      

      
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          5 -

        
          

        

      

      
         

      

       

    

    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.

     

    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.

     

    
      
         

      

      
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          6 -

        
          

        

      

      
         

      

       

    

    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. 

     

    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.

     

    
      
         

      

      
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          7 -

        
          

        

      

      
         

      

    

     

    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 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. 

     

    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. 

     

    
      	 	 	 
	 	BioMetrx,
              Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	Mark Basile, Chief Executive
              Officer
	 	 

    

     

    
      
         

      

      
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          8 -

        
          

        

      

      
         

      

    

    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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