Document:

WWW.EXFILE.COM -- MATRITECH FORM 8-K -- EXHIBIT 4.5 -- 14850

    EXHIBIT
      4.5

    
 

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      AND,
      ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED
      IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

     

    COMMON
      STOCK PURCHASE WARRANT

    

    

    To
      Purchase [___
      (60% of the number of shares of Common Stock that could be acquired by Purchaser
      at the Closing Date upon conversion of Series B Notes)]
      Shares
      of Common Stock of

     

    Matritech,
      Inc.

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      CERTIFIES that, for value received, _____________ (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the Closing
      Date (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth (5th)
      anniversary of the Closing Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Matritech, Inc., a
      corporation incorporated in the State of Delaware (the “Company”),
      up to
      ______ [60%
      of the number of shares of Common Stock that could be acquired by Purchaser
      at
      the Closing Date upon conversion of Series B Notes]
      shares
      (the “Warrant
      Shares”)
      of
      Common Stock, par value $0.01 per share, of the Company (the “Common
      Stock”),
      such
      number of Warrant Shares being subject to adjustments as provided herein.
      Additionally, the Holder of this Warrant may become entitled, upon the
      conditions and subject to the limitations on exercise and the conditions
      hereinafter set forth, to exercise the Warrant for the Additional
      Warrant Shares
      (as
      defined below) at the Additional
      Warrant Exercise Price
      (as
      defined below) and, in such event, this Warrant will be exercisable for the
      Additional Warrant Shares at any time prior to the close of business on the
      Termination Date. With respect to the Warrant Shares, the purchase price of
      one
      share of Common Stock under this Warrant shall be $0.63 (the “Warrant
      Share Exercise Price”,
      and
      together with the Additional Warrant Exercise Price, the “Exercise
      Price”),
      subject to adjustment hereunder. The Warrant Share Exercise Price and the number
      of Warrant Shares for which the Warrant is exercisable shall be subject to
      adjustment as provided herein. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Securities Purchase
      Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     (the
      “Purchase
      Agreement”),
      dated
      January 22,
      2007,
      among the Company and the purchasers signatory thereto.

     

    1.  Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      Section 7 of this Warrant, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed; provided,
      however,
      during
      any twelve (12) month period and except for transfers to an Affiliate of the
      Holder, the Holder, collectively with successor Holders, may not transfer this
      Warrant in more than two (2) transactions to more than four (4) assignees per
      transaction. The transferee shall sign an investment letter in form and
      substance reasonably satisfactory to the Company.

     

    2.  Authorization
      of Shares.
      The
      Company covenants that all Warrant Shares and all Additional Warrant Shares
      that
      may be issued upon the exercise of the purchase rights represented by this
      Warrant will, upon exercise of the purchase rights represented by this Warrant
      and in accordance with the terms hereof, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges in
      respect of the issue thereof imposed by the Company other than restrictions
      on
      transfer provided for in the Transaction Documents.

     

    3.  Exercise
      of Warrant.

     

    (a)  Except
      as
      provided in Section 4 herein, exercise of the purchase rights represented
      by this Warrant may be made at any time or times on or after the Initial
      Exercise Date and on or before the Termination Date by the surrender of this
      Warrant and the Notice of Exercise Form annexed hereto duly executed, at the
      office of the Company (or such other office or agency of the Company as it
      may
      designate by notice in writing to the registered Holder at the address of such
      Holder appearing on the books of the Company) and upon payment of the applicable
      Exercise Price of the shares thereby purchased by wire transfer or cashier’s
      check drawn on a United States bank or by means of a cashless exercise pursuant
      to Section 3(d), the Holder shall be entitled to receive a certificate for
      the
      number of Warrant Shares so purchased. Certificates for shares purchased
      hereunder shall be delivered to the Holder within five (5) trading days after
      the date on which this Warrant shall have been exercised as aforesaid. This
      Warrant shall be deemed to have been exercised and such certificate or
      certificates shall be deemed to have been issued, and Holder or any other person
      so designated to be named therein shall be deemed to have become a holder of
      record of such shares for all purposes, as of the date the Warrant has been
      exercised by payment to the Company of the applicable Exercise Price and all
      taxes required to be paid by the Holder, if any, pursuant to Section 5
      prior to the issuance of such shares, have been paid. If the Company fails
      to
      deliver to the Holder a certificate or certificates representing the Warrant
      Shares pursuant to this Section 3(a) by the fifth (5th)
      trading
      day after the date of exercise, then the Holder will have the right to rescind
      such exercise. In addition to any other rights available to the Holder, if
      the
      Company fails to deliver to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise by the fifth
      (5th)
      trading
      day after the date of exercise and the Holder has not rescinded such exercise
      pursuant to this 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Section
      3(a), and if after such fifth (5th)
      trading
      day the Holder is required by its broker to purchase (in an open market
      transaction or otherwise) shares of Common Stock to deliver in satisfaction
      of a
      sale by the Holder of the Warrant Shares which the Holder anticipated receiving
      upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which
      (x) the Holder’s total purchase price (including brokerage commissions, if
      any) for the shares of Common Stock so purchased exceeds (y) the amount
      obtained by multiplying (A) the number of Warrant Shares and Additional
      Warrant Shares that the Company was required to deliver to the Holder in
      connection with the exercise at issue times (B) the price at which the sell
      order giving rise to such purchase obligation was executed, and (2) at the
      option of the Holder, either reinstate the portion of the Warrant and equivalent
      number of Warrant Shares and Additional Warrant Shares for which such exercise
      was not honored or deliver to the Holder the number of shares of Common Stock
      that would have been issued had the Company timely complied with its exercise
      and delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In, together with applicable
      confirmations and other evidence reasonably requested by the Company. Nothing
      herein shall limit a Holder’s right to pursue any other remedies available to it
      hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief with respect to the Company’s
      failure to timely deliver certificates representing shares of Common Stock
      upon
      exercise of this Warrant as required pursuant to the terms hereof.

     

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

     

    (c)  The
      Company shall not effect any exercise of this Warrant, and the Holder shall
      not
      have the right to exercise any portion of this Warrant, pursuant to Section
      3(a)
      or otherwise, to the extent that after giving effect to such issuance after
      exercise, the Holder (together with the Holder’s affiliates), as set forth on
      the applicable Notice of Exercise, would beneficially own in excess of 9.99%
      of
      the number of shares of the Common Stock outstanding immediately after giving
      effect to such issuance. For purposes of the foregoing sentence, the number
      of
      shares of Common Stock beneficially owned by the Holder and its affiliates
      shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such sentence is being made,
      but shall exclude the number of shares of Common Stock which would be issuable
      upon (A) exercise of the remaining, nonexercised portion of this Warrant
      beneficially owned by the Holder or any of its affiliates and (B) exercise
      or conversion of the unexercised or nonconverted portion of any other securities
      of the Company (including, without limitation, any other Warrants) subject
      to a
      limitation on 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    conversion
      or exercise analogous to the limitation contained herein beneficially owned
      by
      the Holder or any of its affiliates. Except as set forth in the preceding
      sentence, for purposes of this Section 3(c), beneficial ownership shall be
      calculated in accordance with Section 13(d) of the 1934 Act. To the extent
      that
      the limitation contained in this Section 3(c) applies, the determination of
      whether this Warrant is exercisable (in relation to other securities owned
      by
      the Holder) and of which portion of this Warrant is exercisable shall be in
      the
      sole discretion of such Holder, and the submission of a Notice of Exercise
      shall
      be deemed to be such Holder’s determination of whether this Warrant is
      exercisable (in relation to other securities owned by such Holder) and of which
      portion of this Warrant is exercisable, in each case subject to such aggregate
      percentage limitation, and the Company shall have no obligation to verify or
      confirm the accuracy of such determination. For purposes of this Section 3(c),
      in determining the number of outstanding shares of Common Stock, the Holder
      may
      rely on the number of outstanding shares of Common Stock as reflected in
      (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be,
      (y) a more recent public announcement by the Company or (z) any other
      notice by the Company or the Company’s Transfer Agent setting forth the number
      of shares of Common Stock outstanding. Upon the written or oral request of
      the
      Holder, the Company shall within two (2) trading days confirm orally and in
      writing to the Holder the number of shares of Common Stock then outstanding.
      In
      any case, the number of outstanding shares of Common Stock shall be determined
      after giving effect to the conversion or exercise of securities of the Company,
      including this Warrant, by the Holder or its affiliates since the date as of
      which such number of outstanding shares of Common Stock was reported. The
      provisions of this Section 3(c) may be waived by the Holder upon, at the
      election of the Holder (other than SDS Capital Group SPC, LTD. or its
      affiliates), not less than sixty-one (61) days’ prior notice to the Company, and
      the provisions of this Section 3(c) shall continue to apply until such
      sixty-first (61st)
      day (or
      such later date, as determined by the Holder, as may be specified in such notice
      of waiver).

     

    (d)  If
      at any
      time on or after the Company is required, by the terms of the Registration
      Rights Agreement of even date herewith, to have an effective Registration
      Statement registering the resale of the Warrant Shares by the Holder and there
      is no such effective Registration Statement on file with the U.S. Securities
      and
      Exchange Commission (the “SEC”),
      unless such failure results solely because the SEC will not declare the
      Registration Statement effective due to interpretations of Rule 415, or if
      one
      (1) year after the Closing Date there is no effective Registration Statement
      registering the resale of the Warrant Shares by the Holders on file with the
      SEC, or if the Common Stock is not listed or included for quotation on the
      Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
      Market, the New York Stock Exchange or the American Stock Exchange, this Warrant
      may also be exercised at such time by means of a “cashless exercise” in which
      the Holder shall be entitled to receive a certificate for the number of Warrant
      Shares equal to the quotient obtained by dividing [(A-B)*(X)] by (A),
      where:

     

    (A)
      = the
      daily volume weighted average price of the Common Stock on the trading day
      immediately preceding the date of such election;

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (B)
      = the
      Warrant Share Exercise Price of this Warrant, as adjusted; and

    

    (X)
      = the
      number of Warrant Shares issuable upon exercise of this Warrant in accordance
      with the terms of this Warrant by means of a cash exercise rather than a
      cashless exercise.

     

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

     

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

     

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

     

    7.  Transfer,
      Division and Combination.

     

    (a)  Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Sections 1 and 7(e) hereof and to the provisions of Section 5(b) of the
      Purchase Agreement, this Warrant and all rights hereunder are transferable,
      in
      whole or in part, upon surrender of this Warrant at the principal office of
      the
      Company, together with a written assignment of this Warrant substantially in
      the
      form attached hereto duly executed by the Holder or its agent or attorney and
      funds sufficient to pay any transfer taxes payable upon the making of such
      transfer. Upon such surrender and, if required, such payment, the Company shall
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees and in the denomination or denominations specified in such instrument
      of assignment, and shall issue to the assignor a new Warrant evidencing the
      portion of this Warrant not so assigned, and this Warrant shall promptly be
      cancelled. A Warrant, if properly assigned, may be exercised by a new holder
      for
      the purchase of Warrant Shares without having a new Warrant issued.

     

    (b)  This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 7(a), as to any 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    transfer
      which may be involved in such division or combination, the Company shall execute
      and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
      to
      be divided or combined in accordance with such notice.

     

    (c)  The
      Company shall prepare, issue and deliver at its own expense (other than transfer
      taxes) the new Warrant or Warrants under this Section 7.

     

    (d)  The
      Company agrees to maintain, at its aforesaid office, books for the registration
      and the registration of transfer of the Warrants

     

    (e)  If,
      at
      the time of the surrender of this Warrant in connection with any transfer of
      this Warrant, the transfer of this Warrant shall not be registered pursuant
      to
      an effective registration statement under the 1933 Act and under applicable
      state securities or blue sky laws, the Company may require, unless waived in
      its
      reasonable discretion, as a condition of allowing such transfer (i) that
      the Holder or transferee of this Warrant, as the case may be, furnish to the
      Company a written opinion of counsel (which opinion shall be in form, substance
      and scope customary for opinions of counsel in comparable transactions) to
      the
      effect that such transfer may be made without registration under the 1933 Act
      and under applicable state securities or blue sky laws; (ii) that the
      holder or transferee execute and deliver to the Company an investment letter
      in
      form and substance acceptable to the Company; and (iii) that the transferee
      be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
      (a)(7), or (a)(8) promulgated under the 1933 Act or a qualified institutional
      buyer as defined in Rule 144A(a) under the 1933 Act.

     

    8.  No
      Rights as Shareholder until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price (or by means of
      a
      cashless exercise pursuant to Section 3(d) hereof), the Warrant Shares and
      Additional Warrant Shares so purchased shall be and be deemed to be issued
      to
      such Holder as the record owner of such shares as of the close of business
      on
      the later of the date of such surrender or payment.

     

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

     

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

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    11.  Adjustments
      of Exercise Price and Number of Warrant Shares.

     

    (a)  Dilutive
      Issuances.
      If the
      Company shall issue or sell, or is, in accordance with subsections (b)(i)
      through (viii) below, deemed to have issued or sold (each, a “Dilutive
      Issuance”),
      any
      additional shares of Common Stock, other than Excluded Stock (the “New
      Issuance Shares”),
      without consideration or for a consideration per share less than the Exercise
      Price in effect immediately prior to the time of such issue or sale (the lowest
      price at which such shares of Common Stock are issued or deemed to be issued
      hereunder is hereinafter referred to as the “New
      Issuance Price”),
      then
      and in each such case (a “Trigger
      Issuance”)
      the
      then-existing Warrant Share Exercise Price, shall be reduced, as of the close
      of
      business on the effective date of the Trigger Issuance, to a price determined
      in
      accordance with the immediately succeeding paragraphs.

     

    Prior
      to
      stockholder approval of the Stockholder Proposals, the Warrant Share Exercise
      Price shall be reduced to the higher of (i) the New Issuance Price or
      (ii) $0.63 (appropriately adjusted for any stock split, reverse stock
      split, stock dividend or other reclassification or combination of the Common
      Stock occurring after the date hereof) (the “Full-Ratchet
      Floor Price”).
      From
      and after the date of stockholder approval of the Stockholder Proposals, if
      any,
      the Warrant Share Exercise Price shall be reduced to the New Issuance Price.
      In
      the event that in the time period prior to such stockholder approval a Dilutive
      Issuance is made and the Warrant Share Exercise Price is adjusted to the
      Full-Ratchet Floor Price instead of the New Issuance Price, then immediately
      following such stockholder approval, the Warrant Share Exercise Price shall
      be
      adjusted to such New Issuance Price if such New Issuance Price is lower than
      the
      then current Warrant Share Exercise Price.

    

    For
      purposes of this subsection (a), “Excluded
      Stock”
means
      (1) shares of Common Stock issued pursuant to the terms thereof upon the
      exercise or conversion of the Company’s options, warrants or convertible
      securities outstanding as of the Closing Date in accordance with the terms
      of
      such options, warrants or other securities as in effect on the Closing Date
      and
      provided that such securities have not been amended since the Closing Date
      to
      increase the number of shares of Common Stock issuable thereunder or to lower
      the exercise or conversion price thereof; (2) stock, stock options or other
      stock rights issued pursuant to any stock or option plan duly adopted by a
      majority of the non-employee members of the Board of Directors of the Company
      or
      a majority of the members of a committee of non-employee directors established
      for such purpose; (3) securities issued pursuant to a bona fide
      underwritten public offering with gross proceeds of at least $25,000,000;
      (4) the shares of Common Stock issuable pursuant to (i) the Series B
      Notes and the Series A Notes or (ii) the Series B Warrants and the warrants
      issued by the Company on January 13, 2006 in connection with the issuance
      of the Series A Notes; (5) securities issued in a bona fide business
      acquisition the primary purpose of which, as determined in good faith by a
      majority of the members of the Board of Directors of the Company, is not the
      raising of capital; (6) capital stock or convertible securities issued in a
      joint venture, strategic partnership or licensing arrangement, the primary
      purpose of which, as determined in good faith by a majority of the members
      of
      the Board of Directors of the Company, is not the raising of capital; and
      (7) shares of Common Stock issued or issuable by reason of a dividend,
      stock split or other distribution on shares of Common Stock (but only to
      the

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     extent
      that such a dividend, split or distribution results in an adjustment in the
      Exercise Price pursuant to the other provisions herein).

    

    Additionally,
      for purposes of this subsection (a), the following subsections (b)(i) to (viii)
      shall also be applicable:

    

    (b)  (i)
      Issuance
      of Rights or Options.
      In case
      at any time the Company shall in any manner grant (directly and not by
      assumption in a merger or otherwise) any warrants or other rights to subscribe
      for or to purchase, or any options for the purchase of, Common Stock or any
      stock or security convertible into or exchangeable for Common Stock (such
      warrants, rights or options being called “Options”
and
      such convertible or exchangeable stock or securities being called “Convertible
      Securities”)
      whether or not such Options or the right to convert or exchange any such
      Convertible Securities are immediately exercisable, and the price per share
      for
      which Common Stock is issuable upon the exercise of such Options or upon the
      conversion or exchange of such Convertible Securities (determined by dividing
      (i) the sum (which sum shall constitute the applicable consideration) of
      (x) the total amount, if any, received or receivable by the Company as
      consideration for the granting of such Options, plus (y) the aggregate
      amount of additional consideration payable to the Company upon the exercise
      of
      all such Options, plus (z), in the case of such Options that relate to
      Convertible Securities, the aggregate amount of additional consideration, if
      any, payable upon the issue or sale of such Convertible Securities and upon
      the
      conversion or exchange thereof, by (ii) the total maximum number of shares
      of Common Stock issuable upon the exercise of such Options or upon the
      conversion or exchange of all such Convertible Securities issuable upon the
      exercise of such Options) shall be less than the Warrant Share Exercise Price
      in
      effect immediately prior to the time of the granting of such Options, then
      the
      total number of shares of Common Stock issuable upon the exercise of such
      Options or upon conversion or exchange of the total amount of such Convertible
      Securities issuable upon the exercise of such Options shall be deemed to have
      been issued for such price per share as of the date of granting of such Options
      or the issuance of such Convertible Securities and thereafter shall be deemed
      to
      be outstanding for purposes of adjusting the Warrant Share Exercise Price.
      Except as otherwise provided in subsection (b)(iii) of this Section 11, no
      adjustment of the Warrant Share Exercise Price shall be made upon the actual
      issue of such Common Stock or of such Convertible Securities upon exercise
      of
      such Options or upon the actual issue of such Common Stock upon conversion
      or
      exchange of such Convertible Securities.

     

    (ii)
        Issuance
      of Convertible Securities.
      In case
      the Company shall in any manner issue (directly and not by assumption in a
      merger or otherwise) or sell any Convertible Securities, whether or not the
      rights to exchange or convert any such Convertible Securities are immediately
      exercisable, and the price per share for which Common Stock is issuable upon
      such conversion or exchange (determined by dividing (i) the sum (which sum
      shall constitute the applicable consideration) of (x) the total amount
      received or receivable by the Company as consideration for the issue or sale
      of
      such Convertible Securities, plus (y) the aggregate amount of additional
      consideration, if any, payable to the Company upon the conversion or exchange
      thereof, by (ii) the total number of shares of Common Stock issuable upon
      the conversion or exchange of all such 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Convertible
      Securities) shall be less than the Warrant Share Exercise Price in effect
      immediately prior to the time of such issue or sale, then the total maximum
      number of shares of Common Stock issuable upon conversion or exchange of all
      such Convertible Securities shall be deemed to have been issued for such price
      per share as of the date of the issue or sale of such Convertible Securities
      and
      thereafter shall be deemed to be outstanding for purposes of adjusting the
      Warrant Share Exercise Price, provided that (a) except as otherwise
      provided in subsection (b)(iii) of this Section 11, no adjustment of the
      Warrant Share Exercise Price shall be made upon the actual issuance of such
      Common Stock upon conversion or exchange of such Convertible Securities; and
      (b) no further adjustment of the Warrant Share Exercise Price shall be made
      by reason of the issue or sale of Convertible Securities upon exercise of any
      Options to purchase any such Convertible Securities for which adjustments of
      the
      Warrant Share Exercise Price have been made pursuant to the other provisions
      of
      Section 11.

     

    (iii)
        Change
      in Option Price or Conversion Rate.
      Upon
      the happening of any of the following events, namely, if the purchase price
      provided for in any Option referred to in subsection (b)(i) hereof, the
      additional consideration, if any, payable upon the conversion or exchange of
      any
      Convertible Securities referred to in subsections (b)(i) or (b)(ii), or the
      rate
      at which Convertible Securities referred to in subsections (b)(i) or (b)(ii)
      are
      convertible into or exchangeable for Common Stock shall change at any time
      (including, but not limited to, changes under or by reason of provisions
      designed to protect against dilution), the Warrant Share Exercise Price in
      effect at the time of such event shall forthwith be readjusted to the Warrant
      Share Exercise Price which would have been in effect at such time had such
      Options or Convertible Securities still outstanding provided for such changed
      purchase price, additional consideration or conversion rate, as the case may
      be,
      at the time initially granted, issued or sold. On the termination of any Option
      for which any adjustment was made pursuant to subsections (a) and (b) hereof
      or
      any right to convert or exchange Convertible Securities for which any adjustment
      was made pursuant to this subsection (b) (including without limitation upon
      the
      redemption or purchase for consideration of such Convertible Securities by
      the
      Company), the Warrant Share Exercise Price then in effect hereunder shall
      forthwith be changed to the Warrant Share Exercise Price which would have been
      in effect at the time of such termination had such Option or Convertible
      Securities, to the extent outstanding immediately prior to such termination,
      never been issued.

     

    (iv)
        Stock
      Dividends.
      In case
      the Company shall declare a dividend or make any other distribution upon any
      stock of the Company (other than the Common Stock) payable in Common Stock,
      Options or Convertible Securities, then any Common Stock, Options or Convertible
      Securities, as the case may be, issuable in payment of such dividend or
      distribution shall be deemed to have been issued or sold without
      consideration.

     

    (v)
        Consideration
      for Stock.
      In case
      any shares of Common Stock, Options or Convertible Securities shall be issued
      or
      sold for cash, the consideration received therefor shall be deemed to be the
      amount received by the Company therefor. In case any shares of Common Stock,
      Options or Convertible Securities shall be issued or sold for a consideration
      other than cash, the amount of the consideration other than cash 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    received
      by the Company shall be deemed to be the fair value of such consideration as
      determined in good faith by the Board of Directors of the Company using standard
      commercial valuation methods appropriate for valuing such assets; provided,
      however,
      that if
      the Required Holders do not agree to such fair value calculation within three
      (3) business days after receipt thereof from the Company, then such fair value
      shall be determined in good faith by an investment banker or other appropriate
      expert of national reputation selected by the Company and reasonably acceptable
      to the Required Holders, with the costs of such appraisal to be borne 50%
      equally by the Company and 50% by the Holders (ratably on the basis of the
      respective number of Warrant Shares outstanding). In case any Options shall
      be
      issued in connection with the issue and sale of other securities of the Company,
      together comprising one integral transaction in which no specific consideration
      is allocated to such Options by the parties thereto, such Options shall be
      deemed to have been issued for nominal consideration. If Common Stock, Options
      or Convertible Securities shall be issued or sold by the Company and, in
      connection therewith, other Options or Convertible Securities (the “Additional
      Rights”)
      are
      issued without any specific consideration allocated to such Additional Rights,
      then the consideration received or deemed to be received by the Company for
      such
      Additional Rights shall be deemed to be nominal.

     

    (vi)
        Record
      Date.
      In case
      the Company shall take a record of the holders of its Common Stock for the
      purpose of entitling them (i) to receive a dividend or other distribution
      payable in Common Stock, Options or Convertible Securities or (ii) to
      subscribe for or purchase Common Stock, Options or Convertible Securities,
      then
      such record date shall be deemed to be the date of the issue or sale of the
      shares of Common Stock deemed to have been issued or sold upon the declaration
      of such dividend or the making of such other distribution or the date of the
      granting of such right of subscription or purchase, as the case may
      be.

     

    (vii)
        Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time shall not include
      shares owned or held by or for the account of the Company or any of its
      wholly-owned subsidiaries, and the disposition of any such shares (other than
      the cancellation or retirement thereof) shall be considered an issue or sale
      of
      Common Stock for the purpose of this Section 11.

     

    (c)  Stock
      Splits and Dividends.
      If the
      Company shall, at any time or from time to time while Warrants are outstanding,
      pay a dividend or make a distribution on its Common Stock in shares of Common
      Stock, subdivide its outstanding shares of Common Stock into a greater number
      of
      shares or combine its outstanding shares of Common Stock into a smaller number
      of shares or issue by reclassification of its outstanding shares of Common
      Stock
      any shares of its capital stock (including any such reclassification in
      connection with a consolidation or merger in which the Company is the continuing
      corporation), then the Warrant Share Exercise Price and the number of Warrant
      Shares in effect immediately prior to the date upon which such change shall
      become effective shall be adjusted by the Company so that the Holder shall
      be
      entitled to receive the number of shares of Common Stock or other capital stock
      which such Holder would have received immediately following such event had
      this
      Warrant been exercised immediately prior to

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     such
      event. Such adjustments shall be made successively whenever any event listed
      above shall occur.

     

    (d)  Reorganization
      or Reclassification.
      If any
      capital reorganization or reclassification of the capital stock of the Company
      shall be effected in such a way (including, without limitation, by way of
      consolidation or merger) that holders of Common Stock but not holders of Company
      Warrants shall be entitled to receive stock, securities or assets with respect
      to or in exchange for Common Stock then, as a condition of such reorganization
      or reclassification, lawful and adequate provision shall be made whereby the
      Holder shall thereafter have the right to receive, upon the basis and upon
      the
      terms and conditions specified herein and in lieu of the shares of Common Stock
      of the Company immediately theretofore receivable upon the exercise of this
      Warrant, such shares of stock, securities or assets as may be issued or payable
      with respect to or in exchange for a number of outstanding shares of Common
      Stock equal to the number of shares of such stock immediately theretofore so
      receivable had such reorganization or reclassification not taken place and
      in
      any such case appropriate provision shall be made with respect to the rights
      and
      interests of such Holder to the end that the provisions hereof (including
      without limitation provisions for adjustments of the Warrant Share Exercise
      Price) shall thereafter be applicable, as nearly as may be, in relation to
      any
      shares of stock, securities or assets thereafter deliverable upon the exercise
      of such rights (including an immediate adjustment, by reason of such
      reorganization or reclassification, of the Exercise Price to the value for
      the
      Common Stock reflected by the terms of such reorganization or reclassification
      if the value so reflected is less than the Warrant Share Exercise Price in
      effect immediately prior to such reorganization or reclassification). In the
      event of a merger or consolidation of the Company as a result of which a greater
      or lesser number of shares of common stock of the surviving corporation are
      issuable to holders of the Common Stock of the Company outstanding immediately
      prior to such merger or consolidation, the Warrant Share Exercise Price in
      effect immediately prior to such merger or consolidation shall be adjusted
      in
      the same manner as though there were a subdivision or combination of the
      outstanding shares of Common Stock of the Company.

     

    (e)  Distributions.
      In case
      the Company shall fix a payment date for the making of a distribution to all
      holders of Common Stock (including any such distribution made in connection
      with
      a consolidation or merger in which the Company is the continuing corporation)
      of
      evidences of indebtedness or assets (other than cash dividends or cash
      distributions payable out of consolidated earnings or earned surplus or
      dividends or distributions referred to in subsection (c) of this
      Section 11), or subscription rights or warrants, the Warrant Share Exercise
      Price to be in effect after such payment date shall be determined by multiplying
      the Warrant Share Exercise Price in effect immediately prior to such payment
      date by a fraction, the numerator of which shall be the total number of shares
      of Common Stock outstanding multiplied by the Market Price (as defined below)
      per share of Common Stock immediately prior to such payment date, less the
      fair
      market value (as determined by the Company’s Board of Directors in good faith)
      of said assets or evidences of indebtedness so distributed, or of such
      subscription rights or warrants, and the denominator of which shall be the
      total
      number of shares of Common Stock outstanding multiplied by such Market Price
      per
      share of Common Stock immediately prior to such payment date. “Market
      Price”
means,
      for any security as of 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    any
      date,
      the last sales price of such security on the principal trading market where
      such
      security is listed or traded as reported by Bloomberg Financial Markets (or
      a
      comparable reporting service of national reputation selected by the Company
      and
      reasonably acceptable to the holder hereof if Bloomberg Financial Markets is
      not
      then reporting closing sales prices of such security) (in any case,
“Bloomberg”),
      or if
      the foregoing does not apply, the last reported sales price of such security
      on
      a national exchange or in the over-the-counter market on the electronic bulletin
      board for such security as reported by Bloomberg, or, if no such price is
      reported for such security by Bloomberg, the average of the bid prices of all
      market makers for such security as reported in the “pink sheets” by Pink Sheets
      LLC, in each case for such date or, if such date was not a trading day for
      such
      security, on the next preceding date which was a trading day. If the Market
      Price cannot be calculated for such security as of such date on any of the
      foregoing bases, the Market Price of such security on such date shall be the
      fair market value as reasonably determined by an investment banking firm
      selected by the Company and reasonably acceptable to the holder hereof, with
      the
      costs of such appraisal to be borne by the Company. Such adjustment shall be
      made successively whenever such a payment date is fixed.

     

    (f)  Effective
      Date of Adjustment.
      An
      adjustment to the Warrant Share Exercise Price shall become effective
      immediately after the payment date in the case of each dividend or distribution
      and immediately after the effective date of each other event which requires
      an
      adjustment.

     

    (g)  Subsequent
      Adjustments.
      In the
      event that, as a result of an adjustment made pursuant to subsections (a)
      through (e), the Holder shall become entitled to receive any shares of capital
      stock of the Company other than shares of Common Stock, the number of such
      other
      shares so receivable upon the exercise of this Warrant shall be subject
      thereafter to adjustment from time to time in a manner and on terms as nearly
      equivalent as practicable to the provisions contained herein.

     

    (h)  Other
      Action Affecting Exercise Price.
      If, at
      any time during the Exercise Period, the Company takes any action affecting
      the
      Common Stock that would be covered by Section 11, but for the manner in
      which such action is taken or structured, which would in any way diminish the
      value of this Warrant, then the Warrant Share Exercise Price shall be adjusted
      in such manner as the Board of Directors of the Company shall in good faith
      determine to be equitable under the circumstances.

     

    (i)  Additional
      Warrant Shares.
      If
      after the Registration Statement registering the Warrant Shares required by
      Section 2(a) of the Registration Rights Agreement has been declared
      effective by the Securities and Exchange Commission, (i)(A) sales of
      Warrant Shares can no longer be made pursuant to such Registration Statement,
      (B) such Registration Statement is no longer effective, or (C) the
      Common Stock is not listed or included for quotation on the Nasdaq Capital
      Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
      York
      Stock Exchange or the American Stock Exchange and (ii) the Holder no longer
      holds any portion of the Notes (or Conversion Shares into which they have been
      converted) (each of such events, a “Default
      Event”)
      and
      such Default Event exists without interruption for more than five

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     (5)
      business days, then this Warrant will become exercisable for an additional
      number of shares of Common Stock (the “Additional
      Warrant Shares”)
      equal
      to (s) the number of Warrant Shares then issuable upon exercise of the
      Warrant assuming a cashless exercise pursuant to Section 3(d) of this Warrant,
      multiplied by (t) ten hundredths (.10). If the Default Event continues
      without interruption for more than sixty (60) days, then this Warrant will
      become exercisable for a further amount of Additional Warrant Shares equal
      to
      (u) the number of Warrant Shares then issuable upon exercise of the Warrant
      assuming a cashless exercise pursuant to Section 3(d) of this Warrant,
      multiplied by (v) five hundredths (.05). If the Default Event continues
      without interruption for more than one hundred twenty (120) days, then this
      Warrant will become exercisable (in part or in whole) for a further amount
      of
      Additional Warrant Shares equal to (w) the number of Warrant Shares then
      issuable upon exercise of the Warrant assuming a cashless exercise pursuant
      to
      Section 3(d) of this Warrant, multiplied by (x) five hundredths (.05).
      Thereafter, for each additional sixty (60) day period after the one hundred
      and
      twentieth (120th)
      day
      following the commencement of a Default Event during which such Default Event
      continues without interruption, but limited to a period of three hundred sixty
      (360) days of existence of a continuous Default Event, this Warrant will become
      exercisable for a further amount of Additional Warrant Shares equal to
      (y) the number of Warrant Shares then issuable upon exercise of the Warrant
      assuming a cashless exercise pursuant to Section 3(d) of this Warrant,
      multiplied by (z) five hundredths (.05). After the three hundred and
      sixtieth (360th)
      day of
      existence of a continuous Default Event, the Holder will accrue no further
      rights to Additional Warrant Shares. The exercise price for such Additional
      Warrant Shares (the “Additional
      Share Exercise Price”)
      shall
      be $.01 per share.

     

    12.  Voluntary
      Adjustment by the Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Warrant Share Exercise Price to any amount and for any period of time deemed
      appropriate by the Board of Directors of the Company provided that such
      reduction shall apply on a pro
      rata
      basis to
      all of the Warrants.

     

    13.  Notice
      of Adjustment.
      Whenever the number of Warrant Shares or number or kind of securities or other
      property purchasable upon the exercise of this Warrant or the Warrant Share
      Exercise Price is adjusted, as herein provided, the Company shall give notice
      thereof to the Holder, which notice shall state the number of Warrant Shares
      (and other securities or property) purchasable upon the exercise of this Warrant
      and the Warrant Share Exercise Price for such Warrant Shares (and other
      securities or property) after such adjustment, setting forth a brief statement
      of the facts requiring such adjustment and setting forth the computation by
      which such adjustment was made.

     

    14.  Call
      Provision.
      Unless
      and to the extent Holder is prohibited from exercising under Section 3(c),
      notwithstanding any other provision contained herein to the contrary, in the
      event that the closing bid price of a share of Common Stock as traded on the
      American Stock Exchange, Inc. (or such other exchange or stock market on which
      the Common Stock may then be listed or quoted) equals or exceeds $2.52
      (appropriately adjusted for any stock split, reverse stock split, stock dividend
      or other reclassification or combination of the Common Stock occurring after
      the
      date hereof) for twenty (20) consecutive trading days commencing after the
      Registration Statement (as defined in the Registration Rights Agreement) has
      been declared 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    effective,
      the Company, upon thirty (30) days prior written notice (the “Notice
      Period”)
      given
      to the Holder within one business day immediately following the end of such
      twenty (20) trading day period, may call this Warrant, in whole or in part,
      at a
      redemption price equal to $0.63 per
      share
      of Common Stock then purchasable pursuant to this Warrant; provided that
      (i) all of Warrant Shares issuable upon the exercise of this Warrant either
      (A) are registered pursuant to an effective Registration Statement (as
      defined in the Registration Rights Agreement) that has not been suspended and
      for which no stop order is in effect, and pursuant to which the Holder is able
      to sell such shares of Common Stock at all times during the Notice Period or
      (B) no longer constitute Registrable Securities (as defined in the
      Registration Rights Agreement); (ii) the number of shares of Common Stock
      issuable upon the exercise of Warrants and any other series of warrants included
      in such notice of redemption does not exceed the cumulative trading volume
      of
      the Common Stock on any stock exchange or market on which the Common Stock
      may
      then be traded for the thirty (30) consecutive trading days prior to the first
      day of the Notice Period; (iii) the Company has not issued a warrant
      redemption notice on any other series of warrants within sixty (60) days of
      the
      first day of the Notice Period; and (iv) the first day of such Notice
      Period is not within three hundred and sixty-five (365) days of the Closing
      Date
      or within ninety (90) days of the Termination Date. In the event that less
      than
      all of the Company Warrants (as defined below) are called pursuant to this
      Section 14, any call of less than all the Company Warrants shall be on a
      pro rata basis for each holder of Company Warrants. Notwithstanding any such
      notice by the Company, the Holder shall have the right to exercise this Warrant
      prior to the end of the Notice Period. The term “Company
      Warrants”
means
      a
      series of Warrants of like tenor issued by the Company pursuant to the Purchase
      Agreement.

     

    15.  Notice
      of Corporate Action.
      If at
      any time:

     

    (a)  the
      Company shall take a record of the holders of its Common Stock for the purpose
      of entitling them to receive a dividend or other distribution, or any right
      to
      subscribe for or purchase any evidences of its indebtedness, any shares of
      stock
      of any class or any other securities or property, or to receive any other right,
      or

     

    (b)  there
      shall be any capital reorganization of the Company, any reclassification or
      recapitalization of the capital stock of the Company or any consolidation or
      merger of the Company with, or any sale, transfer or other disposition of all
      or
      substantially all the property, assets or business of the Company to, another
      corporation or,

     

    (c)  there
      shall be a voluntary or involuntary dissolution, liquidation or winding up
      of
      the Company;

     

    then,
      in
      any one or more of such cases, the Company shall give to Holder (i) at
      least ten (10) days’ prior written notice of the date on which a record is to be
      taken for such dividend, distribution or right or for determining rights to
      vote
      in respect of any such reorganization, reclassification, merger, consolidation,
      sale, transfer, disposition, liquidation or winding up, and (ii) in the
      case of any such reorganization, reclassification, merger, consolidation, sale,
      transfer, disposition, dissolution, liquidation or winding up, at least ten
      (10)
      days’ prior written notice of the date when the same shall take place. Such
      notice in accordance with the foregoing clause also shall specify (i) the
      date on which the holders of Common Stock shall be entitled to any

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    such
      dividend, distribution or right, and the amount and character thereof, and
      (ii) the date on which any such reorganization, reclassification, merger,
      consolidation, sale, transfer, disposition, dissolution, liquidation or winding
      up is to take place and the time, if any such time is to be fixed, as of which
      the holders of Common Stock shall be entitled to exchange their Warrant Shares
      for securities or other property deliverable upon such disposition, dissolution,
      liquidation or winding up. Each such written notice shall be sufficiently given
      if addressed to Holder at the last address of Holder appearing on the books
      of
      the Company and delivered in accordance with Section 17(d).

     

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

     

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

     

    17.  Miscellaneous.

     

    (a)  Jurisdiction.
      This
      Warrant shall constitute a contract under the laws of Delaware, without regard
      to its conflict of law, principles or rules.

     

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

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    (h)  Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

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

     

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

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

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

     

    

    Dated:
      January 22, 2007

    

     

    
      	 	 	 
	 	
              MATRITECH,
                INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name: Stephen D. Chubb
	 	Title: Chief
              Executive Officer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTICE
      OF EXERCISE

    

    To: Matritech,
      Inc.

    

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

     

    (2)  Payment
      shall take the form of (check applicable box):

     

    [ 
]
      lawful money of the United States; or

     

    [
 ]
      the cancellation of such number of Warrant Shares as is necessary, in accordance
      with the formula set forth in subsection 3(d), to exercise this Warrant with
      respect to the maximum number of Warrant Shares purchasable pursuant to the
      cashless exercise provision set forth in subsection 3(d).

     

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

     

    _______________________________

    

    

    The
      Warrant Shares shall be delivered to the following:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)
      Accredited
      Investor/Qualified Institutional Buyer.
      The
      undersigned is either: (i) an “accredited investor” as defined in Rule
      501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act of 1933,
      as
      amended (the “Securities Act”) or (ii) a qualified institutional buyer as
      defined in Rule 144(A)(a) under the Securities Act. 

    

    [PURCHASER]

    

    

    By:
      ______________________________

    Name:

    Title:

    

    Dated:
      ________________________

    

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information.

    Do
      not
      use this form to exercise the warrant.)

    

    

    

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

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: ____________________________

    

    Holder’s
      Address: _____________________________

    

     

    

    

    Signature
      Guaranteed: __________________________________

    

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.WWW.EXFILE.COM -- MATRITECH FORM 8-K -- EXHIBIT 4.6 -- 14850

    EXHIBIT
      4.6

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
      dated
      as of January 22, 2007, is made by and among Matritech, Inc., a corporation
      organized under the laws of the State of Delaware (the “Company”),
      and
      the undersigned (together with their affiliates, the “Initial
      Investors”). 

    

    BACKGROUND

    

    A.  In
      connection with that certain Securities Purchase Agreement, dated as of
      January 22, 2007, by and among the Company and the Initial Investors (the
“Securities
      Purchase Agreement”),
      the
      Company has agreed, upon the terms and subject to the conditions contained
      therein, to issue and sell to the Initial Investors (i) senior secured
      convertible promissory notes (the “Series
      B Notes”)
      that
      are convertible into shares of the Company’s common stock, par value $0.01 per
      share (the “Common
      Stock”),
      upon
      the terms and subject to the limitations and conditions set forth in the Series
      B Notes, and (ii) warrants (the “Series
      B Warrants”)
      to
      acquire shares of Common Stock. The shares of Common Stock issuable upon
      conversion or amortization of the Series B Notes, or otherwise pursuant to
      the
      Series B Notes, are referred to herein as the “Conversion
      Shares”
and
      the
      shares of Common Stock issuable upon exercise of or otherwise pursuant to the
      Series B Warrants are referred to herein as the “Warrant
      Shares.”

    

    B.  To
      induce
      the Initial Investors to execute and deliver the Securities Purchase Agreement,
      and to consummate the transactions contemplated thereby, the Company has agreed
      to provide certain registration rights under the Securities Act of 1933, as
      amended, and the rules and regulations thereunder, or any similar successor
      statute (collectively, the “Securities
      Act”),
      and
      applicable state securities laws.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the Company and the Initial Investors, intending
      to be legally bound, hereby agree as follows:

    

    1.  DEFINITIONS.

     

    (a)  As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i)  “Initial
      Registrable Securities”
means
      the number of Registrable Securities equal to the sum of (a) the number of
      Conversion Shares issuable upon conversion of the Series B Notes based upon
      the
      Conversion Price (as defined in the Series B Notes) as of the Filing Date
      (without giving effect to any limitations on conversion contained in Article
      IX
      of the Series B Notes) and (b) the number of Warrant Shares issuable upon
      exercise of the Series B Warrants (without giving effect to any limitations
      on
      exercise contained in Section 3(c) of the Series B Warrants).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  “Investor”
means
      the Initial Investors and any transferees or assignees who agree to become
      bound
      by the provisions of this Agreement in accordance with Section 10
      hereof.

     

    (iii)  “register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      or
      Statements in compliance with the Securities Act and pursuant to Rule 415 under
      the Securities Act or any successor rule providing for offering securities
      on a
      continuous basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement
      by
      the United States Securities and Exchange Commission (the “SEC”).

     

    (iv)  “Registrable
      Securities”
means
      (a) the Conversion Shares, (b) the Warrant Shares, and (c) any shares of common
      stock issued or issuable, from time to time, as interest on or in exchange
      for,
      as payment for, or otherwise with respect to any of the foregoing (including
      with respect to the Series B Notes and the Series B Warrants), whether as
      default payments, on account of anti-dilution or other adjustments or otherwise,
      provided, that, a security shall cease to be a Registrable Security upon (A)
      sale pursuant to a Registration Statement or Rule 144 under the Securities
      Act,
      or (B) such security becoming eligible for sale by the Investors pursuant to
      Rule 144(k).

     

    (v)  “Registration
      Statement”
means
      a
      registration statement of the Company under the Securities Act.

     

    (b)  Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement as of the Closing
      Date.

     

    2.  REGISTRATION.

     

    (a)  Demand
      Registration.
      At any
      time from and after one hundred and eighty (180) days after the Closing Date,
      so
      long as the Purchasers hold any Series B Notes or Series B Warrants, the
      Purchasers representing the holders of at least 22% of the aggregate amount
      of
      the Initial Registrable Securities, can demand in writing that the Company
      promptly prepare and file with the SEC as soon as practicable, but in no event
      later than the thirtieth (30th)
      day
      (the “Filing
      Date”)
      from
      the day such written demand is received by the Company (the “Demand
      Date”),
      a
      Registration Statement on Form S-3 (or, if Form S-3 is not then available,
      on
      such form of Registration Statement as is then available to effect a
      registration of all of the Initial Registrable Securities) (the “Initial
      Registration Statement”)
      covering the resale of the Initial Registrable Securities. The Registration
      Statement filed hereunder, to the extent allowable under the Securities Act
      and
      the Rules promulgated thereunder (including Rule 416), shall state that such
      Registration Statement also covers such indeterminate number of additional
      shares of Common Stock as may become issuable upon conversion of the Series
      B
      Notes and exercise of the Series B Warrants to prevent dilution resulting from
      stock splits, stock dividends or similar transactions. The Registrable
      Securities included on the Registration Statement shall be allocated among
      the
      Investors as set forth in Section 11(k) hereof. The Registration Statement
      (and
      each amendment or supplement thereto, and each request for acceleration of
      effectiveness thereof) shall be provided to (and subject to the approval of)
      the
      Required Holders (as defined in the Securities Purchase Agreement) prior to
      its
      filing or other submission. For purposes of all provisions of this 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Agreement,
      any document publicly available on the SEC’s EDGAR system shall be considered to
      have been validly “furnished,” “delivered” or “provided” to the Required
      Holders. 

     

    (b)  Payments
      by the Company.
      The
      Company shall use its best efforts to cause the Registration Statement required
      to be filed pursuant to Section 2(a) hereof to become effective as soon as
      practicable, but in no event later than (i) the ninetieth (90th)
      day
      following the Demand Date in the event that there is no SEC review of the
      Registration Statement, or (ii) the one hundred fiftieth (150th)
      day
      following the Demand Date in the event that the SEC reviews the Registration
      Statement (such date, the “Registration
      Deadline”).
      At
      the time of effectiveness, the Company shall ensure that such Registration
      Statement covers the Initial Registrable Securities, including, if necessary,
      by
      filing an amendment prior to the effective date of the Registration Statement
      to
      increase the number of Registrable Securities covered thereby. Subject to
      Section 2(d) below, if (i) (A) the Registration Statement required to be filed
      pursuant to Section 2(a) hereof is not filed with the SEC prior to the Filing
      Date or declared effective by the SEC on or before the Registration Deadline
      or
      (B) any Registration Statement required to be filed pursuant to Section 3(b)
      hereof is not declared effective by the SEC on or before the sixtieth
      (60th)
      day
      following the applicable Registration Trigger Date (as defined in Section 3(b)
      below), or (ii) if, after any such Registration Statement has been declared
      effective by the SEC, sales of any of the Registrable Securities required to
      be
      covered by such Registration Statement (including any Registrable Securities
      required to be registered pursuant to Section 3(b) hereof, (but specifically
      excluding Warrant Shares), cannot be made pursuant to such Registration
      Statement (by reason of a stop order or the Company’s failure to update the
      Registration Statement or for any other reason outside the control of the
      Investors) and such failure is not cured by the Company within two (2) trading
      days after notice thereof) or (iii) the Common Stock is not listed or included
      for quotation on the Nasdaq Capital Market (the “Capital
      Market”),
      the
      Nasdaq Global Market (the “Global
      Market”),
      the
      Nasdaq Global Select Market (the “Global
      Select Market”),
      the
      New York Stock Exchange (the “NYSE”)
      or the
      American Stock Exchange (the “AMEX”)
      any
      time after the Registration Deadline hereunder, then the Company will make
      payments to each Investor in such amounts and at such times as shall be
      determined pursuant to this Section 2(b) as partial relief for the damages
      to
      the Investors by reason of any such delay in or reduction of their ability
      to
      sell the Registrable Securities (which remedy shall not be exclusive of any
      other remedies available at law or in equity). In the event that any payment
      becomes due from the Company under the preceding sentence, the Company shall
      pay
      to each Investor cash in the amount of (x) the aggregate principal balance
      of
      the Series B Notes owned by such Investor then outstanding (including, for
      this
      purpose, any principal balance of any Series B Notes that have been converted
      into Conversion Shares then held by such Investor as if such Series B Notes
      had
      not been so converted), multiplied by (y) fifteen thousandths (.015), for each
      30 day period (or portion thereof), (A) after the Filing Date and prior to
      the
      date the Registration Statement is filed with the SEC pursuant to Section 2(a),
      (B) after the Registration Deadline and prior to the date the Registration
      Statement filed pursuant to Section 2(a) is declared effective by the SEC,
      (C)
      after the sixtieth (60th)
      day
      following a Registration Trigger Date and prior to the date the Additional
      Registration Statement (as hereinafter defined) or the Registration Statement
      filed pursuant to Section 3(b) hereof is declared effective by the SEC, and
      (D)
      during which sales of any Registrable Securities (excluding the Warrant Shares)
      cannot be made pursuant to any such Registration Statement after the
      Registration Statement has been declared effective or the Common Stock is not
      listed or included for quotation on the Capital Market, the Global Market,
      the
      Global Select Market, NYSE or AMEX; provided,
      however,
      that,
      for purpose of calculating the payment amount owed to any given Investor, there
      shall be excluded from each such period any delays which are solely attributable
      to changes required by such Investor in the Additional Registration Statement
      or
      the Registration Statement with respect to information relating to such
      Investor, including, without limitation, changes to the Plan of Distribution
      (as
      defined below), other than any corrections of Company mistakes with respect
      to
      information previously provided by such Investor. In the event that, after
      a
      Registration Statement covering the resale of the Warrant Shares has become
      effective, such Registration Statement is no longer effective or the Common
      Stock is not listed or 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    included
      for quotation on the Capital Market, the Global Market, the Global Select
      Market, the NYSE or the AMEX, then (a) the Holder as defined in the Series
      B
      Warrants shall be entitled to use the cashless exercise provisions of the Series
      B Warrants to exercise its Series B Warrants in whole or in part, (b) no
      monetary penalty shall be payable pursuant to this Section 2(b) with respect
      to
      the Series B Warrants or the Warrant Shares, and (c) upon a Default Event (as
      defined in Section 11(i) of the Series B Warrants) the Holder shall have the
      rights set forth in Section 11(i) of the Series B Warrants. Except for the
      Additional Warrant Shares as defined in the Series B Warrants issuable to a
      Holder as set forth in Section 11(i) of the Series B Warrants, all amounts
      required to be paid in cash hereunder shall be paid within five (5) days after
      the end of each period that gives rise to such obligation, provided that, if
      any
      such period extends for more than thirty (30) days, interim payments shall
      be
      made for each such 30 day period. 

     

    (c)  Eligibility
      for Form S-3.
      The
      Company covenants that it shall file all reports and statements required to
      be
      filed by the Company with the SEC in a timely manner so as to thereafter be
      eligible for the use of Form S-3.

     

    (d)  Inability
      to Register Shares for Resale under Rule 415.
      In no
      case shall the Company be liable for any monetary payment or for any Additional
      Warrant Shares pursuant to Section 2(b) or Section 3(b) hereof or Section 11(i)
      of the Series B Warrants solely because the SEC will not declare the
      Registration Statement effective due to interpretations of Rule
      415.

     

    3.  OBLIGATIONS
      OF THE COMPANY.

     

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

     

    (a)  The
      Company shall respond promptly to any and all comments made by the staff of
      the
      SEC to any Registration Statement required to be filed hereunder, and shall
      submit to the SEC, before the close of business on the business day immediately
      following the business day on which the Company learns (either by telephone
      or
      in writing) that no review of such Registration Statement will be made by the
      SEC or that the staff of the SEC has no further comments on such Registration
      Statement, as the case may be, a request for acceleration of the effectiveness
      of such Registration Statement to a time and date as soon as practicable. So
      long as the Company has not been advised by the SEC that it is unable to
      register the Registrable Securities for resale under Rule 415, the Company
      shall
      keep such Registration Statement effective pursuant to Rule 415 at all times
      until such date as is the earlier of (i) the date on which all of the
      Registrable Securities have been sold and (ii) the date on which all of the
      Registrable Securities may be immediately sold to the public without
      registration or restriction pursuant to Rule 144(k)

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     (assuming
      for this purpose that the Series B Warrants have been exercised pursuant to
      Section 3(d) (“cashless exercise”) thereof ) under the Securities Act or any
      successor provision (the “Registration
      Period”),
      which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein and all documents incorporated by reference
      therein) (A) shall comply in all material respects with the requirements of
      the
      Securities Act and the rules and regulations of the SEC promulgated thereunder
      and (B) shall 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 not misleading. The financial statements of the Company
      included in any such Registration Statement or incorporated by reference therein
      (x) shall comply as to form in all material respects with the applicable
      accounting requirements and the published rules and regulations of the SEC
      applicable with respect thereto, (y) shall be prepared in accordance with U.S.
      generally accepted accounting principles, consistently applied during the
      periods involved (except as may be otherwise indicated in such financial
      statements or the notes thereto or, in the case of unaudited interim statements,
      to the extent they may not include footnotes or may be condensed on summary
      statements) and (z) fairly present in all material respects the consolidated
      financial position of the Company and its consolidated subsidiaries as of the
      dates thereof and the consolidated results of their operations and cash flows
      for the periods then ended (subject, in the case of unaudited statements, to
      immaterial year-end adjustments).

     

    (b)  So
      long
      as the Company is able to register the Registrable Securities for resale under
      Rule 415, the Company shall (i) prepare and file with the SEC such amendments
      (including post-effective amendments) and supplements to any Registration
      Statement required to be filed hereunder and the prospectus used in connection
      with any such Registration Statement as may be necessary to keep such
      Registration Statement effective at all times during the Registration Period,
      (ii) file such additional registration statements (the “Additional
      Registration Statements”)
      as may
      be necessary to cover any Registrable Securities not included on the Initial
      Registration Statement, and (iii) during the Registration Period, comply with
      the provisions of the Securities Act with respect to the disposition of all
      Registrable Securities of the Company covered by any Registration Statement
      until such time as all of such Registrable Securities have been disposed of
      in
      accordance with the intended methods of disposition by the seller or sellers
      thereof as set forth in such Registration Statement. Unless the context
      otherwise requires, the term “Registration
      Statement”
shall
      also be deemed to include an “Additional Registration Statement”. In the event
      that (i) the Additional Registration Statements are not filed on or before
      three
      (3) trading days after receipt of all information from the holders of
      Registrable Securities required to be included in such Additional Registration
      Statement or (ii) the number of shares available under a Registration Statement
      filed pursuant to this Agreement is, for any five (5) consecutive trading days
      (the last day of each of such five (5) trading days periods being the
“Registration
      Trigger Date”),
      insufficient to cover the Registrable Securities then issued or issuable upon
      conversion of the Series B Notes (without giving effect to any limitations
      on
      conversion contained in Article IX of the Series B Notes) and exercise of the
      Series B Warrants (without giving effect to any limitations on exercise
      contained in Section 3(c) of the Series B Warrants), the Company shall provide
      each Investor written notice of such Registration Trigger Date within three
      (3)
      business days thereafter and shall amend the Registration Statement, or file
      a
      new Registration Statement (on the short form available therefor, if
      applicable), or both, so as to cover the Registrable Securities issued or
      issuable upon conversion of the Series B Notes (without giving effect to any
      limitations on conversion contained in Article IX of the Series B 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Notes)
      or
      exercise of the Series B Warrants (without giving effect to any limitations
      on
      exercise contained in Section 3(c) of the Series B Warrants) as of the
      Registration Trigger Date, in each case, as soon as practicable, but in any
      event within fifteen (15) days after the Registration Trigger Date, or if later,
      within three (3) trading days after receipt of all information from the holders
      of Registrable Securities required to be included in such Registration
      Statement. The Company shall cause such amendment(s) and/or new Registration
      Statement(s) to become effective as soon as practicable following the filing
      thereof. Subject to Section 2(d) hereof, in the event the Company fails to
      obtain the effectiveness of any such Registration Statement within sixty (60)
      days after a Registration Trigger Date, each Investor shall thereafter have
      the
      option, exercisable in whole or in part at any time and from time to time by
      delivery
      of a written notice to the Company (a “Mandatory
      Repayment Notice”),
      to
      require the Company to repay in cash such portion of the principal balance,
      plus
      accrued interest, of such Investor’s Series B Notes at a fifteen (15%) premium
      over the portion of the principal balance, plus accrued interest, being so
      repaid such that, following such repayment, the total number of Registrable
      Securities included on the Registration Statement for resale by such Investor
      is
      at least equal to the Registrable Securities issued or issuable upon conversion
      of such Investor’s Series B Notes (without giving effect to any limitations on
      conversion contained in the Series B Notes) and exercise of such Investor’s
      Series B Warrants (without giving effect to any limitation on exercise contained
      in the Series B Warrants). If the Company fails to repay any of such Series
      B
      Notes within five (5) business days after its receipt of a Mandatory Repayment
      Notice, then such Investor shall be entitled to the remedies provided for an
      Event of Default in Article VI of the Series B Notes.

     

    (c)  The
      Company shall furnish (i) to each Required Holder whose Registrable Securities
      are included in a Registration Statement and such Required Holder’s legal
      counsel, if identified to the Company as such, promptly after the same is
      prepared and publicly distributed, filed with the SEC or received by the
      Company, as applicable, one copy of the Registration Statement and any amendment
      thereto, each preliminary prospectus and prospectus and each amendment or
      supplement thereto, and, in the case of the Registration Statement required
      to
      be filed pursuant to Section 2(a), each letter written by or on behalf of the
      Company to the SEC or the staff of the SEC (including, without limitation,
      any
      request to accelerate the effectiveness of the Registration Statement or
      amendment thereto), and each item of correspondence from the SEC or the staff
      of
      the SEC, in each case relating to the Registration Statement (other than any
      portion thereof that contains information for which the Company has sought
      confidential treatment); (ii) to each Investor whose Registrable Securities
      are
      included in a Registration Statement promptly after the date of effectiveness
      of
      the Registration Statement or any amendment thereto, a notice stating that
      the
      Registration Statement or amendment has been declared effective; and (iii)
      to
      each Investor whose Registrable Securities are included in a Registration
      Statement such number of copies of a prospectus, including a preliminary
      prospectus, all amendments and supplements thereto and all such other documents
      as such Investor may reasonably request in order to facilitate the disposition
      of the Registrable Securities owned by such Investor.

     

    (d)  The
      Company shall use its best efforts to (i) register and qualify the Registrable
      Securities covered by any Registration Statement under such other securities
      or
“blue sky” laws of such jurisdictions in the United States as each Investor who
      holds Registrable Securities being offered reasonably requests; (ii) prepare
      and
      file in those jurisdictions such amendments

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     (including
      post-effective amendments) and supplements to such registrations and
      qualifications as may be necessary to maintain the effectiveness thereof during
      the Registration Period; (iii) take such other actions as may be necessary
      to
      maintain such registrations and qualifications in effect at all times during
      the
      Registration Period; and (iv) take all other actions reasonably necessary or
      advisable to qualify the Registrable Securities for sale in such jurisdictions;
      provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (A) qualify to do business in any jurisdiction where it would not
      otherwise be required to qualify but for this Section 3(d); (B) subject itself
      to general taxation in any such jurisdiction; (C) file a general consent to
      service of process in any such jurisdiction; (D) provide any undertakings that
      cause the Company undue expense or burden; or (E) make any change in its
      Certificate of Incorporation or Bylaws, which in each case the Board of
      Directors of the Company determines to be contrary to the best interests of
      the
      Company and its stockholders.

     

    (e)  As
      promptly as practicable after becoming aware of such event, the Company shall
      (i) notify each Investor by telephone and facsimile of the happening of any
      event, as a result of which the prospectus included in any Registration
      Statement that includes Registrable Securities held by such Investor, as then
      in
      effect, includes an untrue statement of a material fact or omits to state a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and (ii) promptly prepare a supplement or amendment
      to
      such Registration Statement to correct such untrue statement or omission, and
      deliver such number of copies of such supplement or amendment to each Investor
      as such Investor may reasonably request.

     

    (f)  The
      Company shall use its best efforts (i) to prevent the issuance of any stop
      order
      or other suspension of effectiveness of any Registration Statement that includes
      Registrable Securities, and, if such an order is issued, to obtain the
      withdrawal of such order at the earliest practicable moment (including in each
      case by amending or supplementing such Registration Statement), and (ii) to
      notify each Investor who holds Registrable Securities being sold of the issuance
      of such order and the resolution thereof (and if such Registration Statement
      is
      supplemented or amended, deliver such number of copies of such supplement or
      amendment to each Investor as such Investor may reasonably
      request). 

     

    (g)  The
      Company shall permit a single firm of counsel designated by the Initial
      Investors to review any Registration Statement required to be filed hereunder
      and all amendments and supplements thereto a reasonable period of time prior
      to
      its filing with the SEC, and not file any document in a form to which such
      counsel reasonably objects.

     

    (h)  The
      Company shall make generally available to its security holders as soon as
      practicable, but in no event later than ninety (90) days after the close of
      the
      period covered thereby, an earnings statement (in form complying with the
      provisions of Rule 158 under the Securities Act) covering a twelve-month period
      beginning not later than the first day of the Company’s fiscal quarter next
      following the effective date of the Registration Statement. The Company will
      be
      deemed to have complied with its obligations under this Section 3(h) upon the
      Company’s filing, on an appropriate form, the appropriate report of the Company
      as required by the Securities Exchange Act of 1934, as amended, and the rules
      and regulations thereunder, or any similar successor statute (collectively,
      the
“Exchange
      Act”).

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (i)  The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure of such
      information is necessary to comply with federal or state securities laws and
      stock market rules, including formal or informal investigations or requests
      from
      regulators; (ii) the disclosure of such information is necessary to avoid or
      correct a misstatement or omission in any Registration Statement that includes
      such Investor’s Registrable Securities; (iii) the release of such information is
      ordered pursuant to a subpoena or other order from a court or governmental
      body
      of competent jurisdiction; (iv) such information has been made generally
      available to the public other than by disclosure in violation of this or any
      other agreement; or (v) such Investor consents to the form and content of any
      such disclosure. The Company shall, upon learning that disclosure of any
      information concerning an Investor is sought in or by a court or governmental
      body of competent jurisdiction (other than the SEC, AMEX or other
      self-regulatory body) or through other means, give prompt notice to such
      Investor prior to making such disclosure, and cooperate with the Investor,
      at
      the Investor’s expense, in taking appropriate action to prevent disclosure of,
      or to obtain a protective order for, such information.

     

    (j)  The
      Company shall use its best efforts to promptly cause all of the Registrable
      Securities covered by any Registration Statement to be listed or designated
      for
      quotation on the Capital Market, the Global Market, the Global Select Market,
      the NYSE, AMEX or any other national securities exchange or automated quotation
      system and on each additional national securities exchange or automated
      quotation system on which securities of the same class or series issued by
      the
      Company are then listed or quoted, if any, if the listing or quotation of such
      Registrable Securities is then permitted under the rules of such exchange or
      automated quotation system.

     

    (k)  The
      Company shall provide a transfer agent and registrar, which may be a single
      entity, for the Registrable Securities not later than the effective date of
      the
      Registration Statement required to be filed pursuant to Section 2(a)
      hereof.

     

    (l)  The
      Company shall cooperate with any Investor who holds Registrable Securities
      being
      offered to facilitate the timely preparation and delivery of certificates (not
      bearing any restrictive legends) representing Registrable Securities to be
      offered pursuant to any Registration Statement and enable such certificates
      to
      be in such denominations or amounts, as the case may be, and registered in
      such
      names, as such Investor may reasonably request. Without limiting the generality
      of the foregoing, within three (3) business days after any Registration
      Statement that includes Registrable Securities is declared effective by the
      SEC,
      the Company shall cause any shares sold pursuant to such Registration Statement
      to be covered by a legal opinion to the transfer agent for the Registrable
      Securities to the effect that when sold pursuant to, and in accordance with
      the
      plan of distribution set forth on Exhibit
      A
      hereto
      (the “Plan
      of Distribution”),
      any
      certificate representing such shares may be issued by the transfer agent to
      the
      purchaser without a federal securities law restrictive legend.

     

    (m)  At
      the
      request of any Investor, the Company shall prepare and file with the SEC such
      amendments (including post-effective amendments) and supplements to any
      Registration Statement required to be filed hereunder and the prospectus used
      in
      connection with such Registration Statement as may be necessary in order to
      change the Plan of Distribution set forth in such Registration
      Statement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (n)  The
      Company shall comply with all applicable laws related to a Registration
      Statement and offering and sale of securities and all applicable rules and
      regulations of governmental authorities in connection therewith (including,
      without limitation, the Securities Act and the Exchange Act and the rules and
      regulations thereunder promulgated by the SEC.)

     

    (o)  From
      and
      after the date of this Agreement, the Company shall not, and shall not agree
      to,
      allow the holders of any securities of the Company to include any of their
      securities that are not Registrable Securities in the Registration Statement
      required to be filed pursuant to Section 2(a) or 3(b) hereof without the consent
      of the holders of a majority in interest of the Registrable Securities;
provided,
      however,
      that
      the Company may include in any such Registration Statement shares issued as
      a
      result of a dilutive issuance that affects both the Series A Notes and the
      Series B Notes. 

     

    (p)  The
      Company shall make available for inspection by (i) each Investor and (ii) one
      firm of attorneys and one firm of accountants or other agents retained by the
      Investors (collectively, the “Inspectors”)
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company (collectively, the “Records”),
      as
      shall be reasonably deemed necessary by each Inspector to enable such Inspector
      to exercise its due diligence responsibility, and cause the Company’s officers,
      directors and employees to supply all information that any Inspector may
      reasonably request for purposes of such due diligence; provided,
      however,
      that
      each Inspector shall hold in confidence and shall not make any disclosure
      (except to an Investor) of any Record or other information that the Company
      determines in good faith to be confidential, and of which determination the
      Inspectors are so notified, unless (A) the disclosure of such Records is
      necessary to avoid or correct a misstatement or omission in any Registration
      Statement; (B) the release of such Records is ordered pursuant to a subpoena
      or
      other order from a court or government body of competent jurisdiction; or (C)
      the information in such Records has been made generally available to the public
      other than by disclosure in violation of this or any other agreement. Nothing
      herein shall be deemed to limit any Investor’s ability to sell Registrable
      Securities in a manner that is otherwise consistent with applicable laws and
      regulations.

     

    4.  OBLIGATIONS
      OF THE INVESTORS.

     

    In
      connection with the registration of the Registrable Securities, each Investor
      shall have the following obligations:

     

    (a)  It
      shall
      be a condition precedent to the obligations of the Company to effect the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of a particular Investor that such Investor shall furnish to the
      Company such information regarding itself, the Registrable Securities held
      by it
      and the intended method of disposition of the Registrable Securities held by
      it
      as shall be reasonably required to effect the registration of such Registrable
      Securities and shall execute such documents in connection with such registration
      as the Company may reasonably request. At least seven (7) trading days prior
      to
      the first anticipated filing date of the Registration Statement, the Company
      shall notify each Investor of the information the Company requires from each
      such Investor. The Company hereby agrees to use the Plan of Distribution as
      the plan of distribution to be used in the Registration Statement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  Each
      Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement required to be
      filed hereunder, unless such Investor has notified the Company in writing of
      such Investor’s election to exclude all of such Investor’s Registrable
      Securities from such Registration Statement.

     

    (c)  Upon
      receipt of any notice from the Company of the happening of any event of the
      kind
      described in Section 3(e) or 3(f) with respect to any Registration Statement
      including Registrable Securities, each Investor shall immediately discontinue
      disposition of Registrable Securities pursuant to such Registration Statement
      until such Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Sections 3(e) or 3(f), as applicable, and, if so
      directed by the Company, such Investor shall deliver to the Company (at the
      expense of the Company) or destroy (and deliver to the Company a certificate
      of
      destruction) all copies in such Investor’s possession of the prospectus covering
      such Registrable Securities current at the time of receipt of such notice.
      Notwithstanding the foregoing or anything to the contrary in this Agreement,
      but
      subject to compliance with applicable laws, the Company shall cause the transfer
      agent for the Registrable Securities to deliver unlegended shares of Common
      Stock to a transferee of an Investor in accordance with the terms of the Series
      B Notes and Series B Warrants, the Securities Purchase Agreement and this
      Agreement in connection with any sale of Registrable Securities with respect
      to
      which any such Investor has entered into a contract for sale prior to receipt
      of
      such notice and for which any such Investor has not yet settled. 

     

    5.  EXPENSES
      OF REGISTRATION.

     

    All
      expenses incurred by the Company or the Investors in connection with
      registrations, filings or qualifications pursuant to Sections 2 and 3 above
      (including, without limitation, all registration, listing and qualification
      fees, printers and accounting fees, the fees and disbursements of counsel for
      the Company and the fees and disbursements of one counsel selected by the
      Investors (which counsel shall be Drinker Biddle & Reath LLP)) shall be
      borne by the Company; provided,
      however,
      that
      all such expenses shall be limited to $5,000. In addition, the Company shall
      pay
      each Investor’s costs and expenses (including legal fees) incurred in connection
      with the enforcement of the rights of such Investor hereunder.

     

    6.  INDEMNIFICATION.

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    (a)  To
      the
      extent permitted by law, the Company shall indemnify, hold harmless and defend
      (i) each Investor who holds such Registrable Securities, and (ii) the
      directors, officers, partners, members, employees and agents (including, without
      limitation, legal counsel) of each such Investor and each person, if any, who
      controls each such Investor within the meaning of Section 15 of the Securities
      Act or Section 20 of the Exchange Act (each, an “Investor
      Indemnified Person”),
      against any joint or several losses, claims, damages, liabilities or expenses
      (collectively, together with actions, proceedings or inquiries by any regulatory
      or self-regulatory organization, whether commenced or threatened, in respect
      thereof, “Claims”)
      to
      which any of them may become subject insofar as such Claims arise out of or
      are
      based upon: 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (A)
      any
      untrue statement or alleged untrue statement of a material fact in a
      Registration Statement or the omission or alleged omission to state therein
      a
      material fact required to be stated or necessary to make the statements therein
      not misleading; (B) any untrue statement or alleged untrue statement of a
      material fact contained in any preliminary prospectus if used prior to the
      effective date of such Registration Statement, or contained in the final
      prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (C) any violation or alleged violation by the Company
      of the Securities Act, the Exchange Act or any other law (including, without
      limitation, any state securities law), rule or regulation relating to the offer
      or sale of the Registrable Securities (the matters in the foregoing clauses
      (A)
      through (C), collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(c) with respect to the number
      of legal counsel, the Company shall reimburse each Investor and each other
      Investor Indemnified Person, promptly as such expenses are incurred and are
      due
      and payable, for any reasonable legal fees or other reasonable expenses incurred
      by them in connection with investigating or defending any such Claim.
      Notwithstanding anything to the contrary contained herein, the indemnification
      agreement contained in this Section 6(a): (x) shall not apply to a Claim arising
      out of or based upon a Violation that occurs in reliance upon and in conformity
      with information furnished in writing to the Company by such Investor
      Indemnified Person expressly for use in the Registration Statement or any such
      amendment thereof or supplement thereto; (y) shall not apply to amounts paid
      in
      settlement of any Claim if such settlement is effected without the prior written
      consent of the Company, which consent shall not be unreasonably withheld; and
      (z) with respect to any preliminary prospectus, shall not inure to the benefit
      of any Investor Indemnified Person if the untrue statement or omission of
      material fact contained in the preliminary prospectus was corrected on a timely
      basis in the prospectus, as then amended or supplemented, if such corrected
      prospectus was timely made available by the Company pursuant to Section 3(c)
      hereof, and the Investor Indemnified Person was promptly advised in writing
      not
      to use the incorrect prospectus prior to the use giving rise to a Violation
      and
      such Investor Indemnified Person, notwithstanding such advice, used it. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of the Investor Indemnified Person and shall survive the
      transfer of the Registrable Securities by the Investors pursuant to Section
      9
      hereof.

     

    (b)  In
      connection with any Registration Statement in which an Investor is
      participating, (i) each such Investor shall, severally and not jointly,
      indemnify, hold harmless and defend, to the same extent and in the same manner
      set forth in Section 6(a), the Company, each of its directors, each of its
      officers who signs the Registration Statement, its employees and each person,
      if
      any, who controls the Company within the meaning of Section 15 of the Securities
      Act or Section 20 of the Exchange Act, and any other stockholder selling
      securities pursuant to the Registration Statement or any of its directors or
      officers or any person who controls such stockholder within the meaning of
      the
      Securities Act or the Exchange Act (each, a “Company
      Indemnified Person”),
      against any Claims to which any of them may become subject insofar as such
      Claims arise out of or are based upon any 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 to the Company by such Investor
      expressly for use in connection with such Registration Statement; and (ii)
      subject to the restrictions set forth in Section 6(c), such Investor shall
      reimburse the Company Indemnified Persons, promptly as such expenses are

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    incurred
      and are due and payable, for any legal fees or other reasonable expenses
      incurred by them in connection with investigating or defending any such Claim;
      provided,
      however,
      that
      the indemnification obligations contained in this Section 6(b) shall not apply
      to amounts paid in settlement of any Claim if such settlement is effected
      without the prior written consent of such Investor, which consent shall not
      be
      unreasonably withheld; and provided,
      further,
      that
      the Investor shall be liable under this Agreement (including this Section 6(b)
      and Section 7) for only that amount as does not exceed the net proceeds actually
      received by such Investor as a result of the sale of Registrable Securities
      pursuant to such Registration Statement. Such indemnity shall remain in full
      force and effect regardless of any investigation made by or on behalf of such
      Company Indemnified Person and shall survive the transfer of the Registrable
      Securities by the Investor pursuant to Section 9 hereof. Notwithstanding
      anything to the contrary contained herein, the indemnification obligations
      contained in this Section 6(b) with respect to any preliminary prospectus shall
      not inure to the benefit of any Company Indemnified Person if the untrue
      statement or omission of material fact contained in the preliminary prospectus
      was corrected on a timely basis in the prospectus, as then amended or
      supplemented.

     

    (c)  Promptly
      after receipt by any party entitled to indemnification under this Section 6
      of
      notice of the commencement of any action (including any governmental action),
      such indemnified party shall, if a Claim in respect thereof is made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the indemnified party; provided,
      however,
      that
      such indemnifying party shall not be entitled to assume such defense and an
      indemnified party shall have the right to retain its own counsel with the fees
      and expenses to be paid by the indemnifying party, if, in the reasonable opinion
      of counsel retained by the indemnifying party, the representation by such
      counsel of the indemnified party and the indemnifying party would be
      inappropriate due to actual or potential conflicts of interest between such
      indemnified party and any other party represented by such counsel in such
      proceeding or the actual or potential defendants in, or targets of, any such
      action include both the indemnified party and the indemnifying party and any
      such indemnified party reasonably determines that there may be legal defenses
      available to such indemnified party that are in conflict with those available
      to
      such indemnifying party. The indemnifying party shall pay for only one separate
      legal counsel for the indemnified parties, and such legal counsel shall be
      selected by Investors holding a majority in interest of the Registrable
      Securities included in the Registration Statement to which the Claim relates
      (if
      the parties entitled to indemnification hereunder are Investor Indemnified
      Persons) or by the Company (if the parties entitled to indemnification hereunder
      are Company Indemnified Persons). The failure to deliver written notice to
      the
      indemnifying party within a reasonable time of the commencement of any such
      action shall not relieve such indemnifying party of any liability to the
      indemnified party under this Section 6, except to the extent that the
      indemnifying party is actually prejudiced in its ability to defend such action.
      The indemnification required by this Section 6 shall be made by periodic
      payments of the amount thereof during the course of the investigation or
      defense, as such expense, loss, damage or liability is incurred and is due
      and
      payable.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    7.  CONTRIBUTION.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party shall make the maximum contribution with respect
      to
      any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law as is appropriate to reflect the relative fault
      of the indemnifying party, on the one hand, and the indemnified party, on the
      other hand, with respect to the Violation giving rise to the applicable Claim;
      provided,
      however,
      that
      (a) no contribution shall be made under circumstances where the maker would
      not
      have been liable for indemnification under the fault standards set forth in
      Section 6; (b) no person guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any seller of Registrable Securities who was not guilty of
      such fraudulent misrepresentation; and (c) contribution (together with any
      indemnification or other obligations under this Agreement) by any seller of
      Registrable Securities shall be limited in amount to the net amount of proceeds
      received by such seller from the sale of such Registrable
      Securities.

     

    8.  REPORTS
      UNDER THE EXCHANGE ACT.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the Securities Act or any other similar rule or regulation of the SEC
      that
      may at any time permit the Investors to sell securities of the Company to the
      public without registration (“Rule
      144”),
      the
      Company agrees to:

     

    (a)  file
      with
      the SEC in a timely manner and make and keep available all reports and other
      documents required of the Company under the Securities Act and the Exchange
      Act
      so long as the Company remains subject to such requirements and the filing
      and
      availability of such reports and other documents is required for the applicable
      provisions of Rule 144; and

     

    (b)  furnish
      to each Investor so long as such Investor holds Series B Notes, Series B
      Warrants or Registrable Securities, promptly upon request, (i) a written
      statement by the Company that it has complied with the reporting requirements
      of
      Rule 144, the Securities Act and the Exchange Act; (ii) a copy of the most
      recent annual or quarterly report of the Company and such other reports and
      documents so filed by the Company; and (iii) such other information as may
      be
      reasonably requested to permit such Investor to sell such securities under
      Rule
      144 without registration.

     

    9.  ASSIGNMENT
      OF REGISTRATION RIGHTS.

     

    The
      rights of the Investors hereunder, including the right to have the Company
      register Registrable Securities pursuant to this Agreement, shall be
      automatically assignable by each Investor to any transferee of all or any
      portion of the Series B Notes, the Series B Warrants or the Registrable
      Securities if: (a) the Investor agrees in writing with the transferee or
      assignee to assign such rights, and a copy of such agreement is furnished to
      the
      Company after such assignment; (b) the Company is furnished with written notice
      of (i) the name and address of such transferee or assignee, and (ii) the
      securities with respect to which such registration rights are being transferred
      or assigned; (c) following such transfer or assignment, the further disposition
      of such securities by the transferee or assignee is restricted under the
      Securities Act and applicable 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    state
      securities laws; (d) the transferee or assignee agrees in writing for the
      benefit of the Company to be bound by all of the provisions contained herein;
      and (e) such transfer shall have been made in accordance with the applicable
      requirements of the Securities Purchase Agreement, the Series B Notes and the
      Series B Warrants, as applicable. In addition, and notwithstanding anything
      to
      the contrary contained in this Agreement, the Securities Purchase Agreement,
      the
      Series B Notes or the Series B Warrants, the Securities (as defined in the
      Securities Purchase Agreement) may be pledged, and all rights of the Investor
      under this Agreement or any other agreement or document related to the
      transactions contemplated hereby may be assigned, without further consent of
      the
      Company, to a bona fide pledgee in connection with an Investor’s margin or
      brokerage account.

     

    10.  AMENDMENT
      OF REGISTRATION RIGHTS.

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with written consent of the Company and the Investor(s)
      who
      hold a majority in interest of the Registrable Securities or, in the case of
      a
      waiver, with the written consent of the party charged with the enforcement
      of
      any such provision; provided,
      however,
      that
      (a) no consideration shall be paid to an Investor by the Company in connection
      with an amendment hereto unless each Investor similarly affected by such
      amendment receives a pro rata amount of consideration from the Company; and
      (b)
      unless an Investor otherwise agrees, each amendment hereto must similarly affect
      each Investor. Any amendment or waiver effected in accordance with this Section
      10 shall be binding upon each Investor and the Company.

     

    11.  MISCELLANEOUS.

     

    (a)  A
      person
      or entity is deemed to be a holder of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two or more persons
      or entities with respect to the same Registrable Securities, the Company shall
      act upon the basis of instructions, notice or election received from the
      registered owner of such Registrable Securities.

     

    (b)  Any
      notices required or permitted to be given under the terms of this Agreement
      shall be in writing and sent by certified or registered mail (return receipt
      requested) or delivered personally, by nationally recognized overnight carrier
      or by confirmed facsimile transmission, and shall be effective five (5) days
      after being placed in the mail, if mailed, or upon receipt or refusal of
      receipt, if delivered personally or by nationally recognized overnight carrier
      or confirmed facsimile transmission, in each case addressed to a party as
      provided herein. The initial addresses for such communications shall be as
      follows, and each party shall provide notice to the other parties of any change
      in such party’s address:

     

    (i)  If
      to the
      Company:

     

    Matritech,
      Inc.

    330
      Nevada Street

    Newton,
      Massachusetts 02460

    Telephone:
      (617) 928-0820

    Facsimile:
      (617) 928-0821

    Attention:
      Chief Executive Officer

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    with
      a
      copy simultaneously transmitted by like means (which transmittal shall not
      constitute notice hereunder) to:

     

    Choate,
      Hall & Stewart LLP

    Two
      International Place

    Boston,
      Massachusetts 02110

    Telephone:
      (617) 248-5000

    Facsimile:
      (617) 248-4000

    Attention:
      Barbara M. Johnson

    

    (ii)  If
      to any
      Investor, to such address as such Investor shall have provided in writing to
      the
      Company.

     

    (c)  Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    (d)  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware applicable to contracts made and to be performed in the State
      of Delaware. The Company and each Investor irrevocably consent to the exclusive
      jurisdiction of the United States federal courts and the state courts located
      in
      the County of New Castle, State of Delaware, in any suit or proceeding based
      on
      or arising under this Agreement or the transactions contemplated hereby and
      irrevocably agree that all claims between the parties in respect of such suit
      or
      proceeding may be determined in such courts. The Company and each Investor
      irrevocably waive the defense of an inconvenient forum to the maintenance of
      such suit or proceeding in such forum. The Company and each Investor further
      agree that service of process upon the Company or any Investor mailed by first
      class mail shall be deemed in every respect effective service of process upon
      the Company or such Investor, as the case may be, in any such suit or
      proceeding. Nothing herein shall affect the right of the Company or any Investor
      to serve process in any other manner permitted by law. The Company and each
      Investor agree that a final non-appealable judgment in any such suit or
      proceeding shall be conclusive and may be enforced in other jurisdictions by
      suit on such judgment or in any other lawful manner.

     

    (e)  This
      Agreement and the other Transaction Documents (including any schedules and
      exhibits hereto and thereto) constitute the entire agreement among the parties
      hereto with respect to the subject matter hereof and thereof. There are no
      restrictions, promises, warranties or undertakings, other than those set forth
      or referred to herein and therein. This Agreement and the other Transaction
      Documents supersede all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof and thereof.

     

    (f)  Subject
      to the requirements of Section 9 hereof, this Agreement shall inure to the
      benefit of and be binding upon the successors and assigns of each of the parties
      hereto.

     

    (g)  The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (h)  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

     

    (i)  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.

     

    (j)  Unless
      other expressly provided herein, all consents, approvals and other
      determinations to be made by the Investors pursuant to this Agreement shall
      be
      made by the Investors holding a majority in interest of the Registrable
      Securities (determined as if all Series B Notes and Series B Warrants then
      outstanding had been converted into or exercised for Registrable Securities)
      held by all Investors.

     

    (k)  The
      initial number of Registrable Securities included on any Registration Statement
      filed pursuant to Section 2(a) or 3(b), and each increase to the number of
      Registrable Securities included thereon, shall be allocated pro rata among
      the
      Investors based on the number of Registrable Securities held by each Investor
      at
      the time of such establishment or increase, as the case may be. In the event
      an
      Investor shall sell or otherwise transfer any of such holder’s Registrable
      Securities, each transferee shall be allocated a pro rata portion of the number
      of Registrable Securities included on a Registration Statement for such
      transferor. Any shares of Common Stock included on a Registration Statement
      and
      that remain allocated to any person or entity that does not hold any Registrable
      Securities shall be allocated to the remaining Investors, pro rata based on
      the
      number of shares of Registrable Securities then held by such Investors. For
      the
      avoidance of doubt, the number of Registrable Securities held by any Investor
      shall be determined as if all Series B Notes and Series B Warrants then
      outstanding were converted into or exercised for Registrable
      Securities.

     

    (l)  Each
      party to this Agreement has participated in the negotiation and drafting of
      this
      Agreement. As such, the language used herein shall be deemed to be the language
      chosen by the parties hereto to express their mutual intent, and no rule of
      strict construction will be applied against any party to this
      Agreement.

     

    (m)  For
      purposes of this Agreement, the term “business day” means any day other than a
      Saturday or Sunday or a day on which banking institutions in the State of New
      York are authorized or obligated by law, regulation or executive order to close,
      and the term “trading day” means any day on which the AMEX or, if the Common
      Stock is not then traded on the AMEX, the principal national securities
      exchange, automated quotation system or other trading market where the Common
      Stock is then listed, quoted or traded, is open for trading. 

     

    

    [REMAINDER
      OF PAGE LEFT BLANK INTENTIONALLY]

     

    
 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned Initial Investor and the Company have caused
      this Agreement to be duly executed as of the date first above
      written.

    

    MATRITECH,
      INC.

    

    

    By:
      __________________________      

    Name: Stephen
      D. Chubb

    Title: Chief
      Executive Officer

    

    

    INITIAL
      INVESTOR:

    

    ____________________

    (Print
      or
      Type Name of Investor)

    

    

    By:
      __________________________       

    Name: 

    Title:

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    

    

    PLAN
      OF DISTRIBUTION

    

    So
      long
      as the Registrable Shares have been registered for sale on Form S-3, the Selling
      Stockholders and any of their pledgees, assignees, transferees, donees and
      successors-in-interest may, from time to time, sell any or all of their Shares
      on any stock exchange, market or trading facility on which the Common Stock
      is
      traded or in private transactions. These sales may be at fixed or negotiated
      prices. Each Selling Stockholder will act independently in making decisions
      with
      respect to the timing, manner and size of each sale of the Shares covered in
      this Prospectus. The Selling Stockholders may use any one or more of the
      following methods when selling Shares:

    

    - ordinary
      brokerage transactions and transactions in which the broker-dealer solicits
      purchasers, which may include long sales and short sales effected after the
      effective date of the Registration Statement;

    

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

    

    - purchases
      by a broker-dealer as principal and resale by the broker-dealer for its account
      pursuant to this Prospectus;

    

    - “at
      the
      market” to or through market makers or into an existing market for the
      Shares;

    

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

    

    - in
      other
      ways not involving market makers or established trading markets, including
      direct sales to purchasers, sales effected through agents or other privately
      negotiated transactions;

    

    - settlement
      of short sales;

    

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

    

    - through
      transactions in options, swaps or other derivative securities (whether
      exchange-listed or otherwise);

    

    - a
      combination of any the foregoing methods of sale; and

    

    - any
      other
      method permitted by applicable law.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other broker-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be
      negotiated.

    

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the Shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act.

    

    We
      are
      required to pay all fees and expenses incident to the registration of the
      Shares, including certain fees and disbursements of counsel to the Selling
      Stockholders. We have agreed to indemnify the Selling Stockholders against
      certain losses, claims, damages and liabilities, including liabilities under
      the
      Securities Act.

    

     

    
      
        2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]