Document:

Exhibit 4.3

                            Dated: September 7, 2005

NEITHER THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS
CONVERTIBLE 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.

No. LVF-1                                                                $______

                      IN VERITAS MEDICAL DIAGNOSTICS, INC.

                          Secured Convertible Debenture

                              Due September 7, 2006

     This Secured Convertible Debenture (the "Debenture") is issued by IN
VERITAS MEDICAL DIAGNOSTICS, INC., a Colorado corporation (the "Obligor"), to
__________ (the "Holder"), pursuant to that certain Securities Purchase
Agreement (the "Securities Purchase Agreement") of even date herewith.

     FOR VALUE RECEIVED, the Obligor hereby promises to pay to the Holder or its
successors and assigns the principal sum of Two Hundred Thousand Dollars
($200,000), together with accrued but unpaid interest on or before the one year
anniversary of the date hereof (the "Maturity Date") in accordance with the
following terms:

     Payments. Interest on the outstanding principal balance hereof shall be due
and payable monthly, in arrears, commencing on the one month anniversary of the
date hereof and shall continue on the same day of each subsequent calendar month
thereafter that any amounts under this Debenture are due and payable until the
first Principal Payment Date (each, an "Interest Payment Date"). Principal shall
be due and payable in monthly installments of not less than $35,000 each, a
redemption premium equal to 12% ("Redemption Premium") of each such principal
installment, and plus accrued and unpaid interest, or the highest rate permitted
by applicable law, if lower. The installments of principal shall be due and
payable commencing on the date six (6) months from the date hereof and
subsequent installments shall be due and payable on the same day of each
subsequent calendar month thereafter ("Principal Payment Date") until the
outstanding principal balance is paid in full or the Maturity Date. All payments
in respect of the indebtedness evidenced hereby shall be made in collected
funds, and shall be applied to principal, accrued interest and charges and
expenses owing under or in connection with this Debenture in such order as the
Holder elects, except that payments shall be applied to accrued interest before
principal. Notwithstanding the foregoing, this Debenture shall become due and
immediately payable, including all accrued but unpaid interest pursuant to an
Event of Default (as defined in Section 2 hereof).

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     Interest. Interest shall accrue on the outstanding principal balance hereof
at an annual rate equal to 18%. Interest shall be calculated on the basis of a
360-day year and the actual number of days elapsed, to the extent permitted by
applicable law. Interest hereunder will be paid to the Holder or its assignee
(as defined in Section 4) in whose name this Debenture is registered on the
records of the Obligor regarding registration and transfers of Debentures (the
"Debenture Register").

     Right of Redemption. The Company at its option shall have the right, with
three (3) business days advance written notice ("Redemption Notice"), to redeem
a portion or all amounts outstanding under this Debenture prior to the Maturity
Date or any Principal Payment date. The Redemption Premium shall apply to any
such early redemptions whether on, before, or after any Principal Payment Date
or the Maturity Date. The Holder shall retain all its rights to convert this
Debenture pursuant to Section 3 hereof after receipt of a Redemption Notice.

     Security Agreement. This Debenture is secured by a Security Agreement (the
"Security Agreement") of even date herewith between the Obligor and the Holder.

     Consent of Holder to Sell Capital Stock or Grant Security Interests. Except
as set forth in Schedule 4(k) of the Securities Purchase Agreement and except
for the capital stock to be issued pursuant to the Standby Equity Distribution
Agreement of even date herewith between the Obligator and Cornell Capital
Partners, LP, so long as any of the principal amount or interest on this
Debenture remains unpaid and unconverted, the Obligor shall not, without the
prior consent of the Holder, (i) issue or sell any common stock or preferred
stock without consideration or for a consideration per share less than the bid
price of common stock determined immediately prior to its issuance, (ii) issue
or sell any preferred stock, warrant, option, right, contract, call, or other
security or instrument granting the holder thereof the right to acquire common
stock without consideration or for a consideration per share less than the bid
price of common stock determined immediately prior to its issuance, (iii) enter
into any security instrument granting the holder a security interest in any of
the assets of the Obligor, or (iv) file any registration statements on Form S-8.

     This Debenture is subject to the following additional provisions:

Section 1.

     This Debenture is exchangeable for an equal aggregate principal amount of
Debentures of different authorized denominations, as requested by the Holder
surrendering the same. No service charge will be made for such registration of
transfer or exchange.

Section 2. Events of Default.

          (a) An "Event of Default", wherever used herein, means any one of the
     following events (whatever the reason and whether it shall be voluntary or
     involuntary or effected by operation of law or pursuant to any judgment,
     decree or order of any court, or any order, rule or regulation of any
     administrative or governmental body):

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               (i) Any default in the payment of the principal of, interest on
          or other charges in respect of this Debenture, free of any claim of
          subordination, as and when the same shall become due and payable
          (whether on an installment, a Principal Payment Date, an Interest
          Payment Date, a Conversion Date or the Maturity Date or by
          acceleration or otherwise);

               (ii) The Obligor shall fail to observe or perform any other
          covenant, agreement or warranty contained in, or otherwise commit any
          breach or default of any provision of this Debenture (except as may be
          covered by Section 2(a)(i) hereof) or any Transaction Document (as
          defined in Section 4) which is not cured with in the time prescribed;

               (iii) The Obligor or any subsidiary of the Obligor shall
          commence, or there shall be commenced against the Obligor or any
          subsidiary of the Obligor under any applicable bankruptcy or
          insolvency laws as now or hereafter in effect or any successor
          thereto, or the Obligor or any subsidiary of the Obligor commences any
          other proceeding under any reorganization, arrangement, adjustment of
          debt, relief of debtors, dissolution, insolvency or liquidation or
          similar law of any jurisdiction whether now or hereafter in effect
          relating to the Obligor or any subsidiary of the Obligor or there is
          commenced against the Obligor or any subsidiary of the Obligor any
          such bankruptcy, insolvency or other proceeding which remains
          undismissed for a period of 61 days; or the Obligor or any subsidiary
          of the Obligor is adjudicated insolvent or bankrupt; or any order of
          relief or other order approving any such case or proceeding is
          entered; or the Obligor or any subsidiary of the Obligor suffers any
          appointment of any custodian, private or court appointed receiver or
          the like for it or any substantial part of its property which
          continues undischarged or unstayed for a period of sixty one (61)
          days; or the Obligor or any subsidiary of the Obligor makes a general
          assignment for the benefit of creditors; or the Obligor or any
          subsidiary of the Obligor shall fail to pay, or shall state that it is
          unable to pay, or shall be unable to pay, its debts generally as they
          become due; or the Obligor or any subsidiary of the Obligor shall call
          a meeting of its creditors with a view to arranging a composition,
          adjustment or restructuring of its debts; or the Obligor or any
          subsidiary of the Obligor shall by any act or failure to act expressly
          indicate its consent to, approval of or acquiescence in any of the
          foregoing; or any corporate or other action is taken by the Obligor or
          any subsidiary of the Obligor for the purpose of effecting any of the
          foregoing;

               (iv) The Obligor or any subsidiary of the Obligor shall default
          in any of its obligations under any other debenture or any mortgage,
          credit agreement or other facility, indenture agreement, factoring
          agreement or other instrument under which there may be issued, or by
          which there may be secured or evidenced any indebtedness for borrowed
          money or money due under any long term leasing or factoring
          arrangement of the Obligor or any subsidiary of the Obligor in an
          amount exceeding $100,000, whether such indebtedness now exists or
          shall hereafter be created and such default shall result in such
          indebtedness becoming or being declared due and payable prior to the
          date on which it would otherwise become due and payable;

               (v) The Common Stock shall cease to be quoted for trading or
          listed for trading on either the Nasdaq OTC Bulletin Board ("OTC"),
          Nasdaq SmallCap Market, New York Stock Exchange, American Stock
          Exchange or the Nasdaq National Market (each, a "Subsequent Market")
          and shall not again be quoted or listed for trading thereon within
          five (5) Trading Days of such delisting;

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               (vi) The Obligor or any subsidiary of the Obligor shall be a
          party to any Change of Control Transaction (as defined in Section 4);

               (vii) The Obligor shall fail to file the Underlying Shares
          Registration Statement (as defined in Section 4) with the Commission
          (as defined in Section 4), or the Underlying Shares Registration
          Statement shall not have been declared effective by the Commission, in
          each case within the time periods set forth in the Registration Rights
          Agreement of even date herewith between the Obligor and the Holder;

               (viii) If the effectiveness of the Underlying Shares Registration
          Statement lapses for any reason or the Holder shall not be permitted
          to resell the shares of Common Stock underlying this Debenture under
          the Underlying Shares Registration Statement, in either case, for more
          than five (5) consecutive Trading Days or an aggregate of eight
          Trading Days (which need not be consecutive Trading Days);

               (ix) The Obligor shall fail for any reason to deliver Common
          Stock certificates to a Holder prior to the fifth (5th) Trading Day
          after a Conversion Date or the Obligor shall provide notice to the
          Holder, including by way of public announcement, at any time, of its
          intention not to comply with requests for conversions of this
          Debenture in accordance with the terms hereof;

               (x) The Obligor shall fail for any reason to deliver the payment
          in cash pursuant to a Buy-In (as defined herein) within three (3) days
          after notice is claimed delivered hereunder;

          (b) During the time that any portion of this Debenture is outstanding,
     if any Event of Default has occurred, the full principal amount of this
     Debenture, together with interest and other amounts owing in respect
     thereof, to the date of acceleration shall become at the Holder's election,
     immediately due and payable in cash, provided however, the Holder may
     request (but shall have no obligation to request) payment of such amounts
     in Common Stock of the Obligor. In addition to any other remedies, the
     Holder shall have the right (but not the obligation) to convert this
     Debenture at any time after (x) an Event of Default or (y) the Maturity
     Date at the Conversion Price then in-effect. The Holder need not provide
     and the Obligor hereby waives any presentment, demand, protest or other
     notice of any kind, and the Holder may immediately and without expiration
     of any grace period enforce any and all of its rights and remedies
     hereunder and all other remedies available to it under applicable law. Such
     declaration may be rescinded and annulled by Holder at any time prior to
     payment hereunder. No such rescission or annulment shall affect any
     subsequent Event of Default or impair any right consequent thereon. Upon an
     Event of Default, notwithstanding any other provision of this Debenture or
     any Transaction Document, the Holder shall have no obligation to comply
     with or adhere to any limitations, if any, on the conversion of this
     Debenture or the sale of the Underlying Shares.

Section 3. Conversion.

     (a) (i) Conversion at Option of Holder.

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                    (A) This Debenture shall be convertible into shares of
               Common Stock at the option of the Holder, in whole or in part at
               any time and from time to time, after the Original Issue Date (as
               defined in Section 4) (subject to the limitations on conversion
               set forth in Section 3(a)(ii) hereof). The number of shares of
               Common Stock issuable upon a conversion hereunder equals the
               quotient obtained by dividing (x) the outstanding amount of this
               Debenture to be converted by (y) the Conversion Price (as defined
               in Section 3(c)(i)). The Obligor shall deliver Common Stock
               certificates to the Holder prior to the Fifth (5th) Trading Day
               after a Conversion Date.

                    (B) Notwithstanding anything to the contrary contained
               herein, if on any Conversion Date: (1) the number of shares of
               Common Stock at the time authorized, unissued and unreserved for
               all purposes, or held as treasury stock, is insufficient to pay
               principal and interest hereunder in shares of Common Stock; (2)
               the Common Stock is not listed or quoted for trading on the OTC
               or on a Subsequent Market; (3) the Obligor has failed to timely
               satisfy its conversion; or (4) the issuance of such shares of
               Common Stock would result in a violation of Section 3(a)(ii),
               then, at the option of the Holder, the Obligor, in lieu of
               delivering shares of Common Stock pursuant to Section 3(a)(i)(A),
               shall deliver, within three (3) Trading Days of each applicable
               Conversion Date, an amount in cash equal to the product of the
               outstanding principal amount to be converted plus any interest
               due therein divided by the Conversion Price and multiplied by the
               highest closing price of the stock from date of the conversion
               notice till the date that such cash payment is made.

                    Further, if the Obligor shall not have delivered any cash
               due in respect of conversion of this Debenture or as payment of
               interest thereon by the fifth (5th) Trading Day after the
               Conversion Date, the Holder may, by notice to the Obligor,
               require the Obligor to issue shares of Common Stock pursuant to
               Section 3(c), except that for such purpose the Conversion Price
               applicable thereto shall be the lesser of the Conversion Price on
               the Conversion Date and the Conversion Price on the date of such
               Holder demand. Any such shares will be subject to the provisions
               of this Section.

                    (C) The Holder shall effect conversions by delivering to the
               Obligor a completed notice in the form attached hereto as Exhibit
               A (a "Conversion Notice"). The date on which a Conversion Notice
               is delivered is the "Conversion Date." Unless the Holder is
               converting the entire principal amount outstanding under this
               Debenture, the Holder is not required to physically surrender
               this Debenture to the Obligor in order to effect conversions.
               Conversions hereunder shall have the effect of lowering the
               outstanding principal amount of this Debenture plus all accrued
               and unpaid interest thereon in an amount equal to the applicable
               conversion. The Holder and the Obligor shall maintain records
               showing the principal amount converted and the date of such
               conversions. In the event of any dispute or discrepancy, the
               records of the Holder shall be controlling and determinative in
               the absence of manifest error.

          (ii) Certain Conversion Restrictions.

                    (A) A Holder may not convert this Debenture or receive
               shares of Common Stock as payment of interest hereunder to the
               extent such conversion or receipt of such interest payment would
               result in the Holder, together with any affiliate thereof,
               beneficially owning (as determined in accordance with Section
               13(d) of the Exchange Act and the rules promulgated thereunder)
               in excess of 4.9% of the then issued and outstanding shares of

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               Common Stock, including shares issuable upon conversion of, and
               payment of interest on, this Debenture held by such Holder after
               application of this Section. Since the Holder will not be
               obligated to report to the Obligor the number of shares of Common
               Stock it may hold at the time of a conversion hereunder, unless
               the conversion at issue would result in the issuance of shares of
               Common Stock in excess of 4.9% of the then outstanding shares of
               Common Stock without regard to any other shares which may be
               beneficially owned by the Holder or an affiliate thereof, the
               Holder shall have the authority and obligation to determine
               whether the restriction contained in this Section will limit any
               particular conversion hereunder and to the extent that the Holder
               determines that the limitation contained in this Section applies,
               the determination of which portion of the principal amount of
               this Debenture is convertible shall be the responsibility and
               obligation of the Holder. If the Holder has delivered a
               Conversion Notice for a principal amount of this Debenture that,
               without regard to any other shares that the Holder or its
               affiliates may beneficially own, would result in the issuance in
               excess of the permitted amount hereunder, the Obligor shall
               notify the Holder of this fact and shall honor the conversion for
               the maximum principal amount permitted to be converted on such
               Conversion Date in accordance with the periods described in
               Section 3(a)(i)(A) and, at the option of the Holder, either
               retain any principal amount tendered for conversion in excess of
               the permitted amount hereunder for future conversions or return
               such excess principal amount to the Holder. The provisions of
               this Section may be waived by a Holder (but only as to itself and
               not to any other Holder) upon not less than 65 days prior notice
               to the Obligor. Other Holders shall be unaffected by any such
               waiver.

          (b) (i) Nothing herein shall limit a Holder's right to pursue actual
     damages or declare an Event of Default pursuant to Section 2 herein for the
     Obligor 's failure to deliver certificates representing shares of Common
     Stock upon conversion within the period specified herein and such Holder
     shall have the right to pursue all remedies available to it at law or in
     equity including, without limitation, a decree of specific performance
     and/or injunctive relief, in each case without the need to post a bond or
     provide other security. The exercise of any such rights shall not prohibit
     the Holder from seeking to enforce damages pursuant to any other Section
     hereof or under applicable law.

               (ii) In addition to any other rights available to the Holder, if
          the Obligor fails to deliver to the Holder such certificate or
          certificates pursuant to Section 3(a)(i)(A) by the fifth (5th) Trading
          Day after the Conversion Date, and if after such fifth (5th) Trading
          Day the Holder purchases (in an open market transaction or otherwise)
          Common Stock to deliver in satisfaction of a sale by such Holder of
          the Underlying Shares which the Holder anticipated receiving upon such
          conversion (a "Buy-In"), then the Obligor shall (A) pay in cash to the
          Holder (in addition to any remedies available to or elected by the
          Holder) the amount by which (x) the Holder's total purchase price
          (including brokerage commissions, if any) for the Common Stock so
          purchased exceeds (y) the product of (1) the aggregate number of
          shares of Common Stock that such Holder anticipated receiving from the
          conversion at issue multiplied by (2) the market price of the Common
          Stock at the time of the sale giving rise to such purchase obligation
          and (B) at the option of the Holder, either reissue a Debenture in the
          principal amount equal to the principal amount of the attempted
          conversion or deliver to the Holder the number of shares of Common
          Stock that would have been issued had the Obligor timely complied with
          its delivery requirements under Section 3(a)(i)(A). 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 conversion of
          Debentures with respect to which the market price of the Underlying
          Shares on the date of conversion was a total of $10,000 under clause
          (A) of the immediately preceding sentence, the Obligor shall be
          required to pay the Holder $1,000. The Holder shall provide the
          Obligor written notice indicating the amounts payable to the Holder in
          respect of the Buy-In.

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          (c) (i) The conversion price (the "Conversion Price") in effect on any
     Conversion Date shall be equal to $0.117, which may be adjusted pursuant to
     the other terms of this Debenture. Notwithstanding anything to the contrary
     as set forth in this Section 3(c), the Conversion Price shall not be
     adjusted as a result of the issuance of shares of common stock of the
     Company pursuant to a certain Standby Equity Distribution Agreement, dated
     as of the date hereof, by and between the Company and Cornell Capital
     Partners, L.P.

               (ii) If the Obligor, at any time while this Debenture is
          outstanding, shall (a) pay a stock dividend or otherwise make a
          distribution or distributions on shares of its Common Stock or any
          other equity or equity equivalent securities payable in shares of
          Common Stock, (b) subdivide outstanding shares of Common Stock into a
          larger number of shares, (c) combine (including by way of reverse
          stock split) outstanding shares of Common Stock into a smaller number
          of shares, or (d) issue by reclassification of shares of the Common
          Stock any shares of capital stock of the Obligor, then the Conversion
          Price shall be multiplied by a fraction of which the numerator shall
          be the number of shares of Common Stock (excluding treasury shares, if
          any) outstanding before such event and of which the denominator shall
          be the number of shares of Common Stock outstanding after such event.
          Any adjustment made pursuant to this Section shall become effective
          immediately after the record date for the determination of
          stockholders entitled to receive such dividend or distribution and
          shall become effective immediately after the effective date in the
          case of a subdivision, combination or re-classification.

               (iii) If the Obligor, at any time while this Debenture is
          outstanding, shall issue rights, options or warrants to all holders of
          Common Stock (and not to the Holder) entitling them to subscribe for
          or purchase shares of Common Stock at a price per share less than the
          Closing Bid Price at the record date mentioned below, then the
          Conversion Price shall be multiplied by a fraction, of which the
          denominator shall be the number of shares of the Common Stock
          (excluding treasury shares, if any) outstanding on the date of
          issuance of such rights or warrants (plus the number of additional
          shares of Common Stock offered for subscription or purchase), and of
          which the numerator shall be the number of shares of the Common Stock
          (excluding treasury shares, if any) outstanding on the date of
          issuance of such rights or warrants, plus the number of shares which
          the aggregate offering price of the total number of shares so offered
          would purchase at such Closing Bid Price. Such adjustment shall be
          made whenever such rights or warrants are issued, and shall become
          effective immediately after the record date for the determination of
          stockholders entitled to receive such rights, options or warrants.
          However, upon the expiration of any such right, option or warrant to
          purchase shares of the Common Stock the issuance of which resulted in
          an adjustment in the Conversion Price pursuant to this Section, if any
          such right, option or warrant shall expire and shall not have been
          exercised, the Conversion Price shall immediately upon such expiration
          be recomputed and effective immediately upon such expiration be
          increased to the price which it would have been (but reflecting any
          other adjustments in the Conversion Price made pursuant to the
          provisions of this Section after the issuance of such rights or
          warrants) had the adjustment of the Conversion Price made upon the
          issuance of such rights, options or warrants been made on the basis of
          offering for subscription or purchase only that number of shares of
          the Common Stock actually purchased upon the exercise of such rights,
          options or warrants actually exercised.

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               (iv) If the Obligor or any subsidiary thereof, as applicable, at
          any time while this Debenture is outstanding, shall issue shares of
          Common Stock or rights, warrants, options or other securities or debt
          that are convertible into or exchangeable for shares of Common Stock
          ("Common Stock Equivalents") entitling any Person to acquire shares of
          Common Stock, at a price per share less than the Conversion Price (if
          the holder of the Common Stock or Common Stock Equivalent so issued
          shall at any time, whether by operation of purchase price adjustments,
          reset provisions, floating conversion, exercise or exchange prices or
          otherwise, or due to warrants, options or rights per share which is
          issued in connection with such issuance, be entitled to receive shares
          of Common Stock at a price per share which is less than the Conversion
          Price, such issuance shall be deemed to have occurred for less than
          the Conversion Price), then, at the sole option of the Holder, the
          Conversion Price shall be adjusted to mirror the conversion, exchange
          or purchase price for such Common Stock or Common Stock Equivalents
          (including any reset provisions thereof) at issue. Such adjustment
          shall be made whenever such Common Stock or Common Stock Equivalents
          are issued. The Obligor shall notify the Holder in writing, no later
          than one (1) business day following the issuance of any Common Stock
          or Common Stock Equivalent subject to this Section, indicating therein
          the applicable issuance price, or of applicable reset price, exchange
          price, conversion price and other pricing terms. This adjustment shall
          apply whether or not any such issuances are permitted under the
          Section entitled "Consent of Holder to Sell Capital Stock or Grant
          Security Interests" hereto, except that no adjustment under this
          Section shall be made as a result of issuances and exercises of
          options to purchase shares of Common Stock issued for compensatory
          purposes to employees, officers, or directors pursuant to any of the
          Obligor's stock option or stock purchase plans which have been
          approved by the Board of Directors.

               (v) If the Obligor, at any time while this Debenture is
          outstanding, shall distribute to all holders of Common Stock (and not
          to the Holder) evidences of its indebtedness or assets or rights or
          warrants to subscribe for or purchase any security, then in each such
          case the Conversion Price at which this Debenture shall thereafter be
          convertible shall be determined by multiplying the Conversion Price in
          effect immediately prior to the record date fixed for determination of
          stockholders entitled to receive such distribution by a fraction of
          which the denominator shall be the Closing Bid Price determined as of
          the record date mentioned above, and of which the numerator shall be
          such Closing Bid Price on such record date less the then fair market
          value at such record date of the portion of such assets or evidence of
          indebtedness so distributed applicable to one outstanding share of the
          Common Stock as determined by the Board of Directors in good faith. In
          either case the adjustments shall be described in a statement provided
          to the Holder of the portion of assets or evidences of indebtedness so
          distributed or such subscription rights applicable to one share of
          Common Stock. Such adjustment shall be made whenever any such
          distribution is made and shall become effective immediately after the
          record date mentioned above.

               (vi) In case of any reclassification of the Common Stock or any
          compulsory share exchange pursuant to which the Common Stock is
          converted into other securities, cash or property, the Holder shall
          have the right thereafter to, at its option, (A) convert the then
          outstanding principal amount, together with all accrued but unpaid
          interest and any other amounts then owing hereunder in respect of this
          Debenture into the shares of stock and other securities, cash and

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          property receivable upon or deemed to be held by holders of the Common
          Stock following such reclassification or share exchange, and the
          Holder of this Debenture shall be entitled upon such event to receive
          such amount of securities, cash or property as the shares of the
          Common Stock of the Obligor into which the then outstanding principal
          amount, together with all accrued but unpaid interest and any other
          amounts then owing hereunder in respect of this Debenture could have
          been converted immediately prior to such reclassification or share
          exchange would have been entitled, or (B) require the Obligor to
          prepay the outstanding principal amount of this Debenture, plus all
          interest and other amounts due and payable thereon. The entire
          prepayment price shall be paid in cash. This provision shall similarly
          apply to successive reclassifications or share exchanges.

               (vii) The Obligor shall maintain a share reserve of not less than
          100% of the shares of Common Stock issuable upon conversion of this
          Debenture; and within three (3) Business Days following the receipt by
          the Obligor of a Holder's notice that such minimum number of
          Underlying Shares is not so reserved, the Obligor shall promptly
          reserve a sufficient number of shares of Common Stock to comply with
          such requirement.

               (viii) All calculations under this Section 3 shall be rounded up
          to the nearest $0.001 of a share.

               (ix) Whenever the Conversion Price is adjusted pursuant to
          Section 3 hereof, the Obligor shall promptly mail to the Holder a
          notice setting forth the Conversion Price after such adjustment and
          setting forth a brief statement of the facts requiring such
          adjustment.

               (x) If (A) the Obligor shall declare a dividend (or any other
          distribution) on the Common Stock; (B) the Obligor shall declare a
          special nonrecurring cash dividend on or a redemption of the Common
          Stock; (C) the Obligor shall authorize the granting to all holders of
          the Common Stock rights or warrants to subscribe for or purchase any
          shares of capital stock of any class or of any rights; (D) the
          approval of any stockholders of the Obligor shall be required in
          connection with any reclassification of the Common Stock, any
          consolidation or merger to which the Obligor is a party, any sale or
          transfer of all or substantially all of the assets of the Obligor, of
          any compulsory share exchange whereby the Common Stock is converted
          into other securities, cash or property; or (E) the Obligor shall
          authorize the voluntary or involuntary dissolution, liquidation or
          winding up of the affairs of the Obligor; then, in each case, the
          Obligor shall cause to be filed at each office or agency maintained
          for the purpose of conversion of this Debenture, and shall cause to be
          mailed to the Holder at its last address as it shall appear upon the
          stock books of the Obligor, at least twenty (20) calendar days prior
          to the applicable record or effective date hereinafter specified, a
          notice stating (x) the date on which a record is to be taken for the
          purpose of such dividend, distribution, redemption, rights or
          warrants, or if a record is not to be taken, the date as of which the
          holders of the Common Stock of record to be entitled to such dividend,
          distributions, redemption, rights or warrants are to be determined or
          (y) the date on which such reclassification, consolidation, merger,
          sale, transfer or share exchange is expected to become effective or
          close, and the date as of which it is expected that holders of the
          Common Stock of record shall be entitled to exchange their shares of

                                       9
<PAGE>

          the Common Stock for securities, cash or other property deliverable
          upon such reclassification, consolidation, merger, sale, transfer or
          share exchange, provided, that the failure to mail such notice or any
          defect therein or in the mailing thereof shall not affect the validity
          of the corporate action required to be specified in such notice. The
          Holder is entitled to convert this Debenture during the 20-day
          calendar period commencing the date of such notice to the effective
          date of the event triggering such notice.

               (xi) In case of any (1) merger or consolidation of the Obligor or
          any subsidiary of the Obligor with or into another Person, or (2) sale
          by the Obligor or any subsidiary of the Obligor of more than one-half
          of the assets of the Obligor in one or a series of related
          transactions, a Holder shall have the right to (A) exercise any rights
          under Section 2(b), (B) convert the aggregate amount of this Debenture
          then outstanding into the shares of stock and other securities, cash
          and property receivable upon or deemed to be held by holders of Common
          Stock following such merger, consolidation or sale, and such Holder
          shall be entitled upon such event or series of related events to
          receive such amount of securities, cash and property as the shares of
          Common Stock into which such aggregate principal amount of this
          Debenture could have been converted immediately prior to such merger,
          consolidation or sales would have been entitled, or (C) in the case of
          a merger or consolidation, require the surviving entity to issue to
          the Holder a convertible Debenture with a principal amount equal to
          the aggregate principal amount of this Debenture then held by such
          Holder, plus all accrued and unpaid interest and other amounts owing
          thereon, which such newly issued convertible Debenture shall have
          terms identical (including with respect to conversion) to the terms of
          this Debenture, and shall be entitled to all of the rights and
          privileges of the Holder of this Debenture set forth herein and the
          agreements pursuant to which this Debentures were issued. In the case
          of clause (C), the conversion price applicable for the newly issued
          shares of convertible preferred stock or convertible Debentures shall
          be based upon the amount of securities, cash and property that each
          share of Common Stock would receive in such transaction and the
          Conversion Price in effect immediately prior to the effectiveness or
          closing date for such transaction. The terms of any such merger, sale
          or consolidation shall include such terms so as to continue to give
          the Holder the right to receive the securities, cash and property set
          forth in this Section upon any conversion or redemption following such
          event. This provision shall similarly apply to successive such events.

          (d) The Obligor covenants that it will at all times reserve and keep
     available out of its authorized and unissued shares of Common Stock solely
     for the purpose of issuance upon conversion of this Debenture and payment
     of interest on this Debenture, each as herein provided, free from
     preemptive rights or any other actual contingent purchase rights of persons
     other than the Holder, not less than such number of shares of the Common
     Stock as shall (subject to any additional requirements of the Obligor as to
     reservation of such shares set forth in this Debenture) be issuable (taking
     into account the adjustments and restrictions of Sections 2(b) and 3(c))
     upon the conversion of the outstanding principal amount of this Debenture
     and payment of interest hereunder. The Obligor covenants that all shares of
     Common Stock that shall be so issuable shall, upon issue, be duly and
     validly authorized, issued and fully paid, nonassessable and, if the
     Underlying Shares Registration Statement has been declared effective under
     the Securities Act, registered for public sale in accordance with such
     Underlying Shares Registration Statement.

                                       10
<PAGE>

          (e) Upon a conversion hereunder the Obligor shall not be required to
     issue stock certificates representing fractions of shares of the Common
     Stock, but may if otherwise permitted, make a cash payment in respect of
     any final fraction of a share based on the Closing Bid Price at such time.
     If the Obligor elects not, or is unable, to make such a cash payment, the
     Holder shall be entitled to receive, in lieu of the final fraction of a
     share, one whole share of Common Stock.

          (f) The issuance of certificates for shares of the Common Stock on
     conversion of this Debenture shall be made without charge to the Holder
     thereof for any documentary stamp or similar taxes that may be payable in
     respect of the issue or delivery of such certificate, provided that the
     Obligor shall not be required to pay any tax that may be payable in respect
     of any transfer involved in the issuance and delivery of any such
     certificate upon conversion in a name other than that of the Holder of such
     Debenture so converted and the Obligor shall not be required to issue or
     deliver such certificates unless or until the person or persons requesting
     the issuance thereof shall have paid to the Obligor the amount of such tax
     or shall have established to the satisfaction of the Obligor that such tax
     has been paid.

          (g) Any notices, consents, waivers or other communications required or
     permitted to be given under the terms hereof must be in writing and will be
     deemed to have been delivered: (i) upon receipt, when delivered personally;
     (ii) upon receipt, when sent by facsimile (provided confirmation of
     transmission is mechanically or electronically generated and kept on file
     by the sending party); or (iii) one (1) Trading Day after deposit with a
     nationally recognized overnight delivery service, in each case properly
     addressed to the party to receive the same. The addresses and facsimile
     numbers for such communications shall be:

       If to the Company, to:        In Veritas Medical Diagnostics, inc.
                                     The Green House
                                     Beechwood Business Park North
                                     Inverness - Scotland L2 IV2 3BL
                                     Telephone:  +44 (0) 146-366-7347
                                     Facsimile:  +44 (0) 146-366-7310

       With a copy to:               Sichenzia Ross Friedman Ference LLP
                                     1065 Avenue of the Americas
                                     New York, NY 10018
                                     Attention:  Richard Friedman, Esq
                                     Telephone:  (212) 930-9700
                                     Facsimile:  (212) 930-9725

       If to the Holder:

                                     Attention:
                                     Telephone:

                                       11
<PAGE>

       With a copy to:

     or at such other address and/or facsimile number and/or to the attention of
     such other person as the recipient party has specified by written notice
     given to each other party three (3) business days prior to the
     effectiveness of such change. Written confirmation of receipt (i) given by
     the recipient of such notice, consent, waiver or other communication, (ii)
     mechanically or electronically generated by the sender's facsimile machine
     containing the time, date, recipient facsimile number and an image of the
     first page of such transmission or (iii) provided by a nationally
     recognized overnight delivery service, shall be rebuttable evidence of
     personal service, receipt by facsimile or receipt from a nationally
     recognized overnight delivery service in accordance with clause (i), (ii)
     or (iii) above, respectively.

Section 4. Definitions. For the purposes hereof, the following terms shall have
           the following meanings:

     "Business Day" means any day except Saturday, Sunday and any day which
shall be a federal legal holiday in the United States or a day on which banking
institutions are authorized or required by law or other government action to
close.

     "Change of Control Transaction" means the occurrence of (a) an acquisition
after the date hereof by an individual or legal entity or "group" (as described
in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Obligor,
by contract or otherwise) of in excess of fifty percent (50%) of the voting
securities of the Obligor (except that the acquisition of voting securities by
the Holder shall not constitute a Change of Control Transaction for purposes
hereof), (b) a replacement at one time or over time of more than one-half of the
members of the board of directors of the Obligor which is not approved by a
majority of those individuals who are members of the board of directors on the
date hereof (or by those individuals who are serving as members of the board of
directors on any date whose nomination to the board of directors was approved by
a majority of the members of the board of directors who are members on the date
hereof), (c) the merger, consolidation or sale of fifty percent (50%) or more of
the assets of the Obligor or any subsidiary of the Obligor in one or a series of
related transactions with or into another entity, or (d) the execution by the
Obligor of an agreement to which the Obligor is a party or by which it is bound,
providing for any of the events set forth above in (a), (b) or (c).

     "Commission" means the Securities and Exchange Commission.

     "Common Stock" means the common stock, par value $0.001, of the Obligor and
stock of any other class into which such shares may hereafter be changed or
reclassified.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

                                       12
<PAGE>

     "Original Issue Date" shall mean the date of the first issuance of this
Debenture regardless of the number of transfers and regardless of the number of
instruments, which may be issued to evidence such Debenture.

     "Closing Bid Price" means the price per share in the last reported trade of
the Common Stock on the OTC or on the exchange which the Common Stock is then
listed as quoted by Bloomberg, LP.

     "Person" means a corporation, an association, a partnership, organization,
a business, an individual, a government or political subdivision thereof or a
governmental agency.

     "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

     "Trading Day" means a day on which the shares of Common Stock are quoted on
the OTC or quoted or traded on such Subsequent Market on which the shares of
Common Stock are then quoted or listed; provided, that in the event that the
shares of Common Stock are not listed or quoted, then Trading Day shall mean a
Business Day.

     "Transaction Documents" means the Securities Purchase Agreement or any
other agreement delivered in connection with the Securities Purchase Agreement,
including, without limitation, the Security Agreement, the Intercreditor
Agreement, and the Investor Registration Rights Agreement.

     "Underlying Shares" means the shares of Common Stock issuable upon
conversion of this Debenture or as payment of interest in accordance with the
terms hereof.

     "Underlying Shares Registration Statement" means a registration statement
meeting the requirements set forth in the Registration Rights Agreement,
covering among other things the resale of the Underlying Shares and naming the
Holder as a "selling stockholder" thereunder.

Section 5.

     Except as expressly provided herein, no provision of this Debenture shall
alter or impair the obligations of the Obligor, which are absolute and
unconditional, to pay the principal of, interest and other charges (if any) on,
this Debenture at the time, place, and rate, and in the coin or currency, herein
prescribed. This Debenture is a direct obligation of the Obligor. This Debenture
ranks pari passu with all other Debentures now or hereafter issued under the
terms set forth herein. As long as this Debenture is outstanding, the Obligor
shall not and shall cause their subsidiaries not to, without the consent of the
Holder, (i) amend its certificate of incorporation, bylaws or other charter
documents so as to adversely affect any rights of the Holder; (ii) repay,
repurchase or offer to repay, repurchase or otherwise acquire shares of its
Common Stock or other equity securities other than as to the Underlying Shares
to the extent permitted or required under the Transaction Documents; or (iii)
enter into any agreement with respect to any of the foregoing.

                                       13
<PAGE>

Section 6.

     This Debenture shall not entitle the Holder to any of the rights of a
stockholder of the Obligor, including without limitation, the right to vote, to
receive dividends and other distributions, or to receive any notice of, or to
attend, meetings of stockholders or any other proceedings of the Obligor, unless
and to the extent converted into shares of Common Stock in accordance with the
terms hereof.

Section 7.

     If this Debenture is mutilated, lost, stolen or destroyed, the Obligor
shall execute and deliver, in exchange and substitution for and upon
cancellation of the mutilated Debenture, or in lieu of or in substitution for a
lost, stolen or destroyed Debenture, a new Debenture for the principal amount of
this Debenture so mutilated, lost, stolen or destroyed but only upon receipt of
evidence of such loss, theft or destruction of such Debenture, and of the
ownership hereof, and indemnity, if requested, all reasonably satisfactory to
the Obligor.

Section 8.

     No indebtedness of the Obligor is senior to this Debenture in right of
payment, whether with respect to interest, damages or upon liquidation or
dissolution or otherwise. Without the Holder's consent, the Obligor will not and
will not permit any of their subsidiaries to, directly or indirectly, enter
into, create, incur, assume or suffer to exist any indebtedness of any kind, on
or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits there from that is senior in
any respect to the obligations of the Obligor under this Debenture.

Section 9.

     This Debenture shall be governed by and construed in accordance with the
laws of the State of New Jersey, without giving effect to conflicts of laws
thereof. Each of the parties consents to the jurisdiction of the Superior Courts
of the State of New Jersey sitting in Hudson County, New Jersey and the U.S.
District Court for the District of New Jersey sitting in Newark, New Jersey in
connection with any dispute arising under this Debenture and hereby waives, to
the maximum extent permitted by law, any objection, including any objection
based on forum non conveniens to the bringing of any such proceeding in such
jurisdictions.

Section 10.

     If the Obligor fails to strictly comply with the terms of this Debenture,
then the Obligor shall reimburse the Holder promptly for all fees, costs and
expenses, including, without limitation, attorneys' fees and expenses incurred
by the Holder in any action in connection with this Debenture, including,
without limitation, those incurred: (i) during any workout, attempted workout,
and/or in connection with the rendering of legal advice as to the Holder's
rights, remedies and obligations, (ii) collecting any sums which become due to
the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
any proceeding or appeal; or (iv) the protection, preservation or enforcement of
any rights or remedies of the Holder.

Section 11.

     Any waiver by the Holder of a breach of any provision of this Debenture
shall not operate as or be construed to be a waiver of any other breach of such
provision or of any breach of any other provision of this Debenture. The failure
of the Holder to insist upon strict adherence to any term of this Debenture on
one or more occasions shall not be considered a waiver or deprive that party of
the right thereafter to insist upon strict adherence to that term or any other
term of this Debenture. Any waiver must be in writing.

                                       14
<PAGE>

Section 12.

     If any provision of this Debenture is invalid, illegal or unenforceable,
the balance of this Debenture shall remain in effect, and if any provision is
inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances. If it shall be found that any
interest or other amount deemed interest due hereunder shall violate applicable
laws governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum permitted rate of interest. The
Obligor covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Obligor from paying all or any portion of the
principal of or interest on this Debenture as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this indenture, and the Obligor (to the extent
it may lawfully do so) hereby expressly waives all benefits or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has
been enacted.

Section 13.

     Whenever any payment or other obligation hereunder shall be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day.

Section 14.

     THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT
ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE PARTIES' ACCEPTANCE OF THIS AGREEMENT.

                   [REMAINDER OF PAGE INTENTIONLLY LEFT BLANK]

                                       15
<PAGE>

     IN WITNESS WHEREOF, the Obligor has caused this Secured Convertible
Debenture to be duly executed by a duly authorized officer as of the date set
forth above.

                                        IN VERITAS MEDICAL DIAGNOSTICS, INC.

                                        By:
                                              ----------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                              ----------------------------------

                                       16
<PAGE>

                                   EXHIBIT "A"

                              NOTICE OF CONVERSION

        (To be executed by the Holder in order to convert the Debenture)

TO:
    ----------------------------------------------------------------------------

     The undersigned hereby irrevocably elects to convert $ of the principal
amount of the above Debenture into Shares of Common Stock of In Veritas Medical
Diagnostics, inc., according to the conditions stated therein, as of the
Conversion Date written below.

Conversion Date:
                                          --------------------------------------
Applicable Conversion Price:
                                          --------------------------------------
Signature:
                                          --------------------------------------
Name:
                                          --------------------------------------
Address:
                                          --------------------------------------
Amount to be converted:                   $
                                          --------------------------------------
Amount of Debenture unconverted:          $
                                          --------------------------------------
Conversion Price per share:               $
                                          --------------------------------------
Number of  shares of Common  Stock to be
issued:
                                          --------------------------------------
Please  issue the shares of Common Stock
in  the   following   name  and  to  the
following address:
                                          --------------------------------------

                                          --------------------------------------

                                          --------------------------------------

Issue to:
                                          --------------------------------------
Authorized Signature:
                                          --------------------------------------
Name:
                                          --------------------------------------
Title:
                                          --------------------------------------
Phone Number:
                                          --------------------------------------
Broker DTC Participant Code:
                                          --------------------------------------
Account Number:
                                          --------------------------------------

                                       17Exhibit 10.1

                     INVESTOR REGISTRATION RIGHTS AGREEMENT
                     --------------------------------------

     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
September 7, 2005, by and among IN VERITAS MEDICAL DIAGNOSTICS, INC., a Colorado
corporation (the "Company"), and the undersigned investors listed on Schedule I
attached hereto (each, an "Investor" and collectively, the "Investors").

     WHEREAS:

     A. In connection with the Securities Purchase Agreement by and among the
parties hereto of even date herewith (the "Securities Purchase Agreement"), the
Company has agreed, upon the terms and subject to the conditions of the
Securities Purchase Agreement, to issue and sell to the Investors secured
convertible debentures (the "Convertible Debentures") which shall be convertible
into that number of shares of the Company's common stock, par value $0.001 per
share (the "Common Stock"), pursuant to the terms of the Securities Purchase
Agreement for an aggregate purchase price of up to Seven Hundred Fifty Thousand
Dollars ($750,000). Capitalized terms not defined herein shall have the meaning
ascribed to them in the Securities Purchase Agreement.

     B. To induce the Investors to execute and deliver the Securities Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations there
under, 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 Investors
hereby agree as follows:

     1. DEFINITIONS.

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

(a)  "Person" means a corporation, a limited liability company, an association,
     a partnership, an organization, a business, an individual, a governmental
     or political subdivision thereof or a governmental agency.

(b)  "Register," "registered," and "registration" refer to a registration
     effected by preparing and filing one or more Registration Statements (as
     defined below) 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 or delayed basis ("Rule 415"), and the
     declaration or ordering of effectiveness of such Registration Statement(s)
     by the United States Securities and Exchange Commission (the "SEC").

(c)  "Registrable Securities" means the shares of Common Stock issuable to the
     Investors upon conversion of the Convertible Debentures pursuant to the
     Securities Purchase Agreement and the Warrant Shares, as this term is
     defined in the Securities Purchase Agreement dated the date hereof.

<PAGE>

(d)  "Registration Statement" means a registration statement under the
     Securities Act which covers the Registrable Securities.

2.   REGISTRATION.

(a)  Subject to the terms and conditions of this Agreement, the Company shall
     prepare and file, no later than thirty (30) days from the date hereof (the
     "Scheduled Filing Deadline"), with the SEC a registration statement on Form
     S-1 or SB-2 (or, if the Company is then eligible, on Form S-3) under the
     Securities Act (the "Initial Registration Statement") for the resale by the
     Investors of the Registrable Securities, which includes at least
     __________________ shares of Common Stock to be issued upon conversion of
     the Convertible Debentures and 350,000 Warrant Shares. The Company shall
     cause the Registration Statement to remain effective until all of the
     Registrable Securities have been sold. Prior to the filing of the
     Registration Statement with the SEC, the Company shall furnish a copy of
     the Initial Registration Statement to the Investors for their review and
     comment. The Investors shall furnish comments on the Initial Registration
     Statement to the Company within twenty-four (24) hours of the receipt
     thereof from the Company.

(b)  Effectiveness of the Initial Registration Statement. The Company shall use
     its best efforts (i) to have the Initial Registration Statement declared
     effective by the SEC no later than ninety (90) days after the date filed
     (the "Scheduled Effective Deadline") and (ii) to insure that the Initial
     Registration Statement and any subsequent Registration Statement remains in
     effect until all of the Registrable Securities have been sold, subject to
     the terms and conditions of this Agreement. It shall be an event of default
     hereunder if the Initial Registration Statement is not declared effective
     by the SEC within one hundred twenty (120) days after filing thereof.

(c)  Failure to File or Obtain Effectiveness of the Registration Statement. In
     the event the Registration Statement is not filed by the Scheduled Filing
     Deadline or is not declared effective by the SEC on or before the Scheduled
     Effective Date, or if after the Registration Statement has been declared
     effective by the SEC, sales cannot be made pursuant to the Registration
     Statement (whether because of a failure to keep the Registration Statement
     effective, failure to disclose such information as is necessary for sales
     to be made pursuant to the Registration Statement, failure to register
     sufficient shares of Common Stock or otherwise then as partial relief for
     the damages to any holder of Registrable Securities by reason of any such
     delay in or reduction of its ability to sell the underlying shares of
     Common Stock (which remedy shall not be exclusive of any other remedies at
     law or in equity), the Company will pay as liquidated damages (the
     "Liquidated Damages") to the holder, at the Company's option, either a cash
     amount or shares of the Company's Common Stock within three (3) business
     days, after demand therefore, equal to two percent (2%) of the liquidated
     value of the Convertible Debentures outstanding as Liquidated Damages for
     each thirty (30) day period after the Scheduled Filing Deadline or the
     Scheduled Effective Date as the case may be.

                                        2
<PAGE>

(d)  Liquidated Damages. The Company and the Investor hereto acknowledge and
     agree that the sums payable under subsection 2(c) above shall constitute
     liquidated damages and not penalties and are in addition to all other
     rights of the Investor, including the right to call a default. The parties
     further acknowledge that (i) the amount of loss or damages likely to be
     incurred is incapable or is difficult to precisely estimate, (ii) the
     amounts specified in such subsections bear a reasonable relationship to,
     and are not plainly or grossly disproportionate to, the probable loss
     likely to be incurred in connection with any failure by the Company to
     obtain or maintain the effectiveness of a Registration Statement, (iii) one
     of the reasons for the Company and the Investor reaching an agreement as to
     such amounts was the uncertainty and cost of litigation regarding the
     question of actual damages, and (iv) the Company and the Investor are
     sophisticated business parties and have been represented by sophisticated
     and able legal counsel and negotiated this Agreement at arm's length.

3.   RELATED OBLIGATIONS.

(a)  The Company shall keep the Registration Statement effective pursuant to
     Rule 415 at all times until the date on which the Investor shall have sold
     all the Registrable Securities covered by such Registration Statement (the
     "Registration Period"), which Registration Statement (including any
     amendments or supplements thereto and prospectuses contained therein) 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, in light of the circumstances in which they were made,
     not misleading.

(b)  The Company shall prepare and file with the SEC such amendments (including
     post-effective amendments) and supplements to a Registration Statement and
     the prospectus used in connection with such Registration Statement, which
     prospectus is to be filed pursuant to Rule 424 promulgated under the
     Securities Act, as may be necessary to keep such Registration Statement
     effective at all times during the Registration Period, and, during such
     period, comply with the provisions of the Securities Act with respect to
     the disposition of all Registrable Securities of the Company covered by
     such Registration Statement until such time as all of such Registrable
     Securities shall 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. In the case of amendments and supplements to a
     Registration Statement which are required to be filed pursuant to this
     Agreement (including pursuant to this Section 3(b)) by reason of the
     Company's filing a report on Form 10-KSB, Form 10-QSB or Form 8-K or any
     analogous report under the Securities Exchange Act of 1934, as amended (the
     "Exchange Act"), the Company shall incorporate such report by reference
     into the Registration Statement, if applicable, or shall file such
     amendments or supplements with the SEC on the same day on which the
     Exchange Act report is filed which created the requirement for the Company
     to amend or supplement the Registration Statement.

(c)  The Company shall furnish to each Investor whose Registrable Securities are
     included in any Registration Statement, without charge, (i) at least one
     (1) copy of such Registration Statement as declared effective by the SEC
     and any amendment(s) thereto, including financial statements and schedules,
     all documents incorporated therein by reference, all exhibits and each
     preliminary prospectus, (ii) ten (10) copies of the final prospectus
     included in such Registration Statement and all amendments and supplements
     thereto (or such other number of copies as such Investor may reasonably
     request) and (iii) such other documents as such Investor may reasonably
     request from time to time in order to facilitate the disposition of the
     Registrable Securities owned by such Investor.

                                        3
<PAGE>

(d)  The Company shall use its best efforts to (i) register and qualify the
     Registrable Securities covered by a Registration Statement under such other
     securities or "blue sky" laws of such jurisdictions in the United States as
     any Investor reasonably requests, (ii) prepare and file in those
     jurisdictions, such amendments (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 (w) make any change to its articles
     of incorporation or by-laws, (x) qualify to do business in any jurisdiction
     where it would not otherwise be required to qualify but for this Section
     3(d), (y) subject itself to general taxation in any such jurisdiction, or
     (z) file a general consent to service of process in any such jurisdiction.
     The Company shall promptly notify each Investor who holds Registrable
     Securities of the receipt by the Company of any notification with respect
     to the suspension of the registration or qualification of any of the
     Registrable Securities for sale under the securities or "blue sky" laws of
     any jurisdiction in the United States or its receipt of actual notice of
     the initiation or threat of any proceeding for such purpose.

(e)  As promptly as practicable after becoming aware of such event or
     development, the Company shall notify each Investor in writing of the
     happening of any event as a result of which the prospectus included in a
     Registration Statement, as then in effect, includes an untrue statement of
     a material fact or omission to state a material fact required to be stated
     therein or necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading (provided that in
     no event shall such notice contain any material, nonpublic information),
     and promptly prepare a supplement or amendment to such Registration
     Statement to correct such untrue statement or omission, and deliver ten
     (10) copies of such supplement or amendment to each Investor. The Company
     shall also promptly notify each Investor in writing (i) when a prospectus
     or any prospectus supplement or post-effective amendment has been filed,
     and when a Registration Statement or any post-effective amendment has
     become effective (notification of such effectiveness shall be delivered to
     each Investor by facsimile on the same day of such effectiveness), (ii) of
     any request by the SEC for amendments or supplements to a Registration
     Statement or related prospectus or related information, and (iii) of the
     Company's reasonable determination that a post-effective amendment to a
     Registration Statement would be appropriate.

(f)  The Company shall use its best efforts to prevent the issuance of any stop
     order or other suspension of effectiveness of a Registration Statement, or
     the suspension of the qualification of any of the Registrable Securities
     for sale in any jurisdiction within the United States of America and, if
     such an order or suspension is issued, to obtain the withdrawal of such
     order or suspension at the earliest possible moment and to notify each
     Investor who holds Registrable Securities being sold of the issuance of
     such order and the resolution thereof or its receipt of actual notice of
     the initiation or threat of any proceeding for such purpose.

                                        4
<PAGE>

(g)  At the reasonable request of any Investor, the Company shall furnish to
     such Investor, on the date of the effectiveness of the Registration
     Statement and thereafter from time to time on such dates as an Investor may
     reasonably request (i) a letter, dated such date, from the Company's
     independent certified public accountants in form and substance as is
     customarily given by independent certified public accountants to
     underwriters in an underwritten public offering, and (ii) an opinion, dated
     as of such date, of counsel representing the Company for purposes of such
     Registration Statement, in form, scope and substance as is customarily
     given in an underwritten public offering, addressed to the Investors.

(h)  The Company shall make available for inspection by (i) any Investor and
     (ii) one (1) 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, and cause the Company's officers, directors and employees
     to supply all information which any Inspector may reasonably request;
     provided, however, that each Inspector shall agree, and each Investor
     hereby agrees, to hold in strict confidence and shall not make any
     disclosure (except to an Investor) or use any Record or other information
     which 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 or is otherwise required under the Securities
     Act, (b) the release of such Records is ordered pursuant to a final,
     non-appealable subpoena or 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 of which the Inspector and the
     Investor has knowledge. Each Investor agrees that it shall, upon learning
     that disclosure of such Records is sought in or by a court or governmental
     body of competent jurisdiction or through other means, give prompt notice
     to the Company and allow the Company, at its expense, to undertake
     appropriate action to prevent disclosure of, or to obtain a protective
     order for, the Records deemed confidential.

(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, (ii) the disclosure of such information is necessary to
     avoid or correct a misstatement or omission in any Registration Statement,
     (iii) the release of such information is ordered pursuant to a subpoena or
     other final, non-appealable order from a court or governmental body of
     competent jurisdiction, or (iv) such information has been made generally
     available to the public other than by disclosure in violation of this
     Agreement or any other agreement. The Company agrees that it shall, upon
     learning that disclosure of such information concerning an Investor is
     sought in or by a court or governmental body of competent jurisdiction or
     through other means, give prompt written notice to such Investor and allow
     such Investor, at the Investor's expense, to undertake appropriate action
     to prevent disclosure of, or to obtain a protective order for, such
     information.

(j)  The Company shall use its best efforts either to cause all the Registrable
     Securities covered by a Registration Statement

     (i)  to be listed on each securities exchange on which securities of the
          same class or series issued by the Company are then listed, if any, if
          the listing of such Registrable Securities is then permitted under the
          rules of such exchange or

                                        5
<PAGE>

     (ii) the inclusion for quotation on the National Association of Securities
          Dealers, Inc. OTC Bulletin Board for such Registrable Securities. The
          Company shall pay all fees and expenses in connection with satisfying
          its obligation under this Section 3(j).

(k)  The Company shall cooperate with the Investors who hold Registrable
     Securities being offered and, to the extent applicable, to facilitate the
     timely preparation and delivery of certificates (not bearing any
     restrictive legend) representing the Registrable Securities to be offered
     pursuant to a Registration Statement and enable such certificates to be in
     such denominations or amounts, as the case may be, as the Investors may
     reasonably request and registered in such names as the Investors may
     request.

(l)  The Company shall use its best efforts to cause the Registrable Securities
     covered by the applicable Registration Statement to be registered with or
     approved by such other governmental agencies or authorities as may be
     necessary to consummate the disposition of such Registrable Securities.

(m)  The Company shall make generally available to its security holders as soon
     as practical, but not 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 (12)
     month period beginning not later than the first day of the Company's fiscal
     quarter next following the effective date of the Registration Statement.

(n)  The Company shall otherwise use its best efforts to comply with all
     applicable rules and regulations of the SEC in connection with any
     registration hereunder.

(o)  Within two (2) business days after a Registration Statement which covers
     Registrable Securities is declared effective by the SEC, the Company shall
     deliver, and shall cause legal counsel for the Company to deliver, to the
     transfer agent for such Registrable Securities (with copies to the
     Investors whose Registrable Securities are included in such Registration
     Statement) confirmation that such Registration Statement has been declared
     effective by the SEC in the form attached hereto as Exhibit A.

(p)  The Company shall take all other reasonable actions necessary to expedite
     and facilitate disposition by the Investors of Registrable Securities
     pursuant to a Registration Statement.

4.   OBLIGATIONS OF THE INVESTORS.

     Each Investor agrees that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e), such Investor will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such
Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(e) or receipt of
notice that no supplement or amendment is required. Notwithstanding anything to
the contrary, the Company shall cause its transfer agent to deliver unlegended
certificates for shares of Common Stock to a transferee of an Investor in
accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has
entered into a contract for sale prior to the Investor's receipt of a notice
from the Company of the happening of any event of the kind described in Section
3(f) or the first sentence of 3(e) and for which the Investor has not yet
settled.

                                        6
<PAGE>

5.   EXPENSES OF REGISTRATION.

     All expenses incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers, legal and accounting
fees shall be paid by the Company.

6.   INDEMNIFICATION.

     With respect to Registrable Securities which are included in a Registration
Statement under this Agreement:

(a)  To the fullest extent permitted by law, the Company will, and hereby does,
     indemnify, hold harmless and defend each Investor, the directors, officers,
     partners, employees, agents, representatives of, and each Person, if any,
     who controls any Investor within the meaning of the Securities Act or the
     Exchange Act (each, an "Indemnified Person"), against any losses, claims,
     damages, liabilities, judgments, fines, penalties, charges, costs,
     reasonable attorneys' fees, amounts paid in settlement or expenses, joint
     or several (collectively, "Claims") incurred in investigating, preparing or
     defending any action, claim, suit, inquiry, proceeding, investigation or
     appeal taken from the foregoing by or before any court or governmental,
     administrative or other regulatory agency, body or the SEC, whether pending
     or threatened, whether or not an indemnified party is or may be a party
     thereto ("Indemnified Damages"), to which any of them may become subject
     insofar as such Claims (or actions or proceedings, whether commenced or
     threatened, in respect thereof) arise out of or are based upon: (i) any
     untrue statement or alleged untrue statement of a material fact in a
     Registration Statement or any post-effective amendment thereto or in any
     filing made in connection with the qualification of the offering under the
     securities or other "blue sky" laws of any jurisdiction in which
     Registrable Securities are offered ("Blue Sky Filing"), or the omission or
     alleged omission to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading; (ii) any untrue
     statement or alleged untrue statement of a material fact contained in any
     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 (iii) any violation or
     alleged violation by the Company of the Securities Act, the Exchange Act,
     any other law, including, without limitation, any state securities law, or
     any rule or regulation there under relating to the offer or sale of the
     Registrable Securities pursuant to a Registration Statement (the matters in
     the foregoing clauses (i) through (iii) being, collectively, "Violations").
     The Company shall reimburse the Investors and each such controlling person
     promptly as such expenses are incurred and are due and payable, for any
     legal fees or disbursements 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 by an Indemnified Person arising out of or based upon a
     Violation which occurs in reliance upon and in conformity with information
     furnished in writing to the Company by such Indemnified Person expressly
     for use in connection with the preparation of the Registration Statement or

                                        7
<PAGE>

     any such amendment thereof or supplement thereto; (y) shall not be
     available to the extent such Claim is based on a failure of the Investor to
     deliver or to cause to be delivered the prospectus made available by the
     Company, if such prospectus was timely made available by the Company
     pursuant to Section 3(c); and (z) 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. Such indemnity shall remain in full force and effect regardless
     of any investigation made by or on behalf of the Indemnified Person and
     shall survive the transfer of the Registrable Securities by the Investors
     pursuant to Section 9 hereof.

(b)  In connection with a Registration Statement, each Investor agrees to
     severally and not jointly indemnify, hold harmless and defend, to the same
     extent and in the same manner as is set forth in Section 6(a), the Company,
     each of its directors, each of its officers, employees, representatives, or
     agents and each Person, if any, who controls the Company within the meaning
     of the Securities Act or the Exchange Act (each an "Indemnified Party"),
     against any Claim or Indemnified Damages to which any of them may become
     subject, under the Securities Act, the Exchange Act or otherwise, insofar
     as such Claim or Indemnified Damages arise out of or is 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, subject to Section 6(d),
     such Investor will reimburse any legal or other expenses reasonably
     incurred by them in connection with investigating or defending any such
     Claim; provided, however, that the indemnity agreement contained in this
     Section 6(b) and the agreement with respect to contribution contained in
     Section 7 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; provided,
     further, however, that the Investor shall be liable under this Section 6(b)
     for only that amount of a Claim or Indemnified Damages as does not exceed
     the net proceeds to 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 Indemnified Party and shall survive the transfer of the
     Registrable Securities by the Investors pursuant to Section 9.
     Notwithstanding anything to the contrary contained herein, the
     indemnification agreement contained in this Section 6(b) with respect to
     any prospectus shall not inure to the benefit of any Indemnified Party if
     the untrue statement or omission of material fact contained in the
     prospectus was corrected and such new prospectus was delivered to each
     Investor prior to such Investor's use of the prospectus to which the Claim
     relates.

(c)  Promptly after receipt by an Indemnified Person or Indemnified Party under
     this Section 6 of notice of the commencement of any action or proceeding
     (including any governmental action or proceeding) involving a Claim, such
     Indemnified Person or Indemnified Party shall, if a Claim in respect
     thereof is to be 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 Person or the Indemnified Party, as the case may
     be; provided, however, that an Indemnified Person or Indemnified Party
     shall have the right to retain its own counsel with the fees and expenses
     of not more than one (1) counsel for such Indemnified Person or Indemnified

                                        8

<PAGE>

     Party 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 Person or Indemnified Party and the indemnifying
     party would be inappropriate due to actual or potential differing interests
     between such Indemnified Person or Indemnified Party and any other party
     represented by such counsel in such proceeding. The Indemnified Party or
     Indemnified Person shall cooperate fully with the indemnifying party in
     connection with any negotiation or defense of any such action or claim by
     the indemnifying party and shall furnish to the indemnifying party all
     information reasonably available to the Indemnified Party or Indemnified
     Person which relates to such action or claim. The indemnifying party shall
     keep the Indemnified Party or Indemnified Person fully apprised at all
     times as to the status of the defense or any settlement negotiations with
     respect thereto. No indemnifying party shall be liable for any settlement
     of any action, claim or proceeding effected without its prior written
     consent; provided, however, that the indemnifying party shall not
     unreasonably withhold, delay or condition its consent. No indemnifying
     party shall, without the prior written consent of the Indemnified Party or
     Indemnified Person, consent to entry of any judgment or enter into any
     settlement or other compromise which does not include as an unconditional
     term thereof the giving by the claimant or plaintiff to such Indemnified
     Party or Indemnified Person of a release from all liability in respect to
     such claim or litigation. Following indemnification as provided for
     hereunder, the indemnifying party shall be subrogated to all rights of the
     Indemnified Party or Indemnified Person with respect to all third parties,
     firms or corporations relating to the matter for which indemnification has
     been made. 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 Person
     or Indemnified Party under this Section 6, except to the extent that the
     indemnifying party is prejudiced in its ability to defend such action.

(d)  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 and when bills are received or Indemnified Damages are
     incurred.

(e)  The indemnity agreements contained herein shall be in addition to (i) any
     cause of action or similar right of the Indemnified Party or Indemnified
     Person against the indemnifying party or others, and (ii) any liabilities
     the indemnifying party may be subject to pursuant to the law.

7.   CONTRIBUTION.

     To the extent any indemnification by an indemnifying party is prohibited or
limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no seller
of Registrable Securities 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
fraudulent misrepresentation; and (ii) contribution 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.

                                        9
<PAGE>

8.   REPORTS UNDER THE EXHANGE ACT.

     With a view to making available to the Investors the benefits of Rule 144
promulgated under the Securities Act or any 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)  make and keep public information available, as those terms are understood
     and defined in Rule 144;

(b)  file with the SEC in a timely manner 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 (it being
     understood that nothing herein shall limit the Company's obligations under
     Section 4(c) of the Securities Purchase Agreement) and the filing of such
     reports and other documents as are required by the applicable provisions of
     Rule 144; and

(c)  furnish to each Investor so long as such Investor owns 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 the Investors to sell such securities pursuant to Rule
     144 without registration.

9.   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 the written consent of the Company and Investors
who then hold at least two-thirds (2/3) of the Registrable Securities. Any
amendment or waiver effected in accordance with this Section 9 shall be binding
upon each Investor and the Company. No such amendment shall be effective to the
extent that it applies to fewer than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of this Agreement
unless the same consideration also is offered to all of the parties to this
Agreement.

10.  MISCELLANEOUS.

(a)  A Person is deemed to be a holder of Registrable Securities whenever such
     Person owns or is deemed to own of record such Registrable Securities. If
     the Company receives conflicting instructions, notices or elections from
     two (2) or more Persons 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, consents, waivers or other communications required or
     permitted to be given under the terms of this Agreement must be in writing
     and will be deemed to have been delivered: (i) upon receipt, when delivered
     personally; (ii) upon receipt, when sent by facsimile (provided
     confirmation of transmission is mechanically or electronically generated
     and kept on file by the sending party); or (iii) one (1) business day after
     deposit with a nationally recognized overnight delivery service, in each
     case properly addressed to the party to receive the same. The addresses and
     facsimile numbers for such communications shall be:

                                       10
<PAGE>

     If to the Company, to:     In Veritas Medical Diagnostics, Inc.
                                The Green House
                                Beechwood Business Park North
                                Inverness - Scotland L2 IV2 3BL
                                Telephone:  +44 (0) 146-366-7347
                                Facsimile:  +44 (0) 146-366-7310

     With Copy to:              Sichenzia Ross Friedman Ference LLP
                                1065 Avenue of the Americas
                                New York, NY 10018
                                Attention:  Richard Friedman, Esq.
                                Telephone:  (212) 930-9700
                                Facsimile:  (212) 930-9725

     If to an Investor, to its address and facsimile number on the Schedule of
     Investors attached hereto, with copies to such Investor's representatives
     as set forth on the Schedule of Investors or to such other address and/or
     facsimile number and/or to the attention of such other person as the
     recipient party has specified by written notice given to each other party
     five (5) days prior to the effectiveness of such change. Written
     confirmation of receipt (A) given by the recipient of such notice, consent,
     waiver or other communication, (B) mechanically or electronically generated
     by the sender's facsimile machine containing the time, date, recipient
     facsimile number and an image of the first page of such transmission or (C)
     provided by a courier or overnight courier service shall be rebuttable
     evidence of personal service, receipt by facsimile or receipt from a
     nationally recognized overnight delivery service in accordance with clause
     (i), (ii) or (iii) above, respectively.

(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)  The laws of the State of New Jersey shall govern all issues concerning the
     relative rights of the Company and the Investors as its stockholders. All
     other questions concerning the construction, validity, enforcement and
     interpretation of this Agreement shall be governed by the internal laws of
     the State of New Jersey, without giving effect to any choice of law or
     conflict of law provision or rule (whether of the State of New Jersey or
     any other jurisdiction) that would cause the application of the laws of any
     jurisdiction other than the State of New Jersey. Each party hereby
     irrevocably submits to the non-exclusive jurisdiction of the Superior
     Courts of the State of New Jersey, sitting in Hudson County, New Jersey and
     federal courts for the District of New Jersey sitting Newark, New Jersey,
     for the adjudication of any dispute hereunder or in connection herewith or
     with any transaction contemplated hereby or discussed herein, and hereby
     irrevocably waives, and agrees not to assert in any suit, action or
     proceeding, any claim that it is not personally subject to the jurisdiction
     of any such court, that such suit, action or proceeding is brought in an
     inconvenient forum or that the venue of such suit, action or proceeding is
     improper. Each party hereby irrevocably waives personal service of process

                                       11
<PAGE>

     and consents to process being served in any such suit, action or proceeding
     by mailing a copy thereof to such party at the address for such notices to
     it under this Agreement and agrees that such service shall constitute good
     and sufficient service of process and notice thereof. Nothing contained
     herein shall be deemed to limit in any way any right to serve process in
     any manner permitted by law. If any provision of this Agreement shall be
     invalid or unenforceable in any jurisdiction, such invalidity or
     unenforceability shall not affect the validity or enforceability of the
     remainder of this Agreement in that jurisdiction or the validity or
     enforceability of any provision of this Agreement in any other
     jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
     AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
     HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
     TRANSACTION CONTEMPLATED HEREBY.

(e)  This Agreement, the Irrevocable Transfer Agent Instructions, the Securities
     Purchase Agreement and related documents including the Convertible
     Debenture and the Escrow Agreement dated the date hereof by and among the
     Company, the Investors set forth on the Schedule of Investors attached
     hereto, and David Gonzalez, Esq. (the "Escrow Agreement") and the Security
     Agreement dated the date hereof (the "Security Agreement") 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, the Irrevocable Transfer Agent Instructions, the
     Securities Purchase Agreement and related documents including the
     Convertible Debenture, the Escrow Agreement and the Security Agreement
     supersede all prior agreements and understandings among the parties hereto
     with respect to the subject matter hereof and thereof.

(f)  This Agreement shall inure to the benefit of and be binding upon the
     permitted 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.

(h)  This Agreement may be executed in identical 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.

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

(j)  This Agreement is intended for the benefit of the parties hereto and their
     respective permitted successors and assigns, and is not for the benefit of,
     nor may any provision hereof be enforced by, any other Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Investor Registration
Rights Agreement to be duly executed as of day and year first above written.

                                         COMPANY:
                                         IN VERITAS MEDICAL DIAGNOSTICS, INC.

                                         By:     /s/ John Fuller
                                                -------------------------------
                                         Name:    John Fuller
                                         Title:   Chief Executive Officer

                                       13
<PAGE>

                                   SCHEDULE I
                                   ----------

                              SCHEDULE OF INVESTORS
                              ---------------------

     Name            Signature                       Address/Facsimile
                                                     Number of Investors

Montgomery Equity   By: Yorkville Advisors, LLC   101 Hudson Street - Suite 3700
Partners, LTD       Its: General Partner          Jersey City, NJ  07303
                                                  Facsimile: (201) 985-8266

                    By: /s/ Mark Angelo
                    Name: Mark Angelo
                    Its: Portfolio Manager

With a copy to:     David Gonzalez, Esq.          101 Hudson Street - Suite 3700
                                                  Jersey City, NJ 07302
                                                  Facsimile:  (201) 985-8266

<PAGE>

                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

Attention:

         Re:      IN VERITAS MEDICAL DIAGNOSTICS, INC.

Ladies and Gentlemen:

     We are counsel to In Veritas Medical Diagnostics, inc., a Colorado
corporation (the "Company"), and have represented the Company in connection with
that certain Securities Purchase Agreement (the "Securities Purchase Agreement")
entered into by and among the Company and the investors named therein
(collectively, the "Investors") pursuant to which the Company issued to the
Investors shares of its Common Stock, par value $0.001 per share (the "Common
Stock"). Pursuant to the Purchase Agreement, the Company also has entered into a
Registration Rights Agreement with the Investors (the "Investor Registration
Rights Agreement") pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement) under the Securities Act of 1933, as amended (the "Securities Act").
In connection with the Company's obligations under the Registration Rights
Agreement, on ____________ ____, the Company filed a Registration Statement on
Form ________ (File No. 333-_____________) (the "Registration Statement") with
the Securities and Exchange SEC (the "SEC") relating to the Registrable
Securities which names each of the Investors as a selling stockholder there
under.

     In connection with the foregoing, we advise you that a member of the SEC's
staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the Securities Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the Securities Act pursuant to the
Registration Statement.

                                   Very truly yours,

                                   [Law Firm]

                                   By:  /s/
                                        ---------------------------------------

cc:      [LIST NAMES OF INVESTORS]

                                       14

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