Document:

Exhibit
10.21/A

EMPLOYMENT
AGREEMENT

THIS
AGREEMENT, made and entered into as of this 1st day of December, 2003, by and
between Immucor, Inc., a Georgia corporation with its executive offices at 3130
Gateway Drive, Norcross, Georgia 30071 (herein referred to as “Employer” or the
“Company”), and Gioacchino De Chirico, residing at 1992 Winchelsea Court,
Dunwoody, Georgia 30338 (herein referred to as “Employee”).  This agreement supersedes any and all prior
agreements between the two parties.

WITNESSETH

WHEREAS,
the parties hereto desire to enter into an agreement for Employer’s employment
of Employee on the terms and conditions hereinafter stated.

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained, the parties hereby agree as follows:

1.                                       Relationship
Established

Employer hereby employs Employee as President and COO
of Employer to perform the services and duties normally and customarily
associated with Employee’s position, such duties as specified in the Employer’s
bylaws, and such other duties as may from time to time be specified by the
Employer’s Board of Directors.  Employee
will be retained in this position during the term of his employment under this
Employment Agreement, and hereby agrees to perform such services and duties in
this capacity.

2.                                       Extent
of Services

Employee shall devote substantially all his business
time, attention, skill and efforts to the performance of his duties hereunder,
and shall use his best efforts to promote the success of the Employer’s
business.  Employer recognizes that
Employee has agreed to employment at Employers offices located in Norross,
Georgia.  Should Employer’s executive
offices be relocated to, or if Employer otherwise shall require that Employee
work at, a place greater than thirty (30) miles from Employee’s principal
residence noted in Section 13(b) hereof, then Employee shall have the right to
terminate his employment hereunder and such termination shall be deemed to be a
termination under Section 3(c) hereof for all purposes hereunder.

3.                                       Term
of Employment

Employee’s employment hereunder shall commence on
December 1, 2003 (hereinafter called the “Effective Date,” and shall continue
for a period of five (5) years, unless sooner terminated by the first to occur
of the following:

(a)                                  The
death or complete disability of Employee. “Complete disability”, as used
herein, shall mean the inability of Employee, due to illness, accident or any
other

 

physical or mental incapacity, to perform the
services provided for hereunder for an aggregate of 12 months during the term
hereof.

(b)                                 The
discharge of Employee by Employer for Cause. 
Employee’s discharge shall be “for Cause” if due to any of the
following:

(i)                                     Employee’s
dishonesty,

(ii)                                  An
act of defalcation committed by Employee,

(iii)                               Employee’s
continuing inability or refusal to perform reasonable duties assigned to him
hereunder (unless such refusal occurs following the occurrence of a Change of
Control, as defined herein) or

(iv)                              Employee’s
moral turpitude.

Disability because of illness or accident or any other
physical or mental disability shall not constitute a basis for discharge for
Cause.

(c)                                  The
discharge of Employee by Employer without Cause (which shall be deemed to have
occurred if Employee’s employment hereunder terminates under Section 7 hereof).

(d)                                 At
Employee’s request and with the express prior written consent of Employer.

(e)                                  At
Employee’s election upon 120 days notice (or such lesser notice as Employer may
accept), without the express prior written consent of Employer.

(f)                                    At
the end of the term of the Agreement, or any extension thereof, if either the
Employer or Employee gives 60 days notice to the other of non-renewal of the
Agreement.

If not sooner terminated under the provisions of
Sections 3(a) through 3(f) above, the term of Employee’s employment hereunder
shall automatically renew for an additional period of five (5) years at each
annual anniversary date of this agreement.

4.                                       Compensation

(a)                                  Subject
to the provisions of Section 4(e), Employer will pay to Employee as base
compensation for the services to be performed by him hereunder the base
compensation specified on Schedule A attached hereto.  Schedule A may be amended from time to time
upon the parties’ revision and re-execution thereof, whereupon the amended
Schedule A shall be attached hereto; provided, however, the amended Schedule A
shall be effective upon such re-execution, whether or not it is attached
hereto.

(b)                                 The
Employee may be entitled to additional bonus compensation as may be determined
by the Board of Directors of Employer from time to time, any such determination
to be final, binding, conclusive on Employee and all other persons.

(c)                                  In
the event Employee’s employment shall terminate under Section 3(c) hereof, the
Employee shall be paid an amount equal to the Average Annual

 

Compensation payable to Employee under
Schedule A for the remainder of the term of this Agreement in accordance with
the payment schedule set forth on Schedule A, to be paid over the remainder of
the term of this Agreement following termination. For purposes of this Section,
“Average Annual Compensation” shall mean the Employee’s annual base
compensation payable to Employee under Schedule A in accordance with the
payment schedule set forth on Schedule A together with his Average Bonus. “Average
Bonus” shall mean the average bonus paid to employee over the last two years in
which the Employee was eligible to receive a bonus or such lesser number of
years in which Employee was eligible to receive a bonus.

(d)                                 As
long as Employee is employed hereunder, Employer, at its election, will either
(a) supply to Employee an automobile of a type consistent with his duties and
salary, and will pay the reasonable expenses of operating, maintaining the
automobile and insuring the automobile and its driver, or (b) provide Employee
an automobile allowance as specified on Schedule A attached hereto, and will
pay the reasonable expenses of operating, maintaining the automobile and
insuring the automobile and its driver. Schedule A may be amended from time to
time upon the parties’ revision and re-execution thereof whereupon the amended
Schedule A shall be attached hereto; provided, however, the amended Schedule A
shall be effective upon re-execution, whether or not it is attached hereto.

(e)                                  In
the event Employee’s employment shall terminate under Section 3(a), 3(b), 3(d),
3(e) or 3(f) hereof, all of Employer’s obligations to Employee hereunder will
cease automatically and Employee shall only be entitled to compensation accrued
through the date of termination.

5.                                       Expenses

Employee shall be entitled to receive reimbursement
for, or payment directly by the Employer of, all reasonable expenses incurred
by Employee at the request of the Employer in the performance of his duties
under this Agreement, provided that Employee accounts therefor in writing and
that such expenses are ordinary and necessary business expenses of the Employer
within the meaning of Section 162 of the Internal Revenue Code of 1986 as
amended.

6.                                       Insurance
and Other Fringe Benefits

Employer will provide Employee with (a) health
insurance, dental insurance, long-term disability insurance, paid vacations and
other fringe benefits in the form and in dollar amounts substantially
equivalent to the benefits provided to the Employer’s other employees in a
similar position and with similar responsibilities, and (b) life insurance for
the benefit of the Employee and/or the Employer, as provided on Schedule B
attached hereto.  Schedule B may be amended
from time to time upon the parties’ revision and re-execution thereof,
whereupon the amended Schedule B shall be attached hereto; provided, however,
the amended Schedule B shall be effective upon such re-execution, whether or
not it is attached hereto.

 

7.                                       Termination
of Employment Upon Sale or Change of Control of Employer’s Business; Severance

(a)                                  Notwithstanding
anything to the contrary contained in this Agreement, either Employer or
Employee may terminate Employee’s employment hereunder if any of the following
events occur:

(i)                                     Sale
of Employer’s Assets.  The sale of
all or substantially all of Employer’s assets to a single purchaser or group of
associated purchasers, whether in a single transaction or a series of related
transactions.

(ii)                                  Sale
of Employer’s Shares.  The sale,
exchange, or other disposition, in one transaction, or in a series of related
transactions, of twenty percent (20%) or more of Employer’s outstanding shares
of capital stock.

(iii)                               Merger
or Consolidation.  The merger or
consolidation of Employer in a transaction or series of transactions in which
Employer’s shareholders receive or retain less than fifty percent (50%) of the
outstanding voting shares of the new or surviving corporation.

(iv)                              Other
Changes in Control.  The occurrence
of any change in control of the Employer within the meaning of federal
securities law.

(b)                                 If,
within 60 days after an event described in Sections 7(a)(i), (a)(ii), (a)(iii)
or (a)(iv) (a “Change of Control”), the Employee voluntarily terminates his
employment with the Employer, or if within two years after a Change of Control
Employer terminates Employee’s employment (whether for Cause or without Cause)
the Employer terminates Employee’s employment, then Employer shall pay Employee
(instead of the amount specified in Section 4(c), if any, but together with the
amount specified in Section 7(d), if any) an amount equal to five times the
Employee’s Average Annual Compensation (as defined below), to be paid in a
single payment at the time of termination. In consideration of such payment and
his employment hereunder through the date of such termination, Employee agrees
to remain bound by the provisions of this agreement which specifically relate
to periods, activities or obligations upon or subsequent to the termination of
Employee’s employment.

(c)                                  Upon
a Change of Control, Employee’s existing options under any Immucor Inc. (the “Company”)
option plan, including the Company’s 1990 Stock Option Plan, the Company’s 1995
Stock Option Plan, and the Company’s 1998 Stock Option Plan, if any, shall immediately
vest and become exercisable in full and shall remain exercisable for the full
term stated in such option plan or in any stock option agreement between the
Company and the Employee.

(d)                                 If,
within 60 days after a Change of Control, either the Employee voluntarily
terminates his employment with the Employer or the Employer terminates Employee’s
employment other than for Cause, then Employer shall pay to Employee an
outplacement assistance benefit for the purpose of assisting Employee with
counseling, travel and other expenses related to finding new employment.  Such amount shall be paid in cash in the
amount specified on Schedule A attached hereto. 
Schedule A may be amended from time to time upon the parties’ revision
and re-execution thereof whereupon the amended Schedule A 

 

shall be attached hereto; provided, however,
the amended Schedule A shall be effective upon such re-execution, whether or
not it is attached hereto.

(e)                                  For
purposes of this Section, “Average Annual Compensation” shall mean the Employee’s
annual base compensation payable to Employee under Schedule A in accordance
with the payment schedule set forth on Schedule A together with his Average
Bonus.  “Average Bonus” shall mean the
average of the bonuses paid to Employee over the last two years (or such lesser
number of years in which Employee was eligible to receive a bonus) in which the
Employee was eligible to receive a bonus.

(f)                                    Certain Additional Payments by Employer.  In the event that Employee becomes entitled
to severance benefits or any other benefits or payments in connection with this
Agreement, whether pursuant to the terms of this Agreement or otherwise
(collectively, the “Total Benefits”) and (ii) any of the Total Benefits will be
subject to the excise tax imposed pursuant to Section 4999 of the Internal
Revenue Code (“Excise Tax’), which tax may be imposed if the payments made to
Employee are deemed to be “excess parachute payments” within the meaning of
Section 280G of the Code, then Employer shall pay to Employee an additional
amount (the “Gross-Up Payment”) such that the net amount retained by Employee,
after deduction of any Excise Tax on the Total Benefits and any federal, state
and local income taxes, Excise Tax, and FICA and Medicare withholding taxes
upon the payment provided for by this Section, will be equal to the Total
Benefits so that Employee shall be, after payment of all taxes, in the same
financial position as if no taxes under Section 4999 had been imposed upon him.
For purposes of this Section, Employee will be deemed to pay federal income
taxes at the highest marginal rate of federal income taxation in the calendar
year in which the Excise Tax is (or would be) payable and state and local
income taxes at the highest marginal rate of taxation in the state and locality
of Employee’s residence on the Date of Termination, net of the reduction in
federal income taxes that could be obtained from deduction of such state and
local taxes (calculated by assuming that any reduction under Section 68 of the
Internal Revenue Code in the amount of itemized deductions allowable to
Employee applies first to reduce the amount of such state and local income
taxes that would otherwise be deductible by Employee).

8.                                       Employer
shall promptly reimburse Employee for any and all legal fees and expenses
incurred by him as a result of a termination of employment described in Section
7(b), including without limitation all fees and expenses incurred to enforce
the provisions of this Agreement.

9.                                       Prohibited
Practices.

During the term of Employee’s employment hereunder,
for a period of two years after such employment is terminated for any reason,
in consideration of the compensation being paid to Employee hereunder, Employee
shall:

(a)                                  not
solicit business from anyone who is or becomes an active or prospective
customer of Employer or its affiliates and with whom the Employee had dealt

 

with or had material contact during his term
of employment under this Agreement.

(b)                                 not
solicit for employment or hire any employee of Employer or its affiliates that
the Employee had contact with during his term of employment under this
Agreement.

10.                                 Non-Disclosure.

(a)                                  Protection of Trade Secrets. 
Employee acknowledges that during the course of his or her employment,
Employee will have significant access to, and involvement with, the Company’s
Trade Secrets and Confidential Information. 
Employee agrees to maintain in strict confidence and, except as
necessary to perform his or her duties for the Company, Employee agrees not to
use or disclose any Trade Secrets of the Company during or after his or her
employment.  Employee agrees that the
provisions of this subsection shall be deemed sufficient to protect Trade
Secrets of third parties provided to the Company under an obligation of
secrecy. As provided by Georgia statutes, “Trade Secret” shall mean any
information (including, but not limited to, technical or nontechnical data, a
formula, a pattern, a compilation, a program, a device, a method, a technique,
a drawing, a process, financial data, financial plans, product plans, or a list
of actual or potential customers) that: (i) derives economic value, actual or
potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value from
its disclosure or use; and (ii) is the subject of efforts that are reasonable
under the circumstances to maintain its secrecy.

(b)                                 Protection of Other Confidential Information.  In addition, Employee agrees to maintain in
strict confidence and, except as necessary to perform his or her duties for the
Company, not to use or disclose any Confidential Information of the Company
during his or her employment and for a period of 12 months following
termination of Employee’s employment.  “Confidential
Information” shall mean any internal, non-public information (other than Trade
Secrets already addressed above) concerning (without limitation) the Company’s
financial position and results of operations (including revenues, assets, net
income, etc.); annual and long-range business plans; product or service plans;
marketing plans and methods; training, educational and administrative manuals;
supplier information and purchase histories; customers or clients; personnel
and salary information; and employee lists. Employee agrees that the provisions
of this subsection shall be deemed sufficient to protect Confidential
Information of third parties provided to the Company under an obligation of
secrecy.

(c)                                  Rights to Work Product. 
Except as expressly provided in this Agreement, the Company alone shall
be entitled to all benefits, profits and results arising from or incidental to
Employee’s performance of his or her job duties to the Company.  To the greatest extent possible, any work
product, property, data, invention, “know-how”, documentation or information or
materials prepared, conceived, discovered, developed or created by Employee in
connection with performing his or her employment responsibilities during
Employee’s employment with the

 

Company shall be deemed to be “work made for
hire” as defined in the Copyright Act, 17 U.S.C.A. § 101 et seq., as amended,
and owned exclusively and perpetually by the Company.  Employee hereby unconditionally and
irrevocably transfers and assigns to the Company all intellectual property or
other rights, title and interest Employee may currently have (or in the future
may have) by operation of law or otherwise in or to any work product.  Employee agrees to execute and deliver to the
Company any transfers, assignments, documents or other instruments which the
Company may deem necessary or appropriate to vest complete and perpetual title
and ownership of any work product and all associated rights exclusively in the
Company.  The Company shall have the right
to adapt, change, revise, delete from, add to and/or rearrange the work product
or any part thereof written or created by Employee, and to combine the same
with other works to any extent, and to change or substitute the title thereof,
and in this connection Employee hereby waives the “moral rights” of authors as
that term is commonly understood throughout the world including, without
limitation, any similar rights or principles of law which Employee may now or
later have by virtue of the law of any locality, state, nation, treaty,
convention or other source. Unless otherwise specifically agreed, Employee
shall not be entitled to any additional compensation, beyond his or her salary,
for any exercise by the Company of its rights set forth in the preceding
sentence.

(d)                                 Return of Materials. 
Employee shall surrender to the Company, promptly upon its request and
in any event upon termination of Employee’s employment, all media, documents,
notebooks, computer programs, handbooks, data files, models, samples, price
lists, drawings, customer lists, prospect data, or other material of any nature
whatsoever (in tangible or electronic form) in the Employee’s possession or
control, including all copies thereof, relating to the Company, its business,
or its customers. Upon the request of the Company, employee shall certify in
writing compliance with the foregoing requirement.

11.                                 Severability.

It is the intention of the parties that if any of the
restrictions or covenants contained herein is held to cover a geographic area
or to be for a length of time or to apply to business activities which is not
permitted by applicable law, or in any way construed to be too broad or to any
extent invalid, such provision shall not be construed to be null, void and of
no effect, but to the extent such provision would be valid or enforceable under
applicable law, a court of competent jurisdiction shall construe and interpret
or reform this Section to provide for a covenant having the maximum enforceable
geographic area, time period and any other provisions (not greater than those
contained herein) as shall be valid and as shall be valid and enforceable under
such applicable law.

If any provision contained in this Section shall for
any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other
provisions of this Section, but this Section shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

12.                                 Waiver
of Provisions

Failure of either party to insist, in one or more
instances, on performance by the other in strict accordance with the terms and
conditions of this Agreement shall not be deemed a waiver or relinquishment of
any right granted hereunder or of the future performance of any such term or condition
or of any other term or condition of this Agreement, unless such waiver’s
contained in a writing signed by the party against whom the waiver or
relinquishment is sought to be enforced.

13.                                 Notices

Any notice or other communication to a party required
or permitted hereunder shall be in a writing and shall be deemed sufficiently
given when received by the party (regardless of the method of delivery), or if
sent by registered or certified mail, postage and fees prepaid, addressed to
the party as follows, on the third business day after mailing:

	
  (a)

  	
   

  	
  If to Employer:

  	
   

  	
  3130 Gateway Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Norcross, GA 30071

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  If to Employee:

  	
   

  	
  1992 Winchelsea Court

  
	
   

  	
   

  	
   

  	
   

  	
  Dunwoody, GA 30338

  

 

or in each ease to such other address as the party may
time to time designate in writing to the other party.

14.                                 Governing
Law

This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Georgia.

15.                                 Enforcement.

In the event of any breach or threatened breach by
Employee of any covenant contained in Sections 9 or 10 hereof, the resulting
injuries to the Company would be difficult or impossible to estimate
accurately, even though irreparable injury or damages would certainly result.  Accordingly, an award of legal damages, if
without other relief, would be inadequate to protect the Company.  Employee, therefore, agrees that in the event
of any such breach, the Company shall be entitled to obtain from a court of
competent jurisdiction an injunction to restrain the breach or anticipated
breach of any such covenant, and to obtain any other available legal,
equitable, statutory, or contractual relief. Should the Company have cause to
seek such relief, no bond shall be required from the Company, and Employee
shall pay all attorney’s fees and court costs which the Company may incur to
the extent the Company prevails in its enforcement action.

16.                                 Entire
Agreement; Modification and Amendment

This Agreement contains the sole and entire agreement
between the parties and supersedes all prior discussions and agreements between
the parties with respect to the matters addressed herein, and any such prior
agreement shall, from and after the date hereof, be null and void. This
Agreement and the attached Schedules shall not be modified or amended except by
an instrument in writing signed by the parties hereto.

 

17.                                 Parties
Benefited.

This Agreement shall insure to the benefit of, and be
binding upon, Employee, his heirs, executors and administrators, and Employer,
its subsidiaries, affiliates, and successors.

 

IN
WITNESS WHEREOF, the parties hereto have executed and
delivered this Agreement as of the date first mentioned above.

 

	
  IMMUCOR, INC.

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward
  Gallup

  	
   

  	
   

  	
  By:

  	
  /s/ Gioacchino De Chirico

  	
   

  
	
  Edward L. Gallup, CEO

  	
   

  	
  Gioacchino De
  Chirico

  
							

 

 

SCHEDULE
A

EMPLOYMENT
AGREEMENT DATED DECEMBER 1, 2003 BY AND BETWEEN IMMUCOR, INC. AND GIOACCHINO De
CHIRICO.

Base compensation:
    $315,000.00 a year payable in 26 installments every two
weeks.

Outplacement
Assistance Benefit: $30,000.00.

Automobile
Allowance: $9,600.00 a year payable in 12 monthly installments.

	
  Immucor, Inc.

  	
   

  	
  Employee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward
  Gallup

  	
   

  	
   

  	
  By:

  	
  /s/ Gioacchino De Chirico

  	
   

  	
   

  
	
  Edward L. Gallup, CEO

  	
   

  	
  Gioacchino De
  Chirico

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  11/10/03

  	
   

  	
   

  	
  Date:

  	
  11/10/03

  	
   

  	
   

  	
   

  
												

 

(This Schedule A
supersedes and replaces any Schedule A previously executed by the parties hereto.)

 

SCHEDULE
B

EMPLOYMENT
AGREEMENT DATED DECEMDER 1, 2003 BY AND BETWEEN IMMUCOR, INC. AND GIOACCHINO DE
CHIRICO

Life Insurance for
the Benefit of Employer: N/A

Insured:

Face Amount:  $

Owner of Policy:        Employer

Policy Number:

Insurance Company:

Life Insurance for
the Benefit of Employee:

Insured:  Gioacchino De Chirico.

Face Amount:  $1,000,000.00

Owner of Policy:        Employee

Policy Number:

Insurance Company:

	
  Immucor, Inc.

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward
  Gallup

  	
   

  	
   

  	
  By:

  	
  /s/ Gioacchino De Chirico

  
	
  Edward L. Gallup, CEO

  	
   

  	
  Gioacchino De
  Chirico

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  12/01/03

  	
   

  	
   

  	
  Date:

  	
  12/01/03

  
								

 

(This Schedule B
supersedes and replaces any Schedule B previously executed by the parties
hereto.)Exhibit
4.1

AMENDED AND RESTATED WARRANT
AGREEMENT

AMENDED
AND RESTATED WARRANT AGREEMENT dated as of 
November 30, 2006 by and between XENOMICS, INC., a Florida
corporation  (the “Company”) and GIAN
LUIGI BUITONI (the “Lead Investor”).

W I T N E S S E T H:

WHEREAS,
the Company issued to the Lead Investor 6,363,636 warrants (each  a “Lead Investor’s Warrant”), each to
purchase one unit, containing one share of the Company’s common stock, par
value $0.0001 per share (the “Common Stock”) and one Common Stock purchase
warrant (the “Warrants,” and collectively with the Common Stock, the “Units”),

WHEREAS,
the Company agreed to issue the Lead Investor’s Warrants pursuant to Securities
Purchase Agreements dated as of November 14 and 17, 2006  (the “SPA”) among the Company and the
Purchasers named therein, including the Lead Investor, and as an inducement for
the Lead Investor to assume the role of Executive Chairman and facilitate
financing by the Company,

WHEREAS,
the Company accepted a proposal by the Lead Investor to amend certain terms of
the Lead Investor Warrants in consideration of the issuance of an additional
2,727,272 (the “Additional Warrants’) Lead Investor Warrants containing an
option on the Company’s part to put the Additional Warrants to the Lead Investor,
at certain times and subject to certain conditions (“Put Option”) on November
30, 2006, and

WHEREAS,
the Company and the Lead Investor wish to integrate the terms of the Lead
Investors Warrants first issued on November 14, 2006, as amended in this single
Amended and Restated Warrant Agreement, which replaces the prior Warrant
Agreement, in all respects.

NOW,
THEREFORE, in consideration of the premises, the payment by the Lead Investor
to the Company of $10.00 (receipt of which is hereby acknowledged), the
agreements herein set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.             Grant.  The Holder (as defined in Section 3 below) is
hereby granted the right to purchase, at any time from November 30, 2006 until
5:30 p.m., New York time, to December 31, 2007 (the “Expiration Date”), up to
6,363,636 Units, at an initial purchase price (subject to adjustment as
provided in Section 8 hereof) of $0.55 per Unit (the “Exercise Price”), subject
to the terms and conditions of this Agreement; provided, on or prior to the
time of exercise, the Company shall have received an aggregate of $5.0 million
of financing in addition to financing pursuant to the SPA (the “Financing
Condition”).  For the purposes of
determining whether the Financing Condition has been fulfilled, the gross
proceeds of the sale of securities for cash consideration shall be included,
without deduction for commission or expenses of such sales and the date such
proceeds are received by the Company or deposited in escrow shall be considered
the date of completion, 

 1
 

 

provided
definitive documentation is executed as accepted by the purchasers of such
securities on or before September 5, 2007. 
The proceeds of securities sold pursuant to the exercise of the Put
Option on or before August 31, 2007 shall be included in the determination of
whether the Financing Condition has been fulfilled and those sold thereafter
shall be excluded.  If the Company shall
not have attained the financing condition on or before August 31, 2007, the
Lead Investor’s Warrants shall terminate and be of no further force or effect
and thereafter August 31, 2007 shall be deemed the Expiration Date.  The securities issuable upon exercise of the
Lead Investor’s Warrant are sometimes referred to herein as the “Lead Investor’s
Securities.”

2.             Warrant Certificates.  The warrant certificate (the “Lead Investor’s
Warrant Certificate”) to be delivered pursuant to this Agreement shall be in
the form set forth in Exhibit A attached hereto and made a part hereof, with
such appropriate insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.

3.             Exercise of Lead Investor’s
Warrant. The Lead Investor’s Warrant is exercisable during the term set
forth in Section 1 hereof payable by certified or cashier’s check or money
order in lawful money of the United States. 
Upon surrender of Lead Investor’s Warrant Certificate with the annexed
Form of Election to Purchase duly executed, together with payment of the
Purchase Price (as hereinafter defined) for the Lead Investor’s Securities (and
such other amounts, if any, arising pursuant to Section 4 hereof) at the
Company’s principal office currently located at 420 Lexington Avenue, Suite
1701, New York, NY  10170, or the address
of the Company’s transfer agent for its Common Stock, the registered holder of
a Lead Investor’s Warrant Certificate (“Holder” or “Holders”) shall be entitled
to receive a certificate or certificates for the Lead Investor’s Securities so
purchased.  The purchase rights
represented by each Lead Investor’s Warrant Certificate are exercisable at the
option of the Holder or Holders thereof, in whole or in part as to Lead
Investor’s Securities.  The Lead Investor’s
Warrant may be exercised to purchase all or any part of the Lead Investor’s
Securities represented thereby.  In the
case of the purchase of less than all the Lead Investor’s Securities
purchasable on the exercise of the Lead Investor’s Warrant represented by a
Lead Investor’s Warrant Certificate, the Company shall cancel the Lead Investor’s
Warrant Certificate represented thereby upon the surrender thereof and shall
execute and deliver a new Lead Investor’s Warrant Certificate of like tenor for
the balance of the Lead Investor’s Securities purchasable thereunder.

4.             Issuance of Certificates.  Upon the exercise of the Lead Investor’s
Warrant and payment of the Purchase Price therefor, the issuance of
certificates representing the Lead Investor’s Securities or other securities,
properties or rights underlying such Lead Investor’s Warrant, shall be made
forthwith (and in any event within five (5) business days thereafter) without
further charge to the Holder thereof, and such certificates shall (subject to
the provisions of Sections 5 and 7 hereof) be issued in the name of, or in such
names as may be directed by, the Holder thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any such certificates in
a name other than that of the Holder, and the Company 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 Company the amount of
such tax or shall have established to the satisfaction of the Company that such
tax has been paid. 

 2
 

 

The Lead Investor’s
Warrant Certificates and the certificates representing the Lead Investor’s
Securities or other securities, property or rights (if such property or rights
are represented by certificates) shall be executed on behalf of the Company by
the manual or facsimile signature of the then present Chairman or Vice Chairman
of the Board of Directors or President or Vice President of the Company,
attested to by the manual or facsimile signature of the then present Secretary
or Assistant Secretary or Treasurer or Assistant Treasurer of the Company.  The Lead Investor’s Warrant Certificates
shall be dated the date of issuance thereof by the Company upon initial
issuance, transfer or exchange.

5.             Restriction On Transfer of Lead
Investor’s Warrant. The Holder of an Lead Investor’s Warrant Certificate
(and its Permitted Transferee, as defined below), by its acceptance thereof,
covenants and agrees that the Lead Investor’s Warrant may be sold, transferred,
assigned, hypothecated or otherwise disposed of, in whole or in part, unless
such sale is registered under the Securities Act of 1933, as amended, or an
exemption therefrom is available.

6.             Purchase Price.

(a)           Initial and Adjusted Purchase
Price. Except as otherwise provided in Section 8 hereof, the initial
purchase price of the Lead Investor’s Securities shall be $0.55 per Unit.  The adjusted purchase price shall be the
price which shall result from time to time from any and all adjustments of the
initial purchase price in accordance with the provisions of Section 8 hereof.

(b)           Purchase Price. The term “Purchase
Price” herein shall mean the initial purchase price or the adjusted purchase
price, depending upon the context.

7.             Registration Rights.

(a)           Registration Under the Securities
Act of 1933, as amended (“Act”). The Lead Investor’s Warrant may have not
been registered under the Act.  The Lead
Investor’s Warrant Certificates may bear the following legend:

The securities
represented by this certifi­cate have not been registered under the Securities
Act of 1933 (the “Act”), and may not be offered for sale or sold except
pursuant to (i) an effective registration statement under the Act, or (ii) an
opinion of counsel, if such opinion and counsel shall be reasonably satis­factory
to counsel to the issuer, that an exemption from registration under the Act is
available.

(b)           Piggyback Registration.  If the Company should file a registration
statement with the Commission under the Act (other than in connection with a
merger or other business combination transaction or pursuant to Form S-8), it
will give written notice at least twenty (20) calendar days prior to the filing
of each such registration statement to the Lead Investor and to all other
Holders of the Lead Investor’s Warrant and/or the Lead Investor’s Securities of
its intention to do so.  If an Lead
Investor or other Holders of the Lead Investor’s Warrant and/or the Lead Investor’s

 3
 

 

Securities notify
the Company within fifteen (15) calendar days after receipt of any such notice
of its or their desire to include any Lead Investor’s Securities in such
proposed registration statement, the Company shall afford the Lead Investor and
such Holders of the Lead Investor’s Warrant and/or Lead Investor’s Securities
the opportunity to have any such Lead Investor’s Securities registered under
such registration statement. 
Notwithstanding the provisions of this Section 7(b) and the provisions
of Section 7(c), the Company shall have the right at any time after it shall
have given written notice pursuant to this Section 7(b) (irrespective of
whether a written request for inclusion of any such securities shall have been
made) to elect not to file any such proposed registration statement, or to
withdraw the same after the filing but prior to the effective date thereof.

(c)           Covenants of the Company With
Respect to Registration.  In
connection with any registrations under Sections 7(b) hereof, the Company
covenants and agrees as follows:

(1)           The Company shall use its best
efforts to have any registration statement declared effective at the earliest
possible time, and shall furnish each Holder desiring to sell Lead Investor’s
Securities such number of prospectuses as shall reasonably be requested.

(2)           The Company shall pay all costs
(excluding fees and expenses of Holders’ counsel and any underwriting discounts
or selling fees, expenses or commissions), fees and expenses in connection with
any registration statement filed pursuant to Sections 7(b) and 7(c) hereof
including, without limitation, the Company’s legal and accounting fees,
printing expenses, blue sky fees and expenses.

(3)           The Company will use its best efforts
to qualify or register the Lead Investor’s Securities included in a
registration statement for offering and sale under the securities or blue sky
laws of such states as reasonably are requested by the Holders, provided that
the Company shall not be obligated to execute or file any general consent to
service of process or to qualify as a foreign corporation to do business under
the laws of any such jurisdiction.

(4)           The Company shall indemnify the
Holders of the Lead Investor’s Securities to be sold pursuant to any
registration statement and each person, if any, who controls such Holders
within the meaning of Section 15 of the Act or Section 20(a) of the Securities
Exchange Act of 1934 (the “Exchange Act”), against all loss, claim, damage,
expense or liability (including all expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which
any of them may become subject under the Act, the Exchange Act or otherwise,
arising from such registration statement, but only to the same extent and with
the same effect as the provisions pursuant to which the Company has agreed to
indemnify the Lead Investor contained in Section 8 of the Underwriting
Agreement.

(5)           The Holders of the Lead Investor’s
Securities to be sold pursuant to a registration statement, and their
successors and assigns, shall indemnify the Company, its officers and directors
and each person, if any, who controls the Company within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim,
damage or expense or liability 

 4
 

 

to which they may
become subject under the Act, the Exchange Act or otherwise, arising from
information furnished by or on behalf of such Holders, or their successors or
assigns, for specific inclusion in such registration statement to the same
extent and with the same effect as the provisions contained in Section 8 of the
Underwriting Agreement pursuant to which the Lead Investor has agreed to
indemnify the Company.

(6)           Nothing contained in this Agreement
shall be construed as requiring the Holders to exercise their Lead Investor’s
Warrant prior to the initial filing of any registration statement or the
effectiveness thereof, provided that such Holders have made arrangements
reasonably satisfactory to the Company to pay the exercise price from the
proceeds of such offering.

(7)           The Company shall furnish to each
Lead Investor for the offering, if any, such documents as such Lead Investor
may reasonably require.

(8)           The Company shall as soon as
practicable after the effective date of the registration statement, and in any
event within 15 months thereafter, make “generally available to its security
holders” (within the meaning of Rule 158 under the Act) an earnings statement
(which need not be audited) complying with Section 11(a) of the Act and
covering a period of at least 12 consecutive months beginning after the
effective date of the registration statement.

(9)           The Company shall deliver promptly to
each Holder participating in the offering requesting the correspondence
described below and any managing Lead Investor copies of all correspondence
between the Commission and the Company, its counsel or auditors with respect to
the registration statement and permit each Holder and Lead Investor to do such
investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the National
Association of Securities Dealers, Inc. (“NASD”). Such investigation shall
include access to books, records and properties and opportunities to discuss
the business of the Company with its officers and independent auditors, all to
such reasonable extent and at such reasonable times and as often as any such
Holder shall reasonably request.

8.             Certain Adjustments

(a)           Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (A) pays 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 (which, for avoidance of doubt, shall not include any
shares of Common Stock issued by the Company pursuant to this Warrant), (B)
subdivides outstanding shares of Common Stock into a larger number of shares,
(C) combines (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (D) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then
in each case the Exercise 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 immediately before such event and of which the
denominator shall be the number of shares of Common Stock outstanding
immediately after such 

 5
 

 

event and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted.  Any adjustment
made pursuant to this Section 8(a) 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.

(b)           Subsequent Equity Sales.

i.      If the Company or any Subsidiary thereof,
as applicable, at any time while this Warrant is outstanding, shall offer,
sell, grant any option to purchase or offer, sell or grant any right to reprice
its securities, or otherwise dispose of or issue (or announce any offer, sale,
grant or any option to purchase or other disposition) any Common Stock or
Common Stock Equivalents entitling any Person to acquire shares of Common
Stock, at an effective price per share less than the then Exercise Price (such
lower price, the “Base Share Price” and such issuances collectively, a “Dilutive
Issuance”), as adjusted hereunder (if the holder of the Common Stock or
Common Stock Equivalents 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 an effective price per share which is less than the Exercise
Price, such issuance shall be deemed to have occurred for less than the
Exercise Price on such date of the Dilutive Issuance), then the Exercise Price
shall be reduced and only reduced to equal the Base Share Price and the number
of Lead Investor’s Securities issuable hereunder shall be increased such that
the aggregate Exercise Price payable hereunder, after taking into account the
decrease in the Exercise Price, shall be equal to the aggregate Exercise Price
prior to such adjustment.

ii.     If the
Company or any Subsidiary there, as applicable, at any time while this Warrant
is outstanding, shall offer, sell, grant any option to purchase or offer, sell
or grant any right to reprice its securities, or otherwise dispose of or issue
(or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock, at an effective price per share less than the
VWAP on either the Trading Day immediately prior to the date agreements for
such issuance are entered into or the date such issuance is consummated,
whichever results in a higher VWAP, but more than the then effective Exercise
Price (which is addressed in 8(b)(i) above) (such lower price, the “Market
Base Price” and such issuances collectively, a “Market Dilutive Issuance”),
as adjusted hereunder (if the holder of the Common Stock or Common Stock
Equivalents 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 an effective price per share which is less than the Exercise Price, such
issuance shall be deemed to have occurred for less than the Exercise Price on
such date of the Market Dilutive Issuance) then the Exercise Price shall be
reduced to a price determined by multiplying the then effective Exercise Price
by a fraction, the numerator of which is the number of shares of Common Stock
issued and outstanding immediately prior to the Market Dilutive Issuance plus
the number of shares of Common Stock which the aggregate offering price for
such Market Dilutive Issuance would purchase at the then Market Base Price, and
the denominator of which shall be the sum of the number of shares of Common
Stock issued and outstanding immediately prior to the Market Dilutive Issuance
plus the number of shares of 

 6
 

 

Common Stock so
issued or issuable in connection with the Market Dilutive Issuance and the
number of Lead Investor’s Securities issuable hereunder shall be increased such
that the aggregate Exercise Price payable hereunder, after taking into account
the decrease in the Exercise Price, shall be equal to the aggregate Exercise
Price prior to such adjustment..

iii.    Such adjustments shall be made whenever such
Common Stock or Common Stock Equivalents are issued. The Company shall notify
the Holder in writing, no later than the Trading Day following the issuance of
any Common Stock or Common Stock Equivalents subject to this section,
indicating therein the applicable issuance price, or of applicable reset price,
exchange price, conversion price and other pricing terms (such notice the “Dilutive
Issuance Notice”).  For purposes of
clarification, whether or not the Company provides a Dilutive Issuance Notice
pursuant to this Section 8(b), upon the occurrence of any Dilutive Issuance or
Market Dilutive Issuance, as applicable, after the date of such Dilutive
Issuance or Market Dilutive Issuance, as applicable, the Holder is entitled to
receive a number of Lead Investor’s Securities based upon the Base Share Price
or the price determined pursuant to 8(b)(ii), as applicable, regardless of
whether the Holder accurately refers to the Base Share Price or such price
determined pursuant to 8(b)(ii) in the Notice of Exercise.

(c)           Pro Rata Distributions.  If the Company, at any time prior to the
Termination Date, shall distribute to all holders of Common Stock (and not to
Holders of the Warrants) evidences of its indebtedness or assets (including
cash and cash dividends) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to Section 8(b)),
then in each such case the Exercise Price shall be adjusted by multiplying the
Exercise 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 VWAP determined as of the record
date mentioned above, and of which the numerator shall be such VWAP on such
record date less the then per share 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.

(d)           Fundamental Transaction. If,
at any time while this Warrant is outstanding, (A) the Company effects any
merger or consolidation of the Company with or into another Person, (B) the
Company effects any sale of all or substantially all of its assets in one or a
series of related transactions, (C) any tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of
Common Stock are permitted to tender or exchange their shares for other
securities, cash or property, or (D) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the
Common Stock is effectively converted into or exchanged for other securities,
cash or property (in any such case, a “Fundamental Transaction”), then,
upon any subsequent exercise of this Warrant, the Holder shall have the right
to receive, for each Unit that would have been issuable upon such exercise

 7
 

 

immediately prior
to the occurrence of such Fundamental Transaction, at the option of the Holder,
(a) upon exercise of this Wrrant, the number of shares of Common Stock and
Warrant of the successor or acquiring corporation or of the Company, if it is
the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is acquired in an all
cash transaction, cash equal to the value of this Warrant as determined in
accordance with the Black-Scholes option pricing formula.  For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction.  To the extent
necessary to effectuate the foregoing provisions, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to exercise such warrant into Alternate Consideration. The terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include
terms requiring any such successor or surviving entity to comply with the
provisions of this Section 3(d) and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction.

(e)           Calculations. All calculations
under this Section 8 shall be made to the nearest cent or the nearest 1/100th
of a share, as the case may be. For purposes of this Section 8, the number of
shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

(f)            Voluntary Adjustment By Company.
The Company may at any time during the term of this Warrant reduce the then
current Exercise Price to any amount and for any period of time deemed
appropriate by the Board of Directors of the Company.

(g)           Notice to Holders.

i.                      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to this Section 8,
the Company shall promptly mail to each Holder a notice setting forth the
Exercise Price after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. If the Company issues a variable rate
security, despite the prohibition thereon in the Purchase Agreement, the
Company shall be deemed to have issued Common Stock or Common Stock Equivalents
at the lowest possible conversion or exercise price at which such securities
may be converted or exercised in the case of a Variable Rate Transaction (as
defined in the Purchase Agreement).

 8

 

 

ii.     Notice to Allow Exercise by Holder.
If (A) the Company shall declare a dividend (or any other distribution) on the
Common Stock; (B) the Company shall declare a special nonrecurring cash
dividend on or a redemption of the Common Stock; (C) the Company 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 Company shall be required
in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, of any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or
property; (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company; then, in
each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least
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 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 exercise this Warrant during the 20-day period
commencing on the date of such notice to the effective date of the event
triggering such notice.

9.             Exchange and Replacement of
Warrant Certi­ficates.  Each Lead
Investor’s Warrant Certificate is exchangeable without expense, upon the
surrender thereof by the registered Holders at the principal executive office
of the Company, for a new Lead Investor’s Warrant Certificate of like tenor and
date representing in the aggregate the right to purchase the same number of
Lead Investor’s Securities in such denominations as shall be designated by the
Holders thereof at the time of such surrender.

10.           Loss, Theft etc. of Certificates  Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
any Lead Investor’s Warrant Certificate, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of the Lead Investor’s Warrant Certificates, if
mutilated, the Company will make and deliver a new Lead Investor’s Warrant
Certificate of like tenor, in lieu thereof.

11.           Elimination of Fractional
Interests. The Company shall not be required to issue certificates
representing fractions of shares of Common Stock upon the exercise of the Lead
Investor’s Warrant, nor shall it be required to issue scrip or pay cash in lieu
of fractional interests; provided, however, that if a Holder exercises all Lead
Investor’s Warrant held of record by such 

 9
 

 

Holder the
fractional interests shall be eliminated by rounding any fraction to the
nearest whole number of shares of Common Stock or other securities, properties
or rights.

12.           Reservation and Listing of
Securities. The Company shall at all times reserve and keep available out
of its authorized shares of Common Stock and Warrants, solely for the purpose
of issuance upon the exercise of the Lead Investor’s Warrant, such number of
shares of Common Stock and Warrants or other securities and properties or
rights as shall be issuable upon the exercise thereof.  The Company covenants and agrees that, upon
exercise of Lead Investor’s Warrant and payment of the Purchase Price therefor,
all the shares of Common Stock and Warrants issuable upon such exercise shall
be duly and validly issued, fully paid, non-assessable and not subject to the
preemptive rights of any stockholder.  As
long as the Lead Investor’s Warrant shall be outstanding, the Company shall use
its best efforts to cause the Common Stock and Warrants to be listed (subject
to official notice of issuance) on all securities exchanges on which the Common
Stock issued to the public in connection herewith may then be listed or quoted.

13.           Notices to Lead Investor’s Warrant
Holders. Nothing contained in this Agreement shall be construed as
conferring upon the Holders the right to vote or to consent or to receive
notice as a stockholder in respect of any meetings of stockholders for the
election of directors or any other matter, or as having any rights whatsoever
as a stockholder of the Company. If, however, at any time prior to the
expiration of the Lead Investor’s Warrant and their exercise, any of the
following events shall occur:

(a)           the Company shall take a record of
the holders of its shares of Common Stock for the purpose of entitling them to
receive a dividend or distribution payable otherwise than in cash, or a cash
dividend or distribution payable otherwise than out of current or retained
earnings, as indicated by the accounting treatment of such dividend or
distribution on the books of the Company; or

(b)           the Company shall offer to all the
holders of its Common Stock any additional shares of capital stock of the
Company or securities convertible into or exchangeable for shares of capital
stock of the Company, or any option, right or warrant to subscribe therefor; or

(c)           a dissolution, liquidation or winding
up of the Company (other than in connection with a consolidation or merger) or
a sale of all or substantially all of its property, assets and business as an
entirety shall be proposed; then, in any one or more of said events, the
Company shall give written notice of such event at least fifteen (15) calendar
days prior to the date fixed as a record date or the date of closing the
transfer books for the determi­nation of the stockholders entitled to such
dividend, distribution, convertible or exchangeable securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of closing
the transfer books, as the case may be. 
Failure to give such notice or any defect therein shall not affect the
validity of any action taken in connection with the declaration or payment of
any such dividend, or the issuance of any convertible or exchangeable
securities, or subscription rights, options or warrants, or any proposed
dissolution, liquidation, winding up or sale.

 10
 

 

 

14.           Notices.  All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to have been
duly made when delivered, or five days after being mailed by registered or
certified mail, return receipt requested. 
If to the registered Holders of the Lead Investor’s Warrant, to the
address of such Holders as shown on the books of the Company; or if to the
Company to 420 Lexington Avenue, Suite 1701, New York, NY  10170, or to such other address as the
Company may designate by notice to the Holders.

15.           Supplements and Amendments.  The Company and the Lead Investor may from
time to time supplement or amend this Agree­ment without the approval of any
Holders of Lead Investor’s Warrant Certi­ficates (other than the Lead Investor)
in order to cure any ambiguity, to correct or supplement any provision
contained herein which may be defective or inconsistent with any provi­sions
herein, or to make any other provision in regard to matters or questions
arising hereunder which the Company and the Lead Investor may deem necessary or
desirable and which the Company and the Lead Investor deem shall not adversely
affect the interests of the Holders of Lead Investor’s Warrant Certificates.

16.           Successors.  All the covenants and provisions of this
Agreement shall be binding upon and inure to the benefit of the Company, the
Lead Investor, the Holders and their respective successors and assigns hereunder.

17.           Governing Law; Submission to
Jurisdiction. This Agreement and each Lead Investor’s Warrant Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of New York and for all purposes shall be construed in accordance with
the laws of said state without giving effect to the rules of said state
governing the conflicts of laws.

18.           Entire Agreement; Modification.  This Agreement (including the Underwriting
Agreement, to the extent portions thereof are referred to herein) contains the
entire understanding between the parties hereto with respect to the subject
matter hereof and thereof.  This
Agreement may not be modified or amended except by a writing duly signed by the
Company and the Holders of a Majority in Interest of the Lead Investor’s
Securities (for this purpose, treating all then outstanding Lead Investor’s
Warrants as if they had been exercised).

19.           Severability.  If any provision of this Agreement shall be
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of this Agreement.

20.           Captions.  The caption headings of the Sections of this
Agreement are for convenience of reference only and are not intended, nor
should they be construed as, a part of this Agreement and shall be given no
substantive effect.

21.           Benefits of this Agreement.  Nothing in this Agreement shall be construed
to give to any person or corporation other than the Company and the Lead
Investor and any other registered Holders of the Lead Investor’s Warrant
Certificates or Lead Investor’s Securities any legal or equitable right, remedy
or claim under this Agreement; and this Agreement shall be for the sole and 

 11
 

 

exclusive benefit
of the Company and the Lead Investor and any other Holders of the Lead Investor’s
Warrant Certificates or Lead Investor’s Securities.

22.           Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and such counter­parts shall together constitute but one and
the same instrument.

23.           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the Company, the Lead Investor and their respective
successors and assigns and the Holders from time to time of the Lead Investor’s
Warrant Certificates or any of them.

[Signature
on following page]

 12
 

 

 

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

	
   

  	
   

  	
  XENOMICS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Frederick Larcombe, CFO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Gian Luigi Buitoni

  

 

 13

 

Exhibit A

XENOMICS,
INC.

WARRANT
CERTIFICATE

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 (THE “ACT”), AND MAY NOT BE OFFERED FOR SALE OR SOLD EXCEPT
PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR (ii) AN
OPINION OF COUNSEL, IF SUCH OPINION AND COUNSEL SHALL BE REASONABLY
SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION
UNDER THE ACT IS AVAILABLE.

THE TRANSFER OR
EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN
ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

EXERCISABLE
COMMENCING NOVEMBER 30, 2006 THROUGH

5:30 P.M., NEW YORK TIME ON DECEMBER 31, 2007

No. LI-1

This Warrant
Certificate certifies that Gian Luigi Buitoni or registered assigns, is the
registered holder of this Warrant is entitled to purchase (subject to the
conditions of the Warrant Agreement) initially, at any time from November 30,
2006, until 5:30 p.m., New York time on December 31, 2007 (the “Expiration Date”),
up to 6,363, 636 units, each consisting of one share of Common Stock, $0.0001
par value (the “Common Stock”) and one Common Stock purchase warrant (the “Warrants”)
of  Xenomics, Inc. (the “Company”)
exercisable at an initial purchase price of $0.55 per share (the “Purchase
Price”), upon the surrender of this Warrant Certificate and payment of the
applicable Purchase Price at an office or agency of the Company, but subject to
the conditions set forth herein and in the Amended and Restated Warrant Agreement,
dated as of November 30, 2006, by and between the Company and Gian Luigi
Buitoni (the “Warrant Agreement”). 
Payment of the Purchase Price shall be made by certified or cashier’s
check or money order payable to the order of the Company, or surrender as
provided in the Warrant Agreement.

No Warrant may be
exercised after 5:30 p.m., New York time, on the Expiration Date, at which time
all Warrant evidenced hereby, unless exercised prior thereto, shall thereafter
be void.

The Warrant
evidenced by this Warrant Certificate is part of a duly authorized issue of
Warrants issued pursuant to the Warrant Agreement between the Company and the
Lead Investor, which Warrant Agreement is hereby incorporated by reference in
and made a part of this instrument and is hereby referred to for a description
of the rights, limitation of rights, obligations, duties and immunities
thereunder of the Company and the holders (the words “holders” or “holder”
meaning the registered holders or registered holder) of the Warrant.

 1
 

 

 

The Warrant
Agreement provides that upon the occurrence of certain events the Purchase
Price and the type and/or number of the Company’s securities issuable upon the
exercise of this Warrant, may, subject to certain conditions, be adjusted.  In such event, the Company will, at the
request of the holder, issue a new Warrant Certificate evidencing the
adjustment in the Purchase Price and the number and/or type of securities
issuable upon the exercise of the Warrant; provided, however, that the failure
of the Company to issue such new Warrant Certificates shall not in any way
change, alter, or otherwise impair, the rights of the holder as set forth in
the Warrant Agreement.

Upon due
presentment for registration of transfer of this Warrant Certificate at an office
or agency of the Company, a new Warrant Certificate or Warrant Certificates of
like tenor and evidencing in the aggregate a like number of Warrant shall be
issued to the transferee(s) in exchange as provided herein, without any charge
except for any tax or other governmental charge imposed in connection with such
transfer.

Upon the exercise
of less than all of the Warrants evidenced by this Certificate, the Company
shall forthwith issue to the holder hereof a new Warrant Certificate
representing such number of unexercised Warrants.

The Company may
deem and treat the registered holder(s) hereof as the absolute owner(s) of this
Warrant Certificate (notwithstanding any notation of ownership or other writing
hereon made by anyone), for the purpose of any exercise hereof, and of any
distribution to the holder(s) hereof, and for all other purposes, and the
Company shall not be affected by any notice to the contrary.

All terms used in
this Warrant Certificate which are defined in the Warrant Agreement shall have
the meanings assigned to them in the Warrant Agreement.

IN WITNESS
WHEREOF, the undersigned has executed this certificate this __ day of
___________, 200_.

	
  

  	
  XENOMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Frederick Larcombe, CFO

  

 

 2
 

 

 

FORM OF ASSIGNMENT

(To be executed by
the registered holder if such holder

desires to transfer the Warrant Certificate.)

FOR VALUE
RECEIVED_______________________________________

hereby sells,
assigns and transfers unto _________________________________

(Please print name
and address of transferee)

this Warrant
Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint _____________________ Attorney, to
transfer the within Warrant Certificate on the books of Xenomics, Inc., with
full power of substitution.

Dated:

	
  

  	
  Signature

  	
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must
  conform in all respects to the

  
	
   

  	
   

  	
  name of holder
  as specified on the face of the

  
	
   

  	
   

  	
  Warrant Certificate.)

  
	
   

  	
   

  	
   

  
	
  [Signature
  guarantee]

  	
   

  	
   

  
	
   

  	
   

  	
  (Insert Social
  Security or Other

  
	
   

  	
   

  	
  Identifying
  Number of Holders)

  

 

 3
 

 

 

FORM OF ELECTION TO PURCHASE

The undersigned
hereby irrevocably elects to exercise the right, represented by this Warrant
Certificate, to purchase ______ units and herewith tenders in payment for such
securities a certified or cashier’s check or money order payable to the order
of Xenomics, Inc. in the amount of $______, all in accordance with the terms
hereof.  The undersigned requests that
certificates for such securities be registered in the name of
__________________________________________ whose address is
__________________________________________________ and that such certificates
be delivered to ______________________________________________________________
whose address is ____________________________________________________________.

Dated:

Signature                                                                               

(Signature must
conform in all respects to the name of holder as specified on the face of the
Warrant Certificate.)

 

(Insert Social Security
or Other

Identifying Number of Holders)

[Signature
guarantee]

 

 4

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