Document:

SECURITY
      AGREEMENT

    

    This
      SECURITY AGREEMENT, dated as of May 30, 2008 (this “Agreement”),
      is
      among CryoPort,
      Inc., a Nevada corporation (the
      “Company”),
      all
      of the Subsidiaries of the Company
      (such
      subsidiaries,
      the
“Guarantors”
      and
      together with the Company,
      the
“Debtors”)
      and
      the holders of the Company’s Original Issue Discount 8% Secured Convertible
      Debentures due December 1, 2010, and issued on May 30, 2008 in the original
      aggregate principal amount of $1,250,000 
      (collectively, the “Debentures”)
      signatory hereto, their endorsees, transferees and assigns (collectively, the
      “Secured
      Parties”).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the Purchase Agreement (as defined in the Debentures), the Secured
      Parties have severally agreed to extend the loans to the Company evidenced
      by
      the Debentures;

    

    WHERAS,
      pursuant to the Purchase Agreement, except for the September Debentures (as
      defined in the Purchase Agreement), no Indebtedness (as defined in the Purchase
      Agreement) or other claim against the Company is senior to or pari passu with
      the Debentures in right of payment, whether with respect to interest or upon
      liquidation or dissolution, or otherwise, other than indebtedness secured by
      purchase money security interests (shich is senior only as to underlying assets
      covered thereby) and capital lease obligations (which is senior only as to
      the
      property covered thereby). 

    

    WHEREAS,
      pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the
      “Guarantee”),
      the
      Guarantors
      have
      jointly and severally agreed to guarantee and act as surety for payment of
      such
      Debentures; and

    

    WHEREAS,
      in order to induce the Secured Parties to extend the loans evidenced by the
      Debentures, each Debtor has agreed to execute and deliver to the Secured Parties
      this Agreement and to grant the Secured Parties, pari passu
      with
      each other Secured Party and through the Agent, a security interest which is
      junior only to that interest of the holders of the September Debentures in
      certain property of such Debtor to secure the prompt payment, performance and
      discharge in full of all of the Company’s obligations under the Debentures and
      the Guarantors’ obligations under the Guarantee.

    

    NOW,
      THEREFORE, in consideration of the agreements herein contained and for other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

    

    1.
       Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth in
      this
      Section 1. Terms used but not otherwise defined in this Agreement that are
      defined in Article 9 of the UCC (such as “account”, “chattel paper”, “commercial
      tort claim”, “deposit account”, “document”, “equipment”, “fixtures”, “general
      intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have
      the respective meanings given such terms in Article 9 of the UCC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)
       “Collateral”
means
      the collateral in which the Secured Parties are granted a security interest
      by
      this Agreement and which shall include the following personal property of the
      Debtors, whether presently owned or existing or hereafter acquired or coming
      into existence, wherever situated, and all additions and accessions thereto
      and
      all substitutions and replacements thereof, and all proceeds, products and
      accounts thereof, including, without limitation, all proceeds from the sale
      or
      transfer of the Collateral and of insurance covering the same and of any tort
      claims in connection therewith,
      and all
      dividends, interest, cash, notes, securities, equity interest or other property
      at any time and from time to time acquired, receivable or otherwise distributed
      in respect of, or in exchange for, any or all of the Pledged Securities (as
      defined below):

    

    (i)
      All
      goods, including, without limitation, (A) all machinery, equipment, computers,
      motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
      and
      general tools, fixtures, test and quality control devices and other equipment
      of
      every kind and nature and wherever situated, together with all documents of
      title and documents representing the same, all additions and accessions thereto,
      replacements therefor, all parts therefor, and all substitutes for any of the
      foregoing and all other items used and useful in connection with any Debtor’s
      businesses and all improvements thereto; and (B) all inventory;

    

    (ii)
       All
      contract rights and other general intangibles, including, without limitation,
      all partnership interests, membership interests, stock or other securities,
      rights
      under any of the Organizational Documents, agreements related to the Pledged
      Securities, licenses,
      distribution and other agreements, computer software (whether “off-the-shelf”,
      licensed from any third party or developed by any Debtor), computer software
      development rights, leases, franchises, customer lists, quality control
      procedures, grants and rights, goodwill, trademarks, service marks, trade
      styles, trade names, patents, patent applications, copyrights, and income tax
      refunds; 

     

    (iii)
       All
      accounts, together with all instruments, all documents of title representing
      any
      of the foregoing, all rights in any merchandising, goods, equipment, motor
      vehicles and trucks which any of the same may represent, and all right, title,
      security and guaranties with respect to each account, including any right of
      stoppage in transit; 

    

    (iv)
       All
      documents, letter-of-credit rights, instruments and chattel paper;

    

    (v) All
      commercial tort claims;

    

    (vi) All
      deposit accounts and all cash (whether or not deposited in such deposit
      accounts);

     

    
      
        
        

      

      
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    (vii) All
      investment property;

    

     (viii) All
      supporting obligations; and

    

    (ix) All
      files, records, books of account, business papers, and computer programs;
      and

    

    (x) the
      products and proceeds of all of the foregoing Collateral set forth in clauses
      (i)-(ix) above.

    

    Without
      limiting the generality of the foregoing, the “Collateral”
shall
      include all investment property and general intangibles respecting ownership
      and/or other equity interests in each Guarantor, including, without limitation,
      the shares of capital stock and the other equity interests listed on
Schedule
      H
      hereto
      (as the same may be modified from time to time pursuant to the terms hereof),
      and any other shares of capital stock and/or other equity interests of any
      other
      direct or indirect subsidiary of any Debtor obtained in the future, and, in
      each
      case, all certificates representing such shares and/or equity interests and,
      in
      each case, all rights, options, warrants, stock, other securities and/or equity
      interests that may hereafter be received, receivable or distributed in respect
      of, or exchanged for, any of the foregoing and all rights arising under or
      in
      connection with the Pledged Securities, including, but not limited to, all
      dividends, interest and cash.

     

    Notwithstanding
      the foregoing, nothing herein shall be deemed to constitute an assignment of
      any
      asset which, in the event of an assignment, becomes void by operation of
      applicable law or the assignment of which is otherwise prohibited by applicable
      law (in each case to the extent that such applicable law is not overridden
      by
      Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law);
      provided,
      however,
      that to
      the extent permitted by applicable law, this Agreement shall create a valid
      security interest in such asset and, to the extent permitted by applicable
      law,
      this Agreement shall create a valid security interest in the proceeds of such
      asset.

    

    (b)
       “Intellectual
      Property”
means
      the collective reference to all rights, priorities and privileges relating
      to
      intellectual property, whether arising under United States, multinational or
      foreign laws or otherwise, including, without limitation, (i) all copyrights
      arising under the laws of the United States, any other country or any political
      subdivision thereof, whether registered or unregistered and whether published
      or
      unpublished, all registrations and recordings thereof, and all applications
      in
      connection therewith, including, without limitation, all registrations,
      recordings and applications in the United States Copyright Office, (ii) all
      letters patent of the United States, any other country or any political
      subdivision thereof, all reissues and extensions thereof, and all applications
      for letters patent of the United States or any other country and all divisions,
      continuations and continuations-in-part thereof, (iii) all trademarks, trade
      names, corporate names, company names, business names, fictitious business
      names, trade dress, service marks, logos, domain names and other source or
      business identifiers, and all goodwill associated therewith, now existing or
      hereafter adopted or acquired, all registrations and recordings thereof, and
      all
      applications in connection therewith, whether in the United States Patent and
      Trademark Office or in any similar office or agency of the United States, any
      State thereof or any other country or any political subdivision thereof, or
      otherwise, and all common law rights related thereto, (iv) all trade secrets
      arising under the laws of the United States, any other country or any political
      subdivision thereof, (v) all rights to obtain any reissues, renewals or
      extensions of the foregoing, (vi) all licenses for any of the foregoing, and
      (vii) all causes of action for infringement of the foregoing.

     

    
      
        
        

      

      
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    (c) “Majority
      in Interest”
means,
      at any time of determination, the majority in interest (based on
      then-outstanding principal amounts of Debentures at the time of such
      determination) of the Secured Parties.

    

    (d) “Necessary
      Endorsement”
means
      undated stock powers endorsed in blank or other proper instruments of assignment
      duly executed and such other instruments or documents as the Agent (as that
      term
      is defined below) may reasonably request.

    

    (e)
       “Obligations”
means
      all of the liabilities
      and obligations (primary, secondary, direct, contingent, sole, joint or several)
      due or to become due, or that are now or may be hereafter contracted or
      acquired, or owing to, of any Debtor to the Secured Parties, including, without
      limitation, all
      obligations under this Agreement, the Debentures, the Guarantee and any other
      instruments, agreements or other documents executed and/or delivered in
      connection herewith or therewith, in each case, whether now or hereafter
      existing, voluntary or involuntary, direct or indirect, absolute or contingent,
      liquidated or unliquidated, whether or not jointly owed with others, and whether
      or not from time to time decreased or extinguished and later increased, created
      or incurred, and all or any portion of such obligations or liabilities that
      are
      paid, to the extent all or any part of such payment is avoided or recovered
      directly or indirectly from any of the Secured Parties as a preference,
      fraudulent transfer or otherwise as such obligations may be amended,
      supplemented, converted, extended or modified from time to time. Without
      limiting the generality of the foregoing, the term “Obligations” shall include,
      without limitation: (i) principal of, and interest on the Debentures and the
      loans extended pursuant thereto; (ii) any and all other fees, indemnities,
      costs, obligations and liabilities of the Debtors from time to time under or
      in
      connection with this Agreement, the Debentures, the Guarantee and any other
      instruments, agreements or other documents executed and/or delivered in
      connection herewith or therewith; and (iii) all amounts (including but not
      limited to post-petition interest) in respect of the foregoing that would be
      payable but for the fact that the obligations to pay such amounts are
      unenforceable or not allowable due to the existence of a bankruptcy,
      reorganization or similar proceeding involving any Debtor.

    

    (f)
       “Organizational
      Documents”
means
      with respect to any Debtor, the documents by which such Debtor was organized
      (such as a certificate of incorporation, certificate of limited partnership
      or
      articles of organization, and including, without limitation, any certificates
      of
      designation for preferred stock or other forms of preferred equity) and which
      relate to the internal governance of such Debtor (such as bylaws, a partnership
      agreement or an operating, limited liability or members agreement).

     

    
      
        
        

      

      
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    (g)
       “Pledged
      Securities”
shall
      have the meaning ascribed to such term in Section 4(i).

    

    (h) “UCC”
means
      the Uniform Commercial Code of the State of New York and or any other applicable
      law of any state or states which has jurisdiction with respect to all, or any
      portion of, the Collateral or this Agreement, from time to time. It is the
      intent of the parties that defined terms in the UCC should be construed in
      their
      broadest sense so that the term “Collateral” will be construed in its broadest
      sense. Accordingly if there are, from time to time, changes to defined terms
      in
      the UCC that broaden the definitions, they are incorporated herein and if
      existing definitions in the UCC are broader than the amended definitions, the
      existing ones shall be controlling. 

    

    2.
       Grant
      of Security Interest in Collateral.
      As an
      inducement for the Secured Parties to extend the loans as evidenced by the
      Debentures and to secure the complete and timely payment, performance and
      discharge in full, as the case may be, of all of the Obligations, each Debtor
      hereby unconditionally and irrevocably pledges, grants and hypothecates to
      the
      Secured Parties a security interest in and to, a lien upon and a right of
      set-off against all of their respective right, title and interest of whatsoever
      kind and nature in and to, the Collateral, which interest shall be subordinate
      to that of the holders of the September Debentures (a “Security
      Interest”
and,
      collectively, the “Security
      Interests”).

    

    3. Delivery
      of Certain Collateral.
      Contemporaneously or prior to the execution of this Agreement, each Debtor
      shall
      deliver or cause to be delivered to the Agent (a) any and all certificates
      and
      other instruments representing or evidencing the Pledged Securities, and (b)
      any
      and all certificates and other instruments or documents representing any of
      the
      other Collateral, in each case, together with all Necessary Endorsements. The
      Debtors are, contemporaneously with the execution hereof, delivering to Agent,
      or have previously delivered to Agent, a true and correct copy of each
      Organizational Document governing any of the Pledged Securities.

    

     4.  Representations,
      Warranties, Covenants and Agreements of the Debtors.
      Except
      as set forth under the corresponding section of the disclosure schedules
      delivered to the Secured Parties concurrently herewith (the “Disclosure
      Schedules”),
      which
      Disclosure Schedules shall be deemed a part hereof, each Debtor represents
      and
      warrants to, and covenants and agrees with, the Secured Parties as
      follows:

    

    (a)
      Each
      Debtor has the requisite corporate, partnership, limited liability company
      or
      other power and authority to enter into this Agreement and otherwise to carry
      out its obligations hereunder. The execution, delivery and performance by each
      Debtor of this Agreement and the filings contemplated therein have been duly
      authorized by all necessary action on the part of such Debtor and no further
      action is required by such Debtor. This Agreement has been duly executed by
      each
      Debtor. This Agreement constitutes the legal, valid and binding obligation
      of
      each Debtor, enforceable against each Debtor in accordance with its terms except
      as such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization and similar laws of general application relating to or affecting
      the rights and remedies of creditors and by general principles of
      equity.

     

    
      
        
        

      

      
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    (b)
       The
      Debtors have no place of business or offices where their respective books of
      account and records are kept (other than temporarily at the offices of its
      attorneys or accountants) or places where Collateral is stored or located,
      except as set forth on Schedule
      A
      attached
      hereto. Except as specifically set forth on Schedule
      A,
      each
      Debtor is the record owner of the real property where such Collateral is
      located, and there exist no mortgages or other liens on any such real property
      except for Permitted Liens (as defined in the Debentures). Except as disclosed
      on Schedule
      A,
      none of
      such Collateral is in the possession of any consignee, bailee, warehouseman,
      agent or processor.

    

    (c)
       Except
      for Permitted Liens (as defined in the Debentures) and except as set forth
      on
Schedule
      B
      attached
      hereto, the Debtors are the sole owner of the Collateral (except for
      non-exclusive licenses granted by any Debtor in the ordinary course of
      business), free and clear of any liens, security interests, encumbrances, rights
      or claims, and are fully authorized to grant the Security Interests. Except
      as
      set forth on Schedule
      B
      attached
      hereto, there is not on file in any governmental or regulatory authority, agency
      or recording office an effective financing statement, security agreement,
      license or transfer or any notice of any of the foregoing (other than those
      that
      will be filed in favor of the Secured Parties pursuant to this Agreement)
      covering or affecting any of the Collateral. Except as set forth on Schedule
      B
      attached
      hereto and except pursuant to this Agreement, as long as this Agreement shall
      be
      in effect, the Debtors shall not execute and shall not knowingly permit to
      be on
      file in any such office or agency any other financing statement or other
      document or instrument (except to the extent filed or recorded in favor of
      the
      Secured Parties pursuant to the terms of this Agreement).

    

    (d)
       No
      written claim has been received that any Collateral or Debtor's use of any
      Collateral violates the rights of any third party. There has been no adverse
      decision to any Debtor's claim of ownership rights in or exclusive rights to
      use
      the Collateral in any jurisdiction or to any Debtor's right to keep and maintain
      such Collateral in full force and effect, and there is no proceeding involving
      said rights pending or, to the best knowledge of any Debtor, threatened before
      any court, judicial body, administrative or regulatory agency, arbitrator or
      other governmental authority.

    

    (e)
       Each
      Debtor shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Parties at least 30 days prior
      to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) evidence that
      appropriate financing statements under the UCC and other necessary documents
      have been filed and recorded and other steps have been taken to perfect the
      Security Interests to create in favor of the Secured Parties a valid, perfected
      and continuing perfected first priority lien in the Collateral.

     

    
      
        
        

      

      
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    (f)
       This
      Agreement creates in favor of the Secured Parties a valid security interest
      in
      the Collateral, subject only to Permitted Liens (as defined in the Debentures)
      securing the payment and performance of the Obligations. Upon making the filings
      described in the immediately following paragraph, all security interests created
      hereunder in any Collateral which may be perfected by filing Uniform Commercial
      Code financing statements shall have been duly perfected. Except for the filing
      of the Uniform Commercial Code financing statements referred to in the
      immediately following paragraph, the recordation of the Intellectual Property
      Security Agreement (as defined below) with respect to copyrights and copyright
      applications in the United States Copyright Office referred to in paragraph
      (m),
the
      execution and delivery of deposit account control agreements satisfying the
      requirements of Section 9-104(a)(2) of the UCC with respect to each deposit
      account of the Debtors,
      and the
      delivery of the certificates and other instruments provided in Section
      3,
      no
      action is necessary to create, perfect or protect the security interests created
      hereunder. Without limiting the generality of the foregoing, except for the
      filing of said financing statements, the recordation of said Intellectual
      Property Security Agreement, and the execution and delivery of said deposit
      account control agreements, no consent of any third parties and no
      authorization, approval or other action by, and no notice to or filing with,
      any
      governmental authority or regulatory body is required for (i) the execution,
      delivery and performance of this Agreement, (ii) the creation or perfection
      of
      the Security Interests created hereunder in the Collateral or (iii) the
      enforcement of the rights of the Agent and the Secured Parties
      hereunder.

    

    (g)
       Each
      Debtor hereby authorizes the Agent to file one or more financing statements
      under the UCC, with respect to the Security Interests, with the proper filing
      and recording agencies in any jurisdiction deemed proper by it.

    

     (h)
       The
      execution, delivery and performance of this Agreement by the Debtors does not
      (i) violate any of the provisions of any Organizational Documents of any Debtor
      or any judgment, decree, order or award of any court, governmental body or
      arbitrator or any applicable law, rule or regulation applicable to any Debtor
      or
      (ii) conflict with, or constitute a default (or an event that with notice or
      lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation (with or without
      notice, lapse of time or both) of, any agreement, credit facility, debt or
      other
      instrument (evidencing any Debtor's debt or otherwise) or other understanding
      to
      which any Debtor is a party or by which any property or asset of any Debtor
      is
      bound or affected. If any, all required consents (including, without limitation,
      from stockholders or creditors of any Debtor) necessary for any Debtor to enter
      into and perform its obligations hereunder have been obtained.

    

     (i)
       The
      capital stock and other equity interests listed on Schedule
      H
      hereto
      (the “Pledged
      Securities”)
      represent all of the capital stock and other equity interests of the Guarantors,
      and represent all capital stock and other equity interests owned, directly
      or
      indirectly, by the Company. All of the Pledged Securities are validly issued,
      fully paid and nonassessable, and the Company is the legal and beneficial owner
      of the Pledged Securities, free and clear of any lien, security interest or
      other encumbrance except for the security interests created by this Agreement
      and other Permitted Liens (as defined in the Debentures). 

     

    
      
        
        

      

      
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    (j)
       The
      ownership and other equity interests in partnerships and limited liability
      companies (if any)
      included
      in the Collateral
      (the
“Pledged
      Interests”)
      by
      their express terms do not provide that they are securities governed by Article
      8 of the UCC and are not held in a securities account or by any financial
      intermediary.

    

    (k)
       Except
      for Permitted Liens (as defined in the Debentures), each Debtor shall at all
      times maintain the liens and Security Interests provided for hereunder as valid
      and perfected first priority liens and security interests in the Collateral
      in
      favor of the Secured Parties until this Agreement and the Security Interest
      hereunder shall be terminated pursuant to Section 11 hereof. Each Debtor hereby
      agrees to defend the same against the claims of any and all persons and
      entities. Each Debtor shall safeguard and protect all Collateral for the account
      of the Secured Parties. At the request of the Agent, each Debtor will sign
      and
      deliver to the Agent on behalf of the Secured Parties at any time or from time
      to time one or more financing statements pursuant to the UCC in form reasonably
      satisfactory to the Agent and will pay the cost of filing the same in all public
      offices wherever filing is, or is deemed by the Agent to be, necessary or
      desirable to effect the rights and obligations provided for herein. Without
      limiting the generality of the foregoing, each Debtor shall pay all fees, taxes
      and other amounts necessary to maintain the Collateral and the Security
      Interests hereunder, and each Debtor shall obtain and furnish to the Agent
      from
      time to time, upon demand, such releases and/or subordinations of claims and
      liens which may be required to maintain the priority of the Security Interests
      hereunder.

    

    (l)
       No
      Debtor
      will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose
      of any of the Collateral (except for non-exclusive licenses granted by a Debtor
      in its ordinary course of business and sales of inventory by a Debtor in its
      ordinary course of business) without the prior written consent of a Majority
      in Interest.

    

    (m) Each
      Debtor shall keep and preserve its equipment, inventory and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

     

    
      
        
        

      

      
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    (n) Each
      Debtor shall maintain with financially sound and reputable insurers, insurance
      with respect to the Collateral, including Collateral hereafter acquired, against
      loss or damage of the kinds and in the amounts customarily insured against
      by
      entities of established reputation having similar properties similarly situated
      and in such amounts as are customarily carried under similar circumstances
      by
      other such entities and otherwise as is prudent for entities engaged in similar
      businesses but in any event sufficient to cover the full replacement cost
      thereof. Each Debtor shall cause each insurance policy issued in connection
      herewith to provide, and the insurer issuing such policy to certify to the
      Agent, that (a) the Agent will be named as lender loss payee and additional
      insured under each such insurance policy; (b) if such insurance be proposed
      to
      be cancelled or materially changed for any reason whatsoever, such insurer
      will
      promptly notify the Agent and such cancellation or change shall not be effective
      as to the Agent for at least thirty (30) days after receipt by the Agent of
      such
      notice, unless the effect of such change is to extend or increase coverage
      under
      the policy; and (c) the Agent will have the right (but no obligation) at its
      election to remedy any default in the payment of premiums within thirty (30)
      days of notice from the insurer of such default. If no Event of Default (as
      defined in the Debentures) exists and if the proceeds arising out of any claim
      or series of related claims do not exceed $100,000, loss payments in each
      instance will be applied by the applicable Debtor to the repair and/or
      replacement of property with respect to which the loss was incurred to the
      extent reasonably feasible, and any loss payments or the balance thereof
      remaining, to the extent not so applied, shall be payable to the applicable
      Debtor; provided,
      however,
      that
      payments received by any Debtor after an Event of Default occurs and is
      continuing or in excess of $100,000 for any occurrence or series of related
      occurrences shall be paid to the Agent on behalf of the Secured Parties and,
      if
      received by such Debtor, shall be held in trust for the Secured Parties and
      immediately paid over to the Agent unless otherwise directed in writing by
      the
      Agent. Copies of such policies or the related certificates, in each case, naming
      the Agent as lender loss payee and additional insured shall be delivered to
      the
      Agent at least annually and at the time any new policy of insurance is
      issued.

    

    (o)
       Each
      Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the
      Secured Parties promptly, in sufficient detail, of any material adverse change
      in the Collateral, and of the occurrence of any event which would have a
      material adverse effect on the value of the Collateral or on the Secured
      Parties’ security interest, through the Agent, therein.

    

    (p)
       Each
      Debtor shall promptly execute and deliver to the Agent such further deeds,
      mortgages, assignments, security agreements, financing statements or other
      instruments, documents, certificates and assurances and take such further action
      as the Agent may from time to time request and may in its sole discretion deem
      necessary to perfect, protect or enforce the Secured Parties’ security interest
      in the Collateral including, without limitation, if applicable, the execution
      and delivery of a separate security agreement with respect to each Debtor’s
      Intellectual Property (“Intellectual
      Property Security Agreement”)
      in
      which the Secured Parties have been granted a security interest hereunder,
      substantially in a form reasonably acceptable to the Agent, which Intellectual
      Property Security Agreement, other than as stated therein, shall be subject
      to
      all of the terms and conditions hereof.

    

    (q)
       Each
      Debtor shall permit the Agent and its representatives and agents to inspect
      the
      Collateral during normal business hours and upon reasonable prior notice, and
      to
      make copies of records pertaining to the Collateral as may be reasonably
      requested by the Agent from time to time.

     

    
      
        
        

      

      
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    (r)
       Each
      Debtor shall take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

    

    (s)
       Each
      Debtor shall promptly notify the Secured Parties in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by such
      Debtor that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Parties
      hereunder.

    

    (t)
       All
      information heretofore, herein or hereafter supplied to the Secured Parties
      by
      or on behalf of any Debtor with respect to the Collateral is accurate and
      complete in all material respects as of the date furnished.

    

    (u)
       The
      Debtors shall at all times preserve and keep in full force and effect their
      respective valid existence and good standing and any rights and franchises
      material to its business.

    

    (v)
       No
      Debtor
      will change its name, type of organization, jurisdiction of organization,
      organizational identification number (if it has one), legal or corporate
      structure, or identity, or add any new fictitious name unless it provides at
      least 30 days prior written notice to the Secured Parties of such change and,
      at
      the time of such written notification, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue the perfection
      of the Security Interests granted and evidenced by this Agreement.

    

    (w) Except
      in
      the ordinary course of business, no Debtor may consign any of its inventory
      or
      sell any of its inventory on bill and hold, sale or return, sale on approval,
      or
      other conditional terms of sale without the consent of the
      Agent
      which shall not be unreasonably withheld.

    

    (x)
       No
      Debtor
      may relocate its chief executive office to a new location without providing
      30
      days prior written notification thereof to the Secured Parties and so long
      as,
      at the time of such written notification, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue the perfection
      of the Security Interests granted and evidenced by this Agreement.

    

    (y) Each
      Debtor was organized and remains organized solely under the laws of the state
      set forth next to such Debtor’s name in Schedule
      D
      attached
      hereto, which Schedule
      D
      sets
      forth each Debtor’s organizational identification number or, if any Debtor does
      not have one, states that one does not exist.

    

    (z) 
      (i) The
      actual name of each Debtor is the name set forth in Schedule
      D
      attached
      hereto; (ii) no Debtor has any trade names except as set forth on Schedule
      E
      attached
      hereto; (iii) no Debtor has used any name other than that stated in the preamble
      hereto or as set forth on Schedule
      E
      for the
      preceding five years; and (iv) no entity has merged into any Debtor or been
      acquired by any Debtor within the past five years except as set forth on
Schedule
      E.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (aa) At
      any
      time and from time to time that any Collateral consists of instruments,
      certificated securities or other items that require or permit possession by
      the
      secured party to perfect the security interest created hereby, the applicable
      Debtor shall deliver such Collateral to the Agent.

    

    (bb)
       Each
      Debtor, in its capacity as issuer, hereby agrees to comply with any and all
      orders and instructions of Agent regarding the Pledged Interests consistent
      with
      the terms of this Agreement without the further consent of any Debtor as
      contemplated by Section 8-106 (or any successor section) of the UCC. Further,
      each Debtor agrees that it shall not enter into a similar agreement (or one
      that
      would confer “control” within the meaning of Article 8 of the UCC) with any
      other person or entity.

     

    (cc) Each
      Debtor shall cause all tangible chattel paper constituting Collateral to be
      delivered to the Agent, or, if such delivery is not possible, then to cause
      such
      tangible chattel paper to contain a legend noting that it is subject to the
      security interest created by this Agreement. To the extent that any Collateral
      consists of electronic chattel paper, the applicable Debtor shall cause the
      underlying chattel paper to be “marked” within the meaning of Section 9-105 of
      the UCC (or successor section thereto).

    

    (dd) If
      there
      is any investment property or deposit account included as Collateral that can
      be
      perfected by “control” through an account control agreement, the applicable
      Debtor shall cause such an account control agreement, in form and substance
      in
      each case satisfactory to the Agent, to be entered into and delivered to the
      Agent for the benefit of the Secured Parties.

    

    (ee)
       To
      the
      extent that any Collateral consists of letter-of-credit rights, the applicable
      Debtor shall cause the issuer of each underlying letter of credit to consent
      to
      an assignment of the proceeds thereof to the Secured Parties.

    

    (ff)
       To
      the
      extent that any Collateral is in the possession of any third party, the
      applicable Debtor shall join with the Agent in notifying such third party of
      the
      Secured Parties’ security interest in such Collateral and shall use its best
      efforts to obtain an acknowledgement and agreement from such third party with
      respect to the Collateral, in form and substance reasonably satisfactory to
      the
      Agent.

    

    (gg) If
      any
      Debtor shall at any time hold or acquire a commercial tort claim, such Debtor
      shall promptly notify the Secured Parties in a writing signed by such Debtor
      of
      the particulars thereof and grant to the Secured Parties in such writing a
      security interest therein and in the proceeds thereof, all upon the terms of
      this Agreement, with such writing to be in form and substance satisfactory
      to
      the Agent.

    

    (hh) Each
      Debtor shall immediately provide written notice to the Secured Parties of any
      and all accounts which arise out of contracts with any governmental authority
      and, to the extent necessary to perfect or continue the perfected status of
      the
      Security Interests in such accounts and proceeds thereof, shall execute and
      deliver to the Agent an assignment of claims for such accounts and cooperate
      with the Agent in taking any other steps required, in its judgment, under the
      Federal Assignment of Claims Act or any similar federal, state or local statute
      or rule to perfect or continue the perfected status of the Security Interests
      in
      such accounts and proceeds thereof.

     

    
      
        
        

      

      
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    (ii) Each
      Debtor shall cause each subsidiary
      of such
      Debtor to immediately become a party hereto (an “Additional
      Debtor”),
      by
      executing and delivering an Additional Debtor Joinder in substantially the
      form
      of Annex
      A
      attached
      hereto and comply with the provisions hereof applicable to the Debtors.
      Concurrent therewith, the Additional Debtor shall deliver replacement schedules
      for, or supplements to all other Schedules to (or referred to in) this
      Agreement, as applicable, which replacement schedules shall supersede, or
      supplements shall modify, the Schedules then in effect. The Additional Debtor
      shall also deliver such opinions of counsel, authorizing resolutions, good
      standing certificates, incumbency certificates, organizational documents,
      financing statements and other information and documentation as the Agent may
      reasonably request. Upon delivery of the foregoing to the Agent, the Additional
      Debtor shall be and become a party to this Agreement with the same rights and
      obligations as the Debtors, for all purposes hereof as fully and to the same
      extent as if it were an original signatory hereto and shall be deemed to have
      made the representations, warranties and covenants set forth herein as of the
      date of execution and delivery of such Additional Debtor Joinder, and all
      references herein to the “Debtors” shall be deemed to include each Additional
      Debtor.

    

    (jj)
       Each
      Debtor shall vote the Pledged Securities to comply with the covenants and
      agreements set forth herein and in the Debentures.

    

    (kk) Each
      Debtor shall register the pledge of the applicable Pledged Securities on the
      books of such Debtor. Each Debtor shall notify each issuer of Pledged Securities
      to register the pledge of the applicable Pledged Securities in the name of
      the
      Secured Parties on the books of such issuer. Further, except with respect to
      certificated securities delivered to the Agent, the applicable Debtor shall
      deliver to Agent an acknowledgement of pledge (which, where appropriate, shall
      comply with the requirements of the relevant UCC with respect to perfection
      by
      registration) signed by the issuer of the applicable Pledged Securities, which
      acknowledgement shall confirm that: (a) it has registered the pledge on its
      books and records; and (b) at any time directed by Agent during the continuation
      of an Event of Default, such issuer will transfer the record ownership of such
      Pledged Securities into the name of any designee of Agent, will take such steps
      as may be necessary to effect the transfer, and will comply with all other
      instructions of Agent regarding such Pledged Securities without the further
      consent of the applicable Debtor.

    

    (ll)
      In
      the
      event that, upon an occurrence of an Event of Default, Agent shall sell all
      or
      any of the Pledged Securities to another party or parties (herein called the
      “Transferee”)
      or
      shall purchase or retain all or any of the Pledged Securities, each Debtor
      shall, to the extent applicable: (i) deliver to Agent or the Transferee, as
      the
      case may be, the articles of incorporation, bylaws, minute books, stock
      certificate books, corporate seals, deeds, leases, indentures, agreements,
      evidences of indebtedness, books of account, financial records and all other
      Organizational Documents and records of the Debtors and their direct and
      indirect subsidiaries; (ii) use its best efforts to obtain resignations of
      the
      persons then serving as officers and directors of the Debtors and their direct
      and indirect subsidiaries, if so requested; and (iii) use its best efforts
      to
      obtain any approvals that are required by any governmental or regulatory body
      in
      order to permit the sale of the Pledged Securities to the Transferee or the
      purchase or retention of the Pledged Securities by Agent and allow the
      Transferee or Agent to continue the business of the Debtors and their direct
      and
      indirect subsidiaries.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (mm) Without
      limiting the generality of the other obligations of the Debtors hereunder,
      each
      Debtor shall promptly (i) cause to be registered at the United States Copyright
      Office all of its material copyrights, (ii) cause the security interest
      contemplated hereby with respect to all Intellectual Property registered at
      the
      United States Copyright Office or United States Patent and Trademark Office
      to
      be duly recorded at the applicable office, and (iii) give the Agent notice
      whenever it acquires (whether absolutely or by license) or creates any
      additional material Intellectual Property.

    

    (nn) Each
      Debtor will from time to time, at the joint and several expense of the Debtors,
      promptly execute and deliver all such further instruments and documents, and
      take all such further action as may be necessary or desirable, or as the Agent
      may reasonably request, in order to perfect and protect any security interest
      granted or purported to be granted hereby or to enable the Secured Parties
      to
      exercise and enforce their rights and remedies hereunder and with respect to
      any
      Collateral or to otherwise carry out the purposes of this
      Agreement.

    

    (oo) Schedule
      F
      attached
      hereto lists all of the patents, patent applications, trademarks, trademark
      applications, registered copyrights, and domain names owned by any of the
      Debtors as of the date hereof. Schedule
      F
      lists
      all material licenses in favor of any Debtor for the use of any patents,
      trademarks, copyrights and domain names as of the date hereof. All material
      patents and trademarks of the Debtors have been duly recorded at the United
      States Patent and Trademark Office and all material copyrights of the Debtors
      have been duly recorded at the United States Copyright Office.

    

    (pp) Except
      as
      set forth on Schedule
      G
      attached
      hereto, none of the account debtors or other persons or entities obligated
      on
      any of the Collateral is a governmental authority covered by the Federal
      Assignment of Claims Act or any similar federal, state or local statute or
      rule
      in respect of such Collateral.

    

    5. Effect
      of Pledge on Certain Rights. If
      any of
      the Collateral subject to this Agreement consists of nonvoting equity or
      ownership interests (regardless of class, designation, preference or rights)
      that may be converted into voting equity or ownership interests upon the
      occurrence of certain events (including, without limitation, upon the transfer
      of all or any of the other stock or assets of the issuer), it is agreed that
      the
      pledge of such equity or ownership interests pursuant to this Agreement or
      the
      enforcement of any of Agent’s rights hereunder shall not be deemed to be the
      type of event which would trigger such conversion rights notwithstanding any
      provisions in the Organizational Documents or agreements to which any Debtor
      is
      subject or to which any Debtor is party.

     

    
      
        
        

      

      
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    6.
       Defaults.
      The
      following events shall be “Events
      of Default”:

    

    (a)
      The
      occurrence of an Event of Default (as defined in the Debentures) under the
      Debentures;

    

    (b)
      Any
      representation or warranty of any Debtor in this Agreement shall prove to have
      been incorrect in any material respect when made;

    

    (c)
      The
      failure by any Debtor to observe or perform any of its obligations hereunder
      for
      five (5) days after delivery to such Debtor of notice of such failure by or
      on
      behalf of a Secured Party unless such default is capable of cure but cannot
      be
      cured within such time frame and such Debtor is using best efforts to cure
      same
      in a timely fashion; or

    

    (d)
      If
      any provision of this Agreement shall at any time for any reason be declared
      to
      be null and void, or the validity or enforceability thereof shall be contested
      by any Debtor, or a proceeding shall be commenced by any Debtor, or by any
      governmental authority having jurisdiction over any Debtor, seeking to establish
      the invalidity or unenforceability thereof, or any Debtor shall deny that any
      Debtor has any liability or obligation purported to be created under this
      Agreement.

    

     7.  Duty
      To Hold In Trust.
      

    

    (a) Upon
      the
      occurrence of any Event of Default and at any time thereafter, each Debtor
      shall, upon receipt of any revenue, income,
      dividend, interest
      or other
      sums subject to the Security Interests, whether payable pursuant to the
      Debentures or otherwise, or of any check, draft, note, trade acceptance or
      other
      instrument evidencing an obligation to pay any such sum, hold the same in trust
      for the Secured Parties and shall forthwith endorse and transfer any such sums
      or instruments, or both, to the Secured Parties, pro-rata in proportion to
      their
      respective then-currently outstanding principal amount of Debentures for
      application to the satisfaction of the Obligations (and if any Debenture is
      not
      outstanding, pro-rata in proportion to the initial purchases of the remaining
      Debentures). 

    

    (b) If
      any
      Debtor shall become entitled to receive or shall receive any securities or
      other
      property (including, without limitation, shares of Pledged Securities or
      instruments representing Pledged Securities acquired after the date hereof,
      or
      any options, warrants, rights or other similar property or certificates
      representing a dividend, or any distribution in connection with any
      recapitalization, reclassification or increase or reduction of capital, or
      issued in connection with any reorganization of such Debtor or any of its direct
      or indirect subsidiaries) in respect of the Pledged Securities (whether as
      an
      addition to, in substitution of, or in exchange for, such Pledged Securities
      or
      otherwise), such Debtor agrees to (i) accept the same as the agent of the
      Secured Parties; (ii) hold the same in trust on behalf of and for the benefit
      of
      the Secured Parties; and (iii) to deliver any and all certificates or
      instruments evidencing the same to Agent on or before the close of business
      on
      the fifth business day following the receipt thereof by such Debtor, in the
      exact form received together with the Necessary Endorsements, to be held by
      Agent subject to the terms of this Agreement as Collateral.

     

    
      
        
        

      

      
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     8.  Rights
      and Remedies Upon Default.
      

    

    (a) Upon
      the
      occurrence of any Event of Default and at any time thereafter, the Secured
      Parties, acting through the Agent, shall have the right to exercise all of
      the
      remedies conferred hereunder and under the Debentures, and the Secured Parties
      shall have all the rights and remedies of a secured party under the UCC. Without
      limitation, the Agent, for the benefit of the Secured Parties, shall have the
      following rights and powers:

    

    (i)
      The
      Agent shall have the right to take possession of the Collateral and, for that
      purpose, enter, with the aid and assistance of any person, any premises where
      the Collateral, or any part thereof, is or may be placed and remove the same,
      and each Debtor shall assemble the Collateral and make it available to the
      Agent
      at places which the Agent shall reasonably select, whether at such Debtor's
      premises or elsewhere, and make available to the Agent, without rent, all of
      such Debtor’s respective premises and facilities for the purpose of the Agent
      taking possession of, removing or putting the Collateral in saleable or
      disposable form.

    

    (ii) Upon
      notice to the Debtors by Agent, all rights of each Debtor to exercise the voting
      and other consensual rights which it would otherwise be entitled to exercise
      and
      all rights of each Debtor to receive the dividends and interest which it would
      otherwise be authorized to receive and retain, shall cease. Upon such notice,
      Agent shall have the right to receive, for the benefit of the Secured Parties,
      any interest, cash dividends or other payments on the Collateral and, at the
      option of Agent, to exercise in such Agent’s discretion all voting rights
      pertaining thereto. Without limiting the generality of the foregoing, Agent
      shall have the right (but not the obligation) to exercise all rights with
      respect to the Collateral as it were the sole and absolute owner thereof,
      including, without limitation, to vote and/or to exchange, at its sole
      discretion, any or all of the Collateral in connection with a merger,
      reorganization, consolidation, recapitalization or other readjustment concerning
      or involving the Collateral or any Debtor or any of its direct or indirect
      subsidiaries.

    

    (iii)
      The
      Agent shall have the right to operate the business of each Debtor using the
      Collateral and shall have the right to assign, sell, lease or otherwise dispose
      of and deliver all or any part of the Collateral, at public or private sale
      or
      otherwise, either with or without special conditions or stipulations, for cash
      or on credit or for future delivery, in such parcel or parcels and at such
      time
      or times and at such place or places, and upon such terms and conditions as
      the
      Agent may deem commercially reasonable, all without (except as shall be required
      by applicable statute and cannot be waived) advertisement or demand upon or
      notice to any Debtor or right of redemption of a Debtor, which are hereby
      expressly waived. Upon each such sale, lease, assignment or other transfer
      of
      Collateral, the Agent, for the benefit of the Secured Parties, may, unless
      prohibited by applicable law which cannot be waived, purchase all or any part
      of
      the Collateral being sold, free from and discharged of all trusts, claims,
      right
      of redemption and equities of any Debtor, which are hereby waived and
      released.

     

    
      
        
        

      

      
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    (iv) The
      Agent
      shall have the right (but not the obligation) to notify any account debtors
      and
      any obligors under instruments or accounts to make payments directly to the
      Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights
      against such account debtors and obligors.

    

    (v) The
      Agent, for the benefit of the Secured Parties, may (but is not obligated to)
      direct any financial intermediary or any other person or entity holding any
      investment property to transfer the same to the Agent, on behalf of the Secured
      Parties, or its designee.

    

    (vi) The
      Agent
      may (but is not obligated to) transfer any or all Intellectual Property
      registered in the name of any Debtor at the United States Patent and Trademark
      Office and/or Copyright Office into the name of the Secured Parties or any
      designee or any purchaser of any Collateral.

    

    (b) The
      Agent
      shall comply with any applicable law in connection with a disposition of
      Collateral and such compliance will not be considered adversely to affect the
      commercial reasonableness of any sale of the Collateral. The Agent may sell
      the
      Collateral without giving any warranties and may specifically disclaim such
      warranties. If the Agent sells any of the Collateral on credit, the Debtors
      will
      only be credited with payments actually made by the purchaser. In addition,
      each
      Debtor waives any and all rights that it may have to a judicial hearing in
      advance of the enforcement of any of the Agent’s rights and remedies hereunder,
      including, without limitation, its right following an Event of Default to take
      immediate possession of the Collateral and to exercise its rights and remedies
      with respect thereto.

     

    (c) For
      the
      purpose of enabling the Agent to further exercise rights and remedies under
      this
      Section 8 or elsewhere provided by agreement or applicable law, each Debtor
      hereby grants to the Agent, for the benefit of the Agent and the Secured
      Parties, an irrevocable, nonexclusive license (exercisable without payment
      of
      royalty or other compensation to such Debtor) to use, license or sublicense
      following an Event of Default, any Intellectual Property now owned or hereafter
      acquired by such Debtor, and wherever the same may be located, and including
      in
      such license access to all media in which any of the licensed items may be
      recorded or stored and to all computer software and programs used for the
      compilation or printout thereof.

     

    
      
        
        

      

      
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     9.  Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder or from payments made on account of any insurance policy insuring
      any
      portion of the Collateral shall be applied first, to the expenses of retaking,
      holding, storing, processing and preparing for sale, selling, and the like
      (including, without limitation, any taxes, fees and other costs incurred in
      connection therewith) of the Collateral, to the reasonable attorneys’ fees and
      expenses incurred by the Agent in enforcing the Secured Parties’ rights
      hereunder and in connection with collecting, storing and disposing of the
      Collateral, and then to satisfaction of the Obligations pro rata among the
      Secured Parties (based on then-outstanding principal amounts of Debentures
      at
      the time of any such determination), and to the payment of any other amounts
      required by applicable law, after which the Secured Parties shall pay to the
      applicable Debtor any surplus proceeds. If, upon the sale, license or other
      disposition of the Collateral, the proceeds thereof are insufficient to pay
      all
      amounts to which the Secured Parties are legally entitled, the Debtors will
      be
      liable for the deficiency, together with interest thereon, at the rate of 18%
      per annum or the lesser amount permitted by applicable law (the “Default Rate”),
      and the reasonable fees of any attorneys employed by the Secured Parties to
      collect such deficiency. To the extent permitted by applicable law, each Debtor
      waives all claims, damages and demands against the Secured Parties arising
      out
      of the repossession, removal, retention or sale of the Collateral, unless due
      solely to the gross negligence or willful misconduct of the Secured Parties
      as
      determined by a final judgment (not subject to further appeal) of a court of
      competent jurisdiction.

    

    10. Securities
      Law Provision.
      Each
      Debtor recognizes that Agent may be limited in its ability to effect a sale
      to
      the public of all or part of the Pledged Securities by reason of certain
      prohibitions in the Securities Act of 1933, as amended, or other federal or
      state securities laws (collectively, the “Securities
      Laws”),
      and
      may be compelled to resort to one or more sales to a restricted group of
      purchasers who may be required to agree to acquire the Pledged Securities for
      their own account, for investment and not with a view to the distribution or
      resale thereof. Each Debtor agrees that sales so made may be at prices and
      on
      terms less favorable than if the Pledged Securities were sold to the public,
      and
      that Agent has no obligation to delay the sale of any Pledged Securities for
      the
      period of time necessary to register the Pledged Securities for sale to the
      public under the Securities Laws. Each Debtor shall cooperate with Agent in
      its
      attempt to satisfy any requirements under the Securities Laws (including,
      without limitation, registration thereunder if requested by Agent) applicable
      to
      the sale of the Pledged Securities by Agent.

     

     11.  Costs
      and Expenses.
      Each
      Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses
      incurred in connection with any filing required hereunder, including without
      limitation, any financing statements pursuant to the UCC, continuation
      statements, partial releases and/or termination statements related thereto
      or
      any expenses of any searches reasonably required by the Agent. The Debtors
      shall
      also pay all other claims and charges which in the reasonable opinion of the
      Agent is reasonably likely to prejudice, imperil or otherwise affect the
      Collateral or the Security Interests therein. The Debtors will also, upon
      demand, pay to the Agent the amount of any and all reasonable expenses,
      including the reasonable fees and expenses of its counsel and of any experts
      and
      agents, which the Agent, for the benefit of the Secured Parties, may incur
      in
      connection with (i) the enforcement of this Agreement, (ii) the custody or
      preservation of, or the sale of, collection from, or other realization upon,
      any
      of the Collateral, or (iii) the exercise or enforcement of any of the rights
      of
      the Secured Parties under the Debentures. Until so paid, any fees payable
      hereunder shall be added to the principal amount of the Debentures and shall
      bear interest at the Default Rate.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     12.  Responsibility
      for Collateral.
      The
      Debtors assume all liabilities and responsibility in connection with all
      Collateral, and the Obligations shall in no way be affected or diminished by
      reason of the loss, destruction, damage or theft of any of the Collateral or
      its
      unavailability for any reason. Without limiting the generality of the foregoing,
      (a) neither the Agent nor any Secured Party (i) has any duty (either before
      or
      after an Event of Default) to collect any amounts in respect of the Collateral
      or to preserve any rights relating to the Collateral, or (ii) has any obligation
      to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor
      shall remain obligated and liable under each contract or agreement included
      in
      the Collateral to be observed or performed by such Debtor thereunder. Neither
      the Agent nor any Secured Party shall have any obligation or liability under
      any
      such contract or agreement by reason of or arising out of this Agreement or
      the
      receipt by the Agent or any Secured Party of any payment relating to any of
      the
      Collateral, nor shall the Agent or any Secured Party be obligated in any manner
      to perform any of the obligations of any Debtor under or pursuant to any such
      contract or agreement, to make inquiry as to the nature or sufficiency of any
      payment received by the Agent or any Secured Party in respect of the Collateral
      or as to the sufficiency of any performance by any party under any such contract
      or agreement, to present or file any claim, to take any action to enforce any
      performance or to collect the payment of any amounts which may have been
      assigned to the Agent or to which the Agent or any Secured Party may be entitled
      at any time or times.

    

    13.  Security
      Interests Absolute.
      All
      rights of the Secured Parties and all obligations of the Debtors hereunder,
      shall be absolute and unconditional, irrespective of: (a) any lack of validity
      or enforceability of this Agreement, the Debentures or any agreement entered
      into in connection with the foregoing, or any portion hereof or thereof; (b)
      any
      change in the time, manner or place of payment or performance of, or in any
      other term of, all or any of the Obligations, or any other amendment or waiver
      of or any consent to any departure from the Debentures or any other agreement
      entered into in connection with the foregoing; (c) any exchange, release or
      nonperfection of any of the Collateral, or any release or amendment or waiver
      of
      or consent to departure from any other collateral for, or any guarantee, or
      any
      other security, for all or any of the Obligations; (d) any action by the Secured
      Parties to obtain, adjust, settle and cancel in its sole discretion any
      insurance claims or matters made or arising in connection with the Collateral;
      or (e) any other circumstance which might otherwise constitute any legal or
      equitable defense available to a Debtor, or a discharge of all or any part
      of
      the Security Interests granted hereby. Until the Obligations shall have been
      paid and performed in full, the rights of the Secured Parties shall continue
      even if the Obligations are barred for any reason, including, without
      limitation, the running of the statute of limitations or bankruptcy. Each Debtor
      expressly waives presentment, protest, notice of protest, demand, notice of
      nonpayment and demand for performance. In the event that at any time any
      transfer of any Collateral or any payment received by the Secured Parties
      hereunder shall be deemed by final order of a court of competent jurisdiction
      to
      have been a voidable preference or fraudulent conveyance under the bankruptcy
      or
      insolvency laws of the United States, or shall be deemed to be otherwise due
      to
      any party other than the Secured Parties, then, in any such event, each Debtor’s
      obligations hereunder shall survive cancellation of this Agreement, and shall
      not be discharged or satisfied by any prior payment thereof and/or cancellation
      of this Agreement, but shall remain a valid and binding obligation enforceable
      in accordance with the terms and provisions hereof. Each Debtor waives all
      right
      to require the Secured Parties to proceed against any other person or
entity
      or
to
      apply
      any Collateral which the Secured Parties may hold at any time, or to marshal
      assets, or to pursue any other remedy. Each Debtor waives any defense arising
      by
      reason of the application of the statute of limitations to any obligation
      secured hereby.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

     14.
       Term
      of Agreement.
      This
      Agreement and the Security Interests shall terminate on the date on which all
      payments under the Debentures have been indefeasibly paid in full and all other
      Obligations have been paid or discharged; provided, however, that all
      indemnities of the Debtors contained in this Agreement (including, without
      limitation, Annex B hereto) shall survive and remain operative and in full
      force
      and effect regardless of the termination of this Agreement.

    

    15.
       Power
      of Attorney; Further Assurances.

    

    (a)
       Each
      Debtor authorizes the Agent, and does hereby make, constitute and appoint the
      Agent and its officers, agents, successors or assigns with full power of
      substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in
      the name of the Agent or such Debtor, to, after the occurrence and during the
      continuance of an Event of Default, (i) endorse any note, checks, drafts, money
      orders or other instruments of payment (including payments payable under or
      in
      respect of any policy of insurance) in respect of the Collateral that may come
      into possession of the Agent; (ii) to sign and endorse any financing statement
      pursuant to the UCC or any invoice, freight or express bill, bill of lading,
      storage or warehouse receipts, drafts against debtors, assignments,
      verifications and notices in connection with accounts, and other documents
      relating to the Collateral; (iii) to pay or discharge taxes, liens, security
      interests or other encumbrances at any time levied or placed on or threatened
      against the Collateral; (iv) to demand, collect, receipt for, compromise, settle
      and sue for monies due in respect of the Collateral; (v) to transfer any
      Intellectual Property or provide licenses respecting any Intellectual Property;
      and (vi) generally, at the option of the Agent, and at the expense of the
      Debtors, at any time, or from time to time, to execute and deliver any and
      all
      documents and instruments and to do all acts and things which the Agent deems
      necessary to protect, preserve and realize upon the Collateral and the Security
      Interests granted therein in order to effect the intent of this Agreement and
      the Debentures all as fully and effectually as the Debtors might or could do;
      and each Debtor hereby ratifies all that said attorney shall lawfully do or
      cause to be done by virtue hereof. This power of attorney is coupled with an
      interest and shall be irrevocable for the term of this Agreement and thereafter
      as long as any of the Obligations shall be outstanding. The
      designation set forth herein shall be deemed to amend and supersede any
      inconsistent provision in the Organizational Documents or other documents or
      agreements to which any Debtor is subject or to which any Debtor is a party.
      Without
      limiting the generality of the foregoing, after the occurrence and during the
      continuance of an Event of Default, each Secured Party is specifically
      authorized to execute and file any applications for or instruments of transfer
      and assignment of any patents, trademarks, copyrights or other Intellectual
      Property with the United States Patent and Trademark Office and the United
      States Copyright Office.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    (b)
       On
      a
      continuing basis, each Debtor will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, with the proper filing and recording agencies in
      any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      C
      attached
      hereto, all such instruments, and take all such action as may reasonably be
      deemed necessary or advisable, or as reasonably requested by the Agent, to
      perfect the Security Interests granted hereunder and otherwise to carry out
      the
      intent and purposes of this Agreement, or for assuring and confirming to the
      Agent the grant or perfection of a perfected security interest in all the
      Collateral under the UCC.

    

    (c)
       Each
      Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact,
      with full authority in the place and instead of such Debtor and in the name
      of
      such Debtor, from time to time in the Agent’s discretion, to take any action and
      to execute any instrument which the Agent may deem necessary or advisable to
      accomplish the purposes of this Agreement, including the filing, in its sole
      discretion, of one or more financing or continuation statements and amendments
      thereto, relative to any of the Collateral without the signature of such Debtor
      where permitted by law, which financing statements may (but need not) describe
      the Collateral as “all assets” or “all personal property” or words of like
      import, and ratifies all such actions taken by the Agent. This power of attorney
      is coupled with an interest and shall be irrevocable for the term of this
      Agreement and thereafter as long as any of the Obligations shall be
      outstanding.

    

     16.  Notices.
      All
      notices, requests, demands and other communications hereunder shall be subject
      to the notice provision of the Purchase Agreement (as such term is defined
      in
      the Debentures).

    

     17.  Other
      Security.
      To the
      extent that the Obligations are now or hereafter secured by property other
      than
      the Collateral or by the guarantee, endorsement or property of any other person,
      firm, corporation or other entity, then the Agent shall have the right, in
      its
      sole discretion, to pursue, relinquish, subordinate, modify or take any other
      action with respect thereto, without in any way modifying or affecting any
      of
      the Secured Parties’ rights and remedies hereunder.

    

    18.  Appointment
      of Agent.
      The
      Secured Parties hereby appoint Enable Growth Partners LP to act as their agent
      (“Enable”
or
      “Agent”)
      for
      purposes of exercising any and all rights and remedies of the Secured Parties
      hereunder. Such appointment shall continue until revoked in writing by a
Majority
      in Interest, at which time a Majority in Interest
      shall
      appoint a new Agent, provided that Enable may not be removed as Agent unless
      Enable shall then hold less than $100,000 in principal amount of
      Debentures;
      provided,
      further,
      that
      such removal may occur only if each of the other Secured Parties shall then
      hold
      not less than an aggregate of $500,000 in principal amount of Debentures.
The
      Agent
      shall have the rights, responsibilities and immunities set forth in Annex
      B
      hereto.

     

     19.  Miscellaneous.

    

    (a)
       No
      course
      of dealing between the Debtors and the Secured Parties, nor any failure to
      exercise, nor any delay in exercising, on the part of the Secured Parties,
      any
      right, power or privilege hereunder or under the Debentures shall operate as
      a
      waiver thereof; nor shall any single or partial exercise of any right, power
      or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    (b)
       All
      of
      the rights and remedies of the Secured Parties with respect to the Collateral,
      whether established hereby or by the Debentures or by any other agreements,
      instruments or documents or by law shall be cumulative and may be exercised
      singly or concurrently.

    

    (c)
       This
      Agreement,
      together with the exhibits and schedules hereto, contain the entire
      understanding of the parties with respect to the subject matter hereof and
      supersede all prior agreements and understandings, oral or written, with respect
      to such matters, which the parties acknowledge have been merged into this
      Agreement and the exhibits and schedules hereto.
      No
      provision of this Agreement may be waived, modified, supplemented or amended
      except in a written instrument signed, in the case of an amendment, by the
      Debtors and the Secured Parties or, in the case of a waiver, by the party
      against whom enforcement of any such waived provision is sought. 

    

    (d)
       If
      any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

    (e)
       No
      waiver
      of any default with respect to any provision, condition or requirement of this
      Agreement shall be deemed to be a continuing waiver in the future or a waiver
      of
      any subsequent default or a waiver of any other provision, condition or
      requirement hereof, nor shall any delay or omission of any party to exercise
      any
      right hereunder in any manner impair the exercise of any such
      right.

    

    (f)
       This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company and the Guarantors may
      not
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of each Secured Party (other than by merger). Any Secured Party
      may assign any or all of its rights under this Agreement to any Person to whom
      such Secured Party assigns or transfers any Securities, provided such transferee
      agrees in writing to be bound, with respect to the transferred Securities,
      by
      the provisions of this Agreement that apply to the “Secured
      Parties.”

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (g)
       Each
      party shall take such further action and execute and deliver such further
      documents as may be necessary or appropriate in order to carry out the
      provisions and purposes of this Agreement.

    

    (h)
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each Debtor agrees that all proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and the Debentures (whether brought against
      a
      party hereto or its respective affiliates, directors, officers, shareholders,
      partners, members, employees or agents) shall be commenced exclusively in the
      state and federal courts sitting in the City of New York, Borough of Manhattan.
      Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the
      state and federal courts sitting in the City of New York, Borough of Manhattan
      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 proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, that such proceeding
      is improper. Each party hereto hereby irrevocably waives personal service of
      process and consents to process being served in any such proceeding by mailing
      a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for 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. Each party hereto hereby irrevocably waives, to the fullest extent
      permitted by applicable law, any and all right to trial by jury in any legal
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If any party shall commence a proceeding to enforce any
      provisions of this Agreement, then the prevailing party in such proceeding
      shall
      be reimbursed by the other party for its reasonable attorney’s fees and other
      costs and expenses incurred with the investigation, preparation and prosecution
      of such proceeding.

    

    (i)
       This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    (j) All
      Debtors shall jointly and severally be liable for the obligations of each Debtor
      to the Secured Parties hereunder.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (k) Each
      Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured
      Parties and their respective partners, members, shareholders, officers,
      directors, employees and agents (and any other persons with other titles that
      have similar functions) (collectively, “Indemnitees”)
      from
      and against any and all losses, claims, liabilities, damages, penalties, suits,
      costs and expenses, of any kind or nature, (including fees relating to the
      cost
      of investigating and defending any of the foregoing) imposed on, incurred by
      or
      asserted against such Indemnitee in any way related to or arising from or
      alleged to arise from this Agreement or the Collateral, except any such losses,
      claims, liabilities, damages, penalties, suits, costs and expenses which result
      from the gross negligence or willful misconduct of the Indemnitee as determined
      by a final, nonappealable decision of a court of competent jurisdiction. This
      indemnification provision is in addition to, and not in limitation of, any
      other
      indemnification provision in the Debentures, the Purchase Agreement (as such
      term is defined in the Debentures) or any other agreement, instrument or other
      document executed or delivered in connection herewith or therewith.

    

    (l) Nothing
      in this Agreement shall be construed to subject Agent or any Secured Party
      to
      liability as a partner in any Debtor or any if its direct or indirect
      subsidiaries that is a partnership or as a member in any Debtor or any of its
      direct or indirect subsidiaries that is a limited liability company, nor shall
      Agent or any Secured Party be deemed to have assumed any obligations under
      any
      partnership agreement or limited liability company agreement, as applicable,
      of
      any such Debtor or any if its direct or indirect subsidiaries or otherwise,
      unless and until any such Secured Party exercises its right to be substituted
      for such Debtor as a partner or member, as applicable, pursuant
      hereto.

    

    (m)
       To
      the
      extent that the grant of the security interest in the Collateral and the
      enforcement of the terms hereof require the consent, approval or action of
      any
      partner or member, as applicable, of any Debtor or any direct or indirect
      subsidiary of any Debtor or compliance with any provisions of any of the
      Organizational Documents, the Debtors hereby grant such consent and approval
      and
      waive any such noncompliance with the terms of said documents.

    

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

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

    

    

    
      	
              CRYOPORT,
                INC.

            
	 	 
	
              By:

            	
              /s/
                Peter Berry

            
	 	
              Name:
                Peter Berry

            
	 	
              Title:
                CEO

            
	 	 
	
              CRYOPORT
                SYSTEMS, INC.

            
	 	 
	
              By:

            	
              /s/
                Peter Berry

            
	 	
              Name:
                Peter Berry

            
	 	
              Title:
                CEO

            

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO CYRX SA]

     

    
      
        	
                Name
                  of Investing Entity: 

              	BridgePointe
                Master Fund Ltd.	 

      

       

      
        	
                Signature
                  of Authorized Signatory of Investing entity:
                  

              	/s/
                Eric S. Swartz	 

      

       

      
        	
                Name
                  of Authorized Signatory: 

              	Eric
                S. Swartz	 
	 	 	 
	
                Title
                  of Authorized Signatory: 

              	Director	 

      

    

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    All
      pledged assets under this Security Agreement are subordinated to the UCC1 filing
      filed in conjunction with the Original Issue Discount 8% Senior Secured
      Convertible Debentures dated September 27, 2007.

    

    SCHEDULE
      A

    Principal
      Place of Business of Debtors:

    

    CryoPort,
      Inc.

    20382
      Barents Sea Circle

    Lake
      Forest, CA, 92630

    

    Locations
      Where Collateral is Located or Stored:

    Same
      as
      above, debtor has one location only.

    

    SCHEDULE
      B

    

    SCHEDULE
      C

    

    SCHEDULE
      D

    Legal
      Names and Organizational Identification Numbers

    

    CryoPort,
      Inc.

    EIN
      88-0313392

    

    CryoPort
      Systems, Inc.

    EIN
      95-4835200

    

    SCHEDULE
      E

    Names;
      Mergers and Acquisitions

    

    Cryoport,
      Inc. (the “Company”) was originally incorporated under the name G.T.5-Limited
      (“GT5”) on May 25, 1990 as a Nevada Corporation. On March 15, 2005, the Company
      entered into a Share Exchange Agreement (the “Agreement”) with Cryoport Systems,
      Inc. (“Cryoport Systems”), a California corporation, and its stockholders
      whereby the Company acquired all of the issued and outstanding shares of
      Cryoport Systems in exchange for 24,108,105 shares of its common stock (which
      represented approximately 81% of the total issued and outstanding shares of
      common stock following the close of the transaction). Cryoport Systems was
      originally formed in 1999 as a California limited liability company and was
      reorganized into a California corporation on December 11, 2000. Effective March
      16, 2005, the Company changed its name to Cryoport, Inc. The transaction was
      been recorded as a reverse acquisition.

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      F

    Intellectual
      Property

    

    Patents
      and Trademarks currently held by the Company include: 

    

    
      	
              Type:

            	 	
              No.

            	 	
              Issued

            	 	
              Expiration

            
	
              Patent

            	 	
              6,467,642

            	 	
              Oct.
                22, 2002

            	 	
              Oct.
                21, 2022

            
	
              Patent

            	 	
              6,119,465

            	 	
              Sep.
                19, 2000

            	 	
              Sep.
                18, 2020

            
	
              Patent

            	 	
              6,539,726

            	 	
              Apr.
                1, 2003

            	 	
              Mar
                31, 2023

            
	
              Trademark

            	 	
              7,583,478,7

            	 	
              Oct.
                29, 1999

            	 	
              Oct.
                28, 2009

            
	
              Trademark

            	 	
              7,586,797,8

            	 	
              Dec.
                8, 1999

            	 	
              Dec.
                7, 2009

            

    

     

    SCHEDULE
      G

    Account
      Debtors

    See
      Schedule 3.1 of the Securities Purchase Agreement dated May 30,
      2008

    

    SCHEDULE
      H

    Pledged
      Securities

    

    Company
      Shares in the wholly owned subsidiary, CryoPort Systems, Inc.

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    ANNEX
      A

    to

    SECURITY

    AGREEMENT

    

    FORM
      OF ADDITIONAL DEBTOR JOINDER

    

    Security
      Agreement dated as of May 30, 2008 made by

     

    CRYOPORT,
      INC.

    

    and
      its
      subsidiaries party thereto from time to time, as Debtors

    to
      and in
      favor of

    the
      Secured Parties identified therein (the “Security
      Agreement”)

    

    Reference
      is made to the Security Agreement as defined above; capitalized terms used
      herein and not otherwise defined herein shall have the meanings given to such
      terms in, or by reference in, the Security Agreement.

    

    The
      undersigned hereby agrees that upon delivery of this Additional Debtor Joinder
      to the Secured Parties referred to above, the undersigned shall (a) be an
      Additional Debtor under the Security Agreement, (b) have all the rights and
      obligations of the Debtors under the Security Agreement as fully and to the
      same
      extent as if the undersigned was an original signatory thereto and (c) be deemed
      to have made the representations and warranties set forth therein as of the
      date
      of execution and delivery of this Additional Debtor Joinder. WITHOUT LIMITING
      THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE
      SECURED PARTIES A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH
      IN
      THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL
      PROVISIONS SET FORTH THEREIN.

    

    Attached
      hereto are supplemental and/or replacement Schedules to the Security Agreement,
      as applicable.

    

    An
      executed copy of this Joinder shall be delivered to the Secured Parties, and
      the
      Secured Parties may rely on the matters set forth herein on or after the date
      hereof. This Joinder shall not be modified, amended or terminated without the
      prior written consent of the Secured Parties.

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in
      the
      name and on behalf of the undersigned.

    

    
      	
              [Name
                of Additional Debtor]

            
	 
	
              By:

            
	
              Name:

            
	
              Title:

            
	 
	
              Address:

            

    

    

    Dated:   

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    [ANNEX
      B

    to

    SECURITY

    AGREEMENT

    

    THE
      AGENT

    

    1.
      Appointment. The
      Secured Parties (all capitalized terms used herein and not otherwise defined
      shall have the respective meanings provided in the Security Agreement to which
      this Annex B is attached (the "Agreement")),
      by
      their acceptance of the benefits of the Agreement, hereby designate [_____
      (“[_____”
or
      “Agent”)
      as the
      Agent to act as specified herein and in the Agreement. Each Secured Party shall
      be deemed irrevocably to authorize the Agent to take such action on its behalf
      under the provisions of the Agreement and any other Transaction Document (as
      such term is defined in the Debentures) and to exercise such powers and to
      perform such duties hereunder and thereunder as are specifically delegated
      to or
      required of the Agent by the terms hereof and thereof and such other powers
      as
      are reasonably incidental thereto. The Agent may perform any of its duties
      hereunder by or through its agents or employees.

    

    2.
      Nature
      of Duties.
      The
      Agent shall have no duties or responsibilities except those expressly set forth
      in the Agreement. Neither the Agent nor any of its partners, members,
      shareholders, officers, directors, employees or agents shall be liable for
      any
      action taken or omitted by it as such under the Agreement or hereunder or in
      connection herewith or therewith, be responsible for the consequence of any
      oversight or error of judgment or answerable for any loss, unless caused solely
      by its or their gross negligence or willful misconduct as determined by a final
      judgment (not subject to further appeal) of a court of competent jurisdiction.
      The duties of the Agent shall be mechanical and administrative in nature; the
      Agent shall not have by reason of the Agreement or any other Transaction
      Document a fiduciary relationship in respect of any Debtor or any Secured Party;
      and nothing in the Agreement or any other Transaction Document, expressed or
      implied, is intended to or shall be so construed as to impose upon the Agent
      any
      obligations in respect of the Agreement or any other Transaction Document except
      as expressly set forth herein and therein.

    

    3.
      Lack
      of Reliance on the Agent.
      Independently and without reliance upon the Agent, each Secured Party, to the
      extent it deems appropriate, has made and shall continue to make (i) its own
      independent investigation of the financial condition and affairs of the Company
      and its subsidiaries in connection with such Secured Party’s investment in the
      Debtors, the creation and continuance of the Obligations, the transactions
      contemplated by the Transaction Documents, and the taking or not taking of
      any
      action in connection therewith, and (ii) its own appraisal of the
      creditworthiness of the Company and its subsidiaries, and of the value of the
      Collateral from time to time, and the Agent shall have no duty or
      responsibility, either initially or on a continuing basis, to provide any
      Secured Party with any credit, market or other information with respect thereto,
      whether coming into its possession before any Obligations are incurred or at
      any
      time or times thereafter. The Agent shall not be responsible to the Debtors
      or
      any Secured Party for any recitals, statements, information, representations
      or
      warranties herein or in any document, certificate or other writing delivered
      in
      connection herewith, or for the execution, effectiveness, genuineness, validity,
      enforceability, perfection, collectibility, priority or sufficiency of the
      Agreement or any other Transaction Document, or for the financial condition
      of
      the Debtors or the value of any of the Collateral, or be required to make any
      inquiry concerning either the performance or observance of any of the terms,
      provisions or conditions of the Agreement or any other Transaction Document,
      or
      the financial condition of the Debtors, or the value of any of the Collateral,
      or the existence or possible existence of any default or Event of Default under
      the Agreement, the Debentures or any of the other Transaction
      Documents.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    4.
      Certain
      Rights of the Agent.
      The
      Agent shall have the right to take any action with respect to the Collateral,
      on
      behalf of all of the Secured Parties. To the extent practical, the Agent shall
      request instructions from the Secured Parties with respect to any material
      act
      or action (including failure to act) in connection with the Agreement or any
      other Transaction Document, and shall be entitled to act or refrain from acting
      in accordance with the instructions of Secured Parties holding a majority in
      principal amount of Debentures (based on then-outstanding principal amounts
      of
      Debentures at the time of any such determination); if such instructions are
      not
      provided despite the Agent’s request therefor, the Agent shall be entitled to
      refrain from such act or taking such action, and if such action is taken, shall
      be entitled to appropriate indemnification from the Secured Parties in respect
      of actions to be taken by the Agent; and the Agent shall not incur liability
      to
      any person or entity by reason of so refraining. Without limiting the foregoing,
      (a) no Secured Party shall have any right of action whatsoever against the
      Agent
      as a result of the Agent acting or refraining from acting hereunder in
      accordance with the terms of the Agreement or any other Transaction Document,
      and the Debtors shall have no right to question or challenge the authority
      of,
      or the instructions given to, the Agent pursuant to the foregoing and (b) the
      Agent shall not be required to take any action which the Agent believes (i)
      could reasonably be expected to expose it to personal liability or (ii) is
      contrary to this Agreement, the Transaction Documents or applicable
      law.

    

    5.
      Reliance.
      The
      Agent shall be entitled to rely, and shall be fully protected in relying, upon
      any writing, resolution, notice, statement, certificate, telex, teletype or
      telecopier message, cablegram, radiogram, order or other document or telephone
      message signed, sent or made by the proper person or entity, and, with respect
      to all legal matters pertaining to the Agreement and the other Transaction
      Documents and its duties thereunder, upon advice of counsel selected by it
      and
      upon all other matters pertaining to this Agreement and the other Transaction
      Documents and its duties thereunder, upon advice of other experts selected
      by
      it. Anything to the contrary notwithstanding, the Agent shall have no obligation
      whatsoever to any Secured Party to assure that the Collateral exists or is
      owned
      by the Debtors or is cared for, protected or insured or that the liens granted
      pursuant to the Agreement have been properly or sufficiently or lawfully
      created, perfected, or enforced or are entitled to any particular
      priority.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    6.
      Indemnification.
      To the
      extent that the Agent is not reimbursed and indemnified by the Debtors, the
      Secured Parties will jointly and severally reimburse and indemnify the Agent,
      in
      proportion to their initially purchased respective principal amounts of
      Debentures, from and against any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind or nature whatsoever which may be imposed on, incurred by or
      asserted against the Agent in performing its duties hereunder or under the
      Agreement or any other Transaction Document, or in any way relating to or
      arising out of the Agreement or any other Transaction Document except for those
      determined by a final judgment (not subject to further appeal) of a court of
      competent jurisdiction to have resulted solely from the Agent's own gross
      negligence or willful misconduct. Prior to taking any action hereunder as Agent,
      the Agent may require each Secured Party to deposit with it sufficient sums
      as
      it determines in good faith is necessary to protect the Agent for costs and
      expenses associated with taking such action.

    

    7.
      Resignation
      by the Agent. 

     

    (a)
      The
      Agent may resign from the performance of all its functions and duties under
      the
      Agreement and the other Transaction Documents at any time by giving 30 days'
      prior written notice (as provided in the Agreement) to the Debtors and the
      Secured Parties. Such resignation shall take effect upon the appointment of
      a
      successor Agent pursuant to clauses (b) and (c) below.

    

    (b)
      Upon
      any such notice of resignation, the Secured Parties, acting by a Majority
      in Interest,
      shall
      appoint a successor Agent hereunder.

    

    (c)
      If a
      successor Agent shall not have been so appointed within said 30-day period,
      the
      Agent shall then appoint a successor Agent who shall serve as Agent until such
      time, if any, as the Secured Parties appoint a successor Agent as provided
      above. If a successor Agent has not been appointed within such 30-day period,
      the Agent may petition any court of competent jurisdiction or may interplead
      the
      Debtors and the Secured Parties in a proceeding for the appointment of a
      successor Agent, and all fees, including, but not limited to, extraordinary
      fees
      associated with the filing of interpleader and expenses associated therewith,
      shall be payable by the Debtors on demand.

    

    8.
      Rights
      with respect to Collateral.
      Each
      Secured Party agrees with all other Secured Parties and the Agent (i) that
      it
      shall not, and shall not attempt to, exercise any rights with respect to its
      security interest in the Collateral, whether pursuant to any other agreement
      or
      otherwise (other than pursuant to this Agreement), or take or institute any
      action against the Agent or any of the other Secured Parties in respect of
      the
      Collateral or its rights hereunder (other than any such action arising from
      the
      breach of this Agreement) and (ii) that such Secured Party has no other rights
      with respect to the Collateral other than as set forth in this Agreement and
      the
      other Transaction Documents. Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall thereupon succeed
      to
      and become vested with all the rights, powers, privileges and duties of the
      retiring Agent and the retiring Agent shall be discharged from its duties and
      obligations under the Agreement.  After any retiring Agent’s resignation or
      removal hereunder as Agent, the provisions of the Agreement including this
      Annex
      B shall inure to its benefit as to any actions taken or omitted to be taken
      by
      it while it was Agent. 

     

    
      
        
        

      

      
        32SECURITIES
      PURCHASE AGREEMENT

    

    This
      SECURITIES PURCHASE AGREEMENT
      (this
“Agreement”)
      is
      made as of the date of the signature of the Company set forth on the signature
      pages hereof, by and among NEURO-HITECH,
      INC.,
      a
      Delaware corporation, with its principal offices at One Penn Plaza, Suite 1503,
      New York, New York 10019 (the “Company”),
      and
      each person identified as an Investor on the signature pages hereto (each,
      an
“Investor”
and
      collectively, the “Investors”).

    

    WHEREAS,
      the
      Company desires to sell between 8,000,000 and 14,000,000
      shares of the Company’s common stock, par value $0.001 per share (the
“Common
      Stock”)
      at a
      price of $0.25 per share,
      in a
      private placement (the “Offering”)
      to be
      conducted by the Company (the Common Stock purchased hereunder, the
“Securities”);
      and

    

    WHEREAS,
      the
      Company is offering the Securities pursuant to Rule 506 of Regulation D
      promulgated under the Securities Act of 1933, as amended (the “Securities
      Act”),
      to
“accredited investors” only, as such term is defined in Rule 501(a) of said
      Regulation D.

    

    NOW,
      THEREFORE,
      for and
      in consideration of the premises and the mutual covenants hereinafter set forth,
      the parties hereto do hereby agree as follows: 

     

    SECTION
      1

    PURCHASE
      AND SALE OF UNITS

     

    1.1 Agreement
      to Purchase and Sell.
       Upon
      the
      terms and subject to the conditions set forth in this Agreement, each Investor,
      severally and not jointly, agrees to purchase at the Closing (as defined below),
      and the Company agrees to issue and sell to such Investor at the Closing, for
      the purchase price set forth opposite such Investor’s name on such Investor’s
      signature page that number of shares of Common Stock set forth opposite such
      Investor’s name on such Investor’s signature page at a purchase price of $0.25
      per share. Each Investor hereby:

     

    (a) tenders
      an executed copy of its signature page to this Agreement; and

     

    (b) tenders
      the purchase price set forth opposite such Investor’s name as set forth on such
      Investor’s signature page to the
      Company
      by wire
      transfer of immediately available funds to the account designated by the Company
      in writing (the “Proceeds”).

     

    1.2 Closing.

     

    (a) The
      purchase and sale of the Securities hereunder shall take place at one or more
      closings (each a “Closing”).
      The
      initial closing (the “Initial
      Closing”),
      which
      shall be for at least 8,000,000 shares of Common Stock, shall take place at
      the
      offices of Arent Fox LLP, 1050 Connecticut Avenue, Washington, DC 20036,
      concurrent with the closing of the Acquisition (as defined in Section 3.1(e)),
      or at such other time as the Company and a majority in interest of the Investors
      participating in the Initial Closing (the “Initial
      Investors”)
      mutually agree upon orally or in writing (the “Closing
      Date”).
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Any
      Securities not issued and sold at the Initial Closing may be issued and sold,
      subject to the terms and conditions of this Agreement, at one or more subsequent
      Closings (each a “Subsequent
      Closing”),
      to
      one or more persons acceptable to the Company (the “Subsequent
      Investors”).
      Upon
      execution and delivery of the relevant signature pages, the Subsequent Investors
      shall be become parties to, and bound by, this Agreement without the need for
      any amendment to this Agreement and shall have the rights and obligations
      hereunder, in each case as of the applicable Subsequent Closing. Any such sale
      and issuance at a Subsequent Closing shall be on the same terms and conditions
      (including the Purchase Price that shall have been fixed at the Initial
      Closing). Each Subsequent Closing shall take place at such date, time and place
      as shall be approved by the Company.

     

    (c) 
      At each
      Closing, the Company shall deliver to each Investor certificates representing
      the Securities being purchased by such Investor at such Closing, against payment
      of the applicable Purchase Price therefor by check, wire transfer, cancellation
      or conversion of indebtedness, or any combination thereof.

     

    1.3 Independent
      Nature of Investors’ Obligations and Rights.
      The
      obligations of each Investor under this Agreement are several and not joint
      with
      the obligations of any other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement.  The decision of each Investor to purchase Common Stock pursuant
      to this Agreement has been made by such Investor independently of any other
      Investor and independently of any information, materials, statements or opinions
      as to the business, affairs, operations, assets, properties, liabilities,
      results of operations, condition (financial or otherwise) or prospects of the
      Company which may have been made or given by any other Investor or by any agent
      or employee of any other Investor, and no Investor or any of its agents or
      employees shall have any liability to any other Investor (or any other person)
      relating to or arising from any such information, materials, statements or
      opinions.  Nothing contained herein, and no action taken by any Investor
      pursuant thereto, shall be deemed to constitute the Investors as a partnership,
      an association, a joint venture or any other kind of entity, or create a
      presumption that the Investors are in any way acting in concert or as a group
      with respect to such obligations or the transactions contemplated by this
      Agreement.  Each Investor acknowledges that no other Investor has acted as
      agent for such Investor in connection with making its investment hereunder
      and
      that no other Investor will be acting as agent of such Investor in connection
      with monitoring its investment hereunder.  Each Investor shall be entitled
      to independently protect and enforce its rights, including without limitation
      the rights arising out of this Agreement, and it shall not be necessary for
      any
      other Investor to be joined as an additional party in any proceeding for such
      purpose. 

    

    SECTION
      2

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS

     

    2.1 Investor
      Representations, Warranties and Covenants.
      Each
      Investor hereby acknowledges, represents, warrants or covenants, as the case
      may
      be, severally and not jointly to the Company as follows:

     

    (a) The
      Investor is an “accredited investor” as such term is defined in Rule 501 of
      Regulation D promulgated under the Securities Act and is able to bear economic
      risk of an investment in the Securities.

     

    (b) The
      Investor has prior investment experience, including investment in early stage
      companies, non-listed and non-registered securities, has the ability to fend
      for
      himself, can bear the economic risk of his investment, and has such knowledge
      and experience in financial, business matters that he is capable of evaluating
      the merits and risks of such an investment, and that he recognizes the highly
      speculative nature of this investment.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    (c) The
      Investor acknowledges receipt and careful review of the documents filed with
      respect to the Company with the Securities and Exchange Commission (“SEC”)
      since
      December 31, 2007 (the “SEC
      Documents”)
      pursuant to the Securities Act and the Securities Exchange Act of 1934, as
      amended (the “Exchange
      Act”),
      and
      hereby represents that he has been furnished by the Company during the course
      of
      this transaction with all other information regarding the Company which he
      had
      requested or desired to know, that all documents which could be reasonably
      provided have been made available for his inspection and review, that he has
      been afforded the opportunity to ask questions of and receive answers from
      duly
      authorized officers or other representatives of the Company concerning the
      terms
      and conditions of the Offering and any additional information which he had
      requested. Notwithstanding the foregoing, it is understood that Investor is
      purchasing the Securities without being furnished a prospectus setting forth
      all
      of the information that would be required to be furnished in a prospectus under
      the Securities Act.

     

    (d) The
      Investor understands and recognizes that the purchase of the Securities is
      highly speculative and involves a high degree of risk and that only investors
      who can afford the loss of their entire investment should consider investing
      in
      the Company. The Investor has also reviewed the risk factors in the SEC
      Documents.

     

    (e) The
      Investor acknowledges that the Company may find it necessary to raise additional
      capital in the future.

     

    (f) The
      Investor represents that the Securities are being purchased for such Investor’s
      own account, for investment and not for distribution or resale to others. The
      Investor agrees not to sell or otherwise transfer such securities unless they
      are registered under the Securities Act or unless an exemption from such
      registration is available. The Investor does not have any contract, undertaking,
      agreement or arrangement with any person to sell, transfer or grant
      participations to such person or to any third person, with respect to the
      Securities.

     

    (g) The
      Investor understands that he may never be able to liquidate his investment
      in
      the Company. Investor represents that he has sufficient liquid assets so that
      the illiquidity associated with this investment will not cause any undue
      financial difficulties or affect the Investor’s ability to provide for its
      current needs and possible financial contingencies, and that the Investor’s
      commitment to all high risk investments (including this one if this purchase
      is
      agreed to and accepted by the Company) is reasonable in relation to the
      Investor’s net worth and/or annual income.

     

    (h) The
      Investor understands that the Securities will be restricted securities as such
      term is defined under Rule 144 (“Rule
      144”)
      promulgated under the Securities Act and cannot be sold except pursuant to
      such
      registration or an exemption therefrom. 

     

    (i) The
      Investor understands that the Company is relying on the Investor’s
      representations herein. Any information which the Investor has heretofore
      furnished to the Company, including, without limitation, information with
      respect to its financial position and business experience, is correct and
      complete as of the date of this Agreement, and if there should be any material
      change in such information prior to the Closing the Investor will immediately
      furnish such revised or corrected information to the Company.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    (j) The
      Investor understands the tax consequences of this investment and that the
      contents of this Agreement does not contain tax advice or information. The
      Investor confirms that it is not relying on any statements or representations
      of
      the Company or any of its agents with respect to the tax and other economic
      considerations of an investment in the Securities. The Investor has had the
      opportunity to consult with the Investor’s own legal, accounting, tax,
      investment and other advisors, who are unaffiliated with the Company or any
      affiliate or selling agent of the Company, with respect to the tax treatment
      of
      an investment by the Investor in the Securities. The Investor also acknowledges
      that it is solely responsible for any of its own tax liability that may arise
      as
      a result of this investment or the transactions contemplated by this
      Agreement.

     

    (k) If
      the
      Investor is an entity, it is a corporation, limited liability company, trust
      or
      partnership or other similar entity duly organized, validly existing and in
      good
      standing under the laws of its jurisdiction. The Investor has full power and
      authority (corporate or otherwise) to execute, deliver and enter into this
      Agreement and to purchase the Securities. The execution and delivery by the
      Investor of this Agreement and the consummation of the transactions contemplated
      hereby have been duly authorized by all necessary corporate or other action
      on
      the part of the Investor. If the Investor is an individual, the Investor has
      the
      legal capacity to enter into this Agreement and is a bona fide resident of
      the
      state shown in the address set forth on the signature pages hereto.

     

    (l) The
      Investor consents to the placement of a legend on any certificate or other
      documents evidencing the Securities substantially in the following form:

     

    “THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES
      FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY BE RESOLD OR OTHERWISE
      TRANSFERRED ONLY PURSUANT TO AN EXEMPTION FROM REGISTRATION (IF AVAILABLE)
      UNDER
      THE SECURITIES ACT, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
      OF ANY STATE OF THE UNITED STATES.”

     

    Additionally,
      in order to enforce the covenants set forth in Sections 2.1(x) and (y), the
      Company shall have the right to place additional restrictive legends on the
      certificates representing the Securities and to impose stop transfer
      instructions with respect to the Securities until the end of the applicable
      period.

     

    (m) The
      address of the Investor furnished by him on the signature pages hereto is the
      undersigned’s principal residence if he is an individual or its principal
      business address if it is a corporation or other entity.

     

    (n) Except
      as
      set forth herein, no representations or warranties have been made to the
      Investor by the Company or any agent, employee or affiliate of the Company
      and
      in entering into this transaction, the Investor is not relying on any
      information, other than that contained herein and the results of independent
      investigation by the Investor. 

     

    (o) Investor
      either (i) has a pre-existing personal or business relationship with the Company
      or any of its partners, officers, directors or controlling persons, or (ii)
      by
      reason of such Investor’s business or financial experience or the business or
      financial experience of such Investor’s professional advisors (which
      professional advisors are unaffiliated with and are not compensated by the
      Company, or any affiliate or selling agent of the Company, directly or
      indirectly) such Investor could be reasonably assumed to have the capacity
      to
      protect such Investor’s own interests in connection with the
      transaction.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    (p) This
      Agreement constitutes the legal, valid and binding agreement of the Investor,
      enforceable against the Investor in accordance with its terms, except (i) as
      limited by applicable bankruptcy, insolvency, reorganization, moratorium and
      other laws of general application affecting enforcement of creditors’ rights
      generally and by general equitable principles, (ii) as limited by laws relating
      to the availability of specific performance, injunctive relief, or other
      equitable remedies, and (iii) to the extent any indemnification provisions
      contained in this Agreement may be limited by applicable Federal or state
      securities laws.

     

    (q) If
      the
      Investor is not a United States person, it has satisfied itself as to the full
      observance of the laws of its jurisdiction in connection with any invitation
      to
      purchase the Securities or any use of this Agreement, including (i) the legal
      requirements within its jurisdiction for the purchase of the Securities, (ii)
      any foreign exchange restrictions applicable to such purchase, (iii) any
      governmental or other consents that may need to be obtained and (iv) the income
      tax and other tax consequences, if any, that may be relevant to the purchase,
      holding, redemption, sale or transfer of the Securities. Such Investor’s payment
      for, and his or her continued beneficial ownership of the Securities, will
      not
      violate any applicable securities or other laws of the Investor’s
      jurisdiction.

     

    (r) The
      Investor also understands and agrees that, although the Company will use its
      best efforts to keep confidential the information provided herein, the Company
      may present the information provided herein to such parties as it deems
      advisable (a) if called upon to establish either the availability under any
      Federal or state securities laws of an exemption from registration of the
      Offering or compliance with any other legal requirement, or (b) if the contents
      hereof are relevant to any issue in any action, regulatory request, inspection,
      investigation, suit or proceeding to which the Company is a party, is subject,
      or by which it is or may be bound. Further, the Investor understands that the
      Offering may be reported to the SEC pursuant to the requirements of applicable
      Federal law and to various state securities or blue sky commissioners pursuant
      to applicable laws.

     

    (s) No
      court
      or governmental injunction, order or decree affecting the Investor and
      prohibiting the execution and delivery by the Investor of this Agreement and
      the
      consummation of the transactions contemplated hereby is in effect, and the
      terms
      of this Agreement do not conflict with any provision of the certificate or
      articles of incorporation or by-laws (or comparable charter, partnership or
      other organizational documents) of the Investor, or conflict with, or result
      in
      a material breach or violation of, any of the terms or provisions of, or
      constitute (with due notice or lapse of time or both) a material default under,
      any material lease, loan agreement, mortgage, security agreement, trust
      indenture or other agreement or instrument to which the Investor is a
      party.

     

    (t) No
      material consent, approval, license, permit, order or authorization of, or
      registration, declaration or filing with, any court, administrative agency
      or
      commission or other governmental authority or instrumentality, domestic or
      foreign, remains to be obtained or is otherwise required to be obtained by
      the
      Investor in connection with the authorization, execution and delivery of this
      Agreement or the consummation of the transactions contemplated hereby,
      including, without limitation the purchase and sale of the
      Securities.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    (u) No
      finder, broker, agent, financial person or other intermediary has acted on
      behalf of the Investor in connection with the Investor’s purchase of the
      Securities, the consummation of this Agreement or any of the transactions
      contemplated hereby. The Investor has not had any direct or indirect contact
      with any investment banking firm (or similar firm) with respect to the offer
      of
      the Securities by the Company to the Investor or the Investor’s purchase of the
      Securities.

     

    (v) The
      Investors did not (i) receive or review any advertisement, article, notice
      or
      other communication published in a newspaper or magazine or similar media or
      broadcast over television or radio, whether closed circuit, or generally
      available, with respect to the Common Stock or (ii) attend any seminar, meeting
      or investor or other conference whose attendees were, to the Investor’s
      knowledge, invited by any general solicitation or general advertising with
      respect to the Common Stock.

     

    (w) The
      Investor acknowledges that the Offering is confidential and non-public and
      agrees that all information about the Offering and the Acquisition shall be
      kept
      in confidence by the Investor until the public announcement of the Offering
      and
      the Acquisition by the Company. The Investor acknowledges that the foregoing
      restrictions on the Investor’s use and disclosure of any such confidential,
      non-public information contained in the above-described documents restricts
      the
      Investor from trading in the Company’s securities to the extent such trading is
      on the basis of material, non-public information of which the Investor is aware
      and is in violation of applicable securities laws.

     

    (x) The
      Investor agrees that beginning on the date hereof until the Offering and the
      Acquisition is publicly announced by the Company, the Investor will not enter
      into any Short Sales. For purposes of the foregoing sentence, a “Short Sale” by
      an Investor means a sale of Common Stock that is marked as a short sale and
      that
      is executed at a time when such Investor has no equivalent offsetting long
      position in the Common Stock, exclusive of the Shares. For purposes of
      determining whether an Investor has an equivalent offsetting long position
      in
      the Common Stock, all Common Stock that would be issuable upon exercise in
      full
      of all options then held by such Investor (assuming that such options were
      then
      fully exercisable, notwithstanding any provisions to the contrary, and giving
      effect to any exercise price adjustments scheduled to take effect in the future)
      shall be deemed to be held long by such Investor.

     

    (y) The
      Investor hereby agrees that it shall not sell or otherwise transfer or dispose
      of any Securities then owned by such Investor (other than estate planning
      transfers to the parents, siblings, children or grandchildren of the Investor
      (or a trust or other entity for their exclusive benefit), other transfers to
      donees or to partners of the Investor who agree to be similarly bound) prior
      to
      the Lock-up Termination Date (as defined below). For purposes of this Agreement,
      the “Lock-up Termination Date” shall mean: (i) with respect to one-third of
      the Securities held by an Investor, the six month anniversary of the Closing
      Date; (ii) with respect to an additional one-third of the Securities held
      by an Investor, the nine month anniversary of the Closing Date; and
      (iii) with respect to the remaining one-third of the Securities held by an
      Investor, the one year anniversary of the Closing Date.

     

    (z) The
      foregoing acknowledgments, representations, warranties and covenants shall
      survive the Closing.

     

    2.2 Representations,
      Warranties and Covenants of the Company.
      The
      Company hereby acknowledges, represents, warrants or covenants, as the case
      may
      be, to the Investor as follows:

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    (a) The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware. The Company has full corporate power
      and authority to own and hold its properties and to conduct its business. The
      Company is duly licensed or qualified to do business, and in good standing,
      in
      each jurisdiction in which the nature of its business requires licensing,
      qualification or good standing, except for any failure to be so licensed or
      qualified or in good standing that would not have a material adverse effect
      on
      (i) the Company and each Subsidiary (as defined below) taken as a whole, (ii)
      its consolidated results of operations, assets, or financial condition, (iii)
      its ability to perform its obligations under this Agreement or (iv) the Common
      Stock (a “Material
      Adverse Effect”).

     

    (b) The
      Company’s subsidiaries are Q-RNA, LLC, a Delaware limited liability company and
      Marco-HiTech JV Ltd., a New York corporation (each a “Subsidiary”
and
      collectively, the “Subsidiaries”).
      All
      of the outstanding shares of capital stock of each of the Subsidiaries are
      duly
      authorized, validly issued, fully paid and nonassessable and owned by the
      Company and are free and clear of all liens, claims, encumbrances, options,
      pledges and security interests (collectively, “Liens”)
      and
      were not issued in violation of, nor subject to, any pre-emptive, subscription
      or similar rights. There are no outstanding warrants, options, subscriptions,
      calls, rights, agreements, convertible or exchangeable securities or other
      commitments or arrangements relating to the issuance, sale, purchase, return
      or
      redemption, voting or transfer of any shares, whether issued or unissued, of
      any
      capital stock, equity interest or other securities of any Subsidiary. The
      Company and the Subsidiaries do not own any equity interests in any person,
      other than the Subsidiaries. Each Subsidiary is duly organized, validly existing
      and in good standing under the laws of the jurisdiction of its organization
      and
      has all requisite power and authority to own, lease and operate its properties
      and to conduct its business.

     

    (c) Schedule
      2.2(c)
      sets
      forth (a) the authorized capital stock of the Company; (b) the number of shares
      of capital stock issued and outstanding; (c) the number of shares of capital
      stock issuable pursuant to the Company’s stock plans; and (d) the number of
      shares of capital stock issuable and reserved for issuance pursuant to
      securities exercisable for, or convertible into or exchangeable for any shares
      of capital stock of the Company. All of the issued and outstanding shares of
      the
      Company’s capital stock have been duly authorized and validly issued and are
      fully paid, nonassessable and free of pre-emptive rights and were issued in
      full
      compliance with applicable law and any rights of third parties relative to
      the
      Company and its subsidiaries. No person is entitled to pre-emptive or similar
      statutory or contractual rights with respect to any securities of the Company.
      Except as described on Schedule
      2.2(c),
      there
      are no outstanding warrants, options, convertible securities or other rights,
      agreements or arrangements of any character under which the Company or any
      of
      its Subsidiaries is or may be obligated to issue any equity securities of any
      kind and except as contemplated by this Agreement, neither the Company nor
      any
      of its Subsidiaries is currently in negotiations for the issuance of any equity
      securities of any kind. Except as described on Schedule
      2.2(c),
      there
      are no voting agreements, buy-sell agreements, option or right of first purchase
      agreements or other agreements of any kind among the Company and any of the
      securityholders of the Company relating to the securities of the Company held
      by
      them. Except as described on Schedule
      2.2(c)
      the
      Company has not granted any person the right to require the Company to register
      any securities of the Company under the Securities Act, whether on a demand
      basis or in connection with the registration of securities of the Company for
      its own account or for the account of any other person. Except
      as
      described on Schedule
      2.2(c),
      the
      Company does not have outstanding stockholder purchase rights or any similar
      arrangement in effect giving any person the right to purchase any equity
      interest in the Company upon the occurrence of certain events. 

     

    
      
        
        

      

      
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          7
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    (d) The
      Company has full corporate power and authority to execute, deliver and enter
      into this Agreement and to consummate the transactions contemplated hereby.
      All
      action on the part of the Company, its directors or stockholders necessary
      for
      the authorization, execution, delivery and performance of this Agreement by
      the
      Company, the authorization, sale, issuance and delivery of the Securities and
      the performance of the Company’s obligations hereunder has been
      taken.
      The
      Securities have been duly authorized and, when issued and paid for in accordance
      with this Agreement, will be validly issued, fully paid and non-assessable
      and
      will be free and clear of all Liens imposed by or through the Company other
      than
      restrictions imposed by this Agreement and applicable securities laws. This
      Agreement has been duly executed and delivered by the Company, and such
      agreement constitutes a legal, valid and binding obligation of the Company,
      enforceable against the Company in accordance with its terms.

     

    (e) 
      (i)
      Included in the Company’s Form 10-KSB/A for the fiscal year ended December 31,
      2007 (the “Form
      10-KSB”),
      are
      true and complete copies of the audited consolidated balance sheets (the
“Balance
      Sheets”)
      of the
      Company and its Subsidiaries at December 31, 2007, and the related audited
      consolidated statements of operation, changes in shareholders’ equity and cash
      flows for the years ended December 31, 2007 and 2006 (the “Financial
      Statements”),
      accompanied by the report of Moore Stephens P.C., Certified Public Accountants,
      A Professional Corporation. The Financial Statements have been prepared in
      accordance with United States generally accepted accounting principles
      (“GAAP”),
      applied consistently with the past practices of the Company (except as may
      be
      indicated in the notes thereto), and as of their respective dates, fairly
      present the consolidated financial position of the Company and the results
      of
      its operations and cash flows for the periods indicated therein. The Financial
      Statements have been prepared and are in accordance in all material respects
      with the accounting books and records of the Company. The books and records
      of
      the Company are kept in accordance with the provisions of the Exchange
      Act.

     

    (ii) Each
      SEC
      Document is available via the SEC’s EDGAR System. All reports or other documents
      required to be filed by the Company under the Securities Act or the Exchange
      Act
      since December 31, 2007 have been filed. As of their respective filing dates,
      each SEC Document complied in all material respects with the requirements of
      the
      Securities Act or the Exchange Act, as applicable, and the rules and regulations
      of the SEC thereunder applicable to the SEC Documents, and no SEC Document
      contained any untrue statement of a material fact or omitted to state any
      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. As of their respective filing dates, the financial statements of
      the
      Company included in the SEC Documents complied as to form in all material
      respects with then applicable accounting requirements and with the published
      rules and regulations of the SEC with respect thereto. 

    

    (iii) All
      written disclosures provided to the Investors regarding the Company, its
      business and the transactions contemplated hereby, furnished by or on behalf
      of
      the Company (including the Company’s representations and warranties set forth in
      this Agreement and the schedules to this Agreement) are true and correct in
      all
      material respects and do not contain any untrue statement of a material fact
      or
      omit to state any material fact necessary in order to make the statements made
      therein, in light of the circumstances under which they were made, not
      misleading. Except for the Offering, the Acquisition and transactions
      contemplated therein, no event or circumstance has occurred or information
      exists with respect to the Company or any of its Subsidiaries or its or their
      business, properties, prospects, operations or financial conditions, which,
      under applicable law, rule or regulation, requires public disclosure or
      announcement by the Company but which has not been so publicly announced or
      disclosed.

     

    
      
        
        

      

      
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          8
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    (iv) Since
      March 31, 2008, except for the Offering, the Acquisition and the transactions
      contemplated therein, neither the Company nor any of its Subsidiaries has
      incurred any material liabilities or obligations of any nature, whether or
      not
      accrued, absolute, contingent or otherwise, other than liabilities (A) disclosed
      in the SEC Documents filed prior to the date of this Agreement,
      (B) adequately provided for in the Balance Sheets or disclosed in any
      related notes thereto, (C) not required under GAAP to be reflected in the
      Balance Sheets, or disclosed in any related notes thereto, (D) incurred in
      connection with this Agreement or (E) incurred in the ordinary course of
      business and under contracts entered into in the ordinary course of business
      and
      in excess of $250,000.

    

    (v) Since
      March 31, 2008, there has not been any material adverse change in the business,
      financial condition or operating results of the Company and its Subsidiaries.
      

    

    (vi) No
      written order or injunction has been issued to the Company, and to the best
      of
      its knowledge, there are no injunctions (which have not been reduced to writing)
      that either (i) asserts that any of the transactions contemplated by the
      Offering is subject to the registration requirements of the Securities Act
      or
      (ii) purports to prevent or suspend the issuance or sale of any of the
      Securities in any jurisdiction. 

    

    (f) Except
      as
      contemplated by this Agreement or the Acquisition or disclosed in the SEC
      Documents, since March 31, 2008 through the date immediately preceding the
      Closing Date, neither the Company nor any of its Subsidiaries has (i) issued
      any
      stock, options, bonds or other securities, (ii) borrowed any material amount
      or
      incurred or became subject to any material liabilities (absolute, accrued or
      contingent), other than current liabilities incurred in the ordinary course
      of
      business and liabilities under contracts entered into in the ordinary course
      of
      business, (iii) discharged or satisfied any material lien or material
      adverse claim or paid any material obligation or material liability (absolute,
      accrued or contingent), other than current liabilities shown on the Balance
      Sheets and current liabilities incurred in the ordinary course of business,
      (iv)
      declared or made any payment or distribution of cash or other property to the
      stockholders of the Company or purchased or redeemed any securities of the
      Company, (v) mortgaged, pledged or subjected to any material lien or material
      adverse claim any of its properties or assets, except for liens for taxes not
      yet due and payable or otherwise in the ordinary course of business, (vi) sold,
      assigned or transferred any of its assets, tangible or intangible, except in
      the
      ordinary course of business or in an amount less than $250,000, (vii) suffered
      any extraordinary losses or waived any rights of material value other than
      in
      the ordinary course of business, (viii) made any capital expenditures or
      commitments therefor other than in the ordinary course of business or in an
      amount less than $250,000, (ix) entered into any other transaction other than
      in
      the ordinary course of business in an amount less than $250,000 or entered
      into
      any material transaction, whether or not in the ordinary course of business,
      (x)
      made any charitable contributions or pledges, (xi) suffered any damages,
      destruction or casualty loss, whether or not covered by insurance, affecting
      any
      of the properties or assets of the Company or any other properties or assets
      of
      the Company which could, individually or in the aggregate, have or result in
      a
      Material Adverse Effect, (xii) made any material change in the nature or
      operations of the business of the Company or (xiii) entered into any agreement
      or commitment to do any of the foregoing or that could reasonably be expected
      to
      result in any of the foregoing.

     

    (g) (i)
      The
      execution and delivery by the Company of this Agreement and the consummation
      of
      the transactions contemplated hereby will not (A) result in the violation of
      any
      provision of the Certificate of Incorporation or By-laws of the Company, (B)
      result in any violation of any law, statute, rule, regulation, order, writ,
      injunction, judgment or decree of any court or governmental authority to or
      by
      which the Company or any of its Subsidiaries is bound or (C) conflict with,
      or
      result in a breach or violation of, any of the terms or provisions of, or
      constitute (with due notice or lapse of time or both) a default under, any
      lease, loan agreement, mortgage, security agreement, trust indenture or other
      agreement to which the Company or any of its Subsidiaries is a party or by
      which
      it is bound or to which any of its properties or assets is subject, nor result
      in the creation or imposition of any Lien upon any of the properties or assets
      of the Company or any of its Subsidiaries, in the cases of clauses (B) and
      (C)
      above, only to the extent such conflict, breach, violation, default or Lien
      reasonably could, individually or in the aggregate, have or result in a Material
      Adverse Effect.

     

    
      
        
        

      

      
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          9
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    (ii)
      No
      consent, approval, license, permit, order or authorization of, or registration,
      declaration or filing with, any court, administrative agency or commission
      or
      other governmental authority remains to be obtained or is otherwise required
      to
      be obtained by the Company in connection with the authorization, execution
      and
      delivery of this Agreement or the consummation of the transactions contemplated
      hereby, including, without limitation the issue and sale of the Common Stock,
      except filings as may be required to be made by the Company after the Closing
      with (A) the SEC and (B) state “blue sky” or other securities regulatory
      authorities.

    

    (h) The
      Company and its Subsidiaries have all licenses, permits and other governmental
      authorizations currently required for the conduct of its current business and
      the ownership of its properties and is in all respects complying therewith,
      except where the failure to have such licenses, permits and other governmental
      authorizations would not have a Material Adverse Effect.

     

    (i) The
      Company is subject to and in compliance with the reporting requirements of
      Section 13 or 15(d) of the Exchange Act and files reports with the SEC on the
      EDGAR System. The Common Stock is registered pursuant to Section 12(g) of the
      Exchange Act. The Company has taken no action designed to, or likely to have
      the
      effect of, terminating the registration of the Common Stock under the Exchange
      Act, nor has the Company received any written notification or, to its knowledge,
      oral notification, that the SEC is contemplating terminating such
      registration.

     

    (j) The
      certificates for the shares of Common Stock conform to the requirements of
      the
      General Corporation Law of the State of Delaware.

     

    (k) The
      Company has complied in all material respects with and established such
      committees and policies as required by the Sarbanes-Oxley Act of 2002 and the
      rules and regulations of the SEC
      promulgated thereunder. 

     

    (l) Except
      as
      disclosed in the SEC Documents, there are no material claims, actions, suits,
      investigations or proceedings pending or, to the Company’s knowledge, threatened
      against the Company and its Subsidiaries or their respective assets, or any
      director or officer of the Company or any of its Subsidiaries, in such person’s
      capacity as an officer or director of the Company or any of its Subsidiaries,
      at
      law or in equity, by or before any governmental authority, or by or on behalf
      of
      any third party. 

     

    (m) The
      Company is not, and following the Closing of the Offering will not be, an
“investment company” within the meaning of that term under the Investment
      Company Act of 1940, as amended, and the rules and regulations of the SEC
      thereunder.

     

    (n) Neither
      the Company nor any of its Subsidiaries is (i) in default under or in violation
      of any indenture, loan or credit agreement or any other agreement or instrument
      to which it is a party of by which it or any of its properties is bound or
      (ii)
      in violation of any order, decree or judgment of any court, arbitrator or
      governmental body, the default under or violation of which could, individually
      or in the aggregate, have or result in a Material Adverse Effect.

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

     

    (o) The
      Company and its Subsidiaries, as the case may be, own all right, title and
      interest, or possesses adequate rights, in and to all patents, trademarks,
      registered copyrights, service marks or trade names, permits, grants and
      licenses and all other intangible assets of the Company necessary to conduct
      the
      business of the Company as presently conducted (the “Intellectual
      Property”)
      and to
      the knowledge of the Company the Intellectual Property does not infringe on
      or
      conflict with the rights or intellectual property of third parties, and, neither
      the Company, nor any of its Subsidiaries has received any written notice
      contesting its right to use any such Intellectual Property. The Intellectual
      Property has not been and are not the subject of any pending or threatened
      litigation or claim of infringement, and the transactions contemplated hereby
      will not adversely affect the right, title and interest of the Company in and
      to
      the Intellectual Property.

     

    (p) The
      Company and its Subsidiaries have obtained all permits, licenses and other
      authorizations which are required under United States federal, state and local
      laws relating to pollution or protection of the environment, including laws
      related to emissions, discharges, releases or threatened releases of pollutants,
      contaminants or hazardous or toxic material or wastes into ambient air, surface
      water, ground water or land, or otherwise relating to the manufacture,
      processing, distribution, use, treatment, storage, disposal, transport or
      handling or pollutants, contaminants or hazardous or toxic materials or wastes
      (“Environmental
      Laws”),
      except where the failure to obtain such permits, license or authorizations
      would
      not, individually or in the aggregate, have or result in a Material Adverse
      Effect. The Company and its Subsidiaries are in compliance with all terms and
      conditions of such permits, licenses and authorizations and are also in full
      compliance with all other limitations, restrictions, conditions and requirements
      contained in the Environmental Laws, except where the failure to so comply
      would
      not have a Material Adverse Effect. The Company is not aware of, nor has the
      Company received notice of, any events, conditions, circumstances, actions
      or
      plans which may interfere with or prevent continued compliance or which would
      give rise to any material liability under any Environmental Laws.

     

    (q) All
      material agreements to which the Company or any of its Subsidiaries is a party
      or by which any of them is bound and which are required to be filed by the
      Company pursuant to the Securities Act, the Exchange Act and the rules and
      regulations thereunder have been filed by the Company with the SEC. As of the
      date hereof, except as disclosed in the SEC Documents, and except for those
      agreements that by their terms are no longer in effect, each such agreement
      is
      in full force and effect and is binding on the Company and, to the Company’s
      knowledge, is binding upon such other parties, in each case in accordance with
      its terms, and neither the Company nor, to the Company’s knowledge, any other
      party thereto is in material breach of or material default under any such
      agreement. Except as disclosed in the SEC Documents, the Company has not
      received any written notice regarding the termination of any such
      agreements.

     

    (r) The
      Company has good title to all the properties and assets reflected as owned
      by it
      in the Financial Statements, subject to no Lien except (i) those, if any,
      reflected in such Financial Statements or (ii) those which are not material
      in
      amount and do not adversely affect the use made and intended to be made of
      such
      property by the Company. The Company holds its leased properties under valid
      and
      binding leases. Except as disclosed in the SEC Documents, the Company owns
      or
      leases all such properties as are necessary to its operations as now
      conducted.

     

    
      
        
        

      

      
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          11
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    (s) The
      Company and its Subsidiaries maintain insurance of the types, against such
      losses and in the amounts and with such insurers as are customary in the
      Company’s industry for similarly situated companies, and otherwise reasonably
      prudent, including, but not limited to, insurance covering all real and personal
      property owned or leased by the Company against theft, damage, destruction,
      acts
      of vandalism and all other risks customarily insured against by similarly
      situated companies, all of which insurance is in full force and
      effect.

     

    (t) The
      Company and its Subsidiaries are in compliance in all material respects with
      all
      applicable laws and all orders of, and agreements with, any governmental
      authority applicable to the Company, any Subsidiary or any of their respective
      assets. The Company and the Subsidiaries have all permits, certificates,
      licenses, approvals and other authorizations required under applicable laws
      or
      necessary in connection with the conduct of their businesses, except where
      the
      failure to have such permits, certificates, licenses, approvals and other
      authorizations would not have a Material Adverse Effect.

     

    (u) The
      Company and its Subsidiaries have filed or obtained extensions of all material
      United States federal, state, local and foreign income, excise, franchise,
      real
      estate, sales and use and other tax returns which it or they are required to
      file. All material federal, state, county, local, foreign or other income taxes
      which have become due or payable by the Company or any of its Subsidiaries
      (collectively, “Taxes”),
      have
      been paid in full or are adequately provided for in accordance with GAAP on
      the
      financial statements of the applicable person. No Liens arising from or in
      connection with Taxes have been filed and are currently in effect against the
      Company or any of its Subsidiaries, except for Liens for Taxes which are not
      yet
      due or which would not have a Material Adverse Effect. No audits or
      investigations are pending or, to the knowledge of the Company, threatened
      with
      respect to any tax returns or Taxes of the Company or any of its
      Subsidiaries.

     

    (v) The
      Company is in compliance in all material respects with all presently applicable
      provisions of the Employee Retirement Income Security Act of 1974, as amended,
      including the regulations and published interpretations thereunder
      (“ERISA”);
      no
“reportable event” (as defined in ERISA) has occurred with respect to any
“pension plan” (as defined in ERISA) for which the Company would have any
      material liability; the Company has not incurred and does not expect to incur
      any material liability under (i) Title IV of ERISA with respect to termination
      of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the
      Internal Revenue Code of 1986, as amended, including the regulations and
      published interpretations thereunder (the “Code”);
      and
      each “pension plan” for which the Company would have any liability that is
      intended to be qualified under Section 401(a) of the Code is so qualified in
      all
      material respects and nothing has occurred, whether by action or by failure
      to
      act, which would cause the loss of such qualification.

     

    (w) The
      Company is not involved in any material labor dispute with its employees nor
      is
      any such dispute, to the Company’s knowledge, threatened or
      imminent.

     

    (x) Assuming
      the truth of the Investor’s representations and acknowledgments contained in
      Section 2.1 hereof, neither the Company nor any person acting on its behalf
      has
      offered or sold the Securities by means of any general solicitation or general
      advertising within the meaning of Rule 502(c) under the Securities Act. The
      Company has not sold the Securities to anyone other than the Investors
      designated on the signature pages hereto. Each Share certificate shall bear
      substantially the same legend set forth in Section 2.1(l) hereof for at least
      so
      long as required by the Securities Act.

     

    
      
        
        

      

      
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          12
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    (y) Neither
      the Company nor any of its Subsidiaries, nor, to the knowledge of the Company,
      any director, officer, agent, employee or other person associated with or acting
      on behalf of the Company or any of its Subsidiaries, has (i) used any corporate
      funds for any unlawful contribution, gift, entertainment or other unlawful
      expense relating to political activity; (ii) made any direct or indirect
      unlawful payment to any foreign or domestic government official or employee
      from
      corporate funds; (iii) violated or is in violation of any provision of the
      U.S.
      Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff,
      influence payment, kickback or other unlawful payment.

     

    (z) The
      Company intends to account for the gross proceeds raised from the financing
      which is the subject of this Agreement as equity in its financial statements.
      

     

    (aa) The
      proceeds to the Company from the offering of the Securities will not be used
      to
      purchase or carry any security in violation of Regulation T, U and X of the
      Board of Governors of the Federal Reserve System.

     

    (bb) The
      Company maintains a system of internal accounting and other controls sufficient
      to provide reasonable assurances that (i) transactions are executed in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain accountability for assets,
      (iii) access to assets is permitted only in accordance with management’s general
      or specific authorization, and (iv) the recorded accounting for assets is
      compared with existing assets at reasonable intervals and appropriate action
      is
      taken with respect to any differences.

     

    (cc) Except
      as
      disclosed in the SEC Documents, no relationship, direct or indirect, exists
      between or among the Company or any affiliate of the Company, on the one hand,
      and any director, officer, stockholder, customer or supplier of the Company
      or
      any affiliate of the Company, on the other hand, which is required by the
      Exchange Act to be described in the Form 10-KSB for the year ended December
      31,
      2007, which is not so described in such reports.

     

    The
      Company acknowledges that the Investors and, for purposes of the opinions to
      be
      delivered to the Investors pursuant to Section 3 hereof, counsel to the Company
      and counsel to the Investors will rely upon the accuracy and truth of the
      foregoing representations and hereby consents to such reliance.

     

    SECTION
      3

    CONDITIONS
      FOR CLOSING

     

    3.1 Conditions
      of Investor’s Obligations at Closing.
      The
      obligations of each Investor under this Agreement are subject to the Company’s
      fulfillment on or before Closing of each of the following
      conditions:

     

    (a) Representations
      and Warranties.
      Each of
      the representations and warranties of the Company contained in this Agreement
      which are qualified as to materiality must be true and correct in all respects
      and each of the representations and warranties of the Company contained in
      this
      Agreement which are not qualified as to materiality must be true and correct
      in
      all material respects as of the Closing Date, in each case, as if made on such
      date.

     

    
      
        
        

      

      
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          13
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    (b) Performance.
      The
      Company shall have performed and complied in all material respects with all
      agreements, covenants and conditions required to be performed and complied
      with
      by it under this Agreement at or before the Closing.

     

    (c) No
      Suspension.
      No
      order suspending the use of this Agreement or the SEC Documents or enjoining
      the
      offering or sale of the Securities shall have been issued, and no proceedings
      for that purpose or a similar purpose shall have been initiated or pending,
      or,
      to the best of the Company’s knowledge, are contemplated or threatened nor has
      any order been issued halting the trading of the Company’s Common
      Stock.

     

    (d) Capitalization.
      Immediately prior to the consummation of the Closing, the Company will have
      an
      authorized capitalization as set forth on Schedule
      2.2(c).

     

    (e) Acquisition
      of Capital Stock of MCR American Pharmaceutical and AMBI
      Pharmaceuticals.
      The
      transactions contemplated by the Amended and Restated Stock Purchase Agreement
      (the “Acquisition
      Agreement”),
      by
      and among GKI Acquisition Corporation, the Company and David Ambrose, shall
      be
      concurrently consummated (the “Acquisition”).

     

    (f) Minimum
      Shares Purchased.
      A
      minimum of 8,000,000 shares of Common Stock shall be purchased by the Investors
      at the Closing under this Agreement for a minimum aggregate purchase price
      of
      $2,000,000.

     

    (g) Officers’
      Certificate.
      The
      Investors shall have received a certificate from an authorized officer of the
      Company, dated as of the Closing Date, certifying in such officer’s official
      capacity, as to the fulfillment of the conditions set forth in subparagraphs
      (a), (b), (c), (d) and (e) above.

     

    (h) No
      Material Adverse Change.
      At
      Closing, an authorized officer of the Company shall have provided a certificate
      to the Investors confirming that there have been no material adverse changes
      in
      the condition (financial or otherwise) or prospects of the Company from the
      date
      of the latest financial statements included in the SEC Documents other than
      as
      set forth or contemplated in this Agreement.

     

    (i) No
      Injunctions; etc.
      No
      court or governmental injunction, order or decree prohibiting the purchase
      and
      sale of the Securities will be in effect. There will not be in effect any law,
      rule or regulation prohibiting or restricting the sale or requiring any consent
      or approval of any person that has not been obtained to issue and sell the
      Securities to the Investors. 

     

    (j) Waivers
      and Consents.
      The
      Company shall have obtained all consents and waivers necessary to execute and
      deliver this Agreement and to issue and deliver the Securities, and all consents
      and waivers shall be in full force and effect.

     

    3.2 Conditions
      of the Company’s Obligations at Closing.
      The
      obligations of the Company with respect to each Investor under this Agreement
      are subject to such Investor’s fulfillment on or before the Closing of each of
      the following conditions by the Investors:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of the Investors contained in Section 2.1 shall
      be true on and as of the Closing with the same effect as though such
      representations and warranties had been made on and as of the Closing
      Date.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

     

    (b) Payment
      of Purchase Price.
      The
      Investors shall have delivered the purchase price and other documents required
      pursuant hereto.

     

    (c) No
      Injunctions; Etc.
      No
      court or governmental injunction, order or decree prohibiting the purchase
      and
      sale of the Common Stock shall be in effect. There shall not be in effect any
      law, rule or regulation prohibiting or restricting the sale or requiring any
      consent or approval of any person that has not been obtained to issue and sell
      the Securities to the Investors.

     

    (d) Minimum
      Shares Purchased.
      A
      minimum of 8,000,000 shares of Common Stock shall be purchased by the Investors
      at the Closing under this Agreement for a minimum aggregate purchase price
      of
      $2,000,000. 

     

    SECTION
      4

    AFFIRMATIVE
      COVENANTS OF THE COMPANY

     

    4.1 The
      Company hereby covenants and agrees with the Investors as follows:

     

    (a) Conduct
      of the Company.
      Between
      the date hereof and the Closing Date, the Company shall, and shall cause each
      Subsidiary to:

     

    (i) preserve
      and maintain in full force and effect its existence and good standing under
      the
      laws of its jurisdiction of formation or organization;

     

    (ii) preserve
      and maintain in full force and effect all material rights, privileges,
      qualifications, applications, licenses and franchises necessary for the Company
      and the Subsidiaries to operate in the normal conduct of their respective
      businesses as presently and as proposed to be conducted;

     

    (iii) use
      its
      best efforts to preserve intact its business organization;

     

    (iv) conduct
      its business in the ordinary course in accordance with sound business practices,
      and keep its properties in good working order and condition (normal wear and
      tear excepted); 

     

    (v) take
      all
      reasonable actions to protect and maintain the Company’s Intellectual Property,
      including, without limitation, prosecuting all pending applications for patents
      or for the registration of trademarks and copyrights and maintaining, to the
      extent permitted by law, each patent or registration owned by the Company or
      any
      Subsidiary;

     

    (vi) (A)
      comply in all material respects with all applicable laws, rules and regulations
      and with the directions of any governmental authority, and (B) not take any
      action designed to or that might reasonably be expected to cause or result
      in
      unlawful manipulation of the price of the Common Stock to facilitate the sale
      or
      resale of the Securities in violation of applicable law;

     

    (vii) file
      or
      cause to be filed in a timely manner all reports, applications, estimates and
      licenses that shall be required by a governmental authority;

     

    (viii) conduct
      its business in a manner such that the representations and warranties of the
      Company contained in Section 2.2 shall continue to be true and correct in
      all material respects on and as of the Closing;

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

     

    (ix) use
      its
      reasonable efforts to cause the conditions contained in Section 3.1 to be
      satisfied on or before the Closing Date; and

     

    (x) not
      issue, deliver, sell or authorize, or propose the issuance, delivery, sale
      or
      purchase of, any additional shares of capital stock, stock equivalents or any
      other security of the Company or any Subsidiary, other than (A) the
      issuance of Common Stock pursuant to the exercise of any warrants or options
      or
      other outstanding convertible securities outstanding as of the date hereof,
      (B) the issuance of securities pursuant to the Company’s equity incentive
      plans and (C) the issuance of any securities pursuant to the Acquisition
      Agreement.

     

    4.2 Disclosure.
      The
      Company covenants and agrees that neither it nor any other person acting on
      its
      behalf will provide any Investor or its agents or counsel with any information
      that the Company believes constitutes material non-public information, unless
      prior thereto such Investor shall have executed a written agreement regarding
      the confidentiality and use of such information. The Company understands and
      confirms that each Investor shall be relying on the foregoing covenant in
      effecting transactions in securities of the Company subsequent to Closing or
      Termination of the Offering. In the event of a breach of the foregoing covenant
      by the Company or any person acting on its or their behalf, the Company shall,
      upon written notice of such breach, make public disclosure of such material
      non-public information. 

     

    4.3 Securities
      Law Filings.
      For so
      long as the Investors and their respective Affiliates in the aggregate hold
      any
      of the Securities, the Company agrees to file with the SEC in a timely manner
      all reports and other documents required to be filed by the Company under the
      Securities Act and the Exchange Act.

     

    4.4 Legends.
      The
      Company agrees that at such time as the legends specified in Section 2.2(l)
      are
      no longer required to be printed on certificates evidencing the Securities
      (or
      any securities issued in exchange therefor in connection with any merger,
      recapitalization, reclassification or other similar transaction), the Company
      shall cause its counsel to promptly issue a legal opinion addressed to the
      Company’s transfer agent if required by such transfer agent to effect the
      removal of such legend as and when any Investor so requests, subject to the
      Investor providing any documentation reasonably requested by the Company or
      its
      counsel. The Company further agrees that at such time, it will, promptly
      following, and in any event within ten (10) business days of, the delivery
      by a
      Investor to the Company or the Company’s transfer agent of a certificate
      representing Securities issued with a restrictive legend, deliver or cause
      to be
      delivered to such Investor a certificate or multiple certificates, if requested,
      representing such Securities that is free from all restrictive and other
      legends.

     

    4.5 Use
      of
      Proceeds.
      The
      Company shall use the net proceeds from the sale of the Common Stock for general
      corporate purposes and funding the Acquisition.

     

    SECTION
      5

    TERMINATION

     

    5.1 Termination.
      This
      Agreement may be terminated prior to the Closing as follows:

     

    (a) with
      respect to any individual Investor, in whole or in part, at any time on or
      prior
      to the Closing Date, by written notice given by the Company to Investor and
      to
      all other Investors prior to Closing, provided that the Company returns to
      such
      Investor, without interest or deduction, all Proceeds paid by such Investor
      (for
      such terminated portion of Proceeds thereof);

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

     

    (b) at
      the
      election of the Company or the Investor by written notice to the other parties
      hereto after 5:00 p.m., New York time, on June 30, 2008, if the Acquisition
      shall not have occurred on or prior to such date, unless such date is extended
      by the mutual written consent of the Company and the Investor; provided,
      however,
      that
      the right to terminate this Agreement under this Section 5.1(b) shall not be
      available (A) to any party whose breach of any representation, warranty,
      covenant or agreement under this Agreement has been the cause of, or resulted
      in, the failure of the Closing to occur on or before such date or (B) if
      the Closing has not occurred solely because any party hereto has not yet
      obtained a necessary approval from any governmental authority; or

     

    (c) by
      either
      the Company or the Investor by written notice to the other parties hereto if
      any
      governmental authority shall have issued any injunction or other order
      prohibiting the consummation of the Closing and such injunction or order shall
      not be subject to appeal or shall have become final and
      nonappeable.

     

    5.2 Effect
      of Termination.
      If this
      Agreement is terminated pursuant to Section 5.1, this Agreement shall
      become void and of no further force and effect and none of the parties hereto
      shall have any liability in respect of such termination; provided,
      however,
      that
      such termination shall not relieve the Company or any Investor of any liability
      for any breach or non-performance of, or non-compliance with, this
      Agreement.

     

    SECTION
      6

    SURVIVAL
      OF REPRESENTATIONS, WARRANTIES AND 

    COVENANTS

     

    6.1 Survival
      of Representations, Warranties and Covenants.
      All of
      the representations and warranties made herein shall survive the execution
      and
      delivery of this Agreement until twenty-four (24) months following the Closing
      Date, except for (a) Sections 2.2(a), 2.2(b), 2.2(c) and 2.2(d) which
      representations and warranties shall survive the execution and delivery of
      this
      Agreement and the Closing hereunder for the period of any applicable statute
      of
      limitations or indefinitely if no statute of limitation applies, (b) 2.2(e),
      2.2(v) and 2.2(x), which representations and warranties shall survive until
      the
      third anniversary of the Closing Date, and (c) Section 2.2(u), which shall
      survive until the later to occur of (i) the lapse of the statute of limitations
      with respect to the assessment of any tax to which such representation and
      warranty relates (including any extensions or waivers thereof) and (ii) sixty
      (60) days after the final administrative or judicial determination of the taxes
      to which such representation and warranty relates, and no claim with respect
      to
      Section 2.2(u) may be asserted thereafter with the exception of claims arising
      out of any fact, circumstance, action or proceeding to which the party asserting
      such claim shall have given notice to the other parties to this Agreement prior
      to the termination of such period of reasonable belief that a tax liability
      will
      subsequently arise therefrom. Except as otherwise provided in this Agreement,
      all such representations, warranties, covenants and agreements shall inure
      to
      the benefit of the parties and their respective successors and
      assigns.

     

    SECTION
      7

    MISCELLANEOUS

     

    7.1 Modification.
      Neither
      this Agreement nor any provisions hereof should be modified, discharged or
      terminated except by an instrument in writing signed by the party against whom
      any waiver, change, discharge or termination is sought.

     

    7.2 Notices.
      All
      notices and other communications required or permitted hereunder must be in
      writing and, except as otherwise noted herein, must be addressed as
      follows:

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

     

    if
      to the
      Company, to:

     

    Neuro-Hitech,
      Inc.

    One
      Penn
      Plaza

    Suite
      1503

    New
      York,
      New York 10019

    Attn: 
      David Barrett

    Facsimile:
      (212) 594-1242

    

    with
      a
      copy (which shall not constitute notice) to:

    

    Arent
      Fox
      LLP

    1050
      Connecticut Avenue, NW

    Washington,
      DC 20036

    Attn:
      Jeffery E. Jordan, Esq.

    Facsimile:
      (202) 857-6395

     

    if
      to any
      Investor, to the address shown on such Investor’s signature page, marked for
      attention as there indicated, or to such other address as the party to whom
      notice is to be given may have furnished to the other parties in writing in
      accordance with the provisions of this Section 7.2. Any such notice or
      communication will be deemed to have been received: (A) in the case of facsimile
      or personal delivery, on the date of such delivery; and (B) in the case of
      nationally-recognized overnight courier, on the next business day after the
      date
      sent.

     

    7.3 Execution.
      By the
      execution of the signature page attached hereto, the parties hereby agree to
      be
      bound by all of the terms and conditions of this Agreement. Any signature
      delivered by facsimile transmission shall create a valid and binding obligation
      of the so party executing with the same force and effect as if such facsimile
      signature page were an original thereof.

     

    7.4 Counterparts.
      This
      Agreement may by executed through the use of separate signature pages or in
      any
      number of counterparts, and each of such counterparts shall, for all purposes,
      constitute one agreement binding on all the parties, notwithstanding that all
      parties are not signatories to the same counterpart.

     

    7.5 Binding Effect.
      Except
      as otherwise provided herein, this Agreement shall be binding upon and inure
      to
      the benefit of the parties and their heirs executors, administrators,
      successors, legal representatives and assigns. The obligation of the Investors
      shall be several and not joint and the agreements, representations, warranties
      and acknowledgments herein contained shall be deemed to be made by and be
      binding upon each such person and his heirs, executors, administrators and
      successors.

     

    7.6 Entire
      Agreement.
      This
      instrument, together with the schedules and exhibits hereto, contains the entire
      agreement of the parties, and there are no representations, covenants or other
      agreements except as stated or referred to herein.

     

    7.7 Assignability.
      This
      Agreement is not transferable or assignable by the Investor.

     

    7.8 Applicable
      Law; Jurisdiction.
      This
      Agreement shall be governed by and construed under the internal laws of the
      State of New York without regard to conflict of law rules. The parties hereby
      submit to the exclusive jurisdiction of the courts of the State of New York
      located in New York County and the Federal courts located in the Southern
      District of New York, with respect to any action or legal proceeding commenced
      by either party with respect to this Agreement or the Securities. Each party
      irrevocably waives any objection it now has or hereafter may have respecting
      the
      venue of any such action or proceeding or the inconvenience of such forum,
      and
      each party consents to the service of process in any such action or proceeding
      in the manner set forth for the delivery of notices herein. 

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

    7.9 Waiver
      of Jury Trial.
      The
      parties hereby waive their rights to a trial by jury in any action or proceeding
      involving any matter arising out of or relating to this Agreement or to the
      Securities.

     

    7.10 Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of Investor and the Company will be
      entitled to specific performance under this Agreement. The parties agree that
      monetary damages may not be adequate compensation for any loss incurred by
      reason of any breach or obligations described in the foregoing sentence and
      hereby agree to waive in any action for specific performance of any such
      obligation the defense that a remedy at law would be adequate.

     

    7.11 Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      shall not in any way be affected or impaired thereby and the parties will
      attempt to agree upon a valid and enforceable provision that is a reasonable
      substitute therefore, and upon so agreeing, shall incorporate such substitute
      provision into this Agreement.

     

    7.12 Equal
      Treatment of Investors.
      The
      Company shall not pay or offer to pay, whether in the form of cash, rights,
      benefits or other consideration, any Investor to amend or consent to a waiver
      or
      modification of any provision of this Agreement unless the same consideration,
      rights or benefit is paid to all Investors. For avoidance of doubt, this
      provision constitutes a separate right granted to each Investor and shall not
      in
      any way be construed as action in concert or action as a group by such Investor
      with any other Investor with respect to the purchase, disposition or voting
      of
      the Securities.

     

    [Signatures
      on Following Pages]

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement as of this 6th day of June
      2008.

     

    
      	
              NEURO-HITECH,
                INC.

            
	 	 
	
              By:

            	
              /s/
                David Barrett

            
	 	
              Name:
                David Barrett

            
	 	
              Title:
                Chief Financial Officer

            

    

    

    [Additional
      Signatures on Following Pages]

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

    SECURITIES
      PURCHASE AGREEMENT SIGNATURE PAGE

     

    
      	
               

            	 	
               

            
	
              Signature
                of Investor

            	 	
              Signature
                of Co-Investor

            
	
               

            	 	
               

            
	
              Name
                of Investor

            	 	
              Name
                of Co-Investor

            
	 	 	 
	
               

            	 	
               

            
	
              Address
                of Investor

            	 	
              Address
                of Co-Investor

            
	
               

            	 	
               

            
	
              Social
                Security or Taxpayer

            	 	
              Social
                Security or Taxpayer Identification

            
	
              Identification
                Number of Investor

            	 	
              Number
                of Co-Investor

            
	
               

            	 	 
	
              Number
                of Common Stock Purchased

            	 	 
	
              at
                $0.25 per share

            	 	 
	 	 	 
	
               

            	 	 
	
              Total
                Purchase Price Amount

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