Document:

SECURITIES
PURCHASE AGREEMENT

     

    This
Securities Purchase Agreement (this “Agreement”)
is dated as of February 12, 2009, by and among Pressure BioSciences, Inc., a
Massachusetts corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser”
and collectively the “Purchasers”).

     

    WHEREAS,
the Company has determined that it is in its best interests to obtain equity
financing through the issuance and sale of its securities with such securities
consisting of units (the “Units”)
comprised of (i) one share of Series A Convertible Preferred Stock, $.01 par
value (the “Preferred
Stock”), (ii) a warrant to purchase, at the Purchaser’s election, either
ten shares of Common Stock, $.01 par value (“15-Month Common
Warrant”), or one share of Preferred Stock (the “15-Month
Preferred Warrant”), and (iii) a warrant to purchase ten shares of Common
Stock (the “30-Month Common
Warrant”); and

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506 promulgated thereunder, the Company desires to issue
and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase from the Company, the Units, as more fully described in this
Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as
follows:

     

    ARTICLE
I.

    DEFINITIONS

     

    1.1           Definitions.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of
this Agreement, the following terms have the meanings set forth in this Section
1.1:

     

     “Affiliate”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a
Person as such terms are used in and construed under Rule 144 under the
Securities Act.

     

    “Articles of
Amendment” means the Articles of Amendment to the Company’s Restated
Articles of Organization, as amended, in the form of Exhibit A attached
hereto, that includes a Certificate of Designation setting forth the rights,
preferences, powers, privileges, restrictions, qualifications and limitations of
the Preferred Stock.

     

    “Business
Day” means any day except Saturday, Sunday, any day which shall be a
federal legal holiday in the United States, or any day on which banking
institutions in the State of New York are authorized or required by law or other
governmental action to close.

     

    “Closing”
and “Closings”
means each of the closings of the purchase and sale of the Units pursuant to
Section
2.3.  In the event there is more than one closing, the term
“Closing”
shall apply to each such closing unless otherwise specified

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Closing
Date” means the date on which the Company closes the purchase and sale of
the Units.  In the event there is more than one Closing, the term
“Closing
Date” shall apply to each such Closing unless otherwise
specified.

     

    “Commission”
means the Securities and Exchange Commission.

     

    “Common
Stock” means the common stock of the Company, par value $0.01 per share,
and any other class of securities into which such securities may hereafter be
reclassified or changed into.

     

    “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants, stock appreciation rights, restricted stock units, or other instrument
that are at any time convertible into or exercisable or exchangeable for, or
otherwise entitles the holder thereof to receive, Common Stock.

     

    “Common Warrant
Shares” means the shares of Common Stock issuable upon exercise of the
15-Month Common Warrants and 30-Month Common Warrants.

     

    “Company
Counsel” means Pepper Hamilton LLP, with offices located at 125 High
Street, 15th Floor,
Oliver Street Tower,  Boston, Massachusetts, 02110.

     

    “Conversion
Shares” means such shares of Common Stock which, from time to time, have
been issued, or may be issuable, upon conversion of the Preferred
Stock.

     

    “Disclosure
Schedules” means the Disclosure Schedules of the Company delivered
concurrently herewith.

     

    “Effective
Date” has the meaning set forth in the Registration Rights
Agreement.

     

    “Escrow
Agent” means Pepper Hamilton LLP, with offices located at 125 High
Street, 15th Floor,
Oliver Street Tower,  Boston, Massachusetts, 02110.

     

    “Escrow
Agreement” means the Escrow Agreement among the Company and the
Purchasers in the form of Exhibit B attached
hereto.

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     

    “Liens”
means a lien, charge, security interest, encumbrance, right of first refusal,
preemptive right or other restriction.

     

    “Material Adverse
Effect” shall have the meaning assigned to such term in Section
3.1(b).

     

    “Next
Financing” shall have the meaning assigned to such term in Section
4.7.

     

    
      
         

      

      
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    “Per Unit Purchase
Price” means an amount equal to the greater of:

     

    
      	
               
      

            	
              (a)

            	
              $11.50;

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      amount equal to the volume weighted average price for the Company’s Common
      Stock on the Trading Market for the ten (10) Trading Days preceding the
      Closing Date with respect to which the particular Units are being
      purchased, multiplied by ten (10);
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              an
      amount equal to the closing bid price of the Common Stock as reported by
      the Trading Market on the Trading Day immediately preceding the Closing
      Date with respect to which the particular Units are being purchased,
      multiplied by ten (10), plus $2.50.

            

    

     

    “Person”
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof), or other entity
of any kind.

     

    “Preferred
Stock” means the Series A Convertible Preferred Stock of the Company,
$0.01 par value, issued or issuable to each Purchaser pursuant to this Agreement
with such rights, preferences, powers, privileges, restrictions, qualifications
and limitations as are set forth in the Certificate of Designation included in
the Articles of Amendment.

     

    “Preferred Warrant
Shares” means the shares of Preferred Stock issuable upon exercise of the
15-Month Preferred Warrants.

     

    “Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.

     

    “Registration
Rights Agreement” means the Registration Rights Agreement, dated the date
hereof, among the Company and the Purchasers, in the form of Exhibit C attached
hereto.

     

    “Registration
Statement” means a registration statement meeting the requirements set
forth in the Registration Rights Agreement and covering the resale by the
Purchasers of all or part of the Common Warrant Shares issuable upon exercise of
the 15-Month Common Warrants.

     

    “Required
Approvals” shall have the meaning ascribed to such term in Section
3.1(e).

     

    “Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such
rule.

     

    “SEC
Reports” shall have the meaning ascribed to such term in Section
3.1(h).

     

    “Securities”
means, as context requires, the Preferred Stock, the Warrants, the Conversion
Shares, the Warrant Shares, and any combination of the foregoing or all of the
foregoing.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

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

     

    “Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for
Units purchased hereunder as specified below such Purchaser’s name on the
signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

     

    “Subsidiary”
means any subsidiary of the Company as set forth on Schedule
3.1(a).

     

    “Trading
Day” means a day on which the Common Stock is traded on a Trading
Market.

     

    “Trading
Market” means the NASDAQ Capital Market or if the NASDAQ Capital Market
is not the primary market on which the Common Stock is then traded, such other
markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question.

     

    “Transaction
Documents” means this Agreement, the Escrow Agreement, the Registration
Rights Agreement and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

     

    “Transfer
Agent” means Computershare Trust Company, with a mailing address of 350
Indiana Street, Suite 800, Golden, CO  80401 and a telephone number of
(303) 262-0600.

     

    “Unit”
means (i) one share of Preferred Stock, (ii) a 15-Month Common Warrant or
15-Month Preferred Warrant, as the case may be, and (iii) a 30-Month Common
Warrant.

     

    “Warrants”
means collectively the 15-Month Common Warrants, the 15-Month Preferred Warrants
and the 30-Month Common Warrants delivered, as the case may be, to the
Purchasers at the Closing in accordance with Section 2.2(a)
hereof, which warrants shall be, respectively, in the forms of Exhibit D, Exhibit E and Exhibit F attached
hereto.

     

    “Warrant
Shares” means collectively the Common Warrant Shares and the Preferred
Warrant Shares.

     

    ARTICLE
II.

    PURCHASE
AND SALE

     

    2.1           Escrow.  Prior
to the Closing, each Purchaser shall deliver to the Escrow Agent, via wire
transfer, immediately available funds equal to its Subscription Amount to be
held and released pursuant to the terms of the Escrow Agreement.  The
Subscription Amount will be deposited by the Escrow Agent in a non-interest
bearing escrow account.  The Company will pay interest on the
Subscription Amount when the Subscription Amount is released from the escrow in
an amount equal to five percent (5%) per annum, pro rated on a daily basis for
each day during which the Subscription Amount is held in escrow.  The
Subscription Amounts may be released to the Company, at the direction and in the
discretion of the Company, at an initial Closing after the Company has received
aggregate Subscription Amounts from Purchasers equal to at least
$2,000,000.  Thereafter, Subscription Amounts may be released to the
Company from time to time at each subsequent Closing.  Subscription
Amounts shall be returned to a Purchaser if there is no Closing with respect to
such Purchaser’s Subscription Amount before February 12, 2009, in accordance
with the terms of the Escrow Agreement.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    2.2          Articles of
Amendment.  On or before the initial Closing, the Company shall
adopt and file with the Secretary of the Commonwealth of Massachusetts the
Articles of Amendment.

     

    2.3          Closing.

     

    (a) On
each Closing Date, upon the terms and subject to the conditions set forth
herein, the Company agrees to sell, and each Purchaser, severally and not
jointly, agrees to purchase, at the Per Unit Purchase Price that number of Units
set forth opposite each Purchaser’s name on the signature page to this
Agreement, up to an aggregate of $3,500,000 of Units.  At the Closing,
the Escrow Agent shall release to the Company each Purchaser’s Subscription
Amount and the Company shall record in the name of each Purchaser its respective
shares of Preferred Stock and shall deliver to each Purchaser a 30-Month Common
Warrant as determined pursuant to Section 2.4(a)(v), and the Company and each
Purchaser shall deliver the other items set forth in Section 2.4 deliverable at
the Closing.  Upon satisfaction of the conditions set forth in
Sections 2.4 and 2.5, the Closing shall occur at the offices of the Company
Counsel or remotely via the exchange of documents and signatures or at such
other location or by such other means as the parties shall mutually
agree.

     

    (b)
Within 7 days after each Closing Date, each Purchaser shall notify the Company
in writing (each, a “Warrant Election
Notice”) of its election to receive (i) a 15-Month Common Warrant and/or
(ii) a 15-Month Preferred Warrant, as determined pursuant to Section
2.4(a)(iv).

     

    (c)
The initial Closing
of the purchase and sale of the Units shall not take place until such time as
the Escrow Agent has received at least $2,000,000 in Subscription
Amounts.  After the Escrow Agent has received such Subscription
Amounts, the Company may select, in its sole discretion, a date for the initial
Closing to occur, which may not be later than February 12,
2009.  After the initial Closing and from time to time until February
12, 2009, the Company may sell, on the same terms and conditions as those
contained in this Agreement, up to the remaining aggregate of $3,500,000 of
Units, if any, with the Per Unit Purchase Price being determined on the basis of
such subsequent Closing Date.

     

    2.4          Deliveries.

     

    (a) On or
prior to the Closing Date (except as otherwise required below), the Company
shall deliver or cause to be delivered to each Purchaser the
following:

     

    
      	
               
      

            	
              (i)

            	
              this
      Agreement duly executed by the
Company;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Escrow Agreement duly executed by the Company and the Escrow
      Agent;

            

    

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iii)

            	
              in
      the discretion of the Company, either (A) a copy of the irrevocable
      instructions to the Transfer Agent instructing the Transfer Agent to
      deliver, on an expedited basis, a certificate evidencing the number of
      shares of Preferred Stock contained in such Purchaser’s Units, or (B) a
      certificate evidencing the number of shares of Preferred Stock contained
      in such Purchaser’s Units, (in each case determined by dividing such
      Purchaser’s Subscription Amount by the Per Unit Purchase Price), and in
      each case registered in the name of such
  Purchaser;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              within
      7 days after receiving such Purchaser’s Warrant Election Notice, (a) a
      15-Month Common Warrant, if applicable, registered in the name of such
      Purchaser to purchase up to a number of Common Warrant Shares equal to ten
      (10) times the number of the Purchaser’s Units for which such Purchaser
      elects in the Warrant Election Notice to receive a 15-Month Common
      Warrant, and/or (b) a 15-Month Preferred Warrant, if applicable,
      registered in the name of such Purchaser to purchase up to a number of
      Preferred Warrant Shares equal to the number of the Purchaser’s Units for
      which such Purchaser elects in the Warrant Election Notice to receive a
      15-Month Preferred Warrant; provided that, for the
      purposes of clarity, the Purchaser may elect to receive, with respect to
      each of its Units, either a 15-Month Common Warrant or a 15-Month
      Preferred Warrant, and not both such
Warrants;

            

    

     

    
      	
               
      

            	
              (v)

            	
              a
      30-Month Common Warrant registered in the name of such Purchaser to
      purchase up to a number of Common Warrant Shares equal to ten (10) times
      the number of shares of Preferred Stock contained in such Purchaser’s
      Units;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              a
      check in the amount of the interest accrued on the Subscription Amounts
      held in escrow based upon an interest rate of five percent (5%) per annum
      and prorated on a daily basis for each day during which the Subscription
      Amount has been held in escrow;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              the
      Registration Rights Agreement duly executed by the Company;
      and

            

    

     

    
      
        	
              	
                (viii)

              	
                a
      legal opinion of Company Counsel in customary form regarding the issuance
      of the Units.

              

      

    

     

    (b) On or
prior to the Closing Date, each Purchaser shall deliver or cause to be delivered
to the Company the following:

     

    
      	
               
      

            	
              (i)

            	
              this
      Agreement duly executed by such
Purchaser;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Escrow Agreement duly executed by such
  Purchaser;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              such
      Purchaser’s Subscription Amount by wire transfer to the account as
      specified in the Escrow Agreement;

            

    

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iv)

            	
              the
      Registration Rights Agreement duly executed by such Purchaser;
      and

            

    

     

    
      	
               
      

            	
              (v)

            	
              if
      the Purchaser is a U.S. citizen, resident for U.S. federal income tax
      purposes, or otherwise subject to U.S. federal income tax, an IRS Form W-9
      completed with respect to such Purchaser in accordance with the
      instructions accompanying such
form.

            

    

     

    On the
Closing Date, the Escrow Agent shall deliver or cause to be delivered to the
Company the Subscription Amounts from each Purchaser.

     

    2.5         Closing
Conditions.

     

    (a) The
obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met:

     

    (i)           the
accuracy in all material respects when made and on the Closing Date of the
representations and warranties of the Purchasers contained herein;

     

    (ii)           all
obligations, covenants and agreements of the Purchasers required to be performed
at or prior to the Closing Date shall have been performed;

     

    (iii)           the
delivery by the Purchasers of the items set forth in Section 2.2(b) of
this Agreement; and

     

    (iv)           the
receipt by the Company of not less than $2,000,000 in Subscription
Amounts.

     

    (b) The
respective obligations of each Purchaser hereunder in connection with the
Closing are subject to the following conditions being met:

     

    (i)           the
accuracy in all material respects when made and on the Closing Date of the
representations and warranties of the Company contained herein;

     

    (ii)           all
obligations, covenants and agreements of the Company required to be performed at
or prior to the Closing Date shall have been performed;

     

    (iii)           the
delivery by the Company of the items set forth in Section 2.2(a) of
this Agreement; and

     

    (iv)           the
receipt by the Company of not less than $2,000,000 in Subscription
Amounts.

     

    ARTICLE
III. REPRESENTATIONS
AND WARRANTIES

     

    3.1           Representations and
Warranties of the Company.  Except as set forth in the
Disclosure Schedules or disclosed in the SEC Reports, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise
made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following
representations and warranties to each Purchaser:

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    (a)           Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are set forth on Schedule
3.1(a).  The Company owns, directly or indirectly, all of the
capital stock or other equity interests of each Subsidiary free and clear of any
Liens, and all of the issued and outstanding shares of capital stock of each
Subsidiary are validly issued and are fully paid, non-assessable and free of
preemptive and similar rights to subscribe for or purchase
securities.

     

    (b)           Organization and
Qualification.  Each of the Company and each of the
Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or organization (as applicable), with the requisite power and
authority to own and use its properties and assets and to carry on its business
as currently conducted.  Neither the Company nor any Subsidiary is in
violation or default of any of the provisions of its respective certificate or
articles of incorporation, bylaws or other organizational or charter
documents.  Each of the Company and each of the Subsidiaries is duly
qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be,
would not, individually or in the
aggregate, have or reasonably be expected
to result in (i) a material adverse effect on the legality, validity or
enforceability of any Transaction Document, (ii) a material adverse effect on
the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse
Effect”).

     

    (c)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder.  The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action on the part of the Company and no further action is
required by the Company, its board of directors or its stockholders in
connection therewith other than the Required Approvals.  Each
Transaction Document has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof and thereof,
will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    (d)           No
Conflicts.  The execution, delivery, and performance of the
Transaction Documents by the Company, the issuance and sale of the Units, and
the consummation by the Company of the other transactions contemplated hereby
and thereby do not and will not (i) conflict with or violate any provision of
the Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, 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, result in the creation of any Lien upon any of
the properties or assets of the Company or any Subsidiary, 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 a Company or Subsidiary debt or otherwise) or other
understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or
(iii) subject to the Required Approvals, conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or a
Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such
as would not, individually or in the
aggregate, have or reasonably be expected
to result in a Material Adverse Effect.

     

    (e)           Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization, or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery, and performance by the Company of the Transaction Documents, other
than (i) the filing of the Articles of Amendment with, and the acceptance of
such filing by, the Secretary of the Commonwealth of Massachusetts, (ii) filings
required pursuant to Section 4.3 of this
Agreement, (iii) the filing with, and the declaration of effectiveness by, the
Commission of the Registration Statement, (iv) application(s) and
notification(s) to each applicable Trading Market for the listing of the
Securities for trading thereon in the time and manner required thereby, and (v)
the filing of Form D with the Commission and such filings as are required to be
made under applicable state securities laws (collectively, the “Required
Approvals”).

     

    (f)           Issuance of
Units.  The shares of Preferred Stock constituting a part of
the Units are duly authorized and, when issued and paid for in accordance with
the applicable Transaction Documents, will be duly and validly issued, fully
paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents,
applicable federal and state securities laws and liens or encumbrances created
by or imposed by a Purchaser.  The Warrants, constituting a part of
the Units have been duly authorized and constitute the binding obligation of the
Company enforceable against the Company in accordance with its terms except (i)
as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.  The Preferred Stock
issuable upon exercise of the 15-Month Preferred Warrants, and the Common Stock
issuable upon (x) conversion of the shares of Preferred Stock issued as part of
the Units, (y) exercise of the 15-Month Common Warrants and 30-Month Common
Warrants, and (z) conversion of the shares of Preferred Stock issuable upon
exercise of the 15-Month Preferred Warrants, have in each case been duly
reserved for issuance, and upon issuance in accordance with the terms of the
Company’s Restated Articles of Organization, as amended, and the terms of the
Warrants, as applicable, will be validly issued, fully paid and nonassessable
and free of restrictions on transfer other than restrictions on transfer under
the Transaction Documents, applicable federal and state securities laws and
liens or encumbrances created by or imposed by a Purchaser.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    (g)           Capitalization.  The
number of shares and type of all authorized, issued and outstanding capital
stock of the Company as of December 31, 2008, are set forth on Schedule
3.1(g).  No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents.  Except as set
forth on Schedule
3.1(g), or as a result of the purchase and sale of the Units pursuant to
the terms of this Agreement, there are no outstanding options, warrants, scrip
rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities, rights, or obligations convertible into or
exercisable or exchangeable for, or giving any Person any right to subscribe for
or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock or Common Stock
Equivalents.  The issuance and sale of the Units will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other
than the Purchasers) and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange or reset price under any
of such securities.

     

    (h)           SEC Reports; Financial
Statements.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under
the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material)
(the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, being collectively referred to herein as the
“SEC
Reports”) on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any
such extension.  As of their respective dates, the SEC Reports
complied in all material respects with the requirements of the Securities Act
and the Exchange Act, as applicable, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.  The financial
statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of
filing.  Such financial
statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments and absence of footnotes
thereto.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    (i)           Material Changes;
Undisclosed Events, Liabilities or Developments.  Except as set
forth on Schedule
3.1(i), since the date of the latest
Current Report on Form 8-K filed by the Company prior to the date hereof, (i)
there has been no event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of
accounting, and (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock.

     

    (j)           Certain
Fees.  Except as set forth on Schedule 3.1(j), no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.

     

    (k)           Disclosure.  Except
with regard to the identity of the Purchasers set forth on Schedule 3.1(k) and
except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents which may constitute material,
non-public information until such time as the Company files a Current Report on
Form 8-K or issues a press release disclosing the terms of the transaction
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or
might constitute material, non-public information.  The Company
understands and confirms that the Purchasers will rely on the foregoing
representation in effecting transactions in securities of the
Company.  All disclosure furnished by or on behalf of the Company to
the Purchasers regarding the Company, its business, and the transactions
contemplated hereby, including the Disclosure Schedules to this Agreement, is
true and correct and does 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.

     

    3.2           Representations and
Warranties of the Purchasers.  Each Purchaser, for itself,
himself or herself and for no other Purchaser, hereby represents and warrants as
follows:

     

    (a)           Organization;
Authority.  If a corporation, partnership, limited liability
company, trust or other entity, (i) such Purchaser is an entity duly organized,
validly existing, and in good standing under the laws of the jurisdiction of its
organization with full right, corporate or partnership power and authority to
enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder;
and (ii) the execution, delivery, and performance by such Purchaser of the
transactions contemplated by this Agreement have been duly authorized by all
necessary corporate or similar action on the part of such
Purchaser.  If an individual, such Purchaser has full legal capacity
to execute and deliver this Agreement and the other Transaction Documents to
which he or she is a party and to consummate the transactions contemplated by
the Transaction Documents and otherwise to carry out his or her obligations
hereunder and thereunder.  Each Transaction Document to which such
Purchaser is a party has been duly executed by the Purchaser, and when delivered
by such Purchaser in accordance with the terms hereof, will constitute the valid
and legally binding obligation of such Purchaser, enforceable against such
Purchaser in accordance with its terms, except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    (b)           Own
Account.  Such Purchaser understands that the Securities are
“restricted securities” and have not been registered under the Securities Act or
any applicable state or other securities law and is acquiring the Securities as
principal for its own account and not with a view to or for distributing or
reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state or other securities law, has no present intention of
distributing any of such Securities in violation of the Securities Act or any
applicable state or other securities law, and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding
the distribution of such Securities (this representation and warranty not
limiting such Purchaser’s right to sell the Securities pursuant to the
Registration Statement or otherwise in compliance with applicable federal and
state securities laws) in violation of the Securities Act or any applicable
state or other securities law.  Such Purchaser is acquiring the
Securities hereunder in the ordinary course of its business.

     

    (c)           Purchaser
Status.  At the time such Purchaser was offered the Securities
such Purchaser was, on the date hereof it is, and on the applicable Closing Date
it will be, an “accredited investor” as defined in Rule 501(a) under the
Securities Act.  No Purchaser is required to be registered as a
broker-dealer under Section 15 of the Exchange Act.

     

    (d)           Experience of Such
Purchaser.  Such Purchaser, either alone or together with such
Purchaser’s representatives, has such knowledge, sophistication, and experience
in business and financial matters so as to be capable of evaluating the merits
and risks of the prospective investment in the Securities, and has so evaluated
the merits and risks of such investment.  Such Purchaser is able to
bear the economic risk of an investment in the Securities and, at the present
time, is able to afford a complete loss of such investment.

     

    (e)           General
Solicitation.  Such Purchaser is not purchasing the Securities
as a result of any advertisement, article, notice, or other communication
regarding the Securities published in any newspaper, magazine or similar media
or broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

     

    (f)           Provision of
Information. Such Purchaser has been afforded (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
Securities and the finances, operations and business of the Company; and (ii)
the opportunity to request such additional information which the Company
possesses or can acquire without unreasonable effort or expense.  All
of such Purchaser’s questions have been answered to its satisfaction and such
Purchaser has received all of such requested additional
information.

     

    (g)           Certain
Fees.  No brokerage or finder’s fees or commissions are or will
be payable by such Purchaser to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank, or other Person with respect
to the transactions contemplated by the Transaction Documents.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    (h)           Residency.  The
residence or principal place of business of such Purchaser is set forth below on
such Purchaser’s signature page to this Agreement, and all communications
between such Purchaser and the Company regarding the transactions contemplated
by this Agreement took place within or from the state of such residence or
principal place of business.

     

    (i)           Acknowledgement.  Each
Purchaser acknowledges that the Company has relied upon the representations and
warranties of the Purchasers set forth in Section 3.2 in its
determination that no registration under the Securities Act is required for the
offer and sale of the Securities by the Company to the Purchasers as
contemplated by this Agreement.

     

    (j)           Transactions in Common
Stock.

     

    (i)           Each
Purchaser represents, warrants and covenants that, at no time in the thirty (30)
days preceding the date hereof and through the date of the Closing, such
Purchaser and, to the Purchaser’s knowledge, its Affiliates have not engaged in,
directed or otherwise participated in, and shall not engage in, direct or
otherwise participate in, any transactions, whether directly or indirectly
through or with another Person, involving securities of the Company (including
without limitation the Common Stock) to maintain or otherwise affect, or that
are intended to maintain or otherwise affect, the trading price of the Common
Stock.

     

    (ii)           Each
Purchaser represents, warrants and covenants that, at no time in the thirty (30)
days preceding the date hereof and through the date of the Closing, such
Purchaser and, to the Purchaser’s knowledge, its Affiliates have not engaged,
and shall not engage, in any short-selling of Common Stock, and that such
Purchaser shall not use any of the Securities acquired pursuant to this
Agreement to cover any short position in the Common Stock if doing so would be
in violation of any applicable federal or state securities laws.  For
the six (6) months following the Closing, the Purchaser shall not, and shall
cause its Affiliates not to, engage in any short-selling of Common
Stock.

     

    (iii)           Each
Purchaser shall indemnify the Company for any and all losses, damages, costs and
expenses (including attorneys’ fees) that the Company may incur as a result of
any breach by the Purchaser of this Section 3.2(j).

     

    ARTICLE
IV.

    OTHER
AGREEMENTS OF THE PARTIES

     

    4.1          Transfer
Restrictions.

     

    (a)           The
Securities may only be disposed of in compliance with state and federal
securities laws.  In connection with any transfer of Securities other
than pursuant to an effective registration statement or Rule 144, or to the
Company, the Company may require the transferor thereof to provide to the
Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Securities under the Securities
Act.  As a condition of transfer, any such transferee shall agree in
writing to be bound by the terms of this Agreement and shall have the rights of
a Purchaser under this Agreement.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    (b)           Certificates
evidencing any Securities will contain the following legend or such other legend
as may be reasonably appropriate under the Securities Act for so long as the
Company determines that such legend is reasonably appropriate under the
Securities Act:

     

    THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

     

    4.2           Furnishing of
Information.  As long as any Purchaser owns Securities and the
Company remains subject to the requirements of the Exchange Act, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act.  As long
as any Purchaser owns Securities, if the Company is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell the Securities under Rule 144.

     

    4.3           Securities Laws Disclosure;
Publicity.  Promptly following the Closing and in accordance
with federal securities laws and regulations, the Company shall file a Current
Report on Form 8-K, disclosing the material terms of the transactions
contemplated hereby and filing the Transaction Documents as exhibits
thereto.  The Company intends to and may issue press releases with
respect to the transactions contemplated hereby without the prior consent of
each Purchaser.  Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any
Purchaser in any filing with the Commission or any regulatory agency or Trading
Market, without the prior written consent of such Purchaser, except (i) as
required by federal securities law in connection with (A) any registration
statement contemplated by the Registration Rights Agreement, (B) the Current
Report on Form 8-K required by this Section 4.3, (C) any
filing required by the Commission, (D) any filing required by state securities
laws and regulations as set forth in Section 4.5, and (E)
the filing of final Transaction Documents (including signature pages thereto)
with the Commission and (ii) to the extent such disclosure is required by law or
Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under this clause
(ii).  No Purchaser shall issue any press release or otherwise make
any public statement with respect to the transactions contemplated hereby
without the prior consent of the Company, which consent shall not unreasonably
be withheld or delayed, except if such disclosure is required by law, in which
case the Purchaser shall promptly provide the Company with prior notice of such
public statement or communication.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    4.4          Use of
Proceeds.  The Company shall use the net proceeds from the sale
of the Securities hereunder for general corporate working capital and corporate
purposes, including, but not limited to sales and marketing expenses, general
and administrative expenses, research and development expenses and the expenses
of the transaction contemplated by the Transaction Documents.

     

    4.5          Form D; Blue Sky
Filings.  The Company shall timely file a Form D with respect
to the Securities as required under Regulation D under the Securities Act and
shall provide a copy thereof, promptly upon request of any Purchaser. The
Company shall take such action as the Company shall reasonably determine is
necessary in order to obtain an exemption for, or to qualify the Securities for,
sale to the Purchasers at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such
actions promptly upon request of any Purchaser.  Each Purchaser shall
take all commercially reasonable actions that are reasonably requested by the
Company related to, or to effectuate, the filing of a Form D or any filing
required pursuant to the “Blue Sky” laws of the states of the United States
which, for purposes of clarity, shall not include the payment of any fees by
such Purchaser.

     

    4.6          Registration of Warrant
Shares.  Not later than 60 days following the Closing Date, the
Company shall use its commercially reasonable efforts to prepare and file with
the Commission a Registration Statement on Form S-3 covering the resale of the
Common Warrant Shares (subject to the limitations set forth in the Registration
Rights Agreement), and upon such filing the Company shall use its commercially
reasonable efforts to cause the Registration Statement to be declared effective
under the Securities Act as promptly as possible after the filing thereof, all
in accordance with the terms and conditions of the Registration Rights
Agreement.

     

    4.7          Subsequent
Placements.

     

    (a)           If
the Company consummates an equity financing (the “Next
Financing”) prior to the first anniversary of the initial Closing Date,
each Purchaser may exchange all, but not less than all, of his, her or its Units
for the equity securities issued in such Next Financing (the “Next Financing
Securities”), and shall become subject to the terms and conditions of
such Next Financing; provided that the exchange of
the Purchaser’s Units for Next Financing Securities is permitted under the rules
and regulations of the Trading Market then in effect.  The number of
Next Financing Securities into which a Purchaser’s Units may be exchanged shall
be determined by dividing (a) the aggregate Per Unit Purchase Price at which the
Units being exchanged were issued, by (b) the price per Next Financing Security
at which such securities were issued in the Next Financing.

     

    (b)           The
Company shall provide the Purchasers written notice (the “Exchange
Notice”) of any proposed Next Financing at least ten (10) days prior to
the closing of such Next Financing.  Such notice shall include the
terms and conditions of such Financing, including the consideration to be paid
to the Company for the issuance of the Next Financing Securities.  If
a Purchaser shall decide to exchange his, her or its Units for Next Financing
Securities, such Purchaser shall notify the Company in writing within ten (10)
days after receipt of the Exchange Notice.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    (c)           In
order to exchange Units for Next Financing Securities, each Purchaser shall be
required to execute all agreements executed by the investors in the Next
Financing (which in the sole discretion of the Company are reasonably applicable
to such Purchaser) and to deliver the certificate or certificates representing
their shares of Series A Preferred Stock and their Warrants, duly endorsed for
transfer or accompanied by a duly endorsed stock power (or, if such Purchaser
alleges that such certificate or Warrant has been lost, stolen or destroyed, a
lost certificate affidavit and agreement reasonably acceptable to the Company to
indemnify the Company against any claim that may be made against the Company on
account of the alleged loss, theft or destruction of such certificate) to the
Company at the place designated in the Exchange Notice.  Each
exchanging Purchaser also shall be required to execute and deliver such
additional instruments and undertake such other actions as the Company may
reasonably require to transfer such Units and issue Next Financing Securities in
exchange therefore in accordance with the terms and conditions of the Next
Financing.

     

    ARTICLE
V.

    MISCELLANEOUS

     

    5.1           Fees and
Expenses.  Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement.  The Company shall pay all
Transfer Agent fees, stamp taxes and other taxes and duties levied in connection
with the delivery of any Shares to the Purchasers.

     

    5.2           Entire
Agreement.  The Transaction Documents and all of the
confidentiality agreements by and between the Company and the Purchasers
together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
thereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.

     

    5.3           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
Trading Day following the date of mailing, if sent by internationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    5.4           Amendments;
Waivers.  No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and all of the Purchasers or, in the case of a waiver, by the party
against whom enforcement of any such waived provision is sought.  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.

     

    5.5           Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    5.6           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted
assigns.  The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Purchasers.  Subject to compliance with federal and state securities
laws and the restrictions on transfers and assignments under the exemptions from
registration upon which the Company is relying to offer, issue and sell the
Securities, any Purchaser may assign any or all of its rights under this
Agreement to any Person to whom such Purchaser assigns or transfers any
Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents
that apply to the “Purchasers.”

     

    5.7           No Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
Person.

     

    5.8           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the
Commonwealth of Massachusetts, without regard to the principles of conflicts of
law thereof.  Each party agrees that all legal proceedings concerning
the interpretations, enforcement, and defense of the transactions contemplated
by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
employees, or agents) shall be commenced exclusively in the state and federal
courts sitting in the Commonwealth of Massachusetts. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of Boston for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is
improper or is an inconvenient venue for such proceeding.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or 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 other manner
permitted by law.  The parties hereby waive all rights to a trial by
jury.  If either party shall commence an action or proceeding to
enforce any provisions of the Transaction Documents, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    5.9           Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

     

    5.10           Severability.  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.

     

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

     

    5.12           Independent Nature of
Purchasers’ Obligations and Rights.  The obligations of each
Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance or non-performance of the obligations of any other
Purchaser under any Transaction Document.  Nothing contained herein or
in any other Transaction Document, and no action taken by any Purchaser pursuant
thereto, shall be deemed to constitute the Purchasers as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the
Transaction Documents.  Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.  Each Purchaser
has been represented by its own separate legal counsel in their review and
negotiation of the Transaction Documents.

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    5.13           Construction. The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto.

     

    [signature
pages follow]

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto
have caused this Securities Purchase Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

     

    
      
        
          
            
              
                	
                        Pressure Biosciences
      Inc. 

                         

                         

                      	 
      	
                        Address
      for Notice:

                      
	
                        By:

                      	 
      	 
      	
                        14
      Norfolk Avenue

                      
	 
      	
                        Name:  Richard
      T. Schumacher

                        Title:  President
      and Chief Executive Officer

                         

                      	 
      	
                        Easton,
      MA  02375

                        Facsimile:  (508)
      580-1829

                        Attention:  Richard
      T. Schumacher

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

                         

                        Pepper
      Hamilton LLP

                        125
      High Street

                        Oliver
      Street Tower

                        15th
      Floor

                         

                        Boston,
      MA  02110

                        Facsimile:  617-956-4351

                        Attention:  Steven
      R. London

                      	 
      	 
      

              

            

          

        

      

    

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    [PURCHASER
SIGNATURE PAGES TO PRESSURE BIOSCIENCES INC. SECURITIES 
PURCHASE
AGREEMENT]

    

    IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

     

    
      
        
          	
                  FOR INDIVIDUALS:

                	  

        

      

      

      
        
          
            	
                    Name of Purchaser: 

                  	  

          

        

      

      

      
        
          
            	
                    Signature of Purchaser: 

                  	  

          

        

      

      

      
        
          	
                  FOR ENTITIES:

                	  

        

      

      

      
        
          
            
              	
                      Name of Purchaser: 

                    	  

            

          

        

      

      

      
        
          
            	
                    Signature of Authorized Signatory of Purchaser: 

                  	  

          

        

      

      

      
        
          
            	
                    Name of Authorized Signatory: 

                  	  

          

        

      

      

      
        
          
            	
                    Title of Authorized Signatory: 

                  	  

          

        

      

      

      
        
          	
                  FOR ALL PURCHASERS:

                	  

        

      

      

      
        
          
            
              	
                      Email Address of Purchaser: 

                    	  

            

          

        

      

      

      
        
          
            
              	
                      Fax Number of Purchaser: 

                    	  

            

          

        

      

       

      
        
          
            
              
                
                  
                    	
                            Address for Notice of Purchaser:        

                          	  
	 	 
	 	 

                  

                

              

            

          

           

        

      

      
        
          
            
              	
                      Address for Delivery of Units for Purchaser (if not same as address for notice):

                    	  

            

            
              
                
                  
                    
                      
                        	
                                 

                              	 
      
	 	 
	 	 

                      

                    

                  

                

              

            

          

        

      

    

     

    Subscription Amount: $__________________

    

    Units:
_______________________  [TO BE COMPLETED BY THE COMPANY AT
THE CLOSING BASED UPON THE PER UNIT PURCHASE PRICE]

    

    Taxpayer
Identification Number:  [PROVIDE THIS UNDER SEPARATE
COVER]

    

    [SIGNATURE
PAGES CONTINUE]

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    
      	
              *

            	
              All
      of the exhibits and schedules to this agreement have been omitted pursuant
      to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish
      supplementally to the SEC, upon request, a copy of any omitted exhibit or
      schedule provided however that the Company may request confidential
      treatment pursuant to Rule 24-2 of the Exchange Act for any schedule or
      exhibit so furnished.

            

    

    
      
         

      

      
        -22-NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

    

    15-MONTH
COMMON STOCK PURCHASE WARRANT

    

    PRESSURE
BIOSCIENCES INC.

     

    WARRANT
NO. B-__

     

    Warrant
Shares:
_____                                                                                     Initial
Exercise Date: February 12, 2009

     

    THIS
15-MONTH COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, _____________ (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the
“Initial
Exercise Date”) and on or prior to the close of business on May 12, 2010,
which is 15 months after the Initial Exercise Date, or sooner in accordance with
Section 3(b) or
Section 5(c)
(the “Termination
Date”) but not thereafter, to subscribe for and purchase from Pressure
BioSciences Inc., a Massachusetts corporation (the “Company”),
up to ______ shares (the “Warrant
Shares”) of common stock, par value $0.01 per share (the “Common
Stock”), of the Company.  The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section
2(b).

     

    1.           
Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement, dated February 12, 2009 (the “Purchase
Agreement”), by and among the Company and the purchasers signatory
thereto.

     

    2.           
Exercise.

     

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company of a duly executed Notice of Exercise (in the form annexed hereto, the
“Notice of
Exercise”) (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of such
Holder appearing on the books of the Company), this Warrant, and payment of the
aggregate Exercise Price of the Warrant Shares thereby purchased by wire
transfer or cashier’s check drawn on a United States bank.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $1.25, subject to adjustment
hereunder (the “Exercise
Price”).

     

    c)           Cashless
Exercise.

     

    i.      If
at any time after six (6) months from the date of issuance of this Warrant (x)
there is no effective Registration Statement (as defined in that certain
Registration Rights Agreement, dated February 12, 2009, by and among the Company
and the other parties thereto) registering, or no current prospectus under such
Registration Statement available for, the resale of all of the Warrant Shares by
the Holder, and (y) the Warrant Shares not registered under such Registration
Statement and not provided for in any such prospectus thereunder may not be
resold without restriction by the Holder pursuant to Rule 144 under the
Securities Act (such Warrant Shares, the “Restricted
Warrant Shares”), then this Warrant may also be exercised at such time by
means of a “cashless exercise” only with respect to such Restricted Warrant
Shares, in which case the Holder shall be entitled to receive that number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

     

    
      
        	
              	
                 (A)
      =

              	
                the
      volume weighted average price (“VWAP”)
      on the Trading Day immediately preceding the date of such election (with
      the date of such election being deemed to be the date on which the Company
      receives the Holder’s duly executed Notice of Exercise and this
      Warrant);

              

      

    

    

    
      	
               
      

            	
               (B)
      =

            	
              the
      Exercise Price, as adjusted; and

            

    

    

    
      	
               
      

            	
               (X)
      =

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

            

    

    

    Notwithstanding
the foregoing provisions of this Section 2(c)(i), this
Warrant may be exercised only (A) first in accordance with Section 2(a) by
payment of the Exercise Price in cash with respect to the Warrant Shares that
are not Restricted Warrant Shares, and only after this Warrant has been so
exercised with respect to all such Warrant Shares this Warrant may be exercised
(B) in accordance with this Section 2(c)(i) by
means of cashless exercise with respect to the Restricted Warrant
Shares.

    

    ii.           At
any time that the Holder is an Affiliate of the Company, this Warrant may also
be exercised by means of a “cashless exercise” with respect to all Warrant
Shares, in which case the Holder shall be entitled to receive that number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (A)
      =

            	
              the
      VWAP on the Trading Day immediately preceding the date of such election
      (with the date of such election being deemed to be the date on which the
      Company receives the Holder’s duly executed Notice of Exercise and this
      Warrant);

            

    

    

    
      	
               
      

            	
              (B)
      =

            	
              the
      Exercise Price, as adjusted; and

            

    

    

    
      	
               
      

            	
              (X)
      =

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

            

    

    

    d)           Holder’s
Restrictions.  The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any portion of
this Warrant, pursuant to Section 2, to the
extent that after giving effect to such issuance after exercise as set forth in
the applicable Notice of Exercise, such Holder (together with such Holder’s
Affiliates, and any other person or entity acting as a group together with such
Holder or any of such Holder’s Affiliates) would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially
owned by such Holder and its Affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which such
determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining, non-exercised
portion of this Warrant beneficially owned by such Holder or any of its
Affiliates and (B) exercise or conversion of the unexercised or non-converted
portion of any other securities of the Company (including, without limitation,
shares of Series A Convertible Preferred Stock, options and any other warrants)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by such Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for
purposes of this Section 2(d),
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act, it being acknowledged by the Holder that the Company is not
representing to such Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and such Holder is solely responsible for any
schedules required to be filed in accordance therewith.  To the extent
that the limitation contained in this Section 2(d) applies,
the determination of whether this Warrant is exercisable in full or in part (in
relation to other securities owned by such Holder together with any Affiliates)
shall be made by the Holder, and the submission of a Notice of Exercise shall be
deemed to be each Holder’s determination of whether this Warrant is exercisable
(in relation to other securities owned by such Holder together with any
Affiliates), in each case subject to such aggregate percentage limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination.  In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act.  Upon the written request of the Holder, the Company
shall within two (2) Trading Days confirm in writing to such Holder the number
of shares of Common Stock then outstanding.  In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant,
by such Holder or its Affiliates since the date as of which such number of
outstanding shares of Common Stock was reported.  The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant.  The
Beneficial Ownership Limitation provisions of this Section 2(d) may be
waived by the Holder, at the election of such Holder, upon not less than
sixty-one (61) days prior written notice to the Company (which notice period, if
requested by the Holder, may be waived by the Company in its sole discretion) to
increase the Beneficial Ownership Limitation to 9.99%, 14.99% or 19.99% of the
number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of shares of Common Stock upon exercise of this Warrant, and the
provisions of this Section 2(d) shall
continue to apply.  Upon a waiver of the Beneficial Ownership
Limitation from 4.99% to 9.99%, or from 9.99% to 14.99%, as the case may be, the
Holder may further waive the Beneficial Ownership Limitation from 9.99% to
14.99%, or from 14.99% to 19.99%, as applicable, by written notice to the
Company not less than sixty-one (61) days in advance of such waiver (which
notice period, if requested by the Holder, may be waived by the Company in its
sole discretion).  Upon the change by the Holder of the Beneficial
Ownership Limitation from 14.99% to 19.99%, the Beneficial Ownership Limitation
may not be further waived by such Holder.  The limitations contained
in this paragraph shall apply to a successor holder of this
Warrant.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    e)           Mechanics of
Exercise.

     

    i.      Authorization of Warrant
Shares.  The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon such exercise, be duly authorized, validly issued, fully paid
and nonassessable and free from all taxes, liens and charges created by the
Company in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue).

     

    ii.           Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”)
system if the Company is a participant in such system, and otherwise by the
Company or by the Transfer Agent by physical delivery to the address specified
by the Holder in the Notice of Exercise promptly, or if required by law, within
three (3) Trading Days, from the delivery to the Company of the duly executed
Notice of Exercise, surrender of this Warrant and payment of the aggregate
Exercise Price as set forth above (or an exercise
pursuant to Section 2(c)) (“Warrant Share
Delivery Date”).  This Warrant shall be deemed to have been
exercised, the Warrant Shares shall be deemed to have been issued, and the
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares of Common Stock for all purposes,
on the date the Company receives the duly executed Notice of Exercise, Warrant
and Exercise Price (unless such exercise is
pursuant to Section 2(c) in which case receipt of the Exercise Price is not
applicable),  and all taxes required to be paid by the Holder,
if any, pursuant to Section 2(e)(v) prior
to the issuance of such shares, have been paid.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    iii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the time of delivery of the certificate or
certificates representing Warrant Shares if prior to the Termination Date,
deliver to Holder a new Warrant evidencing the right of Holder to purchase the
unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

     

    iv.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

     

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

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.           Certain
Events.

     

    a)           Adjustments for Stock
Dividends and Splits. If the Company, at any time while this Warrant is
outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions on shares of
its Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock (which, for avoidance of doubt, shall not include any
shares of Common Stock issued by the Company upon exercise of this Warrant), (B)
subdivides outstanding shares of Common Stock into a larger number of shares,
(C) combines (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (D) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then
in each case the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding immediately before such event and of which the
denominator shall be the number of shares of Common Stock outstanding
immediately after such event and the number of shares issuable upon exercise of
this Warrant shall be proportionately adjusted.  Any adjustment made
pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

     

    b)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or consolidation of the Company (or a subsidiary of
the Company and the Company issues shares of its capital stock pursuant to such
merger or consolidation) with or into another Person in which the shares of
capital stock of the Company outstanding immediately prior to such merger or
consolidation do not continue to represent, or are not converted into or
exchanged for shares of capital stock that represent, immediately following such
merger or consolidation, at least a majority, by voting power, of the capital
stock of the surviving or resulting entity, or if the surviving or resulting
entity is a wholly owned subsidiary of another entity immediately following such
merger or consolidation, the parent entity of such surviving or resulting
entity, (B) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (C) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (D) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (each “Fundamental
Transaction”), then, the Holder may exercise this Warrant subject to and
conditioned upon the completion or closing of such Fundamental Transaction, and
upon such completion or closing of such Fundamental Transaction, this Warrant
shall terminate and shall no longer be exerciseable.

     

    c)           Calculations. All
calculations under this Section 3 shall be
made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number
of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

     

    d)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section
3, the Company shall promptly mail to the Holder a notice setting forth
the Exercise Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or any Fundamental
Transaction; (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company; then, in
each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register (as defined below) of the
Company, at least 20 calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice if
Holder is allowed to determine in its discretion that the Company must deem the
Warrant exercised immediately prior to and contingent upon the occurrence of the
events described in (A), (B), (C), (D) or (E) above.  The
Holder is entitled to exercise this Warrant during the 20-day period commencing
on the date of such notice of the record or effective date of the event
triggering such notice.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    4.           Transfer of
Warrant.

     

    a)           Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d)
hereof and to the provisions of Section 4.1 of the
Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company or its
designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer.  Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A Warrant, if properly assigned,
may be exercised by a new holder for the purchase of Warrant Shares without
having a new Warrant issued.

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

     

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to
time.  The Company may deem and treat the registered Holder of this
Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice
to the contrary reasonably satisfactory to the Company.

     

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

     

    5.           
Right to
Call.

     

    a)           Call
Conditions.  The Company may call for cancellation this
Warrant, subject to the limitations discussed in Section 5(b), if the
volume weighted average price for the Common Stock on the Trading Market equals
or exceeds $1.75 for either (i) ten (10) consecutive Trading Days or (ii)
fifteen (15) out of twenty-five (25) consecutive Trading Days.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    b)           Callable Warrant
Shares.  The Company shall not have the right to call any
portion of this Warrant, pursuant to this Section 5, to the
extent that, after giving effect to the issuance of Warrant Shares after
exercise of this Warrant, such Holder (together with such Holder’s Affiliates,
and any other person or entity acting as a group together with such Holder or
any of such Holder’s Affiliates) would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below).  For purposes of
the foregoing sentence, the number of shares of Common Stock beneficially owned
by such Holder and its Affiliates shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which such right to
call determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (A) exercise of the remaining portion,
if any, of this Warrant with respect to which such right to call determination
is not being made beneficially owned by such Holder or any of its Affiliates and
(B) exercise or conversion of the unexercised or non-converted portion of any
other securities of the Company (including, without limitation, shares of Series
A Convertible Preferred Stock, options and any other warrants) subject to a
limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by such Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for
purposes of this Section 5(b),
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act, it being acknowledged by the Holder that the Company is not
representing to such Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and such Holder is solely responsible for any
schedules required to be filed in accordance therewith.  To the extent
that the limitation contained in this Section 5(b) applies,
the determination of whether this Warrant may be called by the Company in full
or in part (in relation to other securities owned by such Holder together with
any Affiliates) shall be made by the Holder, and the submission of a Notice of
Exercise shall be deemed to be each Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by such Holder
together with any Affiliates), in each case subject to such aggregate percentage
limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination.  In addition, a determination as to
any group status as contemplated above shall be determined in accordance with
Section 13(d) of the Exchange Act.  Upon the written request of the
Holder, the Company shall within two (2) Trading Days confirm in writing to such
Holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by such Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant.  The
Beneficial Ownership Limitation provisions of this Section 5(b) may be
waived by the Holder, at the election of such Holder, upon not less than
sixty-one (61) days prior written notice to the Company (which notice period, if
requested by the Holder, may be waived by the Company in its sole discretion) to
increase the Beneficial Ownership Limitation to 9.99%, 14.99% or 19.99% of the
number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of shares of Common Stock upon exercise of this Warrant, and the
provisions of this Section 5(b) shall
continue to apply.  Upon a waiver of the Beneficial Ownership
Limitation from 4.99% to 9.99%, or from 9.99% to 14.99%, as the case may be, the
Holder may further waive the Beneficial Ownership Limitation from 9.99% to
14.99%, or from 14.99% to 19.99%, as applicable, by written notice to the
Company not less than sixty-one (61) days in advance of such waiver (which
notice period, if requested by the Holder, may be waived by the Company in its
sole discretion).  Upon the change by the Holder of the Beneficial
Ownership Limitation from 14.99% to 19.99%, the Beneficial Ownership Limitation
may not be further waived by such Holder.  The limitations contained
in this Section
5(b) shall apply to a successor holder of this Warrant.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    c)           Call
Procedure.  To exercise this right, the Company shall deliver
to the Holder a written notice (a “Call
Notice”) indicating therein that this Warrant must be exercised by a date
specified in the Call Notice, which date shall be at least twelve (12) Business
Days after the date of the Call Notice, and which date shall be extended for a
Holder providing written notice of waiver of the Beneficial Ownership Limitation
to the sixty-first (61st) day
following the date such Holder provides such sixty-one (61) days notice or to
such earlier date on which the Company has waived such sixty-one (61) day
notice) (such date, the “Call
Date”).  If the Holder does not exercise this Warrant by the
Call Date, then on the date immediately following the Call Date this Warrant
shall terminate and shall no longer be exerciseable.

     

    6.           Miscellaneous.

     

    a)           No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section
2(e)(ii).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant, including
as the Warrant is adjusted pursuant to Section 3 above  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such commercially reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Trading Market upon
which the Common Stock may be listed.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

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

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction.  All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Governing
Law.  This Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the Commonwealth of
Massachusetts, with regard to the principles of conflicts of law
thereof.

     

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

     

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

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

    

    ********************

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    
      
        
          
            
              
                	 
      	
                        PRESSURE
      BIOSCIENCES INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	 
       
	 
      	
                         

                      	
                        

                          Name:
      Richard T. Schumacher

                        

                      
	 
      	
                         

                      	
                        

                          Title:  
      President and Chief Executive
  Officer

                        

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    NOTICE OF
EXERCISE

    

    TO:           PRESSURE
BIOSCIENCES INC.

    

    (1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the Exercise Price in full, together with all
applicable transfer taxes, if any.

     

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

     

    o in lawful money of the
United States; or

     

    o [if permitted] the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in Section 2(c)(i), to
exercise this Warrant with respect to the maximum number of Warrant Shares
purchasable pursuant to the cashless exercise procedure set forth in Section 2(c)(i);
or

     

    o [if permitted] the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in Section 2(c)(ii), to
exercise this Warrant with respect to the maximum number of Warrant Shares
purchasable pursuant to the cashless exercise procedure set forth in Section
2(c)(ii).

     

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

     

    _______________________________

    

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)  Accredited
Investor.  The undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as
amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________________________

    Signature
of Authorized Signatory of Investing Entity:
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
________________________________________________________________________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing Warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the Warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    Holder’s
Signature:            _____________________________

    

    Holder’s
Address:             
_____________________________

    

                                                                                         
_____________________________

    

    Signature
Guaranteed:  ___________________________________________

    

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

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