Document:

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EXHIBIT 4.1

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                              CAPITAL STOCK WARRANT

                                       BY

                                  LIFEF/X, INC.

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                                     WARRANT

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

No. WC -1         Warrant to Purchase Shares of Capital Stock

                        WARRANT TO PURCHASE CAPITAL STOCK

                                       of

                                  LIFEF/X, INC.

     This certifies that, for value received, Safeguard 2001 Capital, L.P., or
its registered assigns ("Holder") is entitled, subject to the terms set forth
below, to purchase from Lifef/x, Inc. (the "Company"), a Nevada corporation, a
number of shares of the Underlying Securities up to the Warrant Coverage Number
(the "Warrant Shares") upon surrender hereof, at the principal office of the
Company referred to below, with the subscription form attached hereto duly
executed, and simultaneous payment therefor in lawful money of the United States
or otherwise as hereinafter provided, at the Exercise Price as set forth in
Section 2 below. The number, character and Exercise Price of such shares of
capital stock are subject to adjustment as provided below. This Warrant and any
Warrant subsequently issued upon exchange or transfer hereof is hereinafter
collectively called the "Warrant." This Warrant is being issued by the Company
in exchange for certain other warrants to purchase an aggregate of 15,628,295
shares of the Company's Common Stock currently held by the initial Holder (or
its affilate) as additional consideration for the initial Holder entering into
the Credit Agreement, and the parties acknowledge and agree that the option
inherent in this Warrant has nominal value.

     1.  CERTAIN DEFINITIONS. As used in this Warrant, the following terms
shall have the following meanings:

     "ALTERNATIVE TRANSACTION" shall mean any transaction in which the Company,
in exchange for cash, issues and sells equity securities or securities
convertible into, exchangeable or exercisable for, equity securities, of the
Company which occurs before the first anniversary of the repayment in full of
funds borrowed by the Company under the Credit Agreement, other than (i)
issuance of stock options for and shares of Common Stock to employees, officers,
directors and consultants pursuant to stock incentive plans in existence on the
date hereof or pursuant to subsequent stock incentive plans approved by
Safeguard 2001 Capital, L.P., which issuance has been approved by the Safeguard
2001 Capital, L.P. and (ii) issuances of securities upon exercise of stock
options or warrants outstanding as of the date hereof.

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     "CREDIT AGREEMENT" shall mean that certain Credit Agreement, dated the date
hereof, between the Company and the initial Holder.

     "DISPOSITION" shall mean a (i) consolidation or merger of the Company with
or into any other entity in which the holders of the Company outstanding voting
capital stock immediately before such consolidation or merger do not,
immediately after such consolidation or merger, retain stock or other equity
interests representing a majority of the voting power of the surviving entity of
such consolidation or merger; (ii) a sale, lease, license or other disposition
of all or substantially all of the Company's assets or intellectual property; or
(iii) a liquidation, dissolution or winding up of the Company.

     "UNDERLYING SECURITIES" shall mean, at the option of the Holder, either:
(i) shares of the Common Stock of the Company, or (ii) the securities that the
Company sells in an Alternative Transaction.

     "VESTED WARRANT SHARES" shall mean that portion of the Warrant Shares
determined by dividing the aggregate amount of the loans advanced to the Company
under the Credit Agreement by the Exercise Price; provided, however, that in the
event the Company is party to an Alternative Transaction or Disposition, this
term shall mean all of the Warrant Shares.

     "WARRANT COVERAGE NUMBER" shall mean the quotient obtained by dividing
$4,000,000 by the Exercise Price.

     2.  TERM OF WARRANT. Subject to the terms and conditions set forth herein,
this Warrant shall be exercisable, in whole or in part, during the term
commencing on the date hereof and ending at the earlier of: (i) 5 p.m., Eastern
time, on December 17, 2011, or (ii) 30 days after the Holder receives a copy of
a signed term sheet or letter of intent with respect to an Alternative
Transaction that Holder shall have determined, in its reasonable judgment,
provides the Company with funding, from a credit-worthy investor on terms
enforceable by the Company, sufficient for the Company to continue operations
for a period of at least 24 months under a business plan that, under
conservative assumptions, provides for the achievement of sustainable positive
operating cash flow during such period; provided, however, that if such
Alternative Transaction (x) is not consummated, then this Warrant shall not
expire as set forth in clause (ii) above with respect to such proposed
Alternative Transaction, or (y) is consummated on terms and conditions different
from those set forth in the term sheet, this Warrant shall not expire until 30
days after the Holder's receipt of a detailed notice of the changed terms or
conditions (the "Expiration Date").

     3. EXERCISE PRICE. The Exercise Price at which this Warrant may be
exercised shall be $0.094316 per share of Common Stock, as adjusted from time to
time pursuant to Section 11 hereof; provided, however, that in the event this
Warrant is being exercised by the Holder after receiving notice from the Company
pursuant to Section 2 and in connection with an Alternative Transaction, the
Exercise Price shall be the lesser of (i) the Exercise Price set forth above, or
(ii) the quotient obtained by dividing the "pre-money" valuation implicit in
such Alternative Transaction by the sum of (A) 51,960,268 (which is the sum of
33,615,724 shares of Common Stock outstanding on the date hereof plus 18,344,544
shares of Common Stock to be

                                       2.

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set aside for issuance pursuant to stock incentive plans, and therefore is
subject to adjustment for stock dividends, combinations, splits,
recapitalizations and the like) plus (B) the number of stock options of the
Company outstanding on the date hereof the exercise price of which at the time
of the execution of the definitive agreements relating to such Alternative
Transaction is less than the then-current Fair Market Value (as determined
pursuant to Section 4(d)) of the underlying capital stock. Notwithstanding the
prior sentence, if a Willful Default (as defined in the Credit Agreement) shall
have occurred under the Credit Agreement, the Exercise Price at which this
Warrant may be exercised shall be 85% of the amount otherwise calculated under
this Section.

     4. EXERCISE OF WARRANT.

        (a) This Warrant is exercisable with respect to any or all of the Vested
Warrant Shares, at the option of the Holder, at any time and from time to time
at or prior to the Expiration Date, upon surrender of this Warrant to the
Company together with (a) a duly completed (i) Notice of Exercise, in the form
attached hereto as EXHIBIT A, or (ii) Net Issue Election Notice, in the form
attached hereto as EXHIBIT B, and (b) payment of an amount equal to the Exercise
Price multiplied by the number of Warrant Shares with respect to which this
Warrant is being exercised as provided in paragraph 4(b). If the Holder
exercises this Warrant with respect to less than all of the Warrant Shares
represented by this Warrant, the Company shall cancel this Warrant upon the
surrender thereof and shall execute and deliver to the Holder a new Warrant for
the balance of such Warrant Shares.

        (b) Payment of the Exercise Price for the Warrant Shares with respect to
which this Warrant is being exercised shall be made, at the option of the
Holder, (a) by delivery of cash payable by wire transfer of immediately
available funds, (b) by cancellation by the Holder of indebtedness of the
Company to Holder under the Credit Agreement, (c) by net issue election as set
forth in paragraph 4(c) below, or (d) by any combination of items (a)-(c).

        (c) In the event that this Warrant is being exercised in connection with
an Alternative Transaction with respect to which the Holder has made the
determination which accelerates the Expiration Date pursuant to clause (ii) of
Section 2, the Holder may elect to receive, without payment by the Holder of any
additional consideration, shares of Common Stock equal to the value of the
Vested Warrant Shares or any portion thereof by the surrender of this Warrant to
the Company, together with a duly completed Net Issue Election Notice, in the
form attached hereto as EXHIBIT B, at the office of the Company. Thereupon, the
Company shall issue to the Holder such number of fully paid and nonassessable
shares of Common Stock as is computed using the following formula:

                                  X = Y (A - B)
                                      ---------
                                           A

where

X        =        the number of shares of Common Stock to be issued to the
                  Holder pursuant to this paragraph 4(c);

Y        =        the number of Vested Warrant Shares covered by this Warrant
                  in respect of which the net issue election is made pursuant to
                  this paragraph 4(c);

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A        =        the Fair Market Value of one share of the Company's Common
                  Stock (as defined below) as of the time that the net issue
                  election is made pursuant to this paragraph 3(c) and
                  determined in accordance with paragraph 4(d); and

B        =        the Exercise Price in effect under this Warrant at the time
                  that the net issue election is made pursuant to this paragraph
                  4(c).

        (d) DETERMINATION OF FAIR MARKET VALUE. For purposes of this Section 4,
fair market value of a share of Common Stock at the time that the net issue
election is made shall mean:

            (1) If traded on a stock exchange, the fair market value of the
Common Stock shall be deemed to be the average of the closing selling prices of
the Common Stock on the stock exchange determined by the Board to be the primary
market for the Common Stock over the ten (10) trading day period (or such
shorter period immediately following the closing of an initial public offering)
ending on the date prior to the date that the net issue election is made, as
such prices are officially quoted in the composite tape of transactions on such
exchange;

            (2) If traded over-the-counter, the fair market value of the Common
Stock shall be deemed to be the average of the closing bid prices (or, if such
information is available, the closing selling prices) of the Common Stock over
the ten (10) trading day period (or such shorter period immediately following
the closing of an initial public offering) ending on the date prior to the date
that the net issue election is made, as such prices are reported by the National
Association of Securities Dealers through its Nasdaq system, any successor
system or any exchange on which it is listed, whichever is applicable; or

            (3) If there is no public market for the Common Stock, then the fair
market value shall be determined by the Board of Directors of the Company in
good faith.

        (e) This Warrant shall be deemed to have been exercised immediately
prior to the close of business on the date of its surrender for exercise as
provided above, and the person entitled to receive the shares of Common Stock
issuable upon such exercise shall be treated for all purposes as the holder of
record of such shares as of the close of business on such date. As promptly as
practicable on or after such date, the Company at its expense shall issue and
deliver to the person or persons entitled to receive the same a certificate or
certificates for the number of shares issuable upon such exercise.

     5. NO FRACTIONAL SHARES OR SCRIP. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the Exercise Price
multiplied by such fraction.

     6. REPLACEMENT OF WARRANT. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction, or mutilation of this Warrant
and, in the case of loss, theft, or destruction, on delivery of an indemnity
agreement reasonably satisfactory in form and substance to the Company or, in
the case of mutilation, on surrender and cancellation of this

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Warrant, the Company at its expense shall execute and deliver, in lieu of this
Warrant, a new warrant of like tenor and amount.

     7. NO SHAREHOLDER RIGHTS OR LIABILITIES. This Warrant shall not entitle the
Holder hereof to any voting rights or other rights as a shareholder of the
Company, provided, however, that if Holder has any rights under any other
agreement with the Company that provides for a calculation using the number of
shares issued or issuable to Holder, then that number of shares issuable
pursuant to this Warrant shall be included in such calculation.

     8. TRANSFER OF WARRANT; RESTRICTIONS ON TRANSFER

        (a) WARRANT REGISTER. The Company will maintain a register (the "Warrant
Register") containing the names and addresses of the Holder or Holders. Any
Holder of this Warrant or any portion thereof may change his address as shown on
the Warrant Register by written notice to the Company requesting such change.
Any notice or written communication required or permitted to be given to the
Holder may be delivered or given by mail to such Holder as shown on the Warrant
Register and at the address shown on the Warrant Register. Prior to due
presentment of this Warrant together with a completed assignment form attached
hereto as EXHIBIT C for registration of transfer, the Company may deem and treat
the Holder as the absolute owner of the Warrant, notwithstanding any notation of
ownership or other writing thereon, for the purpose of any exercise thereof and
for all other purposes, and the Company shall not be affected by any notice to
the contrary.

        (b) WARRANT AGENT. The Company may, by written notice to the Holder,
appoint an agent for the purpose of maintaining the Warrant Register referred to
in Section 8(a) above, issuing the Common Stock or other securities then
issuable upon the exercise of this Warrant, exchanging this Warrant, replacing
this Warrant, or any or all of the foregoing. Thereafter, any such registration,
issuance, exchange, or replacement, as the case may be, shall be made at the
office of such agent.

        (c) TRANSFERABILITY OF WARRANT.

            (i) The Holder of this Warrant, by acceptance hereof, agrees to
comply in all respects with the provisions of this Section 8. Without in any way
limiting the representations set forth herein, the Holder agrees that neither
this Warrant nor the Warrant Shares represented hereby may be hypothecated,
sold, assigned or otherwise transferred (each a "Transfer") voluntarily by
Holder, unless and until the transferee has agreed in writing for the benefit of
the Company to be bound by this Section 8, the other provisions of this Warrant
and:

                (1) there is then in effect a Registration Statement under the
Securities Act covering such proposed disposition and such disposition is made
in accordance with such Registration Statement; or

                (2) the Holder shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of
the circumstances surrounding the proposed disposition (provided, however, that
the Holder shall not be required for Holder to effect such Transfer), and (B) if
reasonably requested by the Company, the Holder shall have furnished the Company
with an opinion of counsel, reasonably

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satisfactory to the Company, that such disposition will not require registration
of the Warrant and/or the Warrant Shares under the Securities Act. It is agreed
that the Company will not require opinions of counsel for transfers to any
Affiliate of Holder (as defined below) or for transactions made pursuant to Rule
144 except in unusual circumstances.

            (ii) Notwithstanding the provisions of paragraph (i) immediately
above, (i) no such Registration Statement, prior consent or opinion of counsel
shall be necessary for a transfer (A) by a Holder which is a partnership to a
partner of such partnership or a retired partner of such partnership who retires
after the date hereof, or to the estate of any such partner or retired partner
or to the transfer by gift, will or intestate succession of any partner to his
spouse or to the siblings, lineal descendants or ancestors of such partner or
his spouse , or (B) by a Holder to an "affiliate" of the Holder as that term is
defined in Rule 405 promulgated by the Securities and Exchange Commission under
the Securities Act, if the transferee agrees in writing to be subject to the
terms hereof to the same extent as if he were an original Holder hereunder and
(ii) no transferee shall be required, as a condition to any transfer of the
Warrant or the Warrant Shares by the Holder, to agree to be bound by this
Section 8, if the transferee is acquiring the Warrant and/or Warrant Shares
pursuant to a Registration Statement under the Securities Act or in a
transaction made pursuant to Rule 144. Each new certificate evidencing the
Warrant and/or Warrant Shares so transferred shall bear the appropriate
restrictive legends set forth in Section 8(e) below, except that such
certificate shall not bear such restrictive legend if, in the opinion of counsel
for the Company, such legend is not required in order to establish or assist in
compliance with any provisions of the Securities Act or any applicable state
securities laws.

        (d) EXCHANGE OF WARRANT UPON A TRANSFER. On surrender of this Warrant
for exchange, properly endorsed on the Assignment Form and subject to the
provisions of this Warrant with respect to compliance with the Securities Act
and with the limitations on assignments and transfers and contained in this
Section 8, the Company at its expense shall issue to or on the order of the
Holder a new warrant or warrants of like tenor, in the name of the Holder or as
the Holder (on payment by the Holder of any applicable transfer taxes) may
direct, for the number of shares issuable upon exercise thereof. Any transferee
of Holder's right to receive any vested Warrant Shares under this Warrant shall
receive a warrant substantially similar to this Warrant.

        (e) REPRESENTATIONS OF HOLDER. The Holder hereby represents and
acknowledges to the Company that:

            (i) this Warrant, the Common Stock issuable upon exercise of this
Warrant and any securities issued with respect to any of them by way of a stock
dividend or stock split or in connection with a reorganization, merger,
consolidation, sale or transfer of the Company's assets will be "restricted
securities" as such term is used in the rules and regulations under the
Securities Act and that such securities have not been and may not be registered
under the Securities Act or any state securities law, and that such securities
must be held indefinitely unless registration is effected or transfer can be
made pursuant to appropriate exemptions;

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            (ii) the Holder has read, and fully understands, the terms of this
Warrant set forth on its face and the attachments hereto, including the
restrictions on transfer contained herein;

            (iii) the Holder is purchasing for investment for its own account
and not with a view to or for sale in connection with any distribution of this
Warrant or the Common Stock of the Company issuable upon exercise of this
Warrant and it has no intention of selling such securities in a public
distribution in violation of the federal securities laws or any applicable state
securities laws; provided that nothing contained herein will prevent Holder from
transferring such securities in compliance with the terms of this Warrant and
the applicable federal and state securities laws;

            (iv) the Holder is an "accredited investor" within the meaning of
paragraph (a) of Rule 501 of Regulation D promulgated by the Securities and
Exchange Commission and an "excluded purchaser" within the meaning of Section
25102(f) of the California Corporate Securities Law of 1968; and

            (v) the Company may affix the following legends (in addition to any
other legend(s), if any, required by applicable state corporate and/or
securities laws) to certificates for shares of Common Stock (or other
securities) issued upon exercise of this Warrant:

        "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD,
        OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
        OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
        SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
        SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
        REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.
        COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE
        SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE
        OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER
        OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT THE
        PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY.

     9. RESERVATION OF STOCK. The Company covenants that during the Term this
Warrant is exercisable, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of this Warrant and, from time to time, will
take all steps necessary to amend its Amended and Restated Articles of
Incorporation to provide sufficient reserves of shares of Common Stock issuable
upon exercise of the Warrant. The Company further covenants that all shares that
may be issued upon the exercise of rights represented by this Warrant, upon
exercise of the rights represented by this Warrant and payment of the Exercise
Price, all as set forth herein, will be free from all taxes, liens, and charges
in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously or otherwise specified herein). The Company agrees
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 shares of Common Stock upon the
exercise of this Warrant.

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     10. AMENDMENTS. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

     11. ADJUSTMENTS. The Exercise Price and the number of shares purchasable
hereunder are subject to adjustment from time to time as follows:

         (a) MERGER, SALE OF ASSETS, ETC. If at any time, while this Warrant, or
any portion thereof, is outstanding and unexpired there shall be (i) a
reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), a merger or consolidation
of the Company with or into another corporation in which the Company is not the
surviving entity (but excluding any merger effected exclusively for the purpose
of changing the domicile of the Company), or a reverse triangular merger in
which the Company is the surviving entity but the shares of the Company's
capital stock outstanding immediately prior to the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash, or otherwise, or (ii) a sale or transfer of the Company's properties and
assets as, or substantially as, an entirety to any other person, then, as a part
of such reorganization, merger, consolidation, sale or transfer, lawful
provision shall be made so that the holder of this Warrant shall thereafter be
entitled to receive upon exercise of this Warrant, during the period specified
herein and upon payment of the Exercise Price then in effect, the number of
shares of stock or other securities or property of the successor corporation
resulting from such reorganization, merger, consolidation, sale or transfer
which a holder of the shares deliverable upon exercise of this Warrant would
have been entitled to receive in such reorganization, consolidation, merger,
sale or transfer if this Warrant had been exercised immediately before such
reorganization, merger, consolidation, sale or transfer, all subject to further
adjustment as provided in this Section 11. The foregoing provisions of this
Section 11(a) shall similarly apply to successive reorganizations,
consolidations, mergers, sales and transfers and to the stock or securities of
any other corporation which are at the time receivable upon the exercise of this
Warrant. If the per share consideration payable to the holder hereof for shares
in connection with any such transaction is in a form other than cash or
marketable securities, then the value of such consideration shall be determined
in good faith by the Company's Board of Directors. In all events, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interests of the Holder after the transaction, to the end that
the provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

         (b) NOTICE. If the Company proposes at any time to merge or consolidate
with or into any other corporation, or sell, lease or convey all or
substantially all its property or business or intellectual property, or to
liquidate, dissolve or wind up, including any transaction to which Section 11(a)
above applies, then the Company shall send to the holder of this Warrant at
least 20 days' prior written notice of the date on which a record shall be taken
for determining rights to vote in respect of such event.

         (c) RECLASSIFICATION, ETC. If the Company at any time while this
Warrant, or any portion thereof, remains outstanding and unexpired shall, by
reclassification of securities or otherwise, change any of the securities as to
which purchase rights under this

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Warrant exist into the same or a different number of securities of any other
class or classes, this Warrant shall thereafter represent the right to acquire
such number and kind of securities as would have been issuable as the result of
such change with respect to the securities which were subject to the purchase
rights under this Warrant immediately prior to such reclassification or other
change and the Exercise Price therefor shall be appropriately adjusted, all
subject to further adjustment as provided in Section 11.

         (d) SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If the Company at any
time while this Warrant, or any portion thereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a reverse split or combination.

         (e) ADJUSTMENTS FOR DIVIDENDS IN STOCK OR OTHER SECURITIES OR PROPERTY.
If while this Warrant, or any portion hereof, remains outstanding and unexpired
the holders of the securities as to which purchase rights under this Warrant
exist at the time shall have received, or, on or after the record date fixed for
the determination of eligible Shareholders, shall have become entitled to
receive, without payment therefor, other or additional stock or other securities
or property (other than cash) of the Company by way of dividend, then and in
each case, this Warrant shall represent the right to acquire, in addition to the
number of shares of the security receivable upon exercise of this Warrant, and
without payment of any additional consideration therefor, the amount of such
other or additional stock or other securities or property (other than cash) of
the Company which such holder would hold on the date of such exercise had it
been the holder of record of the security receivable upon exercise of this
Warrant on the date hereof and had thereafter, during the period from the date
hereof to and including the date of such exercise, retained such shares and/or
all other additional stock available by it as aforesaid during such period,
giving effect to all adjustments called for during such period by the provisions
of this Section 11.

         (f) SALE OF SHARES BELOW EXERCISE PRICE.

             (i) If at any time prior to the date hereof, the Company issues or
sell; or is deemed by the express provisions of this subsection (i) to have
issued or sold, Additional Shares of Common Stock (as defined in subsection
11(f)(iv) below), other than as a dividend or other distribution on any class of
stock as provided in Section 11(e) above, and other than a subdivision or
combination of shares of Common Stock as provided in Section 11(d) above, for an
Effective Price (as defined in subsection 11(f)(iv) below) less than the then
effective applicable Exercise Price, then and in each such case the then
existing Exercise Price shall be reduced, as of the opening of business on the
date of such issue or sale, to the Effective Price. No adjustment shall be made
to the Exercise Price in an amount less than one cent per share. Any adjustment
otherwise required by this Section 11(f) that is not required to be made due to
the preceding sentence shall be included in any subsequent adjustment to the
Exercise Price.

             (ii) For the purpose of making any adjustment required under
Section 11(f)(i), the consideration received by the Company for any issue or
sale of securities

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shall (A) to the extent it consists of cash, be computed at the net amount of
cash received by the Company after deduction of any underwriting or similar
commissions, compensation or concessions paid or allowed by the Company in
connection with such issue or sale, (B) to the extent it consists of property
other than cash, be computed at the fair value of that property as determined in
good faith by the Company's Board of Directors, and (C) if Additional Shares of
Common Stock, Convertible Securities (as defined in subsection (iii) or rights
or options to purchase either Additional Shares of Common Stock or Convertible
Securities are issued or sold together with other stock or securities or other
assets of the Company for a consideration which covers both, be computed as the
portion of the consideration so received that may be reasonably determined in
good faith by the Board of Directors to be allocable to such Additional Shares
of Common Stock, Convertible Securities or rights or options.

             (iii) For the purpose of the adjustment required under Section
11(f)(i), if the Company issues or sells (i) stock or other securities
convertible into, Additional Shares of Common Stock (such convertible stock or
securities being herein referred to as "Convertible Securities") or (ii) rights,
options or warrants for the purchase of Additional Shares of Common Stock or
Convertible Securities and if the Effective Price of such Additional Shares of
Common Stock is less than the applicable Exercise Price, in each case the
Company shall be deemed to have issued at the time of the issuance of such
rights, options, warrants or Convertible Securities the maximum number of
Additional Shares of Common Stock issuable upon exercise or conversion thereof
and to have received as consideration for the issuance of such shares an amount
equal to the total amount of the consideration, if any, received by the Company
for the issuance of such rights, options, warrants or Convertible Securities,
plus, in the case of such rights, options or warrants, the minimum amounts of
consideration, if any, payable to the Company upon the exercise of such rights,
options or warrants, plus, in the case of Convertible Securities, the minimum
amounts of consideration, if any, payable to the Company (other than by
cancellation of liabilities or obligations evidenced by such Convertible
Securities) upon the conversion thereof; PROVIDED that if in the case of
Convertible Securities the minimum amounts of such consideration cannot be
ascertained, but are a function of antidilution or similar protective clauses,
the Company shall be deemed to have received the minimum amounts of
consideration without reference to such clauses; PROVIDED FURTHER that if the
minimum amount of consideration payable to the Company upon the exercise or
conversion of rights, options, warrants or Convertible Securities is reduced
over time or on the occurrence or non-occurrence of specified events other than
by reason of antidilution adjustments, the Effective Price shall be recalculated
using the figure to which such minimum amount of consideration is reduced;
PROVIDED FURTHER that if the minimum amount of consideration payable to the
Company upon the exercise or conversion of such rights, options, warrants or
Convertible Securities is subsequently increased, the Effective Price shall be
again recalculated using the increased minimum amount of consideration payable
to the Company upon the exercise or conversion of such rights, options, warrants
or Convertible Securities. No further adjustment of the applicable Exercise
Price, as adjusted upon the issuance of such rights, options, warrants or
Convertible Securities, shall be made as a result of the actual issuance of
Additional Shares of Common Stock on the exercise of any such rights, options or
warrants or the conversion of any such Convertible Securities. If any such
rights, options, warrants or the conversion privilege represented by any such
Convertible Securities shall expire without having been exercised, the
applicable Exercise Price as adjusted upon the issuance of such rights, options,
warrants or Convertible Securities shall be readjusted to the applicable
Exercise Price which would have been in effect had an adjustment been made

                                       10

<PAGE>

on the basis that the only Additional Shares of Common Stock so issued were the
Additional Shares of Common Stock, if any, actually issued or sold on the
exercise of such rights, options, warrants or rights of conversion of such
Convertible Securities, and such Additional Shares of Common Stock, if any, were
issued or sold for the consideration actually received by the Company upon such
exercise, plus the consideration, if any, actually received by the Company for
the granting of all such rights, options or warrants, whether or not exercised,
plus the consideration received for issuing or selling the Conversion Securities
actually converted, plus the consideration, if any, actually received by the
Company (other than by cancellation of liabilities or obligations evidenced by
such Convertible Securities) on the conversion of such Convertible Securities,
PROVIDED that such readjustment shall not apply to prior exercises of this
Warrant.

             (iv) "Additional Shares of Common Stock" shall mean all shares of
Common Stock issued by the Company or deemed to be issued pursuant to this
Section 11(f), whether or not subsequently reacquired or retired by the Company,
other than (A) shares of Common Stock issued upon exercise of this Warrant; (B)
shares of Common Stock issued pursuant to or subject to, and including without
duplication, options, warrants or other Common Stock purchase rights (as
adjusted for any stock dividends, combinations, splits, recapitalizations and
the like) granted after the date of this Warrant to employees, officers or
directors of, or consultants or advisors to the Company or any subsidiary
pursuant to stock purchase or stock option plans or other arrangements which,
along with any amendments thereto, are approved by the Board and by Safeguard
2001 Capital, L.P.; (C) shares of Common Stock issued pursuant to the exercise
of options, warrants or convertible securities outstanding as of the date of
this Warrant; (D) shares of Common Stock issued upon a subdivision of the Common
Stock for which an adjustment is made pursuant to subsections 11(d) or 11(f).
The "Effective Price" of Additional Shares of Common Stock shall mean the
quotient determined by dividing the total number of Additional Shares of Common
Stock issued or sold, or deemed to have been issued or sold by the Company under
this Section 11(f), into the aggregate consideration received, or deemed to have
been received by the Company for such issue under this Section 11(f), for such
Additional Shares of Common Stock.

         (g) CERTIFICATE AS TO ADJUSTMENTS. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 11, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each holder of this Warrant a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the
written request, at any time, of any such holder, furnish or cause to be
furnished to such holder a like certificate setting forth: (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property which at the time
would be received upon the exercise of the Warrant.

                                       11

<PAGE>

     12. AVAILABILITY OF INFORMATION. The Company will cooperate with holder of
any "restricted securities" in supplying such information as may be necessary
for such holder to complete and file any information reporting forms presently
or hereafter required by the Securities and Exchange Commission, or any
successor federal agency having similar powers, as a condition to the
availability of an exemption from the Securities Act for the sale of any
"restricted securities."

     13. MISCELLANEOUS.

         (a) NOTICE. Notice or demand pursuant to this Warrant shall be deemed
effectively given upon (a) personal delivery to the party to be notified, (b)
upon telefacsimile transmission to the party to be notified at the telefacsimile
number indicated for such party on the signature page hereof, if any, upon
confirmation of transmission or (c) one (1) day after deposit with an overnight
courier service or three (3) days after deposit with the United States Post
Office, by registered or certified mail, postage prepaid and addressed, if to
the Holder of this Warrant, to the Holder at its last known address as it shall
appear in the records of the Company, and if to the Company, 153 Needham Street,
Bldg. #10, Newton, MA 02464, Attention: General Counsel. The Company or Holder
may alter the address to which communications are to be sent by giving notice of
such change of address in conformity with the provisions of this Section 13(a)
for the giving of notice.

         (b) GOVERNING LAW. The validity, interpretation and performance of this
Warrant shall be governed by the laws of the Commonwealth of Pennsylvania
without regard to principles of conflicts of laws.

         (c) SUCCESSORS, ASSIGNS. Subject to the restrictions on transfer by
Holder set forth in Section 8 hereof, all the terms and provisions of the
Warrant shall be binding upon and inure to the benefit of and be enforceable by
the respective successors and assigns of the parties hereto.

         (d) SEVERABILITY. Should any part but not the whole of this Warrant for
any reason be declared invalid, such decision shall not affect the validity of
any remaining portion, which remaining portion shall remain in force and effect
as if this Warrant had been executed with the invalid portion thereof
eliminated, and it is hereby declared the intention of the parties hereto that
they would have executed the remaining portion of this Warrant without including
therein any such part which may, for any reason, be hereafter declared invalid.

         (e) NO IMPAIRMENT. The Company will not, by any voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Warrant and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Warrant against impairment.

         (f) INTEGRATION. This Warrant and any documents referred to herein or
executed contemporaneously herewith constitute the Company's and Holder's entire
agreement with respect to the subject matter hereof and supersede all
agreements, representations,

                                       12

<PAGE>

warranties, statements, promises and understandings, whether oral or written,
with respect to the subject matter hereof.

         (g) HOLIDAYS. If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall be a Saturday or
a Sunday or shall be a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding business day.

                                       13

<PAGE>

     IN WITNESS WHEREOF, the Company and the Holder have each caused this
Warrant to be executed by its officers thereunto duly authorized.

Dated:  December 17, 2001

                                        Lifef/x, Inc.

                                        By:/S/ LUCILLE S. SALHANY
                                           -----------------------------
                                        Name: Lucille S. Salhany
                                        Title: Chief Executive Officer
                                        Fax no.617-964-2514

HOLDER:

Safeguard 2001 Capital, L.P.

By: Safeguard Delaware, Inc., its general partner

By: /s/ N. Jeffrey Klauder
    ----------------------------------------
Name: N. Jeffrey Klauder

Title: Executive Vice President and General
       Counsel
       -------------------------------------
Fax no.
        ------------------------------------

                                       14

<PAGE>

                                    EXHIBIT A

                           FORM OF NOTICE OF EXERCISE

     The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise this Warrant for, and to purchase thereunder, __________
shares of ________________ (identify underlying security) of Lifef/x, Inc., a
Nevada corporation and herewith makes payment of $__________ therefor and
requests that the certificates for such shares be issued in the name of, and
delivered to, ____________________, federal taxpayer identification number
__________, whose address is _____________________________________________.

     In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of ___________________ are being acquired solely
for the account of the undersigned and not as a nominee for any other party, and
for investment, and the undersigned will not offer, sell or otherwise dispose of
any such shares of _____________________ except under circumstances that will
not result in a violation of the Securities Act of 1933, as amended, or any
state securities laws.

     Please issue a new Warrant for the unexercised portion of the attached
Warrant in the name of, and delivered to, ____________________, federal taxpayer
identification number __________, whose address is _____________________________
___________________________________________.

Dated:____________

                                     ------------------------------------------
                                     (Signature must conform to name of holder
                                     as specified on the face of the Warrant)

                                      A-1

<PAGE>

                                    EXHIBIT B

                        FORM OF NET ISSUE ELECTION NOTICE
            (To be signed only on net issue exercise of the Warrant)

     The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise this Warrant with respect to __________ shares of Common
Stock of Lifef/x, Inc., a Nevada corporation, pursuant to the net issuance
provisions set forth in paragraph 3(c) of the Warrant and requests that the
certificates for the number of shares of Common Stock issuable pursuant to said
paragraph 3(c) after application of the net issuance formula to such __________
shares be issued in the name of, and delivered to, ____________________, federal
taxpayer identification number __________, whose address is
__________________________________.

     In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock are being acquired solely for the
account of the undersigned and not as a nominee for any other party, and for
investment, and the undersigned will not offer, sell or otherwise dispose of any
such shares of Common Stock except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended, or any state securities
laws.

                  Please issue a new Warrant for the unexercised portion of the
attached Warrant in the name of, and delivered to, ____________________, federal
taxpayer identification number __________, whose address is ____________________
_____________________________________________.

Dated:___________________

                                     -----------------------------------------
                                     (Signature must conform to name of holder
                                     as specified on the face of the Warrant)

                                      B-1

<PAGE>

                                    EXHIBIT C

                                 ASSIGNMENT FORM

(To be executed by the Warrant Holder if it desires to effect a transfer of
the Warrant)

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________, whose Social Security or other
identification number is ________________________ [residing/located] at
____________________________ ____________________ the attached Warrant, and
appoints _____________________________ residing at
__________________________________________________________________ the
undersigned's attorney-in-fact to transfer said Warrant on the books of the
Company, with full power of substitution in the premises.

Dated: ______________, 20__

In the presence of:

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

                                    (Signature must conform in all respects to
                                    the Warrant Holder as specified on the
                                    face of the Warrant, without alteration,
                                    enlargement or any change whatsoever).

                                      C-1<PAGE>

EXHIBIT 4.2

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

                                  LIFEF/X, INC.

                            INVESTOR RIGHTS AGREEMENT

                                DECEMBER 17, 2001

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

<Page>

                            INVESTOR RIGHTS AGREEMENT

     This Investor Rights Agreement (this "Agreement") is made effective as of
December 17, 2001, by and between Lifef/x, Inc., a Nevada corporation (the
"Company") and Safeguard 2001 Capital, L.P., a Delaware limited partnership (the
"Lender").

                                    RECITALS

     A. The Company and the Lender are parties to the Credit Agreement dated as
of the date hereof (the "Credit Agreement"), pursuant to which the Lender agrees
to lend the Company certain funds.

     B. The obligations of the Lender under the Credit Agreement are
conditioned, among other things, upon the execution and delivery of this
Agreement by the Company and the Lender.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the mutual promises and covenants
herein, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

     1. CERTAIN DEFINITIONS. As used in this Agreement, the following terms
shall have the following respective meanings:

     "COMMISSION" means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     "COMMON STOCK" shall mean the common stock of the Company, par value $0.001
per share.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended, or
any similar federal rule or statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

     "HOLDER" means (i) the Lender so long as its holds Registrable Securities
and (ii) any person holding Registrable Securities to whom rights have been
transferred under this Agreement, in accordance with Section 3 hereof.

     "INITIATING HOLDERS" means any Holder or Holders who, in the aggregate,
hold not less than 20% of the Registrable Securities then outstanding.

     "REGISTRABLE SECURITIES" means (i) the Common Stock of the Company issued
or issuable upon exercise of the Warrant or upon conversion or exchange of
convertible or exchangeable securities received upon exercise of the Warrant
(ii) any shares of Common Stock

<PAGE>

of the Company held as of the date hereof or acquired hereafter by the Lender or
any transferee, successor or assign of the Lender and (iii) any Common Stock of
the Company issued or issuable in respect of the foregoing upon any stock split,
stock dividend, recapitalization or similar event; provided, however, that
securities shall only be treated as Registrable Securities if and so long as (x)
they have not been registered or sold to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction and (y)
the registration rights with respect to such securities have not terminated
pursuant to Section 2.10.

     The terms "REGISTER," "REGISTERED" and "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     "REGISTRATION EXPENSES" shall mean all expenses, except as otherwise stated
below, incurred by the Company in complying with Sections 2.1, 2.2 and 2.3
hereof, including without limitation, all registration, qualification and filing
fees, printing expenses, escrow fees, fees and disbursements of counsel for the
Company, blue sky fees and expenses, the expense of any special audits incident
to or required by any such registration (but excluding the compensation of
regular employees of the Company which shall be paid in any event by the
Company). Registration Expenses shall also include the fees and disbursements
for one special counsel to the selling stockholders.

     "RULE 144" and "RULE 145" shall mean Rules 144 and 145, respectively,
promulgated under the Securities Act, or any similar federal rules thereunder,
all as the same shall be in effect at the time.

     "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or any
similar federal rule or statute and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

     "SELLING EXPENSES" shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the securities registered by
the Holders and, except as set forth above, all fees and disbursements of
counsel for any Holder.

     "STOCKHOLDERS" shall mean the Founders and the Investors.

     "WARRANT" shall mean the Warrant dated as of the date hereof issued by the
Company

     2. REGISTRATION.

     2.1 REQUESTED REGISTRATION.

         (a) REQUEST FOR REGISTRATION. In case the Company shall receive from
Initiating Holders a written request that the Company effect any registration
with respect to shares of Registrable Securities, the Company will:

                                      -2-

<PAGE>

             (i) promptly give written notice of the proposed registration to
all other Holders; and

             (ii) as soon as practicable, use commercially reasonable efforts to
effect such registration as part of a firm commitment underwritten public
offering with underwriters reasonably acceptable to the Initiating Holders and
the Company (including, without limitation, appropriate qualification under
applicable state securities laws and appropriate compliance with applicable
regulations issued under the Securities Act and any other governmental
requirements or regulations) as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any Holder or Holders joining in such request
by delivering a written notice to such effect to the Company within twenty days
after the date of such written notice from the Company.

     Notwithstanding the foregoing, the Company shall not be obligated to take
any action to effect or complete any such registration pursuant to this Section
2.1:

                  (A) Unless the requested registration would have an aggregate
offering price of all Registrable Securities sought to be registered by all
Holders, net of underwriting discounts and commissions, exceeding $5,000,000;

                  (B) Following the filing of, and for 180 days immediately
following the effective date of (but in no event later than 270 days immediately
following the filing date of), any registration statement pertaining to
securities of the Company (other than a registration of securities in a Rule 145
transaction, with respect to an employee benefit plan, pursuant to Form S-8,
pursuant to Form S-3 if a shelf filing for a secondary offering of securities,
or a registration of other than equity securities), provided that the Company is
actively employing in good faith commercially reasonable efforts to cause such
registration statement to become effective;

                  (C) After the Company has effected two registrations pursuant
to this Section 2.1(a) and such registrations have been declared or ordered
effective;

                  (D) If the Initiating Holders are able to request a
registration on Form S-3 pursuant to Section 2.3 hereof;

                  (E) Within 180 days after the Company has effected such a
registration pursuant to this Section 2.1(a), and such registration has been
declared or ordered effective; or

                  (F) If the Company shall furnish to the Initiating Holders a
certificate signed by the President of the Company (i) giving notice of its bona
fide intention to effect the filing of a registration statement with the
Commission within approximately 60 days, or (ii) stating that in the good faith
judgment of the Board of Directors it would be seriously detrimental to the
Company or its stockholders for a registration statement to be filed in the near
future. In such case, the Company's obligation to use its commercially
reasonable efforts to register, qualify or comply under this Section 2.1(a)
shall be deferred one or more times for a

                                      -3-

<PAGE>

period not to exceed 90 days from the receipt of the request to file such
registration by such Initiating Holder or Holders, provided that the Company may
not exercise this deferral right more than once per twelve-month period.

     Subject to the foregoing clauses (A) through (F), the Company shall file a
registration statement covering the Registrable Securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Initiating Holders.

     (b) UNDERWRITING. In the event of a registration pursuant to Section 2.1,
the Company shall advise the Holders as part of the notice given pursuant to
Section 2.1(a)(i) that the right of any Holder to registration pursuant to
Section 2.1 shall be conditioned upon such Holder's participation in the
underwriting arrangements required by this Section 2.1, and the inclusion of
such Holder's Registrable Securities in the underwriting to the extent requested
shall be limited to the extent provided herein. The Company shall, together with
all Holders proposing to distribute their securities through such underwriting,
enter into an underwriting agreement in customary form with the managing
underwriter selected for such underwriting by a majority in interest of the
Initiating Holders, but subject to the Company's reasonable approval.
Notwithstanding any other provision of this Section 2.1, if the managing
underwriter determines that marketing factors require a limitation of the number
of shares to be underwritten, the managing underwriter may limit the Registrable
Securities to be included in such registration to an amount no less than 33% of
all shares to be included in such offering; provided that the Company shall
ensure that such reductions shall be made in the following order of priority:
(x) first, the shares held by selling holders other than Holders of Registrable
Securities shall be reduced; (y) second, the shares of the Company to be
included in the underwriting shall be reduced, and (z) third, the shares held by
the Holders of Registrable Securities shall be reduced pro rata based upon the
number of Registrable Securities held by each Holder. The Company shall so
advise all Holders requesting to be included in the registration and
underwriting, and the number of shares of Registrable Securities that may be
included in the registration and underwriting shall be allocated among all
Holders requesting to be included in the registration and underwriting in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities held by them at the time of filing the registration statement. No
Registrable Securities excluded from the underwriting by reason of the
underwriter's marketing limitation shall be included in such registration. To
facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any
Holder to the nearest 100 shares. If any Holder of Registrable Securities
disapproves of the terms of the underwriting, such person may elect to withdraw
therefrom by written notice to the Company.

     2.2 COMPANY REGISTRATION.

         (a) NOTICE OF REGISTRATION. If at any time or from time to time the
Company shall determine to register any of its equity securities, either for its
own account or the account of a Holder or other holders, other than (i) a
registration relating solely to employee benefit plans, (ii) a registration
relating solely to a Rule 145 transaction, or (iii) a registration in which the
only equity security being registered is Common Stock issuable upon conversion
of convertible debt securities which are also being registered, the Company
will:

                                      -4-

<PAGE>

             (i) promptly give to each Holder written notice thereof; and

             (ii) include in such registration (and any related qualifications
including compliance with Blue Sky laws), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests, made within ten days after the date of such written notice from the
Company, by any Holder.

         (b) UNDERWRITING. If the registration of which the Company gives notice
is for a registered public offering involving an underwriting, the Company shall
so advise the Holders as a part of the written notice given pursuant to Section
2.2(a)(i). In such event, the right of any Holder to registration pursuant to
Section 2.2 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of Registrable Securities in the underwriting
shall be limited to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and the other Holders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by the Company.
Notwithstanding any other provision of this Section 2.2, if the managing
underwriter determines that marketing factors require a limitation of the number
of shares to be underwritten, the managing underwriter may limit the Registrable
Securities to be included in such registration to zero; provided that the
Company shall ensure that such reductions shall be made in the following order
of priority: (x) first, the shares held by selling holders other than Holders of
Registrable Securities shall be reduced; (y) second, the shares held by the
Holders of Registrable Securities shall be reduced pro rata based upon the
number of Registrable Securities held by each Holder, and (z) third, the shares
of the Company to be included in the underwriting shall be reduced. The Company
shall so advise all Holders requesting to be included in the registration and
underwriting, and the number of shares of Registrable Securities that may be
included in the registration and underwriting shall be allocated among all the
Holders requesting to be included in the registration and underwriting in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities held by them at the time of filing the registration statement. To
facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any
Holder to the nearest 100 shares. If any Holder disapproves of the terms of any
such underwriting, such person may elect to withdraw therefrom by written notice
to the Company.

         (c) RIGHT TO TERMINATE REGISTRATION. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 2.2
prior to the effectiveness of such registration whether or not any Holder has
elected to include securities in such registration.

     2.3 REGISTRATION ON FORM S-3.

         (a) REQUEST FOR REGISTRATION. In case the Company shall receive from
Initiating Holders a written request that the Company file a registration
statement on Form S-3 (or any successor form to Form S-3) for a public offering
of shares of the Registrable Securities the aggregate price to the public of
which, net of underwriting discounts and commissions, would exceed $500,000, and
the Company is a registrant entitled to use Form S-3 to register the Registrable
Securities for such an offering, the Company shall use commercially reasonable

                                      -5-

<PAGE>

efforts to cause such Registrable Securities to be registered for the offering
on such form and to cause such Registrable Securities to be qualified in such
jurisdictions as such Holder or Holders may reasonably request; provided,
however, that the Company shall not be required to effect more than one
registration pursuant to this Section 2.3 in any 90-day period. If such offer is
to be an underwritten offer, the underwriters must be acceptable to both the
Initiating Holders and the Company. The Company shall inform the other Holders
of the proposed registration and offer them the opportunity to participate. In
the event the registration is proposed to be part of a firm commitment
underwritten public offering, the substantive provisions of Section 2.1(b) shall
be applicable to each such registration initiated under this Section 2.3.

         (b) REGISTRATION. Notwithstanding the foregoing, the Company shall not
be obligated to take any action pursuant to this Section 2.3:

             (i) Following the filing of, and for 90 days immediately following
the effective date of (but in no event later than 270 days immediately following
the filing date of), any registration statement pertaining to securities of the
Company (other than a registration of securities in a Rule 145 transaction, with
respect to an employee benefit plan, pursuant to Form S-8, pursuant to Form S-3
if a shelf filing for a secondary offering of securities, or a registration of
other than equity securities), provided that the Company is actively employing
in good faith commercially reasonable efforts to cause such registration
statement to become effective;

             (ii) Within 90 days after the Company has effected such a
registration pursuant to this Section 2.3(a), and such registration has been
declared or ordered effective; or

             (iii) If the Company shall furnish to the Initiating Holders a
certificate signed by the President of the Company (i) giving notice of its bona
fide intention to effect the filing of a registration statement with the
Commission within approximately 60 days, or (ii) stating that, in the good faith
judgment of the Board of Directors, it would be seriously detrimental to the
Company or its stockholders for a registration statement to be filed in the near
future, then the Company's obligation to use its commercially reasonable efforts
to file a registration statement shall be deferred one or more times for a
period not to exceed 90 days from the receipt of the request to file such
registration by such Initiating Holder or Holders, provided that the Company may
not exercise this deferral right more than once per twelve-month period.

     2.4 SUBSEQUENT REGISTRATION RIGHT. The Company shall not enter into any
agreement granting any holder or prospective holder of any securities of the
Company registration rights superior to or on a pari passu basis with the rights
granted the Holders hereunder without the written consent of the Holders of a
majority of the Registrable Securities.

     2.5 EXPENSES OF REGISTRATION. All Registration Expenses incurred in
connection with (i) two registrations pursuant to Section 2.1, (ii) all
registrations pursuant to Section 2.2, and (iii) all registrations pursuant to
Section 2.3, shall be borne by the Company. Unless otherwise stated, all Selling
Expenses relating to securities registered on behalf of the Holders and all
other registration expenses shall be borne by the Holders of such securities pro
rata on the basis of the number of shares so registered or proposed to be so
registered.

                                      -6-

<PAGE>

     2.6 REGISTRATION PROCEDURES. In the case of each registration effected by
the Company pursuant to this Agreement, the Company will keep each Holder
advised in writing as to the initiation of such registration and as to the
completion thereof. The Company will:

         (a) REGISTRATION STATEMENT. Prepare and file with the Commission a
registration statement with respect to such Registrable Securities and use all
reasonable efforts to cause such registration statement to become effective,
and, upon the request of the Holders of a majority of the Registrable Securities
registered thereunder, keep such registration statement effective for up to one
hundred and eighty (180) days or, if earlier, until the Holder or Holders have
completed the distribution related thereto; provided, however, that such 180-day
period shall be extended for a period of time equal to the period the Holder
refrains from selling any securities included in such registration at the
request of an underwriter of Common Stock (or other securities of the Company).

       (b) AMENDMENTS AND SUPPLEMENTS. Prepare and file with the Commission such
amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement for the period set
forth in paragraph (a) above.

         (c) PROSPECTUS. Furnish to the Holders such number of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable
Securities owned by them.

         (d) QUALIFICATION. Use its best efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Holders; provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions, unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act.

         (e) UNDERWRITING OBLIGATIONS. In the event of any underwritten public
offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter(s) of such
offering. Each Holder participating in such underwriting shall also enter into
and perform its obligations under such an agreement.

         (f) NOTICE. Notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing.
The Company will use reasonable efforts to amend or supplement such prospectus
in order to cause such prospectus not to include any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the
circumstances then existing.

                                      -7-

<PAGE>

         (g) LISTING. Cause all such Registrable Securities registered pursuant
hereto to be listed on each securities exchange or automated quotation system on
which similar securities issued by the Company are then listed.

         (h) TRANSFER AGENT; CUSIP NUMBER. Provide a transfer agent and
registrar for all Registrable Securities registered pursuant hereunder and a
CUSIP number for all such Registrable Securities not later than the effective
date of such registration.

         (i) OPINION, COMFORT LETTER. Use its best efforts to furnish, on the
date that such Registrable Securities are delivered to the underwriters for
sale, if such securities are being sold through underwriters, (i) an opinion,
dated as of such date, of the counsel representing the Company for the purposes
of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and (ii) a letter dated as of such date, from the independent certified
public accountants of the Company, in form and substance as is customarily given
by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

     2.7 INDEMNIFICATION.

         (a) COMPANY INDEMNIFICATION. The Company will indemnify each Holder,
each of its officers and directors and partners, and each person controlling
such Holder within the meaning of Section 15 of the Securities Act, with respect
to which registration has been effected pursuant to this Agreement, against all
expenses, claims, losses, damages or liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration, or based on
any omission (or alleged omission) to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, or any violation by the
Company of the Securities Act, the Exchange Act, state securities laws or any
rule or regulation promulgated under such laws applicable to the Company in
connection with any such registration, and the Company will reimburse each such
Holder, each of its officers and directors, and each person controlling such
Holder, for any legal and any other expenses reasonably incurred, as such
expenses are incurred, in connection with investigating, preparing or defending
any such claim, loss, damage, liability or action, provided that the Company
will not be liable in any such case to the extent that any such claim, loss,
damage, liability or expense arises out of or is based on any untrue statement
or omission or alleged untrue statement or omission, made in reliance upon and
in conformity with written information furnished to the Company by an instrument
duly executed by such Holder or controlling person, and stated to be
specifically for use therein; provided further that the indemnity agreement
contained in this subsection 2.7(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld).

         (b) HOLDER INDEMNIFICATION. Each Holder will, if Registrable Securities
held by such Holder are included in the securities as to which such registration
is being effected, indemnify the Company, each of its directors and officers,
other holders of the Company's

                                      -8-

<PAGE>

securities covered by such registration statement, each person who controls the
Company within the meaning of Section 15 of the Securities Act, and each other
such Holder, each of its officers and directors and each person controlling such
Holder within the meaning of Section 15 of the Securities Act, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Holder of the
Securities Act, the Exchange Act, state securities laws or any rule or
regulation promulgated under such laws applicable to the Holder, and will
reimburse the Company, such other Holders, such directors, officers, persons,
underwriters or control persons for any legal or any other expenses reasonably
incurred, as such expenses are incurred, in connection with investigating or
defending any such claim, loss, damage, liability or action, but in the case of
the Company or the other Holders or their officers, directors or controlling
persons, only to the extent that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular or other document in reliance upon and
in conformity with written information furnished to the Company by an instrument
duly executed by such Holder and stated to be specifically for use therein.
Notwithstanding the foregoing, the liability of each Holder under this
subsection 2.7(b) shall be limited in an amount equal to the initial public
offering price of the shares sold by such Holder, unless such liability arises
out of or is based on willful misconduct or fraud by such Holder.

         (c) NOTICE. Each party entitled to indemnification under this Section
2.7 (the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Agreement unless the failure to give such notice is
materially prejudicial to an Indemnifying Party's ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or there are separate
and different defenses. No Indemnifying Party, in the defense of any such claim
or litigation, shall, except with the consent of each Indemnified Party (whose
consent shall not be unreasonably withheld), consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release from all liability in respect to such claim or litigation.

         (d) CONTRIBUTION. If the indemnification provided for in this Section
2.7 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any losses, claims, damages or liabilities
referred to herein, the indemnifying party, in lieu of indemnifying such
indemnified party thereunder, shall to the extent permitted by applicable law
contribute to the amount paid or payable by such indemnified party as a result
of such loss,

                                      -9-

<PAGE>

claim, damage or liability in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the untrue statement or omission that
resulted in such loss, claim, damage or liability, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by a court of law by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission to state a material fact relates to information supplied by
the indemnifying party or by the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission; PROVIDED, that in no event shall any contribution by
a Holder hereunder exceed the proceeds from the offering received by such
Holder.

         (e) SURVIVAL. The obligations of the Company and Holders under this
Section 2.7 shall survive completion of any offering of Registrable Securities
in a registration statement and the termination of this agreement. The
provisions of this Section 2.7 shall survive any termination of this Agreement.

         (f) CONFLICT WITH UNDERWRITING AGREEMENT. Notwithstanding the
foregoing, to the extent that the provisions on indemnification and contribution
contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the
provisions in the underwriting agreement shall control.

     2.8 INFORMATION BY HOLDER. The Holder or Holders of Registrable Securities
included in any registration shall furnish to the Company such information
regarding such Holder or Holders, the Registrable Securities held by them and
the distribution proposed by such Holder or Holders as the Company may request
in writing and as shall be required in connection with any registration referred
to in this Agreement.

     2.9 RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of the Restricted Securities to the public without registration, after such
time as a public market exists for the Common Stock of the Company, the Company
agrees to use commercially reasonable efforts to: (a) PUBLIC INFORMATION. Make
and keep public information available, as those terms are understood and defined
in Rule 144 under the Securities Act, at all times after the effective date that
the Company becomes subject to the reporting requirements of the Securities Act
or the Exchange Act;

         (b) FILING. File with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting
requirements); and

         (c) RULE 144 STATEMENT. So long as a Holder owns any Restricted
Securities, to furnish to the Holder forthwith upon request a written statement
by the Company as to its compliance with the reporting requirements of said Rule
144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents of the Company and other
information in the

                                      -10-

<PAGE>

possession of or reasonably obtainable by the Company as the Holder may
reasonably request in availing itself of any rule or regulation of the
Commission allowing the Holder to sell any such securities without registration.

     2.10 TERMINATION OF REGISTRATION RIGHTS. The rights granted pursuant to
Sections 2.1, 2.2 and 2.3 of this Agreement shall terminate as to any Holder
upon the earlier of (i) the date seven years after the date hereof and (ii) the
date such Holder is able to immediately sell all shares of Registrable
Securities held or entitled to be held upon conversion by such Holder under Rule
144 during any 90-day period.

     3. TRANSFER OF RIGHTS. The rights granted to Holders under Section 2 of
this Agreement may be assigned to any transferee or assignee, other than a
competitor or potential competitor of the Company (as determined in good faith
by the Company's Board of Directors) in connection with any transfer or
assignment of Registrable Securities by the Holder, provided that: (i) such
transfer is otherwise effected in accordance with applicable securities laws and
the terms of this Agreement; (ii) such assignee or transferee acquires at least
twenty percent (20%) of the shares of Registrable Securities (as adjusted for
stock splits, stock dividends, stock combinations and the like) initially
acquired by the transferring Holder (including preferred stock convertible into
Registrable Securities), (iii) written notice is promptly given to the Company;
and (iv) such transferee or assignee agrees to be bound by the provisions of
this Agreement. Notwithstanding the foregoing, the rights granted to the Holders
hereunder may be assigned without compliance with item (ii) above to any
constituent partner or member of a Holder which is a partnership or limited
liability company, or to an affiliate (as such term is defined in rule 405 of
the securities act) of a Holder which is a corporation, partnership or limited
liability company.

     4. RIGHT OF FIRST REFUSAL ON COMPANY ISSUANCES.

     4.1 PRO RATA SHARE. The Company hereby grants to the Holder the right of
first refusal to purchase its Pro Rata Share of New Securities (as defined in
Section 4.2) which the Company may, from time to time, propose to sell and
issue. A "PRO RATA SHARE," for purposes of this right of first refusal, equals
the proportion that the total number of Registrable Securities then held by the
Holder plus the number of shares of Common Stock then held by the Holder bears
to the sum of the total number of shares of Common Stock then outstanding.

     4.2 NEW SECURITIES. Except as set forth below, "NEW SECURITIES" shall mean
any shares of capital stock of the Company, including Common Stock and any
series of Preferred Stock, whether now authorized or not, and rights, options or
warrants to purchase said shares of Common Stock or Preferred Stock, and
securities of any type whatsoever that are, or may become, convertible into or
exchangeable for said shares of Common Stock or Preferred Stock. Notwithstanding
the foregoing, "NEW SECURITIES" does not include stock issued and issuable: (i)
upon conversion of shares of Preferred Stock; (ii) to employees, consultants or
directors pursuant to stock option, stock grant, stock purchase, or similar
plans and arrangements which, along with any amendments thereto, have been
approved by the Board of Directors and the Holder; (iii) pursuant to
subscriptions, warrants, options, convertible securities or other rights
outstanding as of the date hereof; (iv) solely in consideration for the
acquisition by the Company of all or substantially all of the stock or assets of
any other entity provided that such issuance is approved by the Board of
Directors including all directors affiliated with the Lender; or (v) upon
exercise

                                      -11-

<PAGE>

or conversion of securities with respect to which the Holder previously had an
opportunity to exercise the right of first refusal pursuant to this Section 4.

     4.3 NOTICE. In the event the Company proposes to undertake an issuance of
New Securities, it shall give the Holder written notice of its intention,
describing the amount and type of New Securities, and the price and terms upon
which the Company proposes to issue the same. The Holder shall have ten days
from the date of any such notice to agree to purchase up to its respective Pro
Rata Share of such New Securities for the price and upon the terms specified in
the notice by giving written notice to the Company and stating therein the
quantity of New Securities to be purchased.

     4.4 COMPANY SALE OF NEW SECURITIES. Beginning ten days after the notice
given pursuant to Section 4.3 above, the Company shall have 90 days to sell the
New Securities not elected or eligible to be purchased by the Holder at the
price and upon the terms no more favorable to the purchasers of such securities
than specified in the Company's notice. In the event the Company has not sold
all of the New Securities within said 90 day period, the Company shall not
thereafter issue or sell any New Securities without first offering such
securities in the manner provided above.

     5. SAFEGUARD SUBSCRIPTION RIGHT. In connection with any underwritten public
offering of securities of the Company by the Company, the Company shall:

        (a) provide in the related underwriting agreement a right for the Holder
to designate persons (the "Safeguard Designees") who may purchase from the
underwriters shares of the Company's Common Stock (the "Directed Shares") at the
offering price (the "IPO Price") to the public set forth in the prospectus
relating to such offering and on the other terms and conditions specified in the
underwriting agreement;

        (b) use its reasonable efforts to cause the underwriters of such
offering to allow the Safeguard Designees to purchase at the IPO Price a number
of Directed Shares equal to 30% of the shares of Common Stock offered by the
Company in such offering (the "Required Shares"); and

        (c) if the number of shares of Common Stock actually offered to the
Safeguard Designees from the Company, either directly or through an underwriter
(the "Company Shares"), is less than the number of Required Shares, then the
Holder shall have the right to sell to the Safeguard Designees in the public
offering that number of shares of Common Stock of the Company that it holds
equal to the difference between the number of Required Shares and the number of
Company Shares. If necessary, the Company shall use its best efforts to obtain
the underwriters' consent to allow such additional shares of Common Stock to be
sold to the Safeguard Designees.

     6. RIGHTS OFFERING.

        (a) RIGHTS.

                                      -12-

<PAGE>

            (i) In the alternative to a Directed Shares Subscription Program,
the Company shall, upon receipt of the Rights Offering Notice (as defined
below), grant to the Safeguard Designees rights (the "Rights") to purchase from
the Company such number of shares of Common Stock as determined by Safeguard up
to a maximum of 30% of the sum of (A) all issued shares of Common Stock, (B) all
shares of Common Stock reserved for issuance (including all shares of Common
Stock issuable upon conversion of the Company's preferred stock, if any), and
(C) all shares of Common Stock subject to, but not reserved for, issuance
pursuant to options, warrants or other agreements, instruments or
understandings, all as of the effective date of the registration statement. The
Rights shall be issued in an offering (the "Rights Offering") pursuant to a
registration statement, shall be exercisable for a period of no greater than 45
days after the commencement of the Rights Offering and shall be transferable by
the holder thereof during that period. The Company shall engage an investment
banking firm selected by the Holder, subject to the reasonable approval of a
majority of the Board of Directors of the Company, which firm shall underwrite,
on a standby, firm commitment basis, any portion of the offered Common Stock not
purchased through the exercise of Rights. The Company shall also engage legal
counsel selected by the Holder, subject to the reasonable approval of a majority
of the Board of Directors of the Company, which counsel shall represent the
Company in connection with the conduct of the Rights Offering. The exercise
price of the Rights shall be determined by negotiation among the Company, the
underwriters and the selling stockholders, if any. Prior to the commencement of
the Rights Offering, the Company shall use its best efforts to cause any holder
of more than 2% of its Common Stock (or rights to acquire more than 2% of its
Common Stock) to execute and deliver to the underwriter of the Rights Offering
an agreement to withhold such shares from the market for such period, not
exceeding 180 days following the closing of the Rights Offering, as the
underwriter shall request.

            (ii) The Holder may initiate the Rights Offering by giving written
notice to the Company (the "Rights Offering Notice") at any time during the
Rights Exclusivity Period (as hereinafter defined). The obligations of the
Company pursuant to this paragraph (a) shall commence on the date hereof and
expire on December 31, 2008 (such period, the "RIGHTS EXCLUSIVITY PERIOD")
unless a registration statement relating to the Rights Offering has been filed
with the SEC by such date, in which case the Rights shall not expire until 150
days after the date such filing was made.

            (iii) The Company agrees that it will not, without the Holder's
prior written consent, undertake any registration of any of its securities under
the Act or the 1934 Act other than pursuant to: (A) this Section, (B)
registration rights granted to a third party prior to the date hereof, or (C) a
registration relating to any employee benefit plan or with respect to any
corporate reorganization or other transaction under Rule 145 of the Securities
Act, prior to the earlier of the expiration of the Rights Exclusivity Period or
the completion of a Rights Offering, except with the consent of the Holder.

        (b) STOCK SPLIT. After the Holder has notified the Company of its
intention to commence the Rights Offering, the Company shall, if necessary,
prior to the filing of such registration statement as provided hereinafter (or
at such earlier date as agreed to by the Company and the Holder), take all such
actions as shall be necessary to cause a split of its authorized Common Stock in
such ratio as the Holder shall determine. All references to share

                                      -13-

<PAGE>

amounts in this Agreement other than as specifically noted shall be deemed to
refer to share amounts prior to such split.

        (c) REGISTRATION STATEMENT. Upon notice by the Holder to the Company of
its intention to commence the Rights Offering, the Company shall promptly
prepare a registration statement to register under the Act the Rights and the
shares of the Common Stock to be acquired upon exercise of the Rights (the
"Rights Shares"). The Company covenants that such registration statement and the
prospectus included therein shall be in form reasonably satisfactory to Holder,
shall comply in all respects with the Act and the rules and regulations of the
SEC promulgated thereunder, and shall not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

        (d) REGISTRATION PROCESS.

            (i) The Company shall use its best efforts to cause such
registration statement to be filed with the SEC and to become effective as
promptly as practicable. The Company shall prepare and file with the SEC,
promptly upon the Holder's request, any amendments or supplements to the
registration statement or prospectus that, in the Holder's opinion, may be
necessary or advisable in connection with the Rights Offering, subject to the
reasonable approval of counsel for the Company. The Company shall not file any
amendment or supplement to the registration statement or prospectus unless (A)
it has furnished the Holder with a copy of such amendment or supplement a
reasonable time prior to filing and (B) the Holder has not reasonably objected
to such amendment or supplement by notice to the Company. The Company shall not
issue any advertisement, press release, mailing or other solicitation material
of which the Holder reasonably disapproves by prompt written notice to the
Company after receiving reasonable notice thereof. The Company shall comply with
the Act and the rules and regulations thereunder in connection with the Rights
Offering and, until the termination of the Rights Offering, the Company shall
use its best efforts to qualify the Rights Shares under the securities laws of
all jurisdictions in which qualification is required and there are holders of
the Holder common stock and to continue such qualifications in effect during the
exercise period of the Rights.

            (ii) The Company shall notify Holder and each selling stockholder
(if any) at any time when a prospectus relating thereto is required to be
delivered under the Act within the period that the Company is required to keep
the registration statement effective of the happening of any event as a result
of which the prospectus included in such registration statement, together with
any associated term sheet, contains an untrue statement of a material fact or
omits any fact necessary to make the statement therein not misleading, and, at
the request of any such selling stockholder or Holder, the Company will prepare
a supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of such Registrable Securities or Rights and shares of Common
Stock underlying such Rights, such prospectus will not contain an untrue
statement of a material fact or omit to state any fact necessary to make the
statement therein not misleading;

                                      -14-

<PAGE>

            (iii) The Company shall cause all such Registrable Securities or
Rights and shares of Common Stock underlying such Rights to be listed or
included on securities exchanges on which similar securities issued by the
Company are then listed or included;

            (iv) The Company shall provide a transfer agent and registrar for
all such Registrable Securities or Rights and shares of Common Stock underlying
such Rights not later than the effective date of such registration statement;

            (v) The Company shall enter into such customary agreements
(including an underwriting agreement in customary form) and take such other
customary actions as may be reasonably necessary to expedite or facilitate the
disposition of such Registrable Securities or the consummation of the Rights
Offering;

            (vi) The Company shall obtain a "comfort" letter addressed to the
Company from its independent public accountants in customary form and covering
such matters of the type customarily covered by "comfort" letters; and

            (vii) The Company shall make available for inspection by any selling
stockholder or the Holder, any underwriter participating in any disposition or
the Rights Offering pursuant to such registration statement, and any attorney,
accountant or other agent retained by any such seller, the Holder or any
underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company's officers, directors and
employees to supply all information reasonably requested by any such seller or
the Holder or any such underwriter, attorney, accountant or agent in connection
with such registration statement.

     At the time of mailing the prospectus relating to the Rights Offering and
at the time of the closing of the Rights Offering, Holder shall be entitled to
receive (i) from the Company such certificates and documents evidencing
compliance with such representations and warranties of the Company as the Holder
shall reasonably request, and (ii) from the Company's counsel and independent
accountants such opinions and documents as Holder may reasonably request thereof
as if it were applicable to the Rights Offering.

        (e) USE OF PROCEEDS. The Company shall apply all proceeds of the Rights
Offering first, to the payment of the expenses of the Rights Offering, and
thereafter, to general working capital purposes or such other purposes as shall
be described in the prospectus and agreed to by the Holder.

        (f) REGISTRATION SERVICES.

            (i) SERVICES. The Holder shall diligently and in a timely fashion
assist the Company in structuring the Rights Offering, in preparing the
necessary registration statement and related disclosure documentation, in
clearing the Rights Offering with the SEC and applicable state securities
commissions and shall provide such other services and assistance in connection
with the Rights Offering as the Company shall reasonably request; provided that
nothing contained herein shall require the Holder to provide to the Company any
services or assistance which, if rendered by the Holder, would require the
Holder to register as a broker-

                                      -15-

<PAGE>

dealer under Section 15 of the 1934 Act, or as an investment adviser under the
Investment Advisers Act of 1940, as amended.

            (ii) WORKING GROUP. The Company shall cause its counsel and auditors
and the Company's employees to render such assistance in consummating the Rights
Offering, at the Company's expense, as is customary in the consummation by a
company of its initial public offering. In addition, in rendering services under
this paragraph (6)(f)(2), the Holder may engage special legal counsel, one or
more rights, registrar and transfer agents, and such other consultants as the
Holder may deem necessary or desirable in connection with the Rights Offering,
the expenses of which shall be paid by the Company. In addition, the Holder may
require the Company to engage a registered broker-dealer of the Holder's
designation, subject to the reasonable approval of the Company, to provide such
services in connection with the Rights Offering as the Holder may deem
reasonably necessary or desirable, including without limitation, to effect or
underwrite the offering of the Rights or the Rights Shares in states in which
applicable state laws require that a registered broker-dealer effect such
offering.

            (iii) EXPENSES. The Company shall bear and pay all expenses incurred
for a Rights Offering to the same extent provided in Section 2.2 for a
Company-initiated offering.

        (g) INDEMNIFICATION. The Company shall indemnify the Holder in
connection with a Rights Offering as provided in Section 2.7.

     7. MISCELLANEOUS.

     7.1 AMENDMENT. Except as otherwise provided herein, additional parties may
be added to this Agreement and any provision of this Agreement may be amended or
the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and the Holders of a majority of the Registrable
Securities then outstanding. Any amendment or waiver effected in accordance with
this Section 7.1 shall be binding upon each Holder of Registrable Securities at
the time outstanding, each future holder of any of such securities, and the
Company.

     7.2 NOTICES. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including by facsimile
transmission) and mailed, sent or delivered to the respective parties hereto at
or to their respective addresses or facsimile numbers set forth below their
names on the signature pages hereof, or at or to such other address or facsimile
number as shall be designated by any party in a written notice to the other
party hereto. All such notices and communications shall be effective (i) if
delivered by hand, when delivered; (ii) if sent by mail, upon the earlier of the
date of receipt or five Business Days after deposit in the mail, first class,
postage prepaid; and (iii) if sent by facsimile transmission, when sent.

     7.3 NO WAIVER; CUMULATIVE REMEDIES. No failure on the part of a Holder to
exercise, and no delay in exercising, any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, remedy, power or privilege preclude any
other or further exercise thereof or the exercise of any

                                      -16-

<PAGE>

other right, remedy, power or privilege. The rights and remedies under the this
Agreement are cumulative and not exclusive of any rights, remedies, powers and
privileges that may otherwise be available to the Lender.

     7.4 BINDING EFFECT. This Agreement shall become effective when it shall
have been executed by the Company and the Lender and thereafter shall be binding
upon, inure to the benefit of and be enforceable by the Company, the Lender and
their respective successors and assigns.

     7.5 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA.

     7.6 WAIVER OF JURY TRIAL. THE COMPANY AND THE LENDER EACH WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO
CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE COMPANY AND THE LENDER EACH
AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL
WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT
THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN
PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY
PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

     7.7 SUBMISSION TO JURISDICTION. The Company hereby (i) submits to the
nonexclusive jurisdiction of the courts of the Commonwealth of Pennsylvania and
the Federal courts of the United States sitting in the Eastern District of
Pennsylvania for the purpose of any action or proceeding arising out of or
relating to this Agreement, (ii) agrees that all claims in respect of any such
action or proceeding may be heard and determined in such courts, (iii)
irrevocably waives (to the extent permitted by applicable law) any objection
which it now or hereafter may have to the laying of venue of any such action or
proceeding brought in any of the foregoing courts in and of the Commonwealth of
Pennsylvania, and any objection on the ground that any such action or proceeding
in any such court has been brought in an inconvenient forum, and (iv) agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner permitted by law.

     7.8 ENTIRE AGREEMENT. This Agreement reflects the entire agreement between
the Company and the Lender with respect to the matters set forth herein and
supersedes any prior agreements, commitments, drafts, communication, discussions
and understandings, oral or written, with respect thereto.

                                      -17-

<PAGE>

     7.9 SEVERABILITY. Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under all applicable
laws and regulations. If, however, any provision of any of this Agreement shall
be prohibited by or invalid under any such law or regulation in any
jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform
to the minimum requirements of such law or regulation, or, if for any reason it
is not deemed so modified, it shall be ineffective and invalid only to the
extent of such prohibition or invalidity without affecting the remaining
provisions of this Agreement, or the validity or effectiveness of such provision
in any other jurisdiction.

     7.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.

     7.11 SPECIFIC PERFORMANCE. The parties hereto hereby declare that it is
impossible to measure in money the damages which will accrue to a party hereto
or to their heirs, personal representatives, or assigns by reason of a failure
to perform any of the obligations under this Agreement and agree that the terms
of this Agreement shall be specifically enforceable. If any party hereto or his
heirs, personal representatives, or assigns institutes any action or proceeding
to specifically enforce the provisions hereof, any person against whom such
action or proceeding is brought hereby waives the claim or defense therein that
such party or such personal representative has an adequate remedy at law, and
such person shall not offer in any such action or proceeding the claim or
defense that such remedy at law exists.

                                      -18-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
as of the date first above written.

                                      THE COMPANY

                                      LIFEF/X, INC.

                                      By  /S/ LUCILLE S. SALHANY
                                         ---------------------------------
                                            Title: Chief Executive Officer

                                      Address:

                                      153 Needham Street, Building One
                                      Newton, MA  02464
                                      Attn.: Chief Executive Officer
                                      Fax No. 617-964-2514

                                      THE LENDER

                                      SAFEGUARD 2001 CAPITAL, L.P.

                                      By: Safeguard Delaware, Inc.
                                          Title: General Partner

                                      By /s/ N. Jeffrey Klauder
                                         ----------------------------------
                                         Title: Executive Vice President
                                                and General Counsel

                                      Address:

                                      435 Devon Park Drive
                                      Wayne, PA  19087
                                      Attn.: _______________________________
                                      Fax No. ______________________________

                                      -19-

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