Document:

SUPPLEMENT NUMBER ONE
                                     to the
                                    INDENTURE
                                 Series 2002-HI5
                           Dated as of January 3, 2003
                                     between

                       HOME LOAN TRUST 2002-HI5, as Issuer
                                       and
                    JPMORGAN CHASE BANK, as Indenture Trustee

        This  SUPPLEMENT  NUMBER ONE is  effective as of the 3rd day of January,
2003, by and between HOME LOAN TRUST 2002-HI5,  as the issuer (the "Issuer") and
JPMORGAN  CHASE BANK, as the Indenture  Trustee (the  "Indenture  Trustee"),  in
connection  with the  Indenture  dated as of January 3, 2002  between  the above
mentioned parties (the "Indenture"), and the issuance of Home Loan-Backed Notes,
Series 2002-HI5.  This supplemental  indenture is made pursuant to Sections 9.01
and 9.03 of the Indenture.

        1.  Capitalized  terms used herein and not defined herein shall have the
meanings assigned to such terms in the Indenture.

        2. Section  3.05(d)(xi) of the Indenture is hereby amended  effective as
of the  date  indicated  above by  deleting  such  clause  in its  entirety  and
replacing it with the following:

               (xi)   eleventh,   an   remaining   amounts   and   any   amounts
                      constituting prepayment charges will be distributed to the
                      Certificate    Paying    Agent    on    behalf    of   the
                      Certificateholder in respect of the Residual Component.

        3. Except as amended above,  the Indenture  shall continue to be in full
force and effect in accordance with its terms.

                                       -1-

<PAGE>

        IN WITNESS WHEREOF,  the Issuer and the Indenture  Trustee,  have caused
their duly authorized  representatives to execute and deliver this instrument as
of the date first above written.

HOME LOAN TRUST 2002-HI5, as Issuer
by: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its capacity as Owner
Trustee

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

JPMORGAN CHASE BANK,
as Indenture Trustee

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

                        -2-

<PAGE>SUPPLEMENT NUMBER ONE
                                     to the
                                    INDENTURE
                                 Series 2002-HI4
                         Dated as of September 26, 2002
                                     between

                       HOME LOAN TRUST 2002-HI4, as Issuer
                                       and
                    JPMORGAN CHASE BANK, as Indenture Trustee

        This SUPPLEMENT NUMBER ONE is effective as of the 26th day of September,
2002, by and between HOME LOAN TRUST 2002-HI4,  as the issuer (the "Issuer") and
JPMORGAN  CHASE BANK, as the Indenture  Trustee (the  "Indenture  Trustee"),  in
connection  with the Indenture  dated as of September 26, 2002 between the above
mentioned parties (the "Indenture"), and the issuance of Home Loan-Backed Notes,
Series 2002-HI4.  This supplemental  indenture is made pursuant to Sections 9.01
and 9.03 of the Indenture.

        1.  Capitalized  terms used herein and not defined herein shall have the
meanings assigned to such terms in the Indenture.

        2. Section  3.05(d)(xi) of the Indenture is hereby amended  effective as
of the  date  indicated  above by  deleting  such  clause  in its  entirety  and
replacing it with the following:

               (xi)   eleventh,   an   remaining   amounts   and   any   amounts
                      constituting prepayment charges will be distributed to the
                      Certificate    Paying    Agent    on    behalf    of   the
                      Certificateholder in respect of the Residual Component.

        3. Except as amended above,  the Indenture  shall continue to be in full
force and effect in accordance with its terms.

                                       -1-

<PAGE>

        IN WITNESS WHEREOF,  the Issuer and the Indenture  Trustee,  have caused
their duly authorized  representatives to execute and deliver this instrument as
of the date first above written.

HOME LOAN TRUST 2002-HI4, as Issuer
by: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its capacity as Owner
Trustee

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

JPMORGAN CHASE BANK,
as Indenture Trustee

By:
   ------------------------------------------------
Title:
                        -2-

<PAGE><PAGE>

                                                                     EXHIBIT 4.1

                          SECURITIES PURCHASE AGREEMENT

         This Securities Purchase Agreement (this "Agreement") is dated as of
October 10, 2003, among Matritech, Inc., a Delaware corporation (the "Company"),
and the purchasers identified on the signature pages hereto (each a "Purchaser"
and collectively the "Purchasers"); and

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

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

                                   ARTICLE I.
                                   DEFINITIONS

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

                  "Action" shall have the meaning ascribed to such term in
         Section 3.1(j).

                  "Affiliate" means any Person that, directly or indirectly
         through one or more intermediaries, controls or is controlled by or is
         under common control with a Person as such terms are used in and
         construed under Rule 144. With respect to a Purchaser, any investment
         fund or managed account that is managed on a discretionary basis by the
         same investment manager as such Purchaser will be deemed to be an
         Affiliate of such Purchaser.

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

                  "Closing" means the closing of the purchase and sale of the
         Common Stock and the Warrants pursuant to Section 2.1.

                  "Closing Date" means the Trading Day when all of the
         Transaction Documents have been executed and delivered by the
         applicable parties thereto, and all conditions precedent to the
         Purchasers' obligations to pay the Subscription Amount have been
         satisfied or waived.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the common stock of the Company, $0.01
         par value per share, and any securities into which such common stock
         may hereafter be reclassified.

                                       1
<PAGE>

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

                  "Company Counsel" means Testa, Hurwitz & Thibeault, LLP,
         outside counsel to the Company, with offices at 125 High Street,
         Boston, Massachusetts 02110.

                  "Disclosure Schedules" means the Disclosure Schedules
         delivered concurrently herewith.

                  "Effective Date" means the date that the Registration
         Statement is first declared effective by the Commission.

                  "Evaluation Date" shall have the meaning ascribed to such term
         in Section 3.1(r).

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

                  "FW" means Feldman Weinstein LLP with offices located at 420
         Lexington Avenue, Suite 2620, New York, New York 10170-0002.

                  "GAAP" shall have the meaning ascribed to such term in Section
         3.1(h).

                  "Intellectual Property Rights" shall have the meaning ascribed
         to such term in Section 3.1(o).

                  "Legend Removal Date" shall have the meaning ascribed to such
         term in Section 4.1(c).

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

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

                  "Material Permits" shall have the meaning ascribed to such
         term in Section 3.1(m).

                  "Per Share Purchase Price" equals $1.67, subject to adjustment
         for reverse and forward stock splits, stock dividends, stock
         combinations and other similar transactions of the Common Stock that
         occur after the date of this Agreement.

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

                  "Pro Rata Portion" shall have the meaning ascribed to such
         term in Section 4.11.

                  "Purchaser Parties" shall have the meaning ascribed to such
         term in Section 4.8.

                                       2
<PAGE>

                  "Registration Statement" means a registration statement
         meeting the requirements set forth in the Registration Rights Agreement
         and covering the resale by the Purchasers of the Shares and the Warrant
         Shares.

                  "Registration Rights Agreement" means the Registration Rights
         Agreement, dated as of the date of this Agreement, among the Company
         and each Purchaser, in the form of Exhibit A hereto.

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

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

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

                  "Securities" means the Shares, the Warrants and the Warrant
         Shares.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Shares" means the shares of Common Stock issued or issuable
         to each Purchaser pursuant to this Agreement.

                  "Subscription Amount" means, as to each Purchaser, the amounts
         set forth below such Purchaser's signature block on the signature page
         hereto, in United States dollars and in immediately available funds.

                  "Subsequent Financing" shall have the meaning ascribed to such
         term in Section 4.11.

                  "Subsequent Financing Notice" shall have the meaning ascribed
         to such term in Section 4.11.

                  "Subsidiary" shall mean the subsidiaries of the Company, if
         any, set forth on Schedule 3.1(a).

                  "Trading Day" means (i) a day on which the Common Stock is
         traded on a Trading Market, or (ii) if the Common Stock is not listed
         on a Trading Market, a day on which the Common Stock is traded on the
         over-the-counter market, as reported by the OTC Bulletin Board, or
         (iii) if the Common Stock is not quoted on the OTC Bulletin Board, a
         day on which the Common Stock is quoted in the over-the-counter market
         as reported by the National Quotation Bureau Incorporated (or any
         similar organization or agency succeeding its functions of reporting
         prices); provided, that in the event that the Common Stock is not
         listed or quoted as set forth in (i), (ii) and (iii) hereof, then
         Trading Day shall mean a Business Day.

                                       3
<PAGE>

                  "Trading Market" means the following markets or exchanges on
         which the Common Stock is listed or quoted for trading on the date in
         question: the American Stock Exchange, the New York Stock Exchange, the
         Nasdaq National Market or the Nasdaq SmallCap Market.

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

                  "VWAP" means, for any date, the price determined by the first
         of the following clauses that applies: (a) if the Common Stock is then
         listed or quoted on a Trading Market, the daily volume weighted average
         price of the Common Stock for such date (or the nearest preceding date)
         on the primary Trading Market on which the Common Stock is then listed
         or quoted as reported by Bloomberg Financial L.P. (based on a Trading
         Day from 9:30 a.m. ET to 4:02 p.m. Eastern Time) using the VAP
         function; (b) if the Common Stock is not then listed or quoted on an
         Trading Market and if prices for the Common Stock are then quoted on
         the OTC Bulletin Board, the volume weighted average price of the Common
         Stock for such date (or the nearest preceding date) on the OTC Bulletin
         Board; (c) if the Common Stock is not then listed or quoted on the OTC
         Bulletin Board and if prices for the Common Stock are then reported in
         the "Pink Sheets" published by the National Quotation Bureau
         Incorporated (or a similar organization or agency succeeding to its
         functions of reporting prices), the most recent bid price per share of
         the Common Stock so reported; or (c) in all other cases, the fair
         market value of a share of Common Stock as determined by a nationally
         recognized-independent appraiser selected in good faith by Purchasers
         holding a majority of Shares then outstanding.

                  "Warrants" means collectively the Common Stock purchase
         warrants, in the form of Exhibit C, issuable to the Purchasers at the
         Closing, which warrants shall be exercisable immediately and have an
         exercise price equal to $2.45 and be exercisable for a period of 5
         years.

                  "Warrant Shares" means the shares of Common Stock issuable
         upon exercise of the Warrants.

                                  ARTICLE II.
                                PURCHASE AND SALE

         2.1      Closing. At the Closing, each Purchaser shall purchase from
the Company, severally and not jointly with the other Purchasers, and the
Company shall issue and sell to each Purchaser, (a) a number of Shares equal to
such Purchaser's Subscription Amount divided by the Per Share Purchase Price and
(b) the Warrants as determined pursuant to Section 2.2(a)(iii). The maximum
aggregate Subscription Amounts shall not exceed $8,000,000. Upon satisfaction of
the conditions set forth in Section 2.2, the Closing shall occur at the offices
of FW, or such other location as the parties shall mutually agree.

         2.2      Closing Conditions.

                                       4
<PAGE>

                  (a)      At the Closing, the Company shall deliver or cause to
         be delivered to each Purchaser the following:

                           (i)      this Agreement duly executed by the Company;

                           (ii)     within 3 Trading Days of the Closing Date, a
                  certificate evidencing a number of Shares equal to such
                  Purchaser's Subscription Amount divided by the Per Share
                  Purchase Price, registered in the name of such Purchaser;

                           (iii)    within 3 Trading Days of the Closing Date, a
                  Warrant, registered in the name of such Purchaser, pursuant to
                  which such Purchaser shall have the right to acquire up to the
                  number of shares of Common Stock equal to 35% of the Shares to
                  be issued to such Purchaser at the Closing;

                           (iv)     the Registration Rights Agreement duly
                  executed by the Company; and

                           (v)      a legal opinion of Company Counsel, in the
                  form of Exhibit B attached hereto.

                  (b)      At the Closing each Purchaser shall deliver or cause
         to be delivered to the Company the following:

                           (i)      this Agreement duly executed by such
                  Purchaser;

                           (ii)     such Purchaser's Subscription Amount by wire
                  transfer to an account as specified in writing by the Company;
                  and

                           (iii)    the Registration Rights Agreement duly
                  executed by such Purchaser.

                  (c)      All representations and warranties of the other party
         contained herein shall remain true and correct as of the Closing Date.

                  (d)      From the date hereof to the Closing Date, trading in
         the Common Stock shall not have been suspended by the Commission
         (except for any suspension of trading of limited duration agreed to by
         the Company, which suspension shall be terminated prior to the
         Closing), and, at any time prior to the Closing Date, trading in
         securities generally as reported by Bloomberg Financial Markets shall
         not have been suspended or limited, or minimum prices shall not have
         been established on securities whose trades are reported by such
         service, or on any Trading Market, nor shall a banking moratorium have
         been declared either by the United States or New York State authorities
         nor shall there have occurred any material outbreak or escalation of
         hostilities or other national or international calamity of such
         magnitude in its effect on, or any material adverse change in, any
         financial market which, in each case, in the reasonable judgment of
         each Purchaser, makes it impracticable or inadvisable to purchase the
         Shares at the Closing.

                                       5
<PAGE>

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         3.1      Representations and Warranties of the Company. Except as set
forth in the Disclosure Schedules delivered concurrently herewith and, other
than with respect to Sections 3.1(g), 3.1(t), 3.1(w), 3.1(v), 3.1(z), 3.1(aa),
3.1(bb) and 3.1(cc), except as set forth in the SEC Reports, the Company hereby
makes the following representations and warranties as of the date hereof and as
of the Closing Date to each Purchaser:

                  (a)      Subsidiaries. Scheduled 3.1(a) sets forth all of the
         Company's direct and indirect subsidiaries. The Company owns, directly
         or indirectly, all of the capital stock or other equity interests of
         each Subsidiary free and clear of any Liens, and all the issued and
         outstanding shares of capital stock of each Subsidiary are validly
         issued and are fully paid, non-assessable and free of preemptive and
         similar rights. If the Company has no subsidiaries, then references in
         the Transaction Documents to the Subsidiaries will be disregarded.

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

                  (c)      Authorization; Enforcement. The Company has the
         requisite corporate power and authority to enter into and to consummate
         the transactions contemplated by each of the Transaction Documents and
         otherwise to carry out its obligations thereunder. The execution and
         delivery of each of the Transaction Documents by the Company and the
         consummation by it of the transactions contemplated thereby have been
         duly authorized by all necessary action on the part of the Company and
         no further action is required by the Company in connection therewith
         other than in connection with the Required Approvals. Each Transaction
         Document has been (or upon delivery will have been) duly executed by
         the Company and, when delivered in accordance with the terms hereof,
         will constitute the valid and binding obligation of the Company
         enforceable against the Company in accordance with its terms except (i)
         as limited by applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other laws of general application
         affecting enforcement of creditors' rights generally and (ii) as

                                       6
<PAGE>

         limited by laws relating to the availability of specific performance,
         injunctive relief or other equitable remedies.

                  (d)      No Conflicts. The execution, delivery and performance
         of the Transaction Documents by the Company and the consummation by the
         Company of the transactions contemplated thereby do not and will not
         (i) conflict with or violate any provision of the Company's or any
         Subsidiary's certificate or articles of incorporation, bylaws or other
         organizational or charter documents, or (ii) conflict with, or
         constitute a default (or an event that with notice or lapse of time or
         both would become a default) under, or give to others any rights of
         termination, amendment, acceleration or cancellation (with or without
         notice, lapse of time or both) of, any agreement, credit facility, debt
         or other instrument (evidencing a Company or Subsidiary debt or
         otherwise) or other understanding to which the Company or any
         Subsidiary is a party or by which any property or asset of the Company
         or any Subsidiary is bound or affected, except to the extent that such
         conflict, default or right is waived in writing, or (iii) subject to
         the Required Approvals, result in a violation of any law, rule,
         regulation, order, judgment, injunction, decree or other restriction of
         any court or governmental authority to which the Company or a
         Subsidiary is subject (including federal and state securities laws and
         regulations), or by which any property or asset of the Company or a
         Subsidiary is bound or affected; except in the case of each of clauses
         (ii) and (iii), such as would not have or reasonably be expected to
         result in a Material Adverse Effect.

                  (e)      Filings, Consents and Approvals. The Company is not
         required to obtain any consent, waiver, authorization or order of, give
         any notice to, or make any filing or registration with, any court or
         other federal, state, local or other governmental authority or other
         Person in connection with the execution, delivery and performance by
         the Company of the Transaction Documents, other than (i) filings
         required pursuant to Section 4.4 of this Agreement, (ii) the filing
         with the Commission of the Registration Statement, (iii) the notice
         and/or application(s) to each applicable Trading Market for the listing
         of the Shares and Warrant Shares for trading thereon in the time and
         manner required thereby, and (iv) the filing of Form D with the
         Commission and such filings as are required to be made under applicable
         state securities laws (collectively the "Required Approvals").

                  (f)      Issuance of the Securities. The Shares and Warrants
         are duly authorized and, when issued and paid for in accordance with
         the Transaction Documents, will be duly and validly issued, fully paid
         and nonassessable, free and clear of all Liens imposed by the Company
         other than restrictions on transfer provided for in the Transaction
         Documents. The Warrant Shares, when issued in accordance with the terms
         of the Transaction Documents, will be validly issued, fully paid and
         nonassessable, free and clear of all Liens imposed by the Company. The
         Company has reserved from its duly authorized capital stock the maximum
         number of shares of Common Stock issuable pursuant to this Agreement
         and the Warrants.

                  (g)      Capitalization. The capitalization of the Company is
         as described in the Company's most recent periodic report filed with
         the Commission. The Company has not issued any capital stock since such
         filing other than pursuant to the exercise of employee stock options
         under the Company's stock option plans, the issuance of shares

                                       7
<PAGE>

         of Common Stock to employees pursuant to the Company's employee stock
         purchase plan, in connection with the payment of interest on the
         Company's 7.5% Convertible Debentures and pursuant to the conversion or
         exercise of outstanding Common Stock Equivalents. No Person has any
         right of first refusal, preemptive right, right of participation, or
         any similar right to participate in the transactions contemplated by
         the Transaction Documents. Except as a result of the purchase and sale
         of the Securities, there are no outstanding options, warrants, script
         rights to subscribe to, calls or commitments of any character
         whatsoever relating to, or securities, rights or obligations
         convertible into or exchangeable for, or giving any Person any right to
         subscribe for or acquire, any shares of Common Stock, or contracts,
         commitments, understandings or arrangements by which the Company or any
         Subsidiary is or may become bound to issue additional shares of Common
         Stock, or securities or rights convertible or exchangeable into shares
         of Common Stock. The issue and sale of the Securities will not obligate
         the Company to issue shares of Common Stock or other securities to any
         Person (other than the Purchasers, Roth Capital Partners, Century
         Capital and Sands Brothers International Ltd.) and will not result in a
         right of any holder of Company securities to adjust the exercise,
         conversion, exchange or reset price under such securities.

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

                  (i)      Material Changes. Since the date of the latest
         audited financial statements included within the SEC Reports, except as
         disclosed in the SEC Reports, (i) there has been no event, occurrence
         or development that has had or that could reasonably be expected to
         result in a Material Adverse Effect, (ii) the Company has not incurred
         any

                                       8
<PAGE>

         liabilities (contingent or otherwise) other than (A) trade payables and
         accrued expenses incurred in the ordinary course of business consistent
         with past practice and (B) liabilities not required to be reflected in
         the Company's financial statements pursuant to GAAP or required to be
         disclosed in filings made with the Commission, (iii) the Company has
         not altered its method of accounting, (iv) the Company has not declared
         or made any dividend or distribution of cash or other property to its
         stockholders or purchased, redeemed or made any agreements to purchase
         or redeem any shares of its capital stock and (v) the Company has not
         issued any equity securities to any officer, director or Affiliate,
         except pursuant to existing Company stock option plans. The Company
         does not have pending before the Commission any request for
         confidential treatment of information.

                  (j)      Litigation. Except as disclosed in the SEC Reports,
         there is no action, suit, proceeding or investigation pending or, to
         the knowledge of the Company, threatened against the Company, any
         Subsidiary or any of their respective properties before or by any
         court, arbitrator, governmental or administrative agency or regulatory
         authority (federal, state, county, local or foreign) (collectively, an
         "Action") which (i) adversely affects or challenges the legality,
         validity or enforceability of any of the Transaction Documents or the
         Securities or (ii) could, if there were an unfavorable decision, have
         or reasonably be expected to result in a Material Adverse Effect.
         Neither the Company nor any Subsidiary, nor, to the Company's
         knowledge, any director or officer thereof, acting in his capacity as
         such, is or has been the subject of any Action involving a claim of
         violation of or liability under federal or state securities laws or a
         claim of breach of fiduciary duty that is required to be disclosed in
         the Company's filings with the SEC pursuant to Regulation S-K. There
         has not been, and to the knowledge of the Company, there is not pending
         or contemplated, any investigation by the Commission involving the
         Company or any current or former director or officer of the Company.
         The Commission has not issued any stop order or other order suspending
         the effectiveness of any registration statement filed by the Company or
         any Subsidiary under the Exchange Act or the Securities Act.

                  (k)      Labor Relations. No material labor dispute exists or,
         to the knowledge of the Company, is imminent with respect to any of the
         employees of the Company which could reasonably be expected to result
         in a Material Adverse Effect.

                  (l)      Compliance. Except as disclosed in the SEC Reports,
         neither the Company nor any Subsidiary (i) is in default under or in
         violation of (and no event has occurred that has not been waived that,
         with notice or lapse of time or both, would result in a default by the
         Company or any Subsidiary under), nor has the Company or any Subsidiary
         received notice of a claim that it is in default under or that it is in
         violation of, any indenture, loan or credit agreement or any other
         agreement or instrument to which it is a party or by which it or any of
         its properties is bound (whether or not such default or violation has
         been waived), (ii) is in violation of any order of any court,
         arbitrator or governmental body, or (iii) is or has been in violation
         of any statute, rule or regulation of any governmental authority,
         including without limitation all foreign, federal, state and local laws
         applicable to its business except in each case as could not have a
         Material Adverse Effect.

                                       9
<PAGE>

                  (m)      Regulatory Permits. The Company and the Subsidiaries
         possess all certificates, authorizations and permits issued by the
         appropriate federal, state, local or foreign regulatory authorities
         necessary to conduct their respective businesses as described in the
         SEC Reports, except where the failure to possess such permits would not
         reasonably be expected to result in a Material Adverse Effect
         ("Material Permits"), and neither the Company nor any Subsidiary has
         received any notice of proceedings relating to the revocation or
         modification of any Material Permit.

                  (n)      Title to Assets. The Company and the Subsidiaries
         have good and marketable title in fee simple to all real property owned
         by them that is material to the business of the Company and the
         Subsidiaries and good and marketable title in all personal property
         owned by them that is material to the business of the Company and the
         Subsidiaries, in each case free and clear of all Liens, except for
         Liens as do not materially affect the value of such property and do not
         materially interfere with the use made and proposed to be made of such
         property by the Company and the Subsidiaries and Liens for the payment
         of federal, state or other taxes, the payment of which is neither
         delinquent nor subject to penalties. Any real property and facilities
         held under lease by the Company and the Subsidiaries are held by them
         under valid, subsisting and enforceable leases of which the Company and
         the Subsidiaries are in compliance, except where the failure to be in
         compliance would not, individually or in the aggregate, reasonably be
         expected to result in a Material Adverse Effect.

                  (o)      Patents and Trademarks. To the knowledge of the
         Company and each Subsidiary, the Company and the Subsidiaries have, or
         have rights to use, all patents, patent applications, trademarks,
         trademark applications, service marks, trade names, copyrights,
         licenses and other similar rights that are necessary or material for
         use in connection with their respective businesses as described in the
         SEC Reports and which the failure to so have could have or reasonably
         be expected to result in a Material Adverse Effect (collectively, the
         "Intellectual Property Rights"). Neither the Company nor any Subsidiary
         has received a written notice that the Intellectual Property Rights
         used by the Company or any Subsidiary violates or infringes upon the
         rights of any Person, except to the extent that the Company reasonably
         believes that such alleged violation or infringement can be resolved
         without having a Material Adverse Effect. To the knowledge of the
         Company, all such Intellectual Property Rights are enforceable.

                  (p)      Insurance. The Company and the Subsidiaries are
         insured by insurers of recognized financial responsibility against such
         losses and risks and in such amounts as are prudent and customary in
         the businesses in which the Company and the Subsidiaries are engaged.
         Neither the Company nor any Subsidiary has any reason to believe that
         it will not be able to renew its existing insurance coverage as and
         when such coverage expires or to obtain similar coverage from similar
         insurers as may be necessary to continue its business without a
         significant increase in cost.

                  (q)      Transactions With Affiliates and Employees. Except as
         set forth in the SEC Reports, none of the officers or directors of the
         Company and, to the knowledge of the Company, none of the employees of
         the Company is presently a party to any transaction with the Company or
         any Subsidiary (other than for services as employees, officers and
         directors), including any contract, agreement or other arrangement
         providing

                                       10
<PAGE>

         for the furnishing of services to or by, providing for rental of real
         or personal property to or from, or otherwise requiring payments to or
         from any officer, director or such employee or, to the knowledge of the
         Company, any entity in which any officer, director, or any such
         employee has a substantial interest or is an officer, director, trustee
         or partner, in each case in excess of $60,000 other than (i) for
         payment of salary or consulting fees for services rendered, (ii)
         reimbursement for expenses incurred on behalf of the Company and (iii)
         for other employee benefits, including stock option agreements under
         any stock option plan of the Company.

                  (r)      Internal Accounting Controls. The Company and each of
         its subsidiaries maintains a system of internal accounting controls
         sufficient to provide reasonable assurance that (i) transactions are
         executed in accordance with management's general or specific
         authorizations, (ii) transactions are recorded as necessary to permit
         preparation of financial statements in conformity with GAAP and to
         maintain asset accountability, (iii) access to assets is permitted only
         in accordance with management's general or specific authorization, and
         (iv) the recorded accountability for assets is compared with the
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences. The Company has established disclosure
         controls and procedures (as defined in Exchange Act Rules 13a-14 and
         15d-14) for the Company and designed such disclosure controls and
         procedures to ensure that material information relating to the Company,
         including its subsidiaries, is made known to the certifying officers by
         others within those entities, particularly during the period in which
         the Company's most recently filed periodic report under the Exchange
         Act, as the case may be, is being prepared. The Company's certifying
         officers have evaluated the effectiveness of the Company's controls and
         procedures as of a date within 90 days prior to the filing date of the
         most recently filed periodic report under the Exchange Act (such date,
         the "Evaluation Date"). The Company presented in its most recently
         filed period report under the Exchange Act the conclusions of the
         certifying officers about the effectiveness of the disclosure controls
         and procedures based on their evaluations as of the Evaluation Date.
         Since the Evaluation Date, there have been no significant changes in
         the Company's internal controls (as such term is defined in Item 307(b)
         of Regulation S-K under the Exchange Act).

                  (s)      Certain Fees. Except as set forth on the Disclosure
         Schedule, no brokerage or finder's fees or commissions are or will be
         payable by the Company to any broker, financial advisor or consultant,
         finder, placement agent, investment banker, bank or other Person with
         respect to the transactions contemplated by this Agreement. The
         Purchasers shall have no obligation with respect to any fees or with
         respect to any claims made by or on behalf of other Persons for fees of
         a type contemplated in this Section that may be due in connection with
         the transactions contemplated by this Agreement.

                  (t)      Private Placement. Assuming the accuracy of the
         Purchasers representations and warranties set forth in Section 3.2, no
         registration under the Securities Act is required for the offer and
         sale of the Securities by the Company to the Purchasers as contemplated
         hereby in accordance with the terms of the Transaction Documents. The
         issuance and sale of the Securities hereunder does not contravene the
         rules and regulations of the Trading Market.

                                       11
<PAGE>

                  (u)      Investment Company. The Company is not, and is not an
         Affiliate of, an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (v)      Registration Rights. Except as set forth on the
         disclosure schedule to the Registration Rights Agreement, no Person has
         any right to cause the Company to effect the registration under the
         Securities Act of any securities of the Company that have not been
         satisfied.

                  (w)      Listing and Maintenance Requirements. The Company has
         not, in the 12 months preceding the date hereof, received notice from
         any Trading Market on which the Common Stock is or has been listed or
         quoted to the effect that the Company is not in compliance with the
         listing or maintenance requirements of such Trading Market. The Company
         is, and has no reason to believe that it will not in the foreseeable
         future continue to be, in compliance with all such listing and
         maintenance requirements.

                  (x)      Tax Status. The Company and each of its Subsidiaries
         has made or filed all federal, state and foreign income and all other
         tax returns, reports and declarations required by any jurisdiction to
         which it is subject and which are due (unless and only to the extent
         that the Company and each of its Subsidiaries has set aside on its
         books provisions reasonably adequate for the payment of all unpaid and
         unreported taxes or has obtained an extension of the deadline for such
         filing) and has paid all taxes and other governmental assessments and
         charges that are material in amount, shown or determined to be due on
         such returns, reports and declarations, except those being contested in
         good faith and has set aside on its books provisions reasonably
         adequate for the payment of all taxes for periods subsequent to the
         periods to which such returns, reports or declarations apply. To the
         Company's knowledge, there are no unpaid taxes in any material amount
         claimed to be due by the taxing authority of any jurisdiction, and the
         officers of the Company know of no basis for any such claim. The
         Company has not executed a waiver with respect to the statute of
         limitations relating to the assessment or collection of any foreign,
         federal, statue or local tax. To the Company's knowledge, none of the
         Company's tax returns is presently being audited by any taxing
         authority.

                  (y)      Disclosure. The Company confirms that, neither the
         Company nor any other Person acting on its behalf has provided any of
         the Purchasers or their agents or counsel with any information that
         constitutes or might constitute material, non-public information. The
         Company understands and confirms that the Purchasers will rely on the
         foregoing representations and covenants in effecting transactions in
         securities of the Company. All disclosure provided to the Purchasers
         regarding the Company, its business and the transactions contemplated
         hereby, including the Disclosure Schedules to this Agreement, furnished
         by or on behalf of the Company are true and correct and do not contain
         any untrue statement of a material fact or omit to state any material
         fact necessary in order to make the statements made therein, in light
         of the circumstances under which they were made, not misleading.

                  (z)      No Integrated Offering. Assuming the accuracy of the
         Purchasers' representations and warranties set forth in Section 3.2,
         neither the Company, nor any of its affiliates, nor any Person acting
         on its or their behalf has, directly or indirectly, made

                                       12
<PAGE>

         any offers or sales of any security or solicited any offers to buy any
         security, under circumstances that would cause this offering of the
         Securities to be integrated with prior offerings by the Company for
         purposes of the Securities Act or any applicable shareholder approval
         provisions, including, without limitation, under the rules and
         regulations of any exchange or automated quotation system on which any
         of the securities of the Company are listed or designated.

                  (aa)     Solvency. Based on the financial condition of the
         Company as of the Closing Date after giving effect to the receipt by
         the Company of the proceeds from the sale of the Securities hereunder,
         (i) the Company's fair saleable value of its assets exceeds the amount
         that will be required to be paid on or in respect of the Company's
         existing debts and other liabilities (including known contingent
         liabilities) as they mature; (ii) the Company's assets do not
         constitute unreasonably small capital to carry on its business for the
         current fiscal year as now conducted and as proposed to be conducted
         including its capital needs taking into account the particular capital
         requirements of the business conducted by the Company, and projected
         capital requirements and capital availability thereof; and (iii) the
         current cash flow of the Company, together with the proceeds the
         Company would receive, were it to liquidate all of its assets, after
         taking into account all anticipated uses of the cash, would be
         sufficient to pay all amounts on or in respect of its debt when such
         amounts are required to be paid. The Company does not intend to incur
         debts beyond its ability to pay such debts as they mature (taking into
         account the timing and amounts of cash to be payable on or in respect
         of its debt).

                  (bb)     Form S-3 Eligibility. The Company is eligible to
         register the resale of its Common Stock by the Purchasers under Form
         S-3 promulgated under the Securities Act.

                  (cc)     No Disagreements with Accountants and Lawyers. There
         are no disagreements of any kind presently existing, or reasonably
         anticipated by the Company to arise, between the accountants and
         lawyers formerly or presently employed by the Company and the Company
         is current with respect to any fees owed to its accountants and
         lawyers.

         3.2      Representations and Warranties of the Purchasers. Each
Purchaser hereby, for itself and for no other Purchaser, represents and warrants
as of the date hereof and as of the Closing Date to the Company as follows:

                  (a)      Organization; Authority. Such Purchaser is an entity
         duly organized, validly existing and in good standing under the laws of
         the jurisdiction of its organization with full right, corporate or
         partnership power and authority to enter into and to consummate the
         transactions contemplated by the Transaction Documents and otherwise to
         carry out its obligations thereunder. The execution, delivery and
         performance by such Purchaser of the transactions contemplated by this
         Agreement have been duly authorized by all necessary corporate action
         on the part of such Purchaser. Each Transaction Document to which it is
         party has been duly executed by such Purchaser, and when delivered by
         such Purchaser in accordance with the terms hereof, will constitute the
         valid and legally binding obligation of such Purchaser, enforceable
         against it in accordance with its terms except (i) as limited by
         general equitable principles and applicable bankruptcy, insolvency,
         reorganization, moratorium and other laws of general application

                                       13
<PAGE>

         affecting enforcement of creditors' rights generally, (ii) as limited
         by laws relating to the availability of specific performance,
         injunctive relief or other equitable remedies and (iii) insofar as
         indemnification and contribution provisions may be limited by
         applicable law.

                  (b)      Investment Intent. Such Purchaser understands that
         the Securities are "restricted securities" and have not been registered
         under the Securities Act or any applicable state securities law and is
         acquiring the Securities as principal for its own account for
         investment purposes only and not with a view to or for distributing or
         reselling such Securities or any part thereof, has no present intention
         of distributing any of such Securities and has no arrangement or
         understanding with any other persons regarding the distribution of such
         Securities (this representation and warranty not limiting such
         Purchaser's right to sell the Securities pursuant to the Registration
         Statement or otherwise in compliance with applicable federal and state
         securities laws). Such Purchaser is acquiring the Securities hereunder
         in the ordinary course of its business. Such Purchaser does not have
         any agreement or understanding, directly or indirectly, with any Person
         to distribute any of the Securities.

                  (c)      Purchaser Status. At the time such Purchaser was
         offered the Securities, it was, and at the date hereof it is, and on
         each date on which it exercises any Warrants, it will be either: (i) an
         "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3),
         (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified
         institutional buyer" as defined in Rule 144A(a) under the Securities
         Act. Such Purchaser is not required to be registered as a broker-dealer
         under Section 15 of the Exchange Act.

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

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

                  (f)      Residence. If such Purchaser is an individual, then
         such Purchaser resides in the state or province identified in the
         address of such Purchaser set forth on the signature page hereto; if
         such Purchaser is a partnership, corporation, limited liability company
         or other entity, then the office or offices of such Purchaser in which
         its investment decision was made is located at the address or addresses
         of such Purchaser set forth on the signature page hereto.

                  (g)      Rule 144. Subject to Section 4.1(a), such Purchaser
         acknowledges and agrees that the Securities are "restricted securities"
         as defined in Rule 144 promulgated under the Securities Act as in
         effect from time to time and must be held indefinitely unless they are
         subsequently registered under the Securities Act or an exemption from
         such registration is available. Such Purchaser has been advised or is
         aware of the

                                       14
<PAGE>

         provisions of Rule 144, which permits limited resale of shares
         purchased in a private placement subject to the satisfaction of certain
         conditions, including, among other things: the availability of certain
         current public information about the Company, the resale occurring
         following the required holding period under Rule 144 and the number of
         shares being sold during any three-month period not exceeding specified
         limitations.

                  (k)      Company Information. Such Purchaser has read the SEC
         Reports and has had an opportunity to discuss the Company's business,
         management and financial affairs with directors, officers and
         management of the Company and has had the opportunity to review the
         Company's operations and facilities. Such Purchaser has also had the
         opportunity to ask questions of and receive answers from, the Company
         and its management regarding the terms and conditions of this
         investment.

         The Company acknowledges and agrees that each Purchaser does not make
or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in this
Section 3.2.

                                  ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

         4.1      Transfer Restrictions. (a) The Securities may only be disposed
         of in compliance with state and federal securities laws and, in the
         case of the Warrants and the Warrant Shares, subject to the terms of
         the Warrants. In connection with any transfer of Securities other than
         pursuant to an effective registration statement, to the Company, to an
         Affiliate of a Purchaser or in connection with a pledge as contemplated
         in Section 4.1(b), the Company may require the transferor thereof to
         provide to the Company an opinion of counsel selected by the
         transferor, the form and substance of which opinion and choice of
         counsel shall be reasonably satisfactory to the Company, to the effect
         that such transfer does not require registration of such transferred
         Securities under the Securities Act. As a condition of transfer, any
         such transferee shall agree in writing to be bound by the terms of this
         Agreement and shall have the rights of a Purchaser under this Agreement
         and the Registration Rights Agreement.

                  (b)      The Purchasers agree to the imprinting, so long as is
         required by this Section 4.1(b), of a legend on any of the Securities
         in the following form:

                  THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES
                  AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
                  STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
                  THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                  AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
                  TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
                  ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
                  TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
                  THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
                  SECURITIES LAWS AS EVIDENCED BY A

                                       15
<PAGE>

                  LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
                  SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
                  COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
                  BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR
                  OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED
                  INVESTOR" AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

                  The Company acknowledges and agrees that a Purchaser may from
         time to time pledge pursuant to a bona fide margin agreement with a
         registered broker-dealer or grant a security interest in some or all of
         the Securities to a financial institution that is an "accredited
         investor" as defined in Rule 501(a) under the Securities Act and, if
         required under the terms of such arrangement, such Purchaser may
         transfer pledged or secured Securities to the pledgees or secured
         parties. Such a pledge or transfer would not be subject to approval of
         the Company and no legal opinion of legal counsel of the pledgee,
         secured party or pledgor shall be required in connection therewith.
         Further, no notice shall be required of such pledge. At the appropriate
         Purchaser's expense, the Company will execute and deliver such
         reasonable documentation as a pledgee or secured party of Securities
         may reasonably request in connection with a pledge or transfer of the
         Securities, including, if the Securities are subject to registration
         pursuant to the Registration Rights Agreement, the preparation and
         filing of any required prospectus supplement under Rule 424(b)(3) under
         the Securities Act or other applicable provision of the Securities Act
         to appropriately amend the list of Selling Stockholders thereunder.

                  (c)      Certificates evidencing the Shares and Warrant Shares
         shall not contain any legend (including the legend set forth in Section
         4.1(b)), (i) while a registration statement (including the Registration
         Statement) covering the resale of such security is effective under the
         Securities Act, or (ii) following any sale of such Shares or Warrant
         Shares pursuant to Rule 144, or (iii) if such Shares or Warrant Shares
         are eligible for sale under Rule 144(k), or (iv) if such legend is not
         required under applicable requirements of the Securities Act (including
         judicial interpretations and pronouncements issued by the Staff of the
         Commission). The Company shall cause its counsel to issue a legal
         opinion to the Company's transfer agent promptly after the Effective
         Date if required by the Company's transfer agent to effect the removal
         of the legend hereunder. If all or any portion of a Warrant is
         exercised at a time when there is an effective registration statement
         to cover the resale of the Warrant Shares, such Warrant Shares shall be
         issued free of all legends. The Company agrees that following the
         Effective Date relating to the Shares and Warrant Shares or at such
         time as such legend is no longer required under this Section 4.1(c), it
         will, no later than five Trading Days following the delivery by a
         Purchaser to the Company or, if the Company so directs, to the
         Company's transfer agent of a certificate representing Shares or
         Warrant Shares, as the case may be, issued with a restrictive legend
         (such date, the "Legend Removal Date"), deliver or cause to be
         delivered to such Purchaser a certificate representing such Securities
         that is free from all restrictive and other legends. The Company may
         not make any notation on its records or give instructions to any
         transfer agent of the Company that enlarge the restrictions on transfer
         set forth in this Section.

                                       16
<PAGE>

                  (d)      In addition to such Purchaser's other available
         remedies, the Company shall pay to a Purchaser, in cash, as liquidated
         damages and not as a penalty, for each $1,000 of Shares or Warrant
         Shares (based on the VWAP of the Common Stock on the date such
         Securities are submitted to the Company's transfer agent) subject to
         Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day
         five (5) Trading Days after such damages have begun to accrue) for each
         Trading Day after such third Trading Day after the Legend Removal Date
         until such certificate is delivered. Nothing herein shall limit such
         Purchaser's right to pursue actual damages for the Company's failure to
         deliver certificates representing any Securities as required by the
         Transaction Documents, and such Purchaser shall have the right to
         pursue all remedies available to it at law or in equity including,
         without limitation, a decree of specific performance and/or injunctive
         relief.

                  (e)      Each Purchaser, severally and not jointly with the
         other Purchasers, agrees that the removal of the restrictive legend
         from certificates representing Securities as set forth in this Section
         4.1 is predicated upon the Company's reliance that the Purchaser will
         sell any Securities pursuant to either the registration requirements of
         the Securities Act, including any applicable prospectus delivery
         requirements, or an exemption therefrom.

                  (f)      Until the date that each Purchaser holds less than
         20% of the Shares initially purchased hereunder by such Purchaser, the
         Company shall not undertake a reverse or forward stock split or
         reclassification of the Common Stock without the prior written consent
         of the Purchasers holding a majority in interest of the Shares.

         4.2      Furnishing of Information. As long as any Purchaser owns
Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act. As long as any Purchaser owns Securities, if the Company is not
required to file reports pursuant to such laws, it will prepare and furnish to
the Purchasers and make publicly available in accordance with Rule 144(c) such
information as is required for the Purchasers to sell the Securities under Rule
144. The Company further covenants that it will take such further action as any
holder of Securities may reasonably request, all to the extent required from
time to time to enable such Person to sell such Securities without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144.

         4.3      Integration. The Company shall not sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that would be integrated with the
offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities to the Purchasers or that
would be integrated with the offer or sale of the Securities for purposes of the
rules and regulations of any Trading Market such that it would require
shareholder approval prior to the closing of such other transaction unless
shareholder approval is obtained before the closing of such subsequent
transaction.

         4.4      Securities Laws Disclosure; Publicity. The Company shall,
within one Trading Day following the Closing Date, issue a press release or file
a Current Report on Form 8-K, in each case reasonably acceptable to each
Purchaser disclosing the transactions contemplated hereby. The Company and each
Purchaser shall consult with each other in issuing any press

                                       17
<PAGE>

releases with respect to the transactions contemplated hereby, and neither the
Company nor any Purchaser shall issue any such press release or otherwise make
any such public statement without the prior consent of the Company, with respect
to any press release of any Purchaser, or without the prior consent of each
Purchaser, with respect to any press release of the Company, which consent shall
not unreasonably be withheld, except if such disclosure is required by law, in
which case the disclosing party shall promptly provide the other party with
prior notice of such public statement or communication. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except (i) as required by federal securities law in connection with
the registration statement contemplated by the Registration Rights Agreement and
(ii) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide the Purchasers with prior
notice of such disclosure permitted under subclause (i) or (ii).

         4.5      Shareholders Rights Plan. No claim will be made or enforced by
the Company or, to the knowledge of the Company, any other Person that any
Purchaser is an "Acquiring Person" under any shareholders rights plan or similar
plan or arrangement in effect or hereafter adopted by the Company, or that any
Purchaser could be deemed to trigger the provisions of any such plan or
arrangement, by virtue of receiving Securities under the Transaction Documents
or under any other agreement between the Company and the Purchasers.

         4.6      Non-Public Information. The Company covenants and agrees that
neither it nor any other Person acting on its behalf will provide any Purchaser
or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto such Purchaser
shall have executed a written agreement regarding the confidentiality and use of
such information. The Company understands and confirms that each Purchaser shall
be relying on the foregoing representations in effecting transactions in
securities of the Company.

         4.7      Use of Proceeds. Except as set forth on Schedule 4.7 attached
hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder for working capital purposes and not for the satisfaction of any
portion of the Company's debt (other than payment of trade payables, capital
lease obligations, fees of Roth Capital Partners, Sands Brothers International
and Century Capital and accrued expenses in the ordinary course of the Company's
business and prior practices), to redeem any Company equity or equity-equivalent
securities or to settle any outstanding litigation.

         4.8      Indemnification of Purchasers. Subject to the provisions of
this Section 4.8, the Company will indemnify and hold the Purchasers and their
directors, officers, shareholders, partners, employees and agents (each, a
"Purchaser Party") harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys' fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in
the other Transaction Documents or (b) any action instituted against a
Purchaser, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser, with respect to any of
the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser's

                                       18
<PAGE>

representation, warranties or covenants under the Transaction Documents or any
agreements or understandings such Purchaser may have with any such stockholder
or any violations by the Purchaser of state or federal securities laws or any
conduct by such Purchaser which constitutes fraud, gross negligence, willful
misconduct or malfeasance). If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement,
such Purchaser Party shall promptly notify the Company in writing, and the
Company shall have the right to assume the defense thereof with counsel of its
own choosing. Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party
except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or (iii)
in such action there is, in the reasonable opinion of such separate counsel, a
material conflict on any material issue between the position of the Company and
the position of such Purchaser Party. The Company will not be liable to any
Purchaser Party under this Agreement (i) for any settlement by an Purchaser
Party effected without the Company's prior written consent, which shall not be
unreasonably withheld or delayed; or (ii) to the extent, but only to the extent
that a loss, claim, damage or liability is attributable to any Purchaser Party's
breach of any of the representations, warranties, covenants or agreements made
by the Purchasers in this Agreement or in the other Transaction Documents.

         4.9      Reservation of Common Stock. As of the date hereof, the
Company has reserved and the Company shall continue to reserve and keep
available at all times, free of preemptive rights, a sufficient number of shares
of Common Stock for the purpose of enabling the Company to issue Shares pursuant
to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

         4.10     Listing of Common Stock. The Company hereby agrees to use
commercially reasonably efforts to maintain the listing of the Common Stock on
the Trading Market, and as soon as reasonably practicable following the Closing
(but not later than the earlier of the Effective Date and the first anniversary
of the Closing Date) to list all of the Shares and Warrant Shares on the Trading
Market. The Company further agrees, if the Company applies to have the Common
Stock traded on any other Trading Market, it will include in such application
all of the Shares and Warrant Shares, and will take such other action as is
necessary to cause the Shares and Warrant Shares to be listed on such other
Trading Market as promptly as possible. The Company will take all action
reasonably necessary to continue the listing and trading of its Common Stock on
a Trading Market and will comply in all respects with the Company's reporting,
filing and other obligations under the bylaws or rules of the Trading Market.

         4.11     Participation in Future Financing. From the date hereof until
12 months after the Effective Date, the Company shall not effect a financing of
its Common Stock or Common Stock Equivalents (a "Subsequent Financing") unless
(i) the Company delivers to each of such Purchasers a written notice at least 5
Trading Days prior to the closing of such Subsequent Financing (the "Subsequent
Financing Notice") of its intention to effect such Subsequent Financing, which
Subsequent Financing Notice shall describe in reasonable detail the proposed
terms of such Subsequent Financing, the amount of proceeds intended to be raised
thereunder, the Person with whom such Subsequent Financing is proposed to be
effected, and attached to which shall be a term sheet or similar document
relating thereto and (ii) such Purchaser shall not

                                       19
<PAGE>

have notified the Company by 6:30 p.m. (New York City time) on the fifth (5th)
Trading Day after its receipt of the Subsequent Financing Notice of its
willingness to provide (or to cause its designee to provide), subject to
completion of mutually acceptable documentation, all or part of such financing
to the Company on the same terms set forth in the Subsequent Financing Notice.
If one or more Purchasers shall fail to so notify the Company of their
willingness to participate in the Subsequent Financing, the Company may effect
the remaining portion of such Subsequent Financing on the terms and to the
Persons set forth in the Subsequent Financing Notice; provided that the Company
must provide the Purchasers with a second Subsequent Financing Notice, and the
Purchasers will again have the right of first refusal set forth above in this
Section 4.11, if the Subsequent Financing subject to the initial Subsequent
Financing Notice is not consummated for any reason on the terms set forth in
such Subsequent Financing Notice within 60 Trading Days after the date of the
initial Subsequent Financing Notice with the Person identified in the Subsequent
Financing Notice. In the event the Company receives responses to Subsequent
Financing Notices from Purchasers seeking to purchase more than the financing
sought by the Company in the Subsequent Financing such Purchasers shall have the
right to purchase their Pro Rata Portion (as defined below) of the Common Stock
or Common Stock Equivalents to be issued in such Subsequent Financing. "Pro Rata
Portion" is the ratio of (x) such Purchaser's Subscription Amount and (y) the
aggregate sum of all of the Subscription Amounts. Notwithstanding the foregoing,
this Section 4.11 shall not apply in respect of the issuance of (a) shares of
Common Stock or options to employees, key consultants, advisors, officers or
directors of the Company pursuant to any stock or option plan duly adopted by a
majority of the non-employee members of the Board of Directors of the Company or
a majority of the members of a committee of non-employee directors established
for such purpose, (b) securities upon the conversion of, or in connection with
the payment of interest on or redemption of, the Company's 7.5% Convertible
Debentures outstanding on the date of this Agreement; (c) securities upon the
exercise of or conversion of any convertible securities, options or warrants
issued and outstanding on the date of this Agreement and warrants issued to Roth
Capital Partners, Century Capital and Sands Brothers International Ltd. in
connection with the transactions contemplated by this Agreement, in each case
provided that such securities have not been amended since the date of this
Agreement, (d) securities in connection with acquisitions or strategic
investments (including, without limitation, any licensing or distribution
arrangements), the primary purpose of which is not to raise capital, (e)
securities to financial institutions or lessors in connection with commercial
credit arrangements, equipment financings or similar transactions, where the
principal consideration for such transaction is not the issuance of such
securities.

         4.12     Subsequent Equity Sales. From the date hereof until 90 days
after the Effective Date, neither the Company nor any Subsidiary shall issue
shares of Common Stock or Common Stock Equivalents; provided, however, the 90
day period set forth in this Section 4.12 shall be extended for the number of
Trading Days during such period in which (y) trading in the Common Stock is
suspended by any Trading Market, or (z) following the Effective Date, the
Registration Statement is not effective or the prospectus included in the
Registration Statement may not be used by the Purchasers for the resale of the
Shares and Warrant Shares. Notwithstanding the foregoing, this Section 4.12
shall not apply in respect of the issuance of (a) shares of Common Stock or
options to employees, key consultants, advisors, officers or directors of the
Company pursuant to any stock or option plan duly adopted by a majority of the
non-employee members of the Board of Directors of the Company or a majority of
the members of a committee of non-employee directors established for such
purpose, (b) securities upon the conversion of, or in connection with the
payment of interest on or redemption of, the Company's

                                       20
<PAGE>

7.5% Convertible Debentures outstanding on the date of this Agreement; (c)
securities upon the exercise of or conversion of any convertible securities,
options or warrants issued and outstanding on the date of this Agreement and
warrants issued to Roth Capital Partners, Century Capital and Sands Brothers
International Ltd. in connection with the transactions contemplated by this
Agreement, in each case provided that such securities have not been amended
since the date of this Agreement, (c) securities in connection with acquisitions
or strategic investments (including, without limitation, any licensing or
distribution arrangements), the primary purpose of which is not to raise
capital, (d) securities to financial institutions or lessors in connection with
commercial credit arrangements, equipment financings or similar transactions,
where the principal consideration for such transaction is not the issuance of
such securities.

         4.13     Equal Treatment of Purchasers. No consideration shall be
offered or paid to any person to amend or consent to a waiver or modification of
any provision of any of the Transaction Documents unless the same consideration
is also offered to all of the parties to the Transaction Documents. For
clarification purposes, this provision constitutes a separate right granted to
each Purchaser by the Company and negotiated separately by each Purchaser, and
is intended to treat for the Company the Purchasers as a class and shall not in
any way be construed as the Purchasers acting in concert or as a group with
respect to the purchase, disposition or voting of Securities or otherwise.

                                   ARTICLE V.
                                  MISCELLANEOUS

         5.1      Fees and Expenses. The Company agrees to pay $35,000 to
Omicron Master Trust for its legal fees and expenses incurred in connection with
the investigation and negotiation of the transaction and the preparation and
negotiation of the Transaction Documents. Accordingly, in lieu of the foregoing
payments, the Company, on the Closing Date, will direct that the aggregate
amount that Omicron Master Trust is to pay for the Shares and Warrants at the
Closing, be reduced by at least $35,000. Except as otherwise set forth in this
Agreement, each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement. The Company shall pay all stamp and other taxes
and duties levied in connection with the sale of the Securities.

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

         5.3      Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto prior to 6:30
p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number set forth on the signature pages attached hereto on a
day that is not a Trading Day or later than 6:30 p.m. (New York City time) on
any Trading Day, (c) the second Trading Day following the

                                       21
<PAGE>

date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as set
forth on the signature pages attached hereto.

         5.3      Amendments; Waivers. No provision of this Agreement may be
waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each Purchaser or, in the case of a waiver, by the
party against whom enforcement of any such waiver is sought. No waiver of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right.

         5.4      Construction. The headings herein are for convenience only, do
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.

         5.5      Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of each Purchaser. Any Purchaser may
assign any or all of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the "Purchasers".

         5.6      No Third-Party Beneficiaries. This Agreement is intended for
the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.8.

         5.7      Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents shall be
governed by and construed and enforced in accordance with the internal laws of
the State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, New York for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is
improper. Each party hereto hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by delivering a copy thereof via overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Agreement

                                       22
<PAGE>

and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. Each party
hereto (including its affiliates, agents, officers, directors and employees)
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby. If either
party shall commence an action or proceeding to enforce any provisions of a
Transaction Document, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its attorneys' fees and other costs
and expenses incurred with the investigation, preparation and prosecution of
such action or proceeding.

         5.8      Survival. The representations and warranties contained herein
shall survive the earlier of (a) the second anniversary of the Closing Date and
(b) the date on which the Shares and Warrant Shares are no longer outstanding.
The agreements and covenants contained herein shall survive, as to a Purchaser
and unless otherwise set forth in the Transaction Documents, until such
Purchaser no longer holds any Securities.

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

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

         5.11     Replacement of Securities. If any certificate or instrument
evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

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

                                       23
<PAGE>

         5.13     Payment Set Aside. To the extent that the Company makes a
payment or payments to any Purchaser pursuant to any Transaction Document or a
Purchaser enforces or exercises its rights thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

         5.14     Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser under any Transaction Document. Nothing contained herein or in any
Transaction Document, and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Document. Each
Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement or out of
the other Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such
purpose. Each Purchaser was introduced to the Company by Sands Brothers
International Ltd., Roth Capital Partners, LLC and Century Capital, which have
acted solely as agent for the Company and not for any Purchaser. Each Purchaser
has been represented by its own separate legal counsel in their review and
negotiation of the Transaction Documents. For reasons of administrative
convenience only, Purchasers and their respective counsel have chosen to
communicate with the Company through FW. FW does not represent all of the
Purchasers but only Omicron Master Trust. The Company has elected to provide all
Purchasers with the same terms and Transaction Documents for the convenience of
the Company and not because it was required or requested to do so by the
Purchasers.

                            (Signature Page Follows)

                                       24
<PAGE>

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

                                            MATRITECH, INC.

                                            By:    /s/ Stephen D. Chubb
                                                  ______________________________
                                            Name:  Stephen D. Chubb
                                            Title: Chief Executive Officer

                                            Address for Notice:
                                            330 Nevada Street
                                            Newton, Massachusetts, 02460
                                            Attn: Stephen D. Chubb
                                            Tel: (617) 928-0820
                                            Fax: (617) 928-0821

With a copy to:                             Testa, Hurwitz & Thibeault, LLP
                                            125 High Street
                                            Boston, Massachusetts 02110
                                            Attn: Rufus C. King
                                            Tel: (617) 248-7000
                                            Fax: (617) 248-7100

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       25
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

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

OMICRON MASTER TRUST                              Address for Notice:
By: Omicron Capital L.P., as subadvisor           c/o Omicron Capital L.P.
By: Omicron Capital Inc., its general partner     810 Seventh Avenue, 39th Floor
                                                  New York, New York 10019
By: /s/ Bruce Bernstein                           Attn: Brian Daly
    ___________________________________           Fax: (212) 803-5269
         Name:   Bruce Bernstein
         Title:  Managing Partner

Subscription Amount: $1,000,001.01
Shares:  598,803
Warrant Shares: 209,581
                           With a copy to:

                                                  Feldman Weinstein LLP
                                                  420 Lexington Avenue
                                                  New York, New York 10170
                                                  Attn: Joseph A. Smith
                                                  Tel: (212) 869-7000
                                                  Fax: (212) 401-4741

                      [PURCHASER'S SIGNATURE PAGES FOLLOW]

                                       26
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

MIDSUMMER INVESTMENT, LTD.                  Address for Notice:
                                            c/o Midsummer Capital, LLC
                                            485 Madison Avenue, 23rd Floor
                                            New York, New York 10022
By: /s/ Michel A. Amsalem                   Tel: (212) 584-2140
    ---------------------------             Fax: (212) 584-2142
Name:   Michel A. Amsalem                   Attn: Scott Kaufman
Title:  Director

Subscription Amount: $700,000
Shares:
Warrant Shares:

                                       27
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

PROMED PARTNERS LP                          Address for Notice:

By: /s/ Barry Kurokawa
   --------------------------------------
Name: Barry Kurokawa                         237 Park Avenue, 9th Fl.
Title: Managing Director                     New York, NY 10017

Subscription Amount: $559,715.53
Shares: 335,159
Warrant Shares: 117,306

                                       28
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

PROMED OFFSHORE FUND LTD.                   Address for Notice:

By: /s/ Barry Kurokawa
   --------------------------------------
Name: Barry Kurokawa                        237 Park Avenue, 9th Fl.
Title: Managing Director                    New York, NY 10017

Subscription Amount: $90,285.21
Shares: 54,063
Warrant Shares: 18,922

                                       29
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

OTAPE INVESTMENTS LLC                       Address for Notice:

By: /s/ Richard M. Cayne                    One Manhattanville Rd.
    _______________________                 Purchase, NY 10527
Name: Richard M. Cayne                      Attn: Paul Masters
Title: General Counsel                            Rick Berdon

Subscription Amount: $200,000
Shares: 119,760
Warrant Shares: 41,916

                                       30
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

ISLANDIA, L.P.                              Address for Notice:

By: /s/ Edgar Berner                        Islandia, LP.
   ________________________________         485 Madison Avenue
Name: Edgar Berner                          23rd Floor
Title: V.P. of John Lang, Inc., G.P.        New York, NY 10022

Subscription Amount: $350,000
Shares:
Warrant Shares:

                                       31
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

BLUEGRASS GROWTH FUND LP                    Address for Notice:

By: /s/ Brian Shatz                                         200 E 72nd Street
   ______________________________________                   Apartment 10L
Name: Brian Shatz                                           New York, NY 10021
Title: Managing Member

Subscription Amount: $250,000
Shares: 149,701
Warrant Shares: 52,395

                                       32
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

INCAP COMPANY LTD.                          Address for Notice:

By: /s/ Kate Reeve & Glen Bradshaw
   ______________________________________
Name: Kate Reeve and Glen Bradshaw
Title: Authorized signatories of First Somers (Guernsey Limited - Director)

Subscription Amount: $250,000
Shares:
Warrant Shares:

                                       33
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

VERTICAL VENTURES INVESTMENTS, LLC          Address for Notice:

By:    /s/ Joshua Silverman                 Vertical Ventures Investments, LLC
      -------------------------------       64l Lexington Avenue, 16th Fl
Name:  Joshua Silverman                     New York, NY 10022
Title: Manager

Subscription Amount: $249,999
Shares: 149,700
Warrant Shares: 52,395

                                       34
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

BRISTOL INVESTMENTS FUND, LTD.                Address for Notice:
                                              Bristol Capital Advisors, LLC
By: /s/ Paul Kessler                          6363 Sunset Boulevard, Fifth Floor
   ---------------------------                Hollywood, CA 90028
Name:   Paul Kessler                          Attn: Any Wang, Esq.
Title:  Director                              Phone: (323) 769-2493
                                              Fax:   (323) 468-8307
Subscription Amount: $350,000
Shares: 209,581
Warrant Shares: 73,353

                                       35
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

CLOSE FINSBURY GLOBAL INVESTMENT FUNDS    Address for Notice:
PLC -- UNIVERSAL LIFE SCIENCES FUND        JP Morgan Ireland PLC, as Custodian
                                             to Finsbury Universal Life Sciences
By: /s/ Huaizheng Peng                     JP Morgan House
    _________________________________      IFSC
Name: Huaizheng Peng                       Dublin 1
Title: Fund Manager                        Ireland

Subscription Amount: $50,000
Shares: 29,940
Warrant Shares: 10,479

                                       36
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

CRESCENT INTERNATIONAL LTD                  Address for Notice:

By: /s/ Mel Craw      /s/ Maxi Brezzi       c/o Greenlight (Switzerland) S.A.
    -----------------------------------     84 Av. Louis-Casai
Name: Mel Craw            Maxi Brezzi       1216 Cointrin, Geneva
Title: Authorized Signatories               Switzerland
                                            Tel: 011 41 22 791 7170
Subscription Amount: $400,800               Fax: 011 41 22 929 5394
Shares: 240,000                             Email: info@greenlight.dmitrust.com
Warrant Shares: 84,000

                                       37
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

HSBC REPUBLIC                                              Address for Notice:

By:   /s/ Chantal Reichmuth      /s/ Stuart Tatti Staines  HSBC Republic Bank
    --------------------------   ------------------------  (Suisse) SA
Name:  Chantal Reichmuth         Stuart Tatti Staines      48-20 Rue De Lansanni
Title: Deputy Member Management  Associate                 PO-Box 2019
                                                           Geneva
Subscription Amount: $250,000                              Switzerland
Shares: 149,700
Warrant Shares: 52,395

                                       38
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

HEADWATERS HOLDINGS LLC                     Address for Notice:

By: /s/ Jeff Gosmay                         Headwaters Capital
    _________________________________       30 Liberty Ship Way
Name: Jeff Gosmay                           Sausalito, CA 94965
Title: Managing Member

Subscription Amount: $300,000
Shares: 179,640
Warrant Shares: 62,874

                                       39
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

LANGLEY PARTNERS, L.P.                      Address for Notice:

By: /s/ Jeffrey Thorp
   --------------------------------------
Name: Jeffrey Thorp                         c/o Langley Capital, LLC
Title: Managing Partner of G.P.             535 Madson Avenue, 7th Floor
                                            New York, NY 10022
Subscription Amount: $501,000               212-850-7528 Telephone
Shares: 300,000                             212-208-2971 Facsimile
Warrant Shares: 105,000

                                       40
<PAGE>

                       [PURCHASERS SIGNATURE PAGE - NMPS]

GAMMA OPPORTUNITY CAPITAL PARTNERS, LP       Address for Notice:
By: Gamma Capital Advisors, Ltd, as advisor

By: /s/ Christopher Rossman
   --------------------------------------
Name: Christopher Rossman                    c/o Gamma Capital Advisers, Ltd.
Title: Managing Director                     British Colonial Centre of Commerce
                                             One Bay Street, Suite 401
Subscription Amount: $200,000                Nassau (NP), The Bahamas
Shares: 119,761                              Attn: Christopher Rossman
Warrant Shares: 41,916                       Fax: (242) 322-6657

                                       41
<PAGE>
                       [Purchaser Signature Page -- NMPS]

ALPHA CAPITAL AKTIENGESELLSCHAFT

By: /s/ Konrad Ackermann                Address for Notice:
   ------------------------------
Name: Konrad Ackermann                  c/o LH Financial Services Corp.
Title: Director                         160 Central Park South
                                        Suite 2701
Subscription Amount: $300,000           New York, NY 10019
Shares:                                 Attn: Arie Rabinowitz
Warrants:                               Fax: (212) 586-8244

                                       42

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]