Document:

Exhibit 4.3

WARRANT AGREEMENT

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

W I T N E S S E T H:

WHEREAS,
the Company proposes to issue to the Lead Investor 3,500,000 warrants (each a “Lead
Investor’s Warrant”), each to purchase one unit, containing one share of the
Company’s common stock, par value $0.0001 per share (the “Common Stock”) and
one Common Stock purchase warrant (the “Warrants,” and collectively with the
Common Stock, the “Units”).

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

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

1.             Grant.  The Holder (as defined in Section 3 below) is
hereby granted the right to purchase, at any time from November      ,
2006 until 5:30 p.m., New York time, to August 31, 2007 (the “Expiration Date”),
up to 3,500,000 Units, at an initial purchase price (subject to adjustment as
provided in Section 8 hereof) of $0.55 per Unit, subject to the terms and
conditions of this Agreement; provided, on or prior to the time of exercise,
the Company shall have received an aggregate of $5.0 million of financing in
addition to financing pursuant to the SPA. 
If the Company shall not have attained the financing condition on or
before May 17, 2007, the Lead Investor’s Warrants shall terminate and be of no
further force or effect and thereafter May 17, 2007 shall be deemed the Expiration
Date.  The securities issuable upon
exercise of the Lead Investor’s Warrant are sometimes referred to herein as the
“Lead Investor’s Securities.”

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

3.             Exercise of Lead
Investor’s Warrant.

(a)           The Lead Investor’s
Warrant is exercisable during the term set forth in Section 1 hereof payable by
certified or cashier’s check or money order in lawful money of the United
States.  Upon surrender of Lead Investor’s
Warrant Certificate with the annexed Form of Election to

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

(b)           In lieu of the payment of cash upon exercise of the
Lead Investor’s Warrant as provided in Section 3(a), the Holder may exercise
the Lead Investor’s Warrant by surrendering the Lead Investor’s Warrant
Certificate at the principal office of the Company, accompanied by a notice
stating (i) the Holder’s intent to effect such exercise by an exchange, (ii)
the number of Units to be issued upon the exchange, (iii) whether Lead Investor’s
Warrants are to be surrendered in connection with the exchange, and (iv) the
date on which the Holder requests that such exchange is to occur.  The Purchase Price for the Lead Investor’s
Securities to be acquired in the exchange shall be paid by the surrender as
indicated in the notice, of Lead Investor’s Warrants, having a “Value”, as
defined below, equal to the Purchase Price. 
“Value” as to each Lead Investor’s Warrant shall mean the difference
between the “Market Price”, as hereinafter defined, of one share of Common
Stock and one Warrant and the then Purchase Price for a Unit.

By
way of example of the application of the formula, assume that the Market Price
of one share of Common Stock is $20.00, and the Purchase Price of the Lead
Investor’s Warrant is $15.00.  On such
assumptions, the Value of each Lead Investor’s Warrant is $5.00 ($20.00-$15.00)
and therefore for each three Lead Investor’s Warrants surrendered, the Holder
could acquire one share of Common Stock and one Warrant in the exchange.  Notwithstanding the example, the Holder shall
not be limited to exchanging Lead Investor’s Warrants for Common Stock and
Warrants.

The
Warrant Exchange shall take place on the date specified in the notice or if the
date the notice is received by the Company is later than the date specified in
the notice, on the date the notice is received by the Company.

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

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any transfer involved in the issuance and delivery of
any such certificates in a name other than that of the Holder, and the Company
shall not be required to issue or deliver such certificates unless or until the
person or persons requesting the issuance thereof shall have paid to the
Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid. 
The Lead Investor’s Warrant Certificates and the certificates
representing the Lead Investor’s Securities or other securities, property or
rights (if such property or rights are represented by certificates) shall be
executed on behalf of the Company by the manual or facsimile signature of the
then present Chairman or Vice Chairman of the Board of Directors or President
or Vice President of the Company, attested to by the manual or facsimile
signature of the then present Secretary or Assistant Secretary or Treasurer or
Assistant Treasurer of the Company.  The
Lead Investor’s Warrant Certificates shall be dated the date of issuance
thereof by the Company upon initial issuance, transfer or exchange.   Notwithstanding anything else contained
herein, the Warrants to be issued shall be exercisable at 165% of the effective
initial public offering price of the Common Stock.

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

6.             Purchase Price.

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

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

7.             Registration
Rights.

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

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

(b)           Piggyback
Registration.  If the Company should
file a registration statement

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with the Commission under the Act (other than in
connection with a merger or other business combination transaction or pursuant
to Form S-8), it will give written notice at least twenty (20) calendar days
prior to the filing of each such registration statement to the Lead Investor
and to all other Holders of the Lead Investor’s Warrant and/or the Lead
Investor’s Securities of its intention to do so.  If an Lead Investor or other Holders of the
Lead Investor’s Warrant and/or the Lead Investor’s Securities notify the
Company within fifteen (15) calendar days after receipt of any such notice of
its or their desire to include any Lead Investor’s Securities in such proposed
registration statement, the Company shall afford the Lead Investor and such
Holders of the Lead Investor’s Warrant and/or Lead Investor’s Securities the
opportunity to have any such Lead Investor’s Securities registered under such
registration statement.  Notwithstanding
the provisions of this Section 7(b) and the provisions of Section 7(c), the
Company shall have the right at any time after it shall have given written
notice pursuant to this Section 7(b) (irrespective of whether a written request
for inclusion of any such securities shall have been made) to elect not to file
any such proposed registration statement, or to withdraw the same after the
filing but prior to the effective date thereof.

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

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

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

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

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

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(5)           The Holders of the Lead
Investor’s Securities to be sold pursuant to a registration statement, and their
successors and assigns, shall indemnify the Company, its officers and directors
and each person, if any, who controls the Company within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim,
damage or expense or liability to which they may become subject under the Act,
the Exchange Act or otherwise, arising from information furnished by or on
behalf of such Holders, or their successors or assigns, for specific inclusion
in such registration statement to the same extent and with the same effect as
the provisions contained in Section 8 of the Underwriting Agreement pursuant to
which the Lead Investor has agreed to indemnify the Company.

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

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

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

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

8.             Adjustments to
Purchase Price and Number of Securities.

(a)           Subdivision and
Combination. In case the Company shall at any time issue any shares of
Common Stock in connection with a stock dividend in shares of Common Stock or
subdivide or combine the outstanding shares of Common Stock, the Purchase Price
shall forthwith be proportionately decreased in the case of a stock dividend or
a subdivision or increased in the case of combination.

(b)           Adjustment in Number
of Securities. Upon each adjustment of the Purchase Price pursuant to the
provisions of this Section 8, the number of Lead Investor’s Securities issuable

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upon the exercise of the Lead Investor’s Warrant shall
be adjusted to the nearest whole share by multiplying a number equal to the
Purchase Price in effect immediately prior to such adjustment by the number of
Lead Investor’s Securities issuable upon exercise of the Lead Investor’s
Warrant immediately prior to such adjustment and dividing the product so
obtained by the adjusted Purchase Price.

(c)           Definition of Common
Stock. For the purpose of this Agreement, the term “Common Stock” shall
mean the class of stock designated as Common Stock in the Certificate of
Incorporation, of the Company as it may be amended as of the date hereof.

(d)           Reclassification,
Merger or Consolidation.  The Company
will not merge, reorganize or take any other action which would terminate the
Lead Investor’s Warrant without first making adequate provision for the Lead
Investor’s Warrant.  In case of any reclassification
or change of the outstanding shares of Common Stock issuable upon exercise of
the outstanding warrants (other than a change in par value to no par value, or
from nor par value to par value, or as a result of a subdivision or
combination), or in case of any consolidation of the Company with, or merger of
the Company with, or merger of the Company into, another corporation (other
than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification or change of the
outstanding Common Stock except a change as a result of a subdivision or
combination of such shares or a change in par value, as aforesaid), or in the
case of a sale or conveyance to another corporation or other entity of the property
of the Company as an entirety or substantially as an entirety, the Holders of
each Lead Investor’s Warrant then outstanding or to be outstanding shall have
the right thereafter (until the expiration of such Lead Investor’s Warrant) to
purchase, upon exercise of such Lead Investor’s Warrant, the kind and number of
shares of stock and other securities and property receivable upon such
reclassification, change, consolidation, merger, sale or conveyance as if the
Holders were the owner of the shares of Common Stock underlying the Lead
Investor’s Warrant immediately prior to any such events at a price equal to the
product of (x) the number of shares issuable upon exercise of the Lead
Investor’s Warrant and (y) the Purchase Price in effect immediately prior
to the record date for such reclassification, change, consolidation, merger,
sale or conveyance, as if such Holders had exercised the Lead Investor’s
Warrant.  In the event of a
consolidation, merger, sale or conveyance of property, the corporation formed
by such consolidation or merger, or acquiring such property, shall execute and
deliver to the Holders a supplemental Lead Investor’s warrant agreement to such
effect.  Such supplemental Lead Investor’s
warrant agreement shall provide for adjustments which shall be identical to the
adjustment provided for in this Section 8. 
The provisions of this Section 8(d) shall similarly apply to successive
consolida­tions or mergers.

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

10.           Loss, Theft etc. of
Certificates  Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Lead Investor’s Warrant

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

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

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

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

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

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

(c)           a dissolution,
liquidation or winding up of the Company (other than in connection with a consolidation
or merger) or a sale of all or substantially all of its property, assets and
business as an entirety shall be proposed; then, in any one or more of said
events, the Company

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shall give written notice of such event at least
fifteen (15) calendar days prior to the date fixed as a record date or the date
of closing the transfer books for the determi­nation of the stockholders
entitled to such dividend, distribution, convertible or exchangeable securities
or subscription rights, or entitled to vote on such proposed dissolution,
liquidation, winding up or sale. Such notice shall specify such record date or
the date of closing the transfer books, as the case may be.  Failure to give such notice or any defect
therein shall not affect the validity of any action taken in connection with
the declaration or payment of any such dividend, or the issuance of any
convertible or exchangeable securities, or subscription rights, options or
warrants, or any proposed dissolution, liquidation, winding up or sale.

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

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

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

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

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

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

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

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

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

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

[Signature
on following page]

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

	
  

  	
  XENOMICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Frederick Larcombe, CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gian Luigi Buitoni

  

 

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XENOMICS,
INC.

WARRANT
CERTIFICATE

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

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

EXERCISABLE
COMMENCING NOVEMBER      , 2006 THROUGH

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

No. LI-1

This Warrant
Certificate certifies that Gian Luigi Buitoni or registered assigns, is the
registered holder of this Warrant to purchase initially, at any time from
November    , 2006, until 5:30 p.m., New York time on August 31,
2007 (the “Expiration Date”), up to 3,500,000 units, each consisting of one
share of Common Stock, $0.0001 par value (the “Common Stock”) and one Common
Stock purchase warrant (the “Warrants”) of Xenomics, Inc. (the “Company”)
exercisable at an initial purchase price of $0.55 per share (the “Purchase
Price”), upon the surrender of this Warrant Certificate and payment of the
applicable Purchase Price at an office or agency of the Company, but subject to
the conditions set forth herein and in the Warrant Agreement, dated as of
November      , 2006, by and between the Company and
Gian Luigi Buitoni (the “Warrant Agreement”). 
Payment of the Purchase Price shall be made by certified or cashier’s
check or money order payable to the order of the Company, or surrender as
provided in the Warrant Agreement.

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

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

The Warrant
Agreement provides that upon the occurrence of certain events the

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

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

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

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

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

IN WITNESS
WHEREOF, the undersigned has executed this certificate this    
day of November         2006.

	
   

  	
  XENOMICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Frederick
  Larcombe, CFO

  

 

 12
 

 

FORM OF ASSIGNMENT

(To be executed by
the registered holder if such holder

desires to transfer the Warrant Certificate.)

FOR VALUE RECEIVED                                                      

hereby sells,
assigns and transfers unto                                           

(Please print name
and address of transferee)

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

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
  (Signature must
  conform in all respects to the

  
	
   

  	
  name of holder
  as specified on the face of the

  
	
   

  	
  Warrant
  Certificate.)

  
	
   

  	
   

  
	
  [Signature
  guarantee]

  	
   

  	
   

  
	
   

  	
  (Insert Social
  Security or Other

  
	
   

  	
  Identifying
  Number of Holders)

  

 

 13
 

 

FORM OF ELECTION
TO PURCHASE

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

	
  Dated:

  
	
   

  
	
  Signature

  	
   

  	
   

  
	
   

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

  

 

(Insert Social
Security or Other

Identifying Number
of Holders)

[Signature
guarantee]

 14Exhibit 10.1

EXHIBIT B

REGISTRATION RIGHTS
AGREEMENT

This
Registration Rights Agreement (this “Agreement”) is made and entered
into as of November     , 2006, among Xenomics, Inc., a
Florida corporation (the “Company”), and the purchasers signatory hereto
(each such purchaser is a “Purchaser” and collectively, the “Purchasers”).

This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of
the date hereof among the Company and the Purchasers (the “Purchase
Agreement”).

The
Company and the Purchasers hereby agree as follows:

1. Definitions

Capitalized terms used and not otherwise defined herein that
are defined in the Purchase Agreement shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:

“Advice” shall
have the meaning set forth in Section 6(d).

“Effectiveness Date”
means, with respect to the initial Registration Statement required to be filed
hereunder, the 45th calendar day following the Filing Date and,
with respect to any additional Registration Statements which may be required
pursuant to Section 3(c), the 60th calendar day following the date on which the
Company first knows, or reasonably should have known, that such additional
Registration Statement is required hereunder; provided, however,
in the event the Company is notified by the Commission that one of the above
Registration Statements will not be reviewed or is no longer subject to further
review and comments, the Effectiveness Date as to such Registration Statement
shall be the fifth Trading Day following the date on which the Company is so
notified if such date precedes the dates required above.

“Effectiveness Period”
shall have the meaning set forth in Section 2(a).

“Event” shall have
the meaning set forth in Section 2(b).

“Event Date” shall
have the meaning set forth in Section 2(b).

“Filing Date”
means, with respect to the initial Registration Statement required hereunder,
the 15th calendar day following the earlier of May 14,
2007 or the completion of $5,000,000 of sales of securities by the Company (not
including the additional issuance, if any, of Debentures and Warrants up to an
aggregate of $2,200,000) following the date hereof, and, with respect to any
additional Registration Statements which may be required pursuant to Section
3(c), the 30th day following the date on which the Company

 1
 

 

first knows, or reasonably should have known that such
additional Registration Statement is required hereunder.

“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of
Registrable Securities.

“Indemnified Party”
shall have the meaning set forth in Section 5(c).

“Indemnifying Party”
shall have the meaning set forth in Section 5(c).

“Losses” shall
have the meaning set forth in Section 5(a).

“Plan of Distribution”
shall have the meaning set forth in Section 2(a).

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

“Prospectus” means
the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration
Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

“Registrable
Securities” means (i) all of the shares of Common Stock issuable upon
conversion in full of the Debentures, (ii) all shares issuable as interest on
the Debentures assuming all permissible interest payments are made in shares of
Common Stock and the Debentures are held until maturity, (iii) all Warrant
Shares, (iv) any additional shares issuable in connection with any
anti-dilution provisions in the Debentures or the Warrants (in each case,
without giving effect to any limitations on conversion set forth in the
Debenture or limitations on exercise set forth in the Warrant) and (v) any
securities issued or issuable upon any stock split, dividend or other
distribution,  recapitalization or
similar event with respect to the foregoing.

“Registration
Statement” means the registration statements required to be filed hereunder
and any additional registration statements contemplated by Section 3(c),
including (in each case) the Prospectus, amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or

 2
 

 

regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule.

“Rule 424” means
Rule 424 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 purpose and
effect as such Rule.

“Selling Shareholder
Questionnaire” shall have the meaning set forth in Section 3(a).

2.             Shelf
Registration

(a)           On or prior to each Filing Date, the
Company shall prepare and file with the Commission a “Shelf” Registration
Statement covering the resale of 130% of the Registrable Securities on such
Filing Date for an offering to be made on a continuous basis pursuant to Rule
415.  The Registration Statement shall be
on Form S-3 (except if the Company is not then eligible to register for resale
the Registrable Securities on Form S-3, in which case such registration shall
be on another appropriate form in accordance herewith) and shall contain
(unless otherwise directed by the Holders) substantially the “Plan of
Distribution” attached hereto as Annex A.  Subject to the terms of this Agreement, the
Company shall use its reasonable best efforts to cause a Registration Statement
to be declared effective under the Securities Act as promptly as possible after
the filing thereof, but in any event prior to the applicable Effectiveness
Date, and shall use its reasonable best efforts to keep such Registration
Statement continuously effective under the Securities Act until the earlier of
(i) beginning 1 year after the date hereof, 95% of the Registrable Securities
covered by such Registration Statement have been sold and the balance of the
Registrable Securities may be then sold pursuant to Rule 144 as determined by
the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected
Holders and (ii) 100% of the Registrable Securities may be sold without volume
restrictions pursuant to Rule 144(k) as determined by the counsel to the
Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Company’s transfer agent and the affected Holders (the “Effectiveness
Period”).  The Company shall
telephonically request effectiveness of a Registration Statement as of 5:00 pm
Eastern Time on a Trading Day.   The
Company shall immediately notify the Holders via facsimile of the effectiveness
of a Registration Statement on the same Trading Day that the Company
telephonically confirms effectiveness with the Commission, which shall be the
date requested for effectiveness of a Registration Statement.  The Company shall, by 9:30 am Eastern Time on
the Trading Day after the Effective Date (as defined in the Purchase
Agreement), file a Form 424(b)(5) with the Commission.  .

(b)           If: (i) a Registration Statement is
not filed on or prior to its Filing Date (if the Company files a Registration
Statement without affording the Holders the opportunity to review and comment
on the same as required by Section 3(a), the Company shall not be deemed to
have satisfied this clause (i)), or (ii) the Company fails to file with the

 3
 

 

Commission a request for acceleration in accordance
with Rule 461 promulgated under the Securities Act, within five Trading Days of
the date that the Company is notified (orally or in writing, whichever is
earlier) by the Commission that a Registration Statement will not be “reviewed,”
or not subject to further review, or (iii) 
a Registration Statement filed or required to be filed hereunder is not
declared effective by the Commission by its Effectiveness Date, (iv) after the
Effectiveness Date, a Registration Statement ceases to remain continuously
effective as to all Registrable Securities for which it is required to be
effective due to the good faith determination of the board of directors of the
Company that the existence of a pending corporate development with respect to
the Company that the Company believes may be material makes it not in the best
interest of the Company to allow continued availability of a Registration
Statement or Prospectus, or the Holders are not permitted to utilize the
Prospectus therein to resell such Registrable Securities for 15 consecutive
calendar days but no more than an aggregate of 30 calendar days during any
12-month period (which need not be consecutive Trading Days) or (v) after the
Effectiveness Date, a Registration Statement ceases for any reason to remain
continuously effective as to all Registrable Securities for which it is
required to be effective, or the Holders are not permitted to utilize the
Prospectus therein to resell such Registrable Securities for 10 consecutive
calendar days but no more than an aggregate of 30 calendar days during any
12-month period (which need not be consecutive Trading Days) (any such failure
or breach being referred to as an “Event”,
and for purposes of clause (i) the date on which such Event occurs, or for
purposes of clause (ii) the date on which such five Trading Day period is
exceeded, , or for purposes of (iii) the date on which such Event occurs,
except that if the Commission will not permit acceleration or requests
withdrawal as a result of (A) the number of Securities under the Purchase
Agreement relative to the number of shares of Common Stock outstanding or (B)
the failure of any Holder to comply with the Plan of Distribution, then such
date shall be 30 calendar days after the date such Event occurs (provided, if the
Event relates to (A), the Holders agree to a pro rata cutback of Registrable
Securities sufficient to remove the Commission’s objection and, if the Event
relates to (B), the Holders that have failed to comply with the Plan of
Distribution waive all penalties and agree to the removal of their Securities
from the Registration Statement or for purposes of clause (v) the date on which
such 10 or 20 calendar day period, as applicable, is exceeded, or for purposes
of clause (vi) the date on which such 10 or 30 calendar day period is exceeded
being referred to as “Event Date”),
then in addition to any other rights the Holders may have hereunder or under
applicable law, on each such Event Date and on each monthly anniversary of each
such Event Date (if the applicable Event shall not have been cured by such
date) until the applicable Event is cured, the Company shall pay to each Holder
an amount in cash, as partial liquidated damages and not as a penalty, equal to
1.5% of the aggregate purchase price paid by such Holder pursuant to the
Purchase Agreement for any Registrable Securities then held by such Holder (up
to a maximum of 24% of such aggregate purchase price).  If the Company fails to pay any partial
liquidated damages pursuant to this Section in full within seven days after the
date payable, the Company will pay interest thereon at a rate of 18% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law)
to the Holder, accruing daily from the date such partial liquidated damages are
due until such amounts, plus all such interest thereon, are paid in full. The
partial liquidated

 4
 

 

damages pursuant to the terms hereof shall apply on a
daily pro-rata basis for any portion of a month prior to the cure of an Event.

3.             Registration
Procedures.

In
connection with the Company’s registration obligations hereunder, the Company
shall:

(a)           Not less than five Trading Days prior
to the filing of each Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Company
shall, (i) furnish to each Holder copies of all such documents proposed to be
filed, which documents (other than those incorporated or deemed to be incorporated
by reference) will be subject to the review of such Holders, and (ii) cause its
officers and directors, counsel and independent certified public accountants to
respond to such inquiries as shall be necessary, in the reasonable opinion of
respective counsel to conduct a reasonable investigation within the meaning of
the Securities Act. The Company shall not file a Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders
of a majority of the Registrable Securities shall reasonably object in good
faith, provided that, the Company is notified of such objection in writing no
later than 5 Trading Days after the Holders have been so furnished copies of
such documents. Each Holder agrees to furnish to the Company a completed
Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Shareholder Questionnaire”) not less than two Trading Days prior to the
Filing Date or by the end of the fourth Trading Day following the date on which
such Holder receives draft materials in accordance with this Section.

(b)           (i) Prepare and file with the
Commission such amendments, including post-effective amendments, to a
Registration Statement and the Prospectus used in connection therewith as may
be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement (subject to the terms of this Agreement), and as so
supplemented or amended to be filed pursuant to Rule 424; (iii) respond as
promptly as reasonably possible to any comments received from the Commission
with respect to a Registration Statement or any amendment thereto and as
promptly as reasonably possible provide the Holders true and complete copies of
all correspondence from and to the Commission relating to a Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement during the
applicable period in accordance (subject to the terms of this Agreement) with
the intended methods of disposition by the Holders thereof set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented.

 5
 

 

(c)           If during the Effectiveness Period,
the number of Registrable Securities at any time exceeds 90% of the number of
shares of Common Stock then registered in a Registration Statement, then the
Company shall file as soon as reasonably practicable but in any case prior to
the applicable Filing Date, an additional Registration Statement covering the
resale by the Holders of not less than 130% of the number of such Registrable
Securities.

(d)           Notify the Holders of Registrable
Securities to be sold (which notice shall, pursuant to clauses (ii) through
(vi) hereof, be accompanied by an instruction to suspend the use of the
Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than five
Trading Days prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one Trading Day following the day
(i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a “review” of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders, except to the
extent the Company requests that such responses be exempt from requests under
the Freedom of Information Act); and (C) with respect to a Registration
Statement or any post-effective amendment, when the same has become effective;
(ii) of any request by the Commission or any other Federal or state
governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; (v) of the occurrence of any
event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made
in a Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires any revisions to a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading; and (vi) the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may
be material and that, in the determination of the Company, makes it not in the
best interest of the Company to allow continued availability of a Registration
Statement or Prospectus; provided that any and all of such information shall
remain confidential to each Holder until such information otherwise becomes
public, unless disclosure by a Holder is required by law; provided, further,
notwithstanding each Holder’s agreement to keep such information confidential,
the Holders make no acknowledgement that any such information is material,
non-public information.

 6
 

 

(e)           Use its reasonable best efforts to
avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order
suspending the effectiveness of a Registration Statement, or (ii) any
suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment.

(f)            Furnish to each Holder upon request
and without charge, at least one conformed copy of each such Registration
Statement and each amendment thereto, including financial statements and
schedules, all documents incorporated or deemed to be incorporated therein by
reference to the extent requested by such Person, and all exhibits to the
extent requested by such Person (including those previously furnished or
incorporated by reference) promptly after the filing of such documents with the
Commission.

(g)           Promptly deliver to each Holder,
without charge, as many copies of the Prospectus or Prospectuses (including
each form of prospectus) and each amendment or supplement thereto as such Persons
may reasonably request in connection with resales by the Holder of Registrable
Securities.  Subject to the terms of this
Agreement, the Company hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the selling Holders in connection
with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving on
any notice pursuant to Section 3(d).

(h)           If NASDR Rule 2710 requires any broker-dealer
to make a filing prior to executing a sale by a Holder, the Company shall (i)
make an Issuer Filing with the NASDR, Inc. Corporate Financing Department
pursuant to proposed NASDR Rule 2710(b)(10)(A)(i), (ii) respond within five
Trading Days to any comments received from NASDR in connection therewith, (iii)
and pay the filing fee required in connection therewith.

(i)            Prior to any resale of Registrable
Securities by a Holder, use its commercially reasonable efforts to register or
qualify or cooperate with the selling Holders in connection with the
registration or qualification (or exemption from the Registration or
qualification) of such Registrable Securities for the resale by the Holder
under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each registration
or qualification (or exemption therefrom) effective during the Effectiveness
Period and to do any and all other acts or things reasonably necessary to
enable the disposition in such jurisdictions of the Registrable Securities
covered by each Registration Statement; provided, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it is
not then so qualified, subject the Company to any material tax in any such
jurisdiction where it is not then so subject or file a general consent to
service of process in any such jurisdiction.

(j)            If requested by the Holders,
cooperate with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be

 7
 

 

delivered to a transferee
pursuant to a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement, of all restrictive legends, and to
enable such Registrable Securities to be in such denominations and registered
in such names as any such Holders may request.

(k)           Upon the occurrence of any event
contemplated by this Section 3, as promptly as reasonably possible under the
circumstances taking into account the Company’s good faith assessment of any
adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a
post-effective amendment, to a Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither a Registration Statement nor such Prospectus will
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.  If the Company notifies the Holders in
accordance with clauses (ii) through (vi) of Section 3(d) above to suspend the
use of any Prospectus until the requisite changes to such Prospectus have been
made, then the Holders shall suspend use of such Prospectus.  The Company will use its reasonable best
efforts to ensure that the use of the Prospectus may be resumed as promptly as
is practicable.  The Company shall be
entitled to exercise its right under this Section 3(k) to suspend the
availability of a Registration Statement and Prospectus, subject to the payment
of partial liquidated damages pursuant to Section 2(b), for a period not to
exceed 60 days (which need not be consecutive days) in any 12 month period.

(l)            Comply with all applicable rules and
regulations of the Commission.

(m)          The Company may require each selling
Holder to furnish to the Company a certified statement as to the number of
shares of Common Stock beneficially owned by such Holder and, if required by
the Commission, the person thereof that has voting and dispositive control over
the Shares. During any periods that the Company is unable to meet its
obligations hereunder with respect to the registration of the Registrable
Securities solely because any Holder fails to furnish such information within
three Trading Days of the Company’s request, any liquidated damages that are
accruing at such time as to such Holder only shall be tolled and any Event that
may otherwise occur solely because of such delay shall be suspended as to such
Holder only, until such information is delivered to the Company.

4.             Registration Expenses. All
fees and expenses incident to the performance of or compliance with this
Agreement by the Company shall be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made
with the Trading Market on which the Common Stock is then listed for trading,
(B) in compliance with applicable state securities or Blue Sky laws reasonably
agreed to by the Company in writing (including, without limitation, fees and
disbursements of counsel for the

 8
 

 

Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities and determination of the eligibility
of the Registrable Securities for investment under the laws of such
jurisdictions as requested by the Holders) and (C) if not previously paid by
the Company in connection with an Issuer Filing, with respect to any filing
that may be required to be made by any broker through which a Holder intends to
make sales of Registrable Securities with NASD Regulation, Inc. pursuant to the
NASD Rule 2710, so long as the broker is receiving no more than a customary
brokerage commission in connection with such sale, (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in a Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement.  In addition, the Company
shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit and the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible
for any broker or similar commissions or, except to the extent provided for in
the Transaction Documents, any legal fees or other costs of the Holders.

5.             Indemnification

(a)           Indemnification by the Company. The Company shall, notwithstanding
any termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, members, partners, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment
advisors and employees (and any other Persons with a functionally equivalent
role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each of them, each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, members, partners, agents and
employees (and any other Persons with a functionally equivalent role of a
Person holding such titles, notwithstanding a lack of such title or any other
title) of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or
relating to (1) any untrue or alleged untrue statement of a material fact
contained in a Registration Statement, any Prospectus or any form of prospectus
or in any amendment or supplement thereto or in any preliminary prospectus, or
arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or form of prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading or (2)
any violation or alleged violation by the Company of the Securities Act, the
Exchange Act or any state securities law, or any rule or regulation thereunder,
in

 9
 

 

connection with the
performance of its obligations under this Agreement, except to the extent, but
only to the extent, that (i) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
(it being understood that the Holder has approved Annex A hereto for this
purpose) or (ii) in the case of an occurrence of an event of the type specified
in Section 3(d)(ii)-(vi), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
the Advice contemplated in Section 6(d). 
The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the
transactions contemplated by this Agreement of which the Company is aware.

(b)           Indemnification by Holders. Each Holder shall, severally and
not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and
the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, to the extent arising out of or based solely upon: (x) such Holder’s
failure to comply with the prospectus delivery requirements of the Securities
Act or (y) any untrue or alleged untrue statement of a material fact contained
in any Registration Statement, any Prospectus, or any form of prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or
arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading (i) to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing
by such Holder to the Company specifically for inclusion in such Registration
Statement or such Prospectus or (ii) to the extent that (1) such untrue
statements or omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a
Registration Statement (it being understood that the Holder has approved Annex
A hereto for this purpose), such Prospectus or such form of Prospectus or in
any amendment or supplement thereto or (2) in the case of an occurrence of an
event of the type specified in Section 3(d)(ii)-(vi), the use by such Holder of
an outdated or defective Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 6(d). In no event
shall the liability of any selling Holder hereunder be greater in amount than
the dollar amount of the net proceeds received by such Holder upon the sale of
the Registrable Securities giving rise to such indemnification obligation.

 10

 

(c)           Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify
the Person from whom indemnity is sought (the “Indemnifying Party”) in
writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Party and the payment of all fees and expenses incurred in connection
with defense thereof; provided, that the failure of any Indemnified Party to
give such notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have prejudiced the Indemnifying Party.

An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties
unless:  (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party
shall have failed promptly to assume the defense of such Proceeding and to
employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding; or (3) the named parties to any such Proceeding (including any impleaded
parties) include both such Indemnified Party and the Indemnifying Party, and
such Indemnified Party shall reasonably believe that a material conflict of
interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
the reasonable fees and expenses of one separate counsel shall be at the
expense of the Indemnifying Party).  The
Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be
unreasonably withheld.  No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect
any settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

Subject to the
terms of this Agreement, all reasonable fees and expenses of the Indemnified
Party (including reasonable fees and expenses to the extent incurred in
connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the
parties.

(d)           Contribution. If the indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party or insufficient to hold an
Indemnified Party harmless

 11
 

 

for any Losses, then each
Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission.  The
amount paid or payable by a party as a result of any Losses shall be deemed to
include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in
this Section was available to such party in accordance with its terms.

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this
Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this
Section 5(d), no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the proceeds actually received by such
Holder from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission, except in the case of fraud by such Holder.

The indemnity and
contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.

6.             Miscellaneous

(a)           Remedies.  In the event of a breach by the Company or by
a Holder, of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

(b)           No Piggyback on Registrations.  Except as set forth on Schedule 6(b)
attached hereto, no Person has any right to cause the Company to effect a
registration under the Securities

 12
 

 

Act of any securities of the Company or to include
securities of the Company in the initial Registration Statement other than the
Registrable Securities.  Neither the
Company or nor any of its security holders (other than the Holders in such
capacity pursuant hereto) may include securities of the Company in the Initial
Registration except the Persons set forth on Schedule 6(b) and only to the
extent that such inclusion will not, in the opinion of Purchasers counsel,
together with all Registrable Securities, exceed any limitation on the number
of shares of the Company’s common stock imposed by Commission rule, Commission
staff interpretation or recent position taken by the Commission staff in
comments to registrations filed for similar transactions.  Except as set forth on Schedule 6(b), the
Company shall not file any other registration statements until the initial
Registration Statement required hereunder is declared effective by the
Commission, provided that this Section 6(b) shall not prohibit the Company from
filing amendments to registration statements already filed.

(c)           Compliance. Each Holder covenants
and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with sales of Registrable
Securities pursuant to a Registration Statement.

(d)           Discontinued Disposition. Each Holder
agrees by its acquisition of such Registrable Securities that, upon receipt of
a notice from the Company of the occurrence of any event of the kind described
in Section 3(d), such Holder will forthwith discontinue disposition of such
Registrable Securities under a Registration Statement until such Holder’s
receipt of the copies of the supplemented Prospectus and/or amended
Registration Statement, or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and,
in either case, has received copies of any additional or supplemental filings
that are incorporated or deemed to be incorporated by reference in such
Prospectus or Registration Statement. 
The Company will use its best efforts to ensure that the use of the
Prospectus may be resumed as promptly as it practicable.  The Company agrees and acknowledges that any
periods during which the Holder is required to discontinue the disposition of
the Registrable Securities hereunder shall be subject to the provisions of
Section 2(b).

(e)           Piggy-Back Registrations. If at
any time during the Effectiveness Period there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall
determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with the stock option or other employee benefit plans, then the
Company shall send to each Holder a written notice of such determination and,
if within fifteen days after the date of such notice, any such Holder shall so
request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such Holder requests to be
registered; provided, however, that, the Company shall not be
required to register any Registrable Securities pursuant to this Section 6(e)
that are eligible for resale pursuant to Rule 144(k) promulgated under the Securities
Act or that are the subject of a then effective Registration Statement.

 13
 

 

(f)            Amendments and Waivers. The
provisions of this Agreement, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Holders of at least 75% of the then
outstanding Registrable Securities. 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders and that does not directly or indirectly affect the rights of
other Holders may be given by Holders of all of the Registrable Securities to
which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence.

(g)           Notices. Any and all notices or
other communications or deliveries required or permitted to be provided
hereunder shall be delivered as set forth in the Purchase Agreement.

(h)           Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each
Holder. The Company may not assign its rights or obligations hereunder without
the prior written consent of all of the Holders of the then-outstanding
Registrable Securities. Each Holder may assign their respective rights
hereunder in the manner and to the Persons as permitted under the Purchase
Agreement, provided that such Holder transfers more than 10% (or such lesser
amount that is then outstanding and held by the Holder) of the Registrable
Securities originally issued to such Holder to a single transferee.

(i)            No Inconsistent Agreements.
Neither the Company nor any of its subsidiaries has entered, as of the date
hereof, nor shall the Company or any of its subsidiaries, on or after the date
of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in
this Agreement or otherwise conflicts with the provisions hereof.  Except as set forth on Schedule 6(i),
neither the Company nor any of its subsidiaries has previously entered into any
agreement granting any registration rights with respect to any of its
securities to any Person that have not been satisfied in full.

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

(k)           Governing Law.  All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be determined with the provisions of the Purchase
Agreement.

(l)            Cumulative Remedies. The remedies
provided herein are cumulative and not exclusive of any remedies provided by
law.

 14
 

 

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

(n)           Headings. The headings in this
Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

(o)           Independent Nature of Holders’ Obligations
and Rights. The obligations of each Holder hereunder are several and
not joint with the obligations of any other Holder hereunder, and no Holder
shall be responsible in any way for the performance of the obligations of any
other Holder hereunder. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by any Holder pursuant
hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a
presumption that the Holders are in any way acting in concert with respect to
such obligations or the transactions contemplated by this Agreement. Each
Holder shall be entitled to protect and enforce its rights, including without
limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose.

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

 15
 

 

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

	
   

  	
  XENOMICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frederick
  Larcombe

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  
					

 

[SIGNATURE PAGE OF
HOLDERS FOLLOWS]

 16
 

 

[SIGNATURE PAGE OF
HOLDERS TO XNOM RRA]

	
  Name of Holder:

  	
   

  	
   

  
	
  Signature
  of Authorized Signatory of Holder:

  	
   

  	
   

  
	
  Name of
  Authorized Signatory:

  	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  	
   

  
								

 

[SIGNATURE PAGES
CONTINUE]

 17
 

 

Plan of Distribution

Each Selling Stockholder
(the “Selling Stockholders”) of the common stock (“Common Stock”)
of Xenomics, Inc., a Florida corporation (the “Company”) and any of
their pledgees, assignees and successors-in-interest may, from time to time,
sell any or all of their shares of Common Stock on the Trading Market or any
other stock exchange, market or trading facility on which the shares are traded
or in private transactions.  These sales
may be at fixed or negotiated prices.  A
Selling Stockholder may use any one or more of the following methods when
selling shares:

·                  ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers;

·                  block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

·                  purchases by a broker-dealer as
principal and resale by the broker-dealer for its account;

·                  an exchange distribution in
accordance with the rules of the applicable exchange;

·                  privately negotiated transactions;

·                  settlement of short sales entered
into after the effective date of the registration statement of which this
prospectus is a part;

·                  broker-dealers may agree with
the Selling Stockholders to sell a specified number of such shares at a
stipulated price per share;

·                  a combination of any such methods of
sale;

·                  through the writing or settlement of
options or other hedging transactions, whether through an options exchange or
otherwise; or

·                  any other method permitted pursuant
to applicable law.

The Selling Stockholders
may also sell shares under Rule 144 under the Securities Act of 1933, as
amended (the “Securities Act”), if available, rather than under this
prospectus.

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers
to participate in sales.  Broker-dealers
may receive commissions or discounts from the Selling Stockholders (or, if any
broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated, but, except as set forth in a
supplement to this Prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with NASDR Rule 2440;
and in the case of a principal transaction a markup or markdown in compliance
with NASDR IM-2440.

 18
 

 

In connection with the
sale of the Common Stock or interests therein, the Selling Stockholders may
enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the Common Stock in
the course of hedging the positions they assume.  The Selling Stockholders may also sell shares
of the Common Stock short and deliver these securities to close out their short
positions, or loan or pledge the Common Stock to broker-dealers that in turn
may sell these securities.  The Selling
Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

The Selling Stockholders
and any brokerdealers or agents that are involved in selling the shares may be
deemed to be “underwriters” within the meaning of the Securities Act in
connection with such sales.  In such
event, any commissions received by such brokerdealers or agents and any profit
on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the
Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock. In no
event shall any broker-dealer receive fees, commissions and markups which, in
the aggregate, would exceed eight percent (8%).

The Company is required to
pay certain fees and expenses incurred by the Company incident to the
registration of the shares.  The Company
has agreed to indemnify the Selling Stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities
Act.

Because Selling
Stockholders may be deemed to be “underwriters” within the meaning of the
Securities Act, they will be subject to the prospectus delivery requirements of
the Securities Act.  In addition, any
securities covered by this prospectus which qualify for sale pursuant to Rule
144 under the Securities Act may be sold under Rule 144 rather than under this
prospectus.  Each Selling Stockholder has
advised us that they have not entered into any written or oral agreements,
understandings or arrangements with any underwriter or broker-dealer regarding
the sale of the resale shares.  There is
no underwriter or coordinating broker acting in connection with the proposed
sale of the resale shares by the Selling Stockholders.

We agreed to keep this
prospectus effective until the earlier of (i) the date on which the shares may
be resold by the Selling Stockholders without registration and without regard
to any volume limitations by reason of Rule 144(e) under the Securities Act or
any other rule of similar effect or (ii) all of the shares have been sold
pursuant to the prospectus or Rule 144 under the Securities Act or any other
rule of similar effect.  The resale
shares will be sold only through registered or licensed brokers or dealers if
required under applicable state securities laws. In addition, in certain
states, the resale shares may not be sold unless they have been registered or
qualified for sale in the applicable state or an exemption from the
registration or qualification requirement is available and is complied with.

 19
 

 

Under applicable
rules and regulations under the Exchange Act, any person engaged in the
distribution of the resale shares may not simultaneously engage in market
making activities with respect to the Common Stock for the applicable
restricted period, as defined in Regulation M, prior to the commencement of the
distribution.  In addition, the Selling
Stockholders will be subject to applicable provisions of the Exchange Act and
the rules and regulations thereunder, including Regulation M, which may limit
the timing of purchases and sales of shares of the Common Stock by the Selling
Stockholders or any other person.  We
will make copies of this prospectus available to the Selling Stockholders and
have informed them of the need to deliver a copy of this prospectus to each
purchaser at or prior to the time of the sale.

 20

 

Annex B

XENOMICS,
INC.

Selling
Securityholder Notice and Questionnaire

The undersigned
beneficial owner of common stock, par value $0.0001 per share (the “Common
Stock”), of Xenomics, Inc., a Florida corporation (the “Company”),
(the “Registrable Securities”) understands that the Company has filed or
intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-3 or SB-2 (the “Registration Statement”)
for the registration and resale under Rule 415 of the Securities Act of 1933,
as amended (the “Securities Act”), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of
November      , 2006 (the “Registration Rights
Agreement”), among the Company and the Purchasers named therein.  A copy of the Registration Rights Agreement
is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Registration Rights
Agreement.

Certain legal
consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus.  Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel
regarding the consequences of being named or not being named as a selling
securityholder in the Registration Statement and the related prospectus.

NOTICE

The undersigned
beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby elects to include the Registrable Securities owned by it and
listed below in Item 3 (unless otherwise specified under such Item 3) in the
Registration Statement.

 21
 

 

The undersigned hereby
provides the following information to the Company and represents and warrants
that such information is accurate:

QUESTIONNAIRE

1.                                      Name.

(a)                                  Full Legal Name of Selling Securityholder

(b)                                 Full Legal Name of Registered Holder (if
not the same as (a) above) through which Registrable Securities Listed in Item 3
below are held:

(c)                                  Full Legal Name of Natural Control Person
(which means a natural person who directly or indirectly alone or with others
has power to vote or dispose of the securities covered by the questionnaire):

2.                                      Address for Notices to
Selling Securityholder:

	
   

  
	
   

  
	
   

  
	
  Telephone:

  
	
  Fax:

  
	
  Contact Person:

  

 

3.                                      Beneficial Ownership of
Registrable Securities:

(a)                                  Type and Principal Amount of Registrable
Securities beneficially owned (not including the Registrable Securities that are
issuable pursuant to the Purchase Agreement):

 22
 

 

4.                                      Broker-Dealer Status:

(a)                                  Are you a broker-dealer?

Yes   o                                  No   o

(b)                                 If “yes” to Section 4(a), did you receive
your Registrable Securities as compensation for investment banking services to
the Company.

Yes   o                                  No   o

Note:                   If no, the Commission’s staff has indicated that you
should be identified as an underwriter in the Registration Statement.

(c)                                  Are you an affiliate of a broker-dealer?

Yes   o                                  No   o

(d)                                 If you are an affiliate of a
broker-dealer, do you certify that you bought the Registrable Securities in the
ordinary course of business, and at the time of the purchase of the Registrable
Securities to be resold, you had no agreements or understandings, directly or
indirectly, with any person to distribute the Registrable Securities?

Yes   o                                  No   o

Note:                   If no, the Commission’s staff has indicated that you
should be identified as an underwriter in the Registration Statement.

5.                                      Beneficial Ownership of
Other Securities of the Company Owned by the Selling Securityholder.

Except
as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.

(a)                                  Type and Amount of Other Securities beneficially
owned by the Selling Securityholder:

 23
 

 

6.                                      Relationships with the
Company:

Except
as set forth below, neither the undersigned nor any of its affiliates,
officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has
had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

State any exceptions
here:

The undersigned
agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof at any
time while the Registration Statement remains effective.

By signing below,
the undersigned consents to the disclosure of the information contained herein
in its answers to Items 1 through 6 and the inclusion of such information in
the Registration Statement and the related prospectus and any amendments or
supplements thereto.  The undersigned
understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and
the related prospectus.

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

	
  Dated:

  	
   

  	
   

  	
  Beneficial Owner:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:

 24

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