Document:

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                          REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of August
19, 2005, is by and between VYTERIS HOLDINGS (NEVADA), INC., a Nevada
corporation (the "Company"), and each of the entities whose names appear on the
signature pages hereof. Such entities are each referred to herein as an
"Investor" and, collectively, as the "Investors".

     The Company has agreed, on the terms and subject to the conditions set
forth in the Securities Purchase Agreement, dated as of August 19, 2005 (the
"Securities Purchase Agreement"), to issue and sell to each Investor named
therein (A) one or more Senior Secured Convertible Debentures in the form
attached to the Securities Purchase Agreement (each, a "Debenture" and,
collectively, the "Debentures") and (B) one or more Warrants in the respective
forms attached to the Securities Purchase Agreement (each, a "Warrant" and,
collectively, the "Warrants").

     The Debentures are convertible into shares (the "Conversion Shares") of the
Company's common stock, par value $0.001 per share (the "Common Stock"). The
Warrants are exercisable into shares of Common Stock (the "Warrant Shares") in
accordance with their terms.

     In order to induce each Investor to enter into the Securities Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended (the "Securities Act"), and under
applicable state securities laws.

     In consideration of each Investor entering into the Securities Purchase
Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1.   DEFINITIONS.

     For purposes of this Agreement, the following terms shall have the meanings
specified:

          "Additional Registrable Shares" means the 700,000 shares of Common
     Stock issuable by the Company due to certain registration defaults in
     connection with the registration of securities pursuant to the Company's
     Form SB-2 Registration Statement No. 333-120411.

          "Amortization Stock Option Share" has the meaning specified in the
     Debentures.

          "Business Day" means any day other than a Saturday, a Sunday or a day
     on which the Commission is closed or on which banks in the City of New York
     are authorized by law to be closed.

          "Commission" means the Securities and Exchange Commission.

          "Holder" means any person owning or having the right to acquire,
     through conversion of the Debentures or exercise of the Warrants or
     otherwise, Registrable Securities, including initially each Investor and
     thereafter any permitted assignee thereof.

          "Initial Debenture" means a Debenture issued at the Initial Closing.

          "Initial Effective Date" means the date on which the Initial
     Registration Statement is declared effective by the Commission.

          "Initial Filing Deadline" means the sixtieth (60th) calendar day
     following the Initial Closing Date.

          "Initial Registration Deadline" means the earlier of (i) the one
     hundred and twentieth (120th) calendar day following the Closing Date and
     (ii) the fifth (5th) Business Day after the Company learns that no review
     of the Registration Statement will be made by the staff of the Commission
     or that the staff of the Commission has no further comments on the
     Registration Statement.

          "Initial Registration Statement" means the Registration Statement
     filed by the Company pursuant to paragraph 2(a) hereof.

          "Initial Warrant" means a Warrant issued at the Initial Closing.

          "Interest Stock Option Share" has the meaning specified in the
     Debentures.

          "Option Debenture" means a Debenture issued at the Option Closing.

          "Option Effective Date" means the date on which the Option
     Registration Statement is declared effective by the Commission.

          "Option Filing Deadline" means the thirtieth (30th) calendar day
     following the Option Closing Date.

          "Option Registration Deadline" means the earlier of (i) the ninetieth
     (90th) calendar day following the Option Closing Date or, if the
     Registration Statement is subject to a full review by the Commission, the
     one hundred and twentieth (120th) calendar day following the Option Closing
     Date and (ii) the fifth (5th) Business Day after the Company learns that no
     review of the Registration Statement will be made by the staff of the
     Commission or that the staff of the Commission has no further comments on
     the Registration Statement.

          "Option Registration Statement" means the Registration Statement filed
     by the Company pursuant to paragraph 2(b) hereof.

          "Option Warrant" means the Warrant issued at the Option Closing.

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          "Registrable Securities" means the Conversion Shares, the Warrant
     Shares, the Amortization Stock Option Shares and the Interest Stock Option
     Shares, and any other shares of Common Stock issuable pursuant to the terms
     of the Debenture or the Warrants, and any shares of capital stock issued or
     issuable from time to time (with any adjustments) in replacement of, in
     exchange for or otherwise in respect of the Conversion Shares, the Warrant
     Shares, the Amortization Stock Option Shares and the Interest Stock Option
     Shares.

          "Registration Period" has the meaning set forth in paragraph 2(c)
     below.

          "Registration Statement" means a registration statement or statements
     prepared in compliance with the Securities Act and pursuant to Rule 415
     under the Securities Act ("Rule 415") or any successor rule providing for
     the offering of securities on a continuous or delayed basis.

     Capitalized terms used herein and not otherwise defined shall have the
respective meanings specified in the Securities Purchase Agreement.

     2.   REGISTRATION.

          (a) Filing of Initial Registration Statement. On or before the Initial
Filing Deadline, the Company shall prepare and file with the Commission a
Registration Statement on Form SB-2 as a "shelf" registration statement under
Rule 415 covering the resale of a number of shares of Registrable Securities
equal to two hundred percent (200%) of the number of shares of Common Stock
issuable upon conversion of the Initial Debentures and exercise of the Initial
Warrants (such number to be determined without regard to any restriction on such
conversion or exercise). Such Registration Statement shall state, to the extent
permitted by Rule 416 under the Securities Act, that it also covers such
indeterminate number of additional shares of Common Stock as may become issuable
upon the conversion of the Initial Debentures and exercise of the Initial
Warrants in order to prevent dilution resulting from stock splits, stock
dividends or similar events.

          (b) Filing of Option Registration Statement. On or before the Option
Filing Deadline, the Company shall prepare and file with the Commission a
Registration Statement on Form SB-2 as a "shelf" registration statement under
Rule 415 covering the resale of a number of shares of Registrable Securities
equal to the sum of (i) two hundred percent (200%) of the number of shares of
Common Stock issuable upon conversion of the Option Debentures and exercise of
the Option Warrants (such number to be determined without regard to any
restriction on such conversion or exercise) and (ii) the Additional Registrable
Securities. Such Registration Statement shall state, to the extent permitted by
Rule 416 under the Securities Act, that it also covers such indeterminate number
of additional shares of Common Stock as may become issuable upon the conversion
of the Option Debentures and exercise of the Option Warrants in order to prevent
dilution resulting from stock splits, stock dividends or similar events.

          (c) S-3 Registration Statement. Notwithstanding the foregoing
paragraphs 2(a) and 2(b), if at the relevant filing deadline the Company does
not meet the eligibility requirements for filing a Registration Statement on
Form SB-2, then in each such case the Company shall instead

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prepare and file with the Commission a Registration Statement meeting the
foregoing requirements on Form S-1. In the event that the Company files a
Registration Statement on Form S-1 or Form SB-2, and thereafter meets the
eligibility requirements to use Form S-3 for the resale of Registrable
Securities by the Investor, the Company shall re-file such Registration
Statement, or file a new Registration Statement covering at least the number of
shares then registered on the existing Registration Statement(s) (and not
previously sold pursuant to an existing Registration Statement or pursuant to
Rule 144 under the Securities Act ("Rule 144")), on Form S-3 as promptly as
practicable (but in no event later than thirty (30) days) after the Company
meets such requirements.

          (d) Effectiveness. The Company shall use reasonable best efforts to
cause the Registration Statement to become effective as soon as practicable
following the filing thereof, but in no event later than the Initial
Registration Deadline (in the case of the Initial Registration Statement) or the
Option Registration Deadline (in the case of the Option Registration Statement).
The Company shall respond promptly to any and all comments made by the staff of
the Commission on with respect to a Registration Statement, and shall submit to
the Commission, within two (2) Business Days after the Company learns that no
review of such Registration Statement will be made by the staff of the
Commission or that the staff of the Commission has no further comments on such
Registration Statement, as the case may be, a request for acceleration of the
effectiveness of such Registration Statement to a time and date not later than
two (2) Business Days after the submission of such request. The Company will
maintain the effectiveness of each Registration Statement filed pursuant to this
Agreement until the earliest to occur of (i) the date on which all of the
Registrable Securities eligible for resale thereunder have been publicly sold
pursuant to either the Registration Statement or Rule 144, (ii) the date on
which all of the Registrable Securities remaining to be sold under such
Registration Statement (in the reasonable opinion of counsel to the Company) may
be immediately sold to the public under Rule 144(k) under the Securities Act
("Rule 144(k)") or any successor provision and (iii) the date that is the second
(2nd) anniversary of the Effective Date (the period beginning on the Closing
Date and ending on the earliest to occur of (i), (ii) or (iii) above being
referred to herein as the "Registration Period").

          (e) Registration Default. If (i) the Initial Registration Statement is
not filed on or before the Initial Filing Deadline or declared effective by the
Commission on or before the Initial Registration Deadline, (ii) the Option
Registration Statement is not filed on or before the Option Filing Deadline or
declared effective by the Commission on or before the Option Registration
Deadline, (iii) after a Registration Statement has been declared effective by
the Commission, sales of Registrable Securities (other than such Registrable
Securities as are then freely saleable pursuant to Rule 144(k)) cannot be made
by a Holder under a Registration Statement for any reason not within the
exclusive control of such Holder, or (iv) an amendment or supplement to a
Registration Statement, or a new registration statement, required to be filed
pursuant to the terms of paragraph 3(j) or 3(k) below, is not filed on or before
the date required by such paragraph (each of the foregoing clauses (i), (ii),
(iii) and (iv) being referred to herein as a "Registration Default"), the
Company shall make cash payments to each Holder equal to such Holder's pro rata
share (based on the aggregate number of Registrable Securities then held by or
issuable to such Holder as of the occurrence of a Registration Deadline) equal
to one percent (1%) of the aggregate Purchase Price paid by such Holder for such
Holder's Debenture and Warrants for each thirty (30) day period (pro rated for
partial periods) in which a Registration Default exists. Notwithstanding any
provision of this Agreement to the contrary, the Company shall be permitted to
suspend for one or more periods

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(provided that (i) the aggregate length of any one suspension period shall not
exceed ten (10) consecutive Business Days, (ii) the length of all suspension
periods in any 365 day period shall not exceed twenty (20) Business Days in the
aggregate, and (iii) there is not more than one suspension period in any thirty
calendar day period; provided further, however, that, until the Company meets
the eligibility requirements to use Form S-3, the first 30 calendar days (or the
first 45 calendar days if the Company is using its best efforts to cause the
effectiveness of the applicable post-effective amendment) of a suspension due to
a full review by the Commission of a post-effective amendment of a Registration
Statement shall not count towards the 10 and 20 Business Day limitations set
forth in the preceding clauses (i) and (ii), respectively) the actions required
under paragraph 2(a) of this Agreement to the extent that the Board of Directors
of the Company concludes reasonably and in good faith that the disclosure of
information in the prospectus is not in the best interest of the Company. Each
such payment required to be made under this paragraph 2(e) shall be made within
five (5) Business Days following the last day of each calendar month in which a
Registration Default exists. Any such payment shall be in addition to any other
remedies available to each Holder at law or in equity, whether pursuant to the
terms hereof, the Securities Purchase Agreement, the Debentures, or otherwise.

          (f) Allocation of Conversion Shares and Warrant Shares. The initial
number of Conversion Shares and Warrant Shares included in any Registration
Statement and each increase in the number thereof included therein shall be
allocated pro rata among the Holders based on the aggregate number of
Registrable Securities issuable to each Holder at the time the Registration
Statement covering such initial number of Registrable Securities or increase
thereof is declared effective by the Commission (such number to be determined
using the Conversion Price or Exercise Price, as applicable, in effect at such
time and without regard to any restriction on the ability of a Holder to convert
such Holder's Debenture or exercise such Holder's Warrant as of such date). In
the event that a Holder sells or otherwise transfers any of such Holder's
Registrable Securities, each transferee shall be allocated the portion of the
then remaining number of Registrable Securities included in such Registration
Statement allocable to the transferor.

          (g) Registration of Other Securities. During the period beginning on
the date hereof and ending on the Effective Date, the Company shall refrain from
filing any registration statement (other than (i) a Registration Statement filed
hereunder, (ii) a registration statement on Form S-8 with respect to stock
option plans and agreements and stock plans currently in effect and disclosed in
the Securities Purchase Agreement or the schedules thereto, or (iii) a
registration statement on Form S-4 with respect to an acquisition or other
business combination involving the Company. In no event shall the Company
include any securities other than Registrable Securities and those securities
listed on Schedule 2(g) hereto on any Registration Statement filed by the
Company on behalf of the Holders pursuant to the terms hereof.

     3.   OBLIGATIONS OF THE COMPANY.

     In addition to performing its obligations hereunder, including without
limitation those pursuant to Section 2 above, the Company shall, with respect to
each Registration Statement:

          (a) prepare and file with the Commission such amendments and
supplements to such Registration Statement and the prospectus used in connection
with such Registration Statement as may be necessary to comply with the
provisions of the Securities Act or to maintain the

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effectiveness of such Registration Statement during the Registration Period, or
as may be reasonably requested by a Holder in order to incorporate information
concerning such Holder or such Holder's intended method of distribution;

          (b) at such time following the Closing that the Company is eligible to
do so, use commercially reasonable efforts to secure the listing on the
Principal Market of all Registrable Securities issuable upon conversion of the
Debentures and exercise of the Warrants, and at any Holder's request, provide
such Holder with reasonable evidence thereof;

          (c) so long as a Registration Statement is effective covering the
resale of the applicable Registrable Securities owned by a Holder, furnish to
each Holder such number of copies of the prospectus included in such
Registration Statement, including a preliminary prospectus, in conformity with
the requirements of the Securities Act, and such other documents as such Holder
may reasonably request in order to facilitate the disposition of such Holder's
Registrable Securities;

          (d) use commercially reasonable efforts to register or qualify the
Registrable Securities under the securities or "blue sky" laws of such
jurisdictions within the United States as shall be reasonably requested from
time to time by a Holder, and do any and all other acts or things which may
reasonably be necessary or advisable to enable such Holder to consummate the
public sale or other disposition of the Registrable Securities in such
jurisdictions; provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such jurisdiction;

          (e) notify each Holder immediately after becoming aware of the
occurrence of any event (but shall not, without the prior written consent of
such Holder, disclose to such Holder any facts or circumstances constituting
material non-public information) as a result of which the prospectus included in
such Registration Statement, as then in effect, contains an untrue statement of
material fact or omits 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, and as promptly as practicable prepare and
file with the Commission and furnish to each Holder a reasonable number of
copies of a supplement or an amendment to such prospectus as may be necessary so
that such prospectus does not contain an untrue statement of material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then
existing;

          (f) use commercially reasonable efforts to prevent the issuance of any
stop order or other order suspending the effectiveness of such Registration
Statement and, if such an order is issued, to use commercially reasonable
efforts obtain the withdrawal thereof at the earliest possible time and to
notify each Holder in writing of the issuance of such order and the resolution
thereof;

          (g) furnish to each Holder, on the date that such Registration
Statement, or any successor registration statement, becomes effective, a letter,
dated such date, signed by an officer of or counsel to the Company and addressed
to such Holder, confirming such effectiveness and, to the knowledge of such
counsel, the absence of any stop order;

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          (h) provide to each Holder and its representatives the reasonable
opportunity to conduct a reasonable inquiry of the Company's financial and other
records during normal business hours and make available during normal business
hours and with reasonable advance notice its officers, directors and employees
for questions regarding information which such Holder may reasonably request in
order to fulfill any due diligence obligation on its part;

          (i) permit counsel for each Holder to review such Registration
Statement and all amendments and supplements thereto, and any comments made by
the staff of the Commission concerning such Holder and/or the transactions
contemplated by the Transaction Documents and the Company's responses thereto,
within a reasonable period of time prior to the filing thereof with the
Commission (or, in the case of comments made by the staff of the Commission,
within a reasonable period of time following the receipt thereof by the
Company); and

          (j) in the event that, at any time, the number of shares available
under the Initial Registration Statement is insufficient to cover one hundred
and fifty percent (150%) of the Registrable Securities issuable under the
Initial Debentures and Initial Warrants (such number to be determined using the
Conversion Price or Exercise Price, as applicable, in effect at such time and
without regard to any restriction on the ability of any Holder to convert such
Holder's Initial Debenture or exercise such Holder's Initial Warrant) the
Company shall promptly amend such Registration Statement or file a new
registration statement, in any event as soon as practicable, but not later than
the tenth (10th) day following notice from a Holder of the occurrence of such
event, so that such Registration Statement or such new registration statement,
or both, covers no less than two hundred percent (200%) of the Registrable
Securities eligible for resale thereunder and issuable under the Initial
Debentures and Initial Warrants (such number to be determined using the
Conversion Price or Exercise Price, as applicable, in effect at the time of such
amendment or filing and without regard to any restriction on the ability of any
Holder to convert such Holder's Initial Debenture or exercise such Holder's
Initial Warrant). The Company shall use its best efforts to cause such amendment
and/or new Registration Statement to become effective as soon as practicable
following the filing thereof. Any Registration Statement filed pursuant to this
paragraph 3(j) shall state that, to the extent permitted by Rule 416 under the
Securities Act, such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon
conversion of the Initial Debenture and exercise of the Initial Warrants in
order to prevent dilution resulting from stock splits, stock dividends or
similar events. Unless and until such amendment or new Registration Statement
becomes effective, each Holder shall have the rights described in paragraph 2(e)
above; and

          (k) in the event that, at any time, the number of shares available
under the Option Registration Statement is insufficient to cover one hundred and
fifty percent (150%) of the Registrable Securities issuable under the Option
Debentures and Option Warrants (such number to be determined without regard to
any restriction on the ability of any Holder to convert such Holder's Option
Debenture or exercise such Holder's Option Warrant) the Company shall promptly
amend such Registration Statement or file a new registration statement, in any
event as soon as practicable, but not later than the tenth (10th) day following
notice from a Holder of the occurrence of such event, so that such Registration
Statement or such new registration statement, or both, covers no less than two
hundred percent (200%) of the Registrable Securities eligible for resale
thereunder and issuable under the Option Debentures and Option Warrants (such
number to be determined without

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regard to any restriction on such conversion or exercise). The Company shall use
its best efforts to cause such amendment and/or new Registration Statement to
become effective as soon as practicable following the filing thereof. Any
Registration Statement filed pursuant to this paragraph 3(k) shall state that,
to the extent permitted by Rule 416 under the Securities Act, such Registration
Statement also covers such indeterminate number of additional shares of Common
Stock as may become issuable upon conversion of the Option Debentures and
exercise of the Option Warrants in order to prevent dilution resulting from
stock splits, stock dividends or similar events. Unless and until such amendment
or new Registration Statement becomes effective, each Holder shall have the
rights described in paragraph 2(e) above.

     4.   OBLIGATIONS OF EACH HOLDER.

     In connection with the registration of Registrable Securities pursuant to a
Registration Statement, each Holder shall:

          (a) timely furnish to the Company (i) a completed Shareholder
Questionnaire and (ii) such information in writing regarding itself and the
intended method of disposition of such Registrable Securities as the Company
shall reasonably request in order to effect the registration thereof;

          (b) upon receipt of any notice from the Company of the happening of
any event of the kind described in paragraphs 3(e) or 3(f), immediately
discontinue any sale or other disposition of such Registrable Securities
pursuant to such Registration Statement until the filing of an amendment or
supplement as described in paragraph 3(e) or withdrawal of the stop order
referred to in paragraph 3(f), and use commercially reasonable efforts to
maintain the confidentiality of such notice and its contents;

          (c) to the extent required by applicable law, deliver a prospectus to
the purchaser of such Registrable Securities;

          (d) notify the Company when it has sold all of the Registrable
Securities held by it; and

          (e) notify the Company in the event that any information supplied by
such Holder in writing for inclusion in such Registration Statement or related
prospectus is untrue or omits to state a material fact required to be stated
therein or necessary to make such information not misleading in light of the
circumstances then existing; immediately discontinue any sale or other
disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement to such prospectus as
may be necessary so that such prospectus does not contain an untrue statement of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing; and use commercially reasonable efforts to assist
the Company as may be appropriate to make such amendment or supplement effective
for such purpose.

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     5.   INDEMNIFICATION.

     In the event that any Registrable Securities are included in a Registration
Statement under this Agreement:

          (a) To the extent permitted by law, the Company shall indemnify and
hold harmless each Holder, the officers, directors, employees, agents and
representatives of such Holder, and each person, if any, who controls such
Holder within the meaning of the Securities Act or the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), against any losses, claims, damages,
liabilities or reasonable out-of-pocket expenses (whether joint or several)
(collectively, including reasonable legal expenses or other expenses reasonably
incurred in connection with investigating or defending same, "Losses"), insofar
as any such Losses arise out of or are based upon (i) any untrue statement or
alleged untrue statement of a material fact contained in such Registration
Statement under which such Registrable Securities were registered, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, or (ii) the omission or alleged omission to state
therein a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Subject to the provisions of paragraph 5(c) below, the Company
will reimburse such Holder, and each such officer, director, employee, agent,
representative or controlling person, for any reasonable legal expenses or other
out-of-pocket expenses as reasonably incurred by any such entity or person in
connection with investigating or defending any Loss; provided, however, that the
foregoing indemnity shall not apply to amounts paid in settlement of any Loss if
such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be obligated to
indemnify any person for any Loss to the extent that such Loss arises out of or
is based upon (i) any disclosure or any omission or alleged omission (to state a
material fact required to be stated therein or necessary to make statements
therein not misleading) that is based upon or in conformity with written
information furnished (or not furnished, in the case of an omission) by such
person expressly for use in such Registration Statement or (ii) a failure of
such person to deliver or cause to be delivered the final prospectus contained
in the Registration Statement and made available by the Company, if such
delivery is required by applicable law.

          (b) To the extent permitted by law, each Holder who is named in such
Registration Statement as a selling shareholder, acting severally and not
jointly, shall indemnify and hold harmless the Company, the officers, directors,
employees, agents and representatives of the Company, and each person, if any,
who controls the Company within the meaning of the Securities Act or the
Exchange Act, against any Losses to the extent (and only to the extent) that any
such Losses arise out of or are based upon (i) any disclosure or any omission or
alleged omission (to state a material fact required to be stated therein or
necessary to make statements therein not misleading) that is based upon or in
conformity with written information furnished (or not furnished, in the case of
an omission) by such person expressly for use in such Registration Statement, or
(ii) a failure of such Holder to deliver or cause to be delivered the final
prospectus contained in the Registration Statement and made available by the
Company, if such delivery is required under applicable law . Subject to the
provisions of paragraph 5(c) below, such Holder will reimburse any legal or
other expenses as reasonably incurred by the Company and any such officer,
director, employee, agent, representative, or controlling person, in connection
with investigating or defending any such Loss;

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provided, however, that the foregoing indemnity shall not apply to amounts paid
in settlement of any such Loss if such settlement is effected without the
consent of such Holder (which consent shall not be unreasonably withheld); and
provided, further, that, in no event shall any indemnity under this paragraph
5(b) exceed the net proceeds resulting from the sale of the Registrable
Securities sold by such Holder under such Registration Statement.

          (c) Promptly after receipt by an indemnified party under this Section
5 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 5, promptly deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in and to assume the
defense thereof with counsel selected by the indemnifying party and reasonably
acceptable to the indemnified party; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the reasonably
incurred fees and expenses of one such counsel for all indemnified parties to be
paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate under
applicable standards of professional conduct due to actual or potential
conflicting interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the delivery of
notice of any such action, to the extent prejudicial to its ability to defend
such action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 5 with respect to such action, but the
omission so to deliver written notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than
under this Section 5 or with respect to any other action unless the indemnifying
party is materially prejudiced as a result of not receiving such notice.

          (d) In the event that the indemnity provided in paragraph (a) or (b)
of this Section 5 is unavailable or insufficient to hold harmless an indemnified
party for any reason, the Company and each Holder agree, severally and not
jointly, to contribute to the aggregate Losses to which the Company or such
Holder may be subject in such proportion as is appropriate to reflect the
relative fault of the Company and such Holder in connection with the statements
or omissions which resulted in such Losses; provided, however, that in no case
shall such Holder be responsible for any amount in excess of the net proceeds
resulting from the sale of the Registrable Securities sold by it under the
Registration Statement. Relative fault shall be determined by reference to
whether any alleged untrue statement or omission relates to information provided
by the Company or by such Holder. The Company and each Holder agree that it
would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who is not guilty of such fraudulent
misrepresentation. For purposes of this Section 5, each person who controls a
Holder within the meaning of either the Securities Act or the Exchange Act and
each officer, director, employee, agent or representative of such Holder shall
have the same rights to contribution as such Holder, and each person who
controls the Company within the meaning of either the Securities Act or the
Exchange Act and each officer, director, employee, agent or representative of
the Company shall have the same rights to contribution as the Company, subject
in each case to the applicable terms and conditions of this paragraph (d).

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          (e) The obligations of the Company and each Holder under this Section
5 shall survive the conversion of the Debenture and exercise of the Warrants in
full, the completion of any offering or sale of Registrable Securities pursuant
to a Registration Statement under this Agreement, or otherwise.

     6.   REPORTS.

     With a view to making available to each Holder the benefits of Rule 144 and
any other similar rule or regulation of the Commission that may at any time
permit such Holder to sell securities of the Company to the public without
registration, the Company agrees to:

          (a) make and keep public information available, as those terms are
understood and defined in Rule 144;

          (b) file with the Commission in a timely manner all reports and other
documents required of the Company under the Exchange Act; and

          (c) furnish to such Holder, so long as such Holder owns any
Registrable Securities, promptly upon written request (i) a written statement by
the Company, if true, that it has complied with the reporting requirements of
Rule 144 and the Exchange Act, (ii) to the extent not publicly available through
the Commission's EDGAR database, a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the
Company with the Commission, and (iii) such other information as may be
reasonably requested by such Holder in connection with such Holder's compliance
with any rule or regulation of the Commission which permits the selling of any
such securities without registration.

     7.   MISCELLANEOUS.

          (a) Expenses of Registration. Except as otherwise provided in the
Securities Purchase Agreement, all reasonable expenses, other than underwriting
discounts and commissions and fees and expenses of counsel and other advisors to
each Holder, incurred in connection with the registrations, filings or
qualifications described herein, including (without limitation) all
registration, filing and qualification fees, printers' and accounting fees, the
fees and disbursements of counsel for the Company, and the fees and
disbursements incurred in connection with the opinion and letter described in
paragraph 3(g) hereof, shall be borne by the Company.

          (b) Amendment; Waiver. Except as expressly provided herein, neither
this Agreement nor any term hereof may be amended or waived except pursuant to a
written instrument executed by the Company and the Holders of at least
two-thirds (2/3) of the Registrable Securities into which all of the Debenture
and Warrants then outstanding are convertible or exercisable (without regard to
any limitation on such conversion or exercise). Any amendment or waiver effected
in accordance with this paragraph shall be binding upon each Holder, each future
Holder and the Company. The failure of any party to exercise any right or remedy
under this Agreement or otherwise, or the delay by any party in exercising such
right or remedy, shall not operate as a waiver thereof.

                                       11
<PAGE>

          (c) Notices. Any notice, demand or request required or permitted to be
given by the Company or a Holder pursuant to the terms of this Agreement shall
be in writing and shall be deemed delivered (i) when delivered personally or by
verifiable facsimile transmission, unless such delivery is made on a day that is
not a Business Day, in which case such delivery will be deemed to be made on the
next succeeding Business Day and (ii) on the next Business Day after timely
delivery to a reputable overnight courier, addressed as follows:

          If to the Company:

          Vyteris Holdings (Nevada), Inc.
          13-01 Pollitt Drive
          Fair Lawn, NJ 07410
          Attn: Chief Financial Officer
          Tel:  201-703-2299
          Fax:  201-703-2295

          with a copy to:

          Lowenstein Sandler PC
          65 Livingston Avenue
          Roseland, New Jersey 07068
          Attn: Peter H. Ehrenberg, Esq.
          Tel:  973-597-2350
          Fax:  973-597-2351

and if to a Holder, to such address as shall be designated by such Holder in
writing to the Company.

          (d) Assignment. Upon the transfer of any Debenture, Warrants or
Registrable Securities by a Holder, the rights of such Holder hereunder with
respect to such securities so transferred shall be assigned automatically to the
transferee thereof, and such transferee shall thereupon be deemed to be a
"Holder" for purposes of this Agreement, as long as: (i) the Company is, within
a reasonable period of time following such transfer, furnished with written
notice of the name and address of such transferee, (ii) the transferee agrees in
writing with the Company to be bound by all of the provisions hereof, and (iii)
such transfer is made in accordance with the applicable requirements of the
Securities Purchase Agreement, the Debentures or the Warrants, as applicable.

          (e) Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, and all of which together shall be deemed
one and the same instrument. This Agreement, once executed by a party, may be
delivered to any other party hereto by facsimile transmission.

          (f) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts
made and to be performed entirely within the State of New York.

                                       12
<PAGE>

          (g) Holder of Record. A person is deemed to be a Holder whenever such
person owns or is deemed to own of record such Registrable Securities. If the
Company receives conflicting instructions, notices or elections from two or more
persons with respect to the same Registrable Securities, the Company shall act
upon the basis of instructions, notice or election received from the record
owner of such Registrable Securities.

          (h) Entire Agreement. This Agreement and the other Transaction
Documents constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement and the other Transaction Documents supersede all prior
agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

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

          (j) Third Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

                           [Signature Pages to Follow]

                                       13
<PAGE>

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

VYTERIS HOLDINGS (NEVADA), INC.

By: /s/ Michael McGuinness
    --------------------------------
    Name:    Michael McGuinness
    Title:   Chief Financial Officer

SATELLITE STRATEGIC FINANCE ASSOCIATES, LLC

By: Satellite Asset Management, L.P., its Manager

By: /s/ Authorized Person
    --------------------------------

SATELLITE STRATEGIC FINANCE PARTNERS, LTD.

By: Satellite Asset Management, L.P., its Manager

By: /s/ Authorized Person
    --------------------------------
<PAGE>

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

VYTERIS HOLDINGS (NEVADA), INC.

By: /s/ Michael McGuinness
    --------------------------------
    Name:  Michael McGuinness
    Title: Chief Financial Officer

PALISADES MASTER FUND, L.P.

By: /s/ Authorized Person
    --------------------------------
<PAGE>

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

VYTERIS HOLDINGS (NEVADA), INC.

By: /s/ Michael McGuinness
    --------------------------------
    Name:  Michael McGuinness
    Title: Chief Financial Officer

QUBIT HOLDINGS LLC

By: /s/ Authorized Person
    --------------------------------<PAGE>

                               SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (this "Agreement") is made and entered into as of
August 19, 2005 by VYTERIS HOLDINGS (NEVADA), INC., a Nevada corporation (the
"Borrower"), and VYTERIS, INC., a Delaware corporation (the "Guarantor" and,
together with the Borrower, the "Obligors"), in favor of Satellite Asset
Management, L.P. (the "Agent") and each of the lenders whose names appear on the
signature pages hereof. Such lenders are each referred to herein as a "Secured
Party" and, collectively, as the "Secured Parties". This Agreement is being
executed and delivered by the Obligors and the Secured Parties in connection
with that certain Securities Purchase Agreement dated concurrently herewith (the
"Purchase Agreement") by and between the Borrower and each Secured Party.
Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Purchase Agreement.

                                   WITNESSETH:

     WHEREAS, pursuant to the terms of the Purchase Agreement, the Secured
Parties have agreed to purchase from the Borrower, and the Borrower has agreed
to sell to the Secured Parties, Senior Secured Convertible Debentures (the
"Debentures");

     WHEREAS, the Borrower and Guarantor, a wholly owned subsidiary of the
Borrower, shall each derive substantial direct and/or indirect benefits from the
transactions contemplated by the Purchase Agreement and the Debentures;

     WHEREAS, it is a condition to the obligation of the Secured Parties to
purchase the Debentures that the Obligors enter into this Agreement; and

     WHEREAS, pursuant to that certain Intercreditor Agreement, dated as of the
date hereof (the "Intercreditor Agreement"), by and among the Agent and the
Secured Parties, the Secured Parties and such other secured parties have
designated the Agent as their collateral agent.

     NOW, THEREFORE, in consideration of the foregoing, the covenants set forth
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Agent, Secured Parties and the Obligors
hereby agree as follows.

                                    ARTICLE I
                         COLLATERAL; OBLIGATION SECURED

     Section 1.1  Grant and Description.

          As security for the Obligors' obligations under this Agreement, the
Purchase Agreement, the Debentures and the Subsidiary Guaranty (collectively,
the "Transaction Documents"), each Obligor hereby grants to each Secured Party a
continuing first priority security interest in and Lien upon, and pledges to
each Secured Party, all of such Obligor's right,
<PAGE>

title and interest in, to and under all of such Obligor's assets (other than
Excluded Assets (as defined below), now owned or hereafter acquired, including,
without limitation, all of the following property and interests in property of
such Obligor (collectively and each individually, the "Collateral"):

          (i) all of such Obligor's tangible personal property, including
without limitation all present and future goods, inventory and equipment
(including items of equipment which are or become fixtures), software and
computer hardware and software, now owned or hereafter acquired;

          (ii) all of such Obligor's intangible personal property, including
without limitation all present and future accounts, securities, contract rights,
permits, general intangibles, chattel paper, investment property, intellectual
property, documents, instruments, deposit accounts, letter-of-credit rights and
supporting obligations, rights to the payment of money or other forms of
consideration of any kind, tax refunds, insurance proceeds (including, without
limitation, proceeds of any life insurance policy), now owned or hereafter
acquired, and all intangible and tangible personal property relating to or
arising out of any of the foregoing; and

          (iii) any and all additions to any of the foregoing, and any and all
replacements, products and proceeds (including insurance proceeds) of any of the
foregoing.

          For purposes hereof, "Excluded Assets" means, either of the following:
(A) any assets leased or licensed by the Borrower if the granting or enforcement
of a security interest in those assets is prohibited by or otherwise would
breach the terms of that lease or license and (B) any equity interests of any
foreign subsidiary of the Borrower in excess of 65% of the issued and
outstanding equity interests of that foreign subsidiary.

          Notwithstanding the foregoing, or any other provision herein to the
contrary, Spencer Trask has, pursuant to the terms of the Subordination
Agreement, a first priority security interest in the STSG Collateral (as defined
in the Subordination Agreement), and a second priority security interest in the
Collateral other than the STSG Collateral.

     Section 1.2 Financing Statements; Further Assurances. Each Obligor hereby
authorizes the Agent to file, transmit or communicate, as applicable, UCC
financing statements and amendments (collectively, "Financing Statements") in
order to perfect each Secured Party's first priority security interest in the
Collateral without such Obligor's signature to the extent permitted by
applicable law, provided that the Agent shall concurrently copy such Obligor on
all such filings. In addition to the foregoing, at any time upon the written
request of the Agent, such Obligor shall promptly (i) execute (or cause to be
executed) and deliver to the Agent, any and all agreements, Financing
Statements, certificates, instruments and other documents (the "Additional
Documents") upon which such Obligor's signature may be required and that the
Agent may reasonably request in form and substance satisfactory to the Agent,
and/or (ii) perform any acts; in each case, to perfect and continue perfected or
better perfect each Secured Party's security interest in the Collateral (whether
now owned or hereafter arising or acquired), and in order to fully consummate
all of the transactions contemplated hereby and under the other Transaction
Documents that the Agent reasonably believes to be necessary as a result of any
amendment to the Uniform Commercial Code in effect from time to time in any
applicable

                                       2
<PAGE>

jurisdiction (the "UCC"), provided, that any Additional Documents that require
such Obligor to assume any new obligations shall be subject to the review and
approval of such Obligor, such approval not to be unreasonably withheld or
delayed. Each Obligor also hereby ratifies its authorization for the Agent to
have filed in any jurisdiction the Financing Statements or amendments thereto
filed prior to the date hereof (if any), copies of which have previously been
provided to such Obligor. No Obligor shall terminate, amend or file any
correction statement with respect to any Financing Statement filed pursuant to
this Agreement without obtaining the prior written consent of Secured Parties
holding at least a majority of the Registrable Securities into which all of the
Debentures then outstanding are convertible (without regard to any limitation on
such conversion). Each Obligor appoints the Agent as such Obligor's
attorney-in-fact, with a power of attorney to execute and file in any
appropriate filing office on behalf of such Obligor, to the extent not performed
by such Obligor within two (2) Business Days of a request therefor by the Agent,
such Additional Documents and other similar instruments as the Agent may from
time to time deem necessary or desirable to protect or perfect the security
interest in the Collateral, provided, that any Additional Documents that require
such Obligor to assume any new obligations shall be subject to the review and
approval of such Obligor, such approval not to be unreasonably withheld or
delayed. Such power of attorney is coupled with an interest and shall be
irrevocable.

     Section 1.3 Obligations Secured. The Collateral and the power of collection
pertaining thereto shall secure any and all indebtedness, liabilities and
obligations of each Obligor to the Secured Parties evidenced by and/or arising
pursuant to any of the Transaction Documents now existing or hereafter arising,
whether direct, indirect, related, unrelated, fixed, contingent, liquidated,
unliquidated, joint, several or joint and several, including, without
limitation, the obligations of the Borrower to repay principal of the
Debentures, to pay interest on the Debentures (including, without limitation,
interest accruing after any bankruptcy, insolvency, reorganization or other
similar filing) and to pay all fees, indemnities, costs and expenses (including
attorneys' fees) provided for in any of the Transaction Documents (collectively
the "Obligations").

                                    ARTICLE II
                                    COVENANTS
                                    ---------

     Section 2.1 Duties of the Obligors Regarding Collateral. At all times after
the date hereof, each Obligor agrees that it shall:

          (a) Preserve the Collateral in good condition and order (ordinary wear
and tear excepted) and not permit it to be abused or misused; provided, however,
that Agent and Secured Parties shall be obligated to exercise reasonable care
with respect to any Collateral that comes into any of their possession;

          (b) Not allow any of the Collateral to be affixed to real estate,
except for any property deemed to be fixtures;

          (c) Maintain good and complete title to the Collateral subject to
Permitted Liens;

                                       3
<PAGE>

          (d) Keep the Collateral free and clear at all times of all Liens other
than Permitted Liens;

          (e) Take or cause to be taken such acts and actions as shall be
necessary or appropriate to assure that the Secured Parties' security interest
in the Collateral shall not become subordinate or junior to the security
interests, liens or claims of any other Person (other than Permitted Liens);

          (f) Refrain from selling, assigning or otherwise disposing of any of
the Collateral or moving or removing any of the Collateral, without obtaining
the prior written consent of the Secured Parties holding a majority of the
Registrable Securities into which all of the Debentures then outstanding are
convertible (without regard to any limitation on such conversion), or until all
of the Obligations have been fully performed and paid in full other than (i)
sales or dispositions of inventory in the ordinary course of business, (ii)
sales or dispositions of obsolete or unused assets and (iii) sales or
dispositions of assets having an aggregate value (when combined with all other
assets sold or disposed of) less than or equal to $5 million made in connection
with sale-leaseback transactions; provided, however, that concurrently with any
disposition permitted by this Section 2.1(f), (x) the security interest granted
hereby shall automatically be released from the Collateral so disposed, and (y)
the security interest shall continue in the Proceeds (as defined in the UCC) of
such Collateral and such Proceeds shall be applied against the Obligations in
such order as the Agent shall determine in its sole discretion; and provided
further, that, Agent and Secured Parties shall execute and deliver, at such
Obligor's sole cost and expense, any releases or other documents reasonably
requested by such Obligor, that is in form and substance reasonably acceptable
to the executing party, confirming the release of the security interest in that
portion of the Collateral that is the subject of a disposition permitted by this
Section 2.1(f);

          (g) Promptly provide to Agent and each Secured Party such financial
statements, reports, lists and schedules related to the Collateral and any other
information relating to the Collateral as Agent or such Secured Party may
reasonably request from time to time;

          (h) Upon reasonable notice, permit Agent or any Secured Party to
inspect all books and records of such Obligor relating to the Collateral at such
times and as often as Agent or any such Secured Party may reasonably request;
and

          (i) Promptly notify Agent and each Secured Party if any Event of
Default (as hereinafter defined) occurs.

     Section 2.2 Other Encumbrances. At all times after the date hereof, each
Obligor shall: (i) defend its title to, and the Secured Parties' interest in,
the Collateral against all claims, (ii) take any action necessary to remove any
encumbrances on the Collateral other than Permitted Liens, and (iii) defend the
right, title and interest of the Secured Parties in and to any of such Obligor's
rights in the Collateral.

                                       4
<PAGE>

     Section 2.3 Change Name or Location. No Obligor shall, except upon 30 days'
prior written notice to Agent and each Secured Party, change its company name or
conduct its business under any name other than that set forth herein or change
its jurisdiction of organization or incorporation, chief executive office, place
of business from the current location.

                                   ARTICLE III
                                EVENTS OF DEFAULT
                                -----------------

     Section 3.1 Events of Default Defined. The occurrence of any of the
following events shall constitute an event of default under this Agreement
(each, an "Event of Default"):

     (a) The failure of an Obligor to perform or comply in a material respect
with any act, duty or obligation required to be performed under this Agreement
if such failure is not remedied within ten (10) Business Days after such Obligor
receives written notice of such failure from any Secured Party, provided, that
if during such ten Business Day period, such Obligor is diligently and in good
faith taking steps to cure such breach, such period will be extended from ten
Business Days to fifteen (15) Business Days;

     (b) If any of the representations or warranties of an Obligor set forth in
this Agreement shall prove to have been incorrect in any material respect when
made;

     (c) If any material portion of the Collateral shall be damaged, destroyed
or otherwise lost and such damage, destruction or loss is not covered by
insurance; or

     (d) If a Fundamental Change or a Change of Control (as each such term is
defined in the Debentures) occurs.

     Section 3.2 Rights and Remedies Upon Default. If an Event of Default shall
have occurred hereunder and is continuing, any Secured Party may, at its option,
without notice or demand, declare the Obligations to be immediately due and
payable. As to any Collateral, the Agent shall, in its capacity as collateral
agent for the Secured Parties, have the rights and remedies of any secured
creditor under the UCC, such rights to be exercised in such order or manner as
the Secured Parties may determine against any Obligor. If for any reason the
Agent should be required by law or otherwise to give notice to an Obligor of the
sale of any Collateral, such Obligor agrees that any written notice sent by
overnight delivery service not less than ten (10) calendar days before the sale
or mailed postage prepaid, return receipt requested, to such Obligor's address
listed below not less than fifteen (15) calendar days before the sale shall be
deemed reasonable and adequate.

     Section 3.3 Allocation of Proceeds Among Secured Parties. Any funds
received by the Agent or a Secured Party pursuant to this Agreement shall be
allocated among and paid to the Secured Parties on a pro rata basis based on the
amount of principal and accrued and unpaid interest then outstanding on their
respective Debentures. To the extent that a Secured Party receives greater than
its pro rata share, such Secured Party shall promptly remit such overpayment to
each other Secured Party as required to comply with the preceding sentence.

                                       5
<PAGE>

Each Secured Party may determine the order in which to apply funds received by
it regardless of the order in which any other Secured Party applies funds (e.g.,
a Secured Party may determine to apply funds first to expenses, second to
interest and third to principal and another Secured Party may determine to apply
funds first to interest, second to expenses and third to principal).

                                   ARTICLE IV
                               ADDITIONAL REMEDIES
                               -------------------

     Upon the occurrence and during the continuance of an Event of Default, each
Obligor shall:

          (a) Endorse any and all documents evidencing any Collateral to the
Agent, or as otherwise instructed by the Agent, and notify any payor that said
documents have been so endorsed and that all sums due and owing pursuant to them
should be paid directly to the Agent, or as otherwise instructed by the Agent;

          (b) Turn over to the Agent, or as otherwise instructed by the Agent,
copies of all documents evidencing any right to collection of any sums due such
Obligor arising from or in connection with any of the Collateral;

          (c) Take any action reasonably required by the Agent with reference to
the Federal Assignment of Claims Act; and

          (d) Keep all of its books, records, documents and instruments relating
to the Collateral in such manner as the Agent may reasonably require.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     Each Obligor represents and warrants to the Agent and the Secured Parties
as follows:

     Section 5.1 Title to Collateral. Such Obligor is the owner of and has good
and marketable title to, or has a valid and subsisting leasehold interest in,
all of the its assets and properties comprising the Collateral.

     Section 5.2 No Other Encumbrances. Such Obligor has not granted, nor will
it grant, a security interest in the Collateral to any other individual or
entity, and such Collateral is free and clear of any mortgage, pledge, lease,
trust, bailment, lien, security interest, encumbrance, charge or other
arrangement (other than the Permitted Liens).

     Section 5.3 Authority; Enforceability. Such Obligor has the authority and
capacity to perform its obligations hereunder, and this Agreement, when executed
and delivered, will be the valid and binding obligation of such Obligor
enforceable against such Obligor in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or other similar
laws of general application affecting the enforcement of creditors' rights or
general equitable principals, whether applied in law or equity.

                                       6
<PAGE>

     Section 5.4 Company Name; Place of Business; Location of Collateral. Such
Obligor's true and correct company name, all trade name(s) under which it
conducts its business, its jurisdiction of organization or incorporation and
each of its chief executive office, its place(s) of business and the locations
of its Collateral or records relating to such Collateral are set forth beneath
such Obligor's name in Exhibit A hereto.

     Section 5.5 Perfection; First Priority Security Interest. Upon the filing
of Financing Statements with the state of incorporation of an Obligor, the
security interest in such Obligor's Collateral granted hereunder shall
constitute at all times a valid first priority security interest (other than (i)
with respect to Permitted Liens, (ii) where the Secured Parties have failed to
file necessary continuation statements, and (iii) as otherwise contemplated in
the Subordination Agreement), perfected with respect to all Collateral for which
the filing of the Financing Statements is a valid method of perfection, vested
in the Secured Parties, in and upon the Collateral, free and clear of any liens
(other than the Permitted Liens).

                                   ARTICLE VI
                                  MISCELLANEOUS
                                  -------------

     Section 6.1 Survival; Severability. The representations, warranties,
covenants and indemnities made by the Obligors herein shall survive the
execution and delivery of this Agreement notwithstanding any due diligence
investigation made by or on behalf of the party seeking to rely thereon. In the
event that any provision of this Agreement becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision; provided that in
such case the parties shall negotiate in good faith to replace such provision
with a new provision which is not illegal, unenforceable or void, as long as
such new provision does not materially change the economic benefits of this
Agreement to the parties.

     Section 6.2 Successors and Assigns. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the Agent and the Secured Parties. Each Secured Party may
assign its rights hereunder in connection with any private sale or transfer of
the Debentures in accordance with the terms of the Purchase Agreement, in which
case the term "Secured Party" shall be deemed to refer to such transferee as
though such transferee was an original signatory hereto. The Agent may resign or
be replaced in accordance with the terms of the Intercreditor Agreement, in
which case the term "Agent" shall be deemed to refer to the successor agent as
though such agent was an original signatory hereto. The Obligors may not assign
its rights or obligations under this Agreement.

     Section 6.3 Governing Law; Jurisdiction. This Agreement shall be governed
by and construed under the laws of the State of New York applicable to contracts
made and to be performed entirely within the State of New York. Each Obligor
hereby irrevocably submits to the non-exclusive jurisdiction of the state and
federal courts sitting in the City of New York, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any

                                       7
<PAGE>

such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each
Obligor hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such Obligor at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

     Section 6.4 Headings. The headings used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

     Section 6.5 Notices. Any notice, demand or request required or permitted to
be given by any Obligor, the Agent or a Secured Party pursuant to the terms of
this Agreement shall be in writing and shall be deemed delivered (i) when
delivered personally or by verifiable facsimile transmission, unless such
delivery is made on a day that is not a Business Day, in which case such
delivery will be deemed to be made on the next succeeding Business Day and (ii)
on the next Business Day after timely delivery to an overnight courier,
addressed as follows:

          If to an Obligor:

          c/o Vyteris Holdings (Nevada), Inc.
          13-01 Pollitt Drive
          Fair Lawn, NJ 07410
          Attn: Chief Financial Officer
          Tel:  201-703-2299
          Fax:  201-703-2295

          with a copy to:

          Lowenstein Sandler PC
          65 Livingston Avenue
          Roseland, New Jersey 07068
          Attn: Peter H. Ehrenberg, Esq.
          Tel:  973-597-2350
          Fax:  973-597-2351

          If to the Agent:

          Satellite Asset Management, L.P.
          623 Fifth Avenue, 20th Floor
          New York, NY 10022
          Attn: Charles Gassenheimer
          Tel:  212-209-2087
          Fax:  212-209-2020

                                       8
<PAGE>

and if to a Secured Party, to the address for such Secured Party as shall appear
on the signature page to the Purchase Agreement executed by such Secured Party,
or as shall be designated by such Secured Party in writing to the Obligors in
accordance with this Section 6.5.

     Section 6.6 Entire Agreement; Amendments. This Agreement and the other
Transaction Documents constitute the entire agreement between the parties with
regard to the subject matter hereof and thereof, superseding all prior
agreements or understandings, whether written or oral, between or among the
parties. Except as expressly provided herein, neither this Agreement nor any
term hereof may be amended except pursuant to a written instrument executed by
the Obligors, the Agent and the Secured Parties holding at least two-thirds
(2/3) of the Registrable Securities into which all of the Debentures then
outstanding are convertible (without regard to any limitation on such
conversion), and no provision hereof may be waived other than by a written
instrument signed by the party against whom enforcement of any such waiver is
sought.

     Section 6.7 No Waiver. Neither the Agent nor any Secured Party shall by any
act (except as provided in Section 6.6 above), any failure to act or any delay
in acting be deemed to have (i) waived any right or remedy under this Agreement,
any other Transaction Document or any document, agreement or instrument made,
delivered or given in connection with this Agreement or the other Transaction
Documents, or (ii) acquiesced in any Event of Default or in any breach of any of
the terms and conditions of this Agreement, any other Transaction Document or
any document, agreement or instrument made, delivered or given in connection
with this Agreement or the other Transaction Documents. No failure to exercise,
nor any delay in exercising, any right, power or privilege of the Agent or any
Secured Party under this Agreement, any other Transaction Document or any
document, agreement or instrument made, delivered or given in connection with
this Agreement or the other Transaction Documents shall operate as a waiver of
any such right, power or privilege. No single or partial exercise of any right,
power or privilege under this Agreement, any other Transaction Document or any
document, agreement or instrument made, delivered or given in connection with
this Agreement or the other Transaction Documents shall preclude any other or
further exercise of any other right, power or privilege. A waiver by the Agent
or a Secured Party of any right or remedy under this Agreement, any other
Transaction Document or any other document or instrument made, delivered or
given in connection with this Agreement or the other Transaction Documents on
any one occasion shall not be construed as a bar to any right or remedy that the
Agent or such Secured Party would otherwise have on any future occasion.

     Section 6.8 Cumulative Remedies. The rights and remedies provided in this
Agreement are cumulative, may be exercised singly or concurrently, and are not
exclusive of any other rights or remedies provided by law.

     Section 6.9 Waivers of Jury Trial. Each Obligor hereby irrevocably and
unconditionally waives trial by jury in any legal action or proceeding relating
to this Agreement or any other Transaction Document to which it is a party and
for any counterclaim therein.

     Section 6.10 Waivers. Each Obligor acknowledges that the Obligations arose
out of a commercial transaction and hereby knowingly and intelligently waives
any right to require the Agent or any Secured Party to (i) proceed against any
person or entity, (ii) proceed against any

                                       9
<PAGE>

other collateral under any other agreement, (iii) pursue any other remedy
available to the Agent or such Secured Party, or (iv) make presentment, demand,
dishonor, notice of dishonor, acceleration and/or notice of non-payment.

     Each Obligor further waives any defense that it may have to the exercise by
the Agent or any Secured Party of its rights under this Agreement, other than
the defense that the Obligations have fully been paid and performed.

     Section 6.11 Attorney-in-Fact. Each Obligor appoints the Agent its true
attorney-in-fact to perform any of the following powers, which are irrevocable
until termination of this Agreement and may be exercised, from time to time, by
the Agent's officers and employees or any of them if an Event of Default occurs:
(i) to perform any obligation of such Obligor hereunder in such Obligor's name
or otherwise; (ii) to collect by legal proceedings or otherwise all dividends,
interest, principal or other sums now or hereafter payable upon or on account of
the Collateral, to accept other property in exchange for the Collateral, and any
money or property received in exchange for the Collateral may be applied to the
Obligations or held by the Agent under this Agreement; (iii) to make any
compromise or settlement the Agent deems desirable or proper in respect of the
Collateral; and (iv) to insure, process and preserve the Collateral. The
foregoing power of attorney shall take effect only upon an Event of Default.

     Section 6.12 Cross Default. Each Obligor agrees and acknowledges that a
default under the terms of this Agreement shall constitute a default under the
other Transaction Documents, and a default under any of the other Transaction
Documents shall constitute a default under this Agreement.

     Section 6.13 Fees and Expenses. On demand by the Agent or any Secured
Party, without limiting any of the terms of any other Transaction Document, each
Obligor is obligated to pay all reasonable filing fees, and out-of-pocket costs
incurred by the Agent or such Secured Party in connection with (i) filing or
recording any documents (including all taxes in connection therewith) in public
offices; and (ii) paying or discharging any taxes, counsel fees, maintenance
fees, encumbrances, or other amounts in connection with protecting, maintaining,
or preserving the Collateral or defending or prosecuting any actions or
proceedings arising out of or related to the Collateral (including, without
limitation, reasonable legal fees and disbursements); and (iii) the enforcement
of this Agreement and any amendment, waiver or consent relating hereto
(including, without limitation, reasonable legal fees and disbursements).

     Section 6.14 Release. No transfer or renewal, extension, assignment or
termination of this Agreement or of any instrument or document executed and
delivered by an Obligor or any other obligor to a Secured Party, nor additional
advances made by any Secured Party to an Obligor, nor the taking of further
security, nor the retaking or re-delivery of the Collateral to an Obligor by the
Agent or any Secured Party nor any other act of the Agent or any Secured Party
shall release any Obligor from any Obligation, except a release or discharge
executed in writing by each Secured Party with respect to such Obligation or
upon full payment and satisfaction of all Obligations and termination of the
Debentures. At such time the Obligations have been satisfied in full, the Agent
and each Secured Party shall execute and deliver to the Obligors all
assignments, authorizations and other instruments as may be reasonably necessary
or proper to

                                       10
<PAGE>

terminate such Secured Party's security interest in the Collateral, subject to
any disposition of the Collateral that may have been made by the Agent or such
Secured Party pursuant to this Agreement. For the purpose of this Agreement, the
Obligations shall be deemed to continue if an Obligor enters into any bankruptcy
or similar proceeding at a time when any amount paid to the Agent or a Secured
Party could be ordered to be repaid as a preference or pursuant to a similar
theory, and shall continue until it is finally determined that no such repayment
can be ordered.

     Section 6.15 Marshalling and Other Matters. Each Obligor hereby waives, to
the extent permitted by law, the benefit of all appraisement, valuation, stay,
extension, reinstatement and redemption laws now or hereafter in force and all
rights of marshalling in the event of any sale hereunder of the Collateral or
any part thereof or any interest therein. Further, each Obligor hereby expressly
waives any and all rights of redemption from sale under any order or decree of
foreclosure of this Agreement on behalf of such Obligor, and on behalf of each
and every person acquiring any interest in or title to the Collateral subsequent
to the date of this Agreement and on behalf of all persons to the extent
permitted by applicable law.

                           [Signatures Page to Follow]

                                       11
<PAGE>

     IN WITNESS WHEREOF, the Obligors, the Agent and each Secured Party have
duly executed this Agreement as of the date first written above.

                          BORROWER:

                          VYTERIS HOLDINGS (NEVADA), INC., a Nevada corporation

                          By: /s/ Michael McGuinness
                              --------------------------
                              Name:  Michael McGuinness
                              Title: Chief Financial Officer

                          GUARANTOR:

                          VYTERIS, INC., a Delaware corporation

                          By: /s/ Michael McGuinness
                              --------------------------
                              Name:  Michael McGuinness
                              Title: Chief Financial Officer

                          AGENT:

                          SATELLITE ASSET MANAGEMENT, L.P.

                          By: /s/ Authorized Person
                              --------------------------

                          SECURED PARTY:

                          SATELLITE STRATEGIC FINANCE ASSOCIATES, LLC

                          By: Satellite Asset Management, L.P., its Manager

                          By: /s/ Authorized Person
                              --------------------------
<PAGE>

                          SATELLITE STRATEGIC FINANCE PARTNERS, LTD.

                          By: Satellite Asset Management, L.P., its Manager

                          By: /s/ Authorized Person
                              --------------------------

                          PALISADES MASTER FUND, L.P.

                          By: /s/ Authorized Person
                              --------------------------

                          QUBIT HOLDINGS LLC

                          By: /s/ Authorized Person
                              --------------------------

<PAGE>

                                    Exhibit A

               List of Collateral Locations, Executive Offices and
            Jurisdiction of Organization or Incorporation of Obligors

<TABLE>
<CAPTION>
Borrower:

<S>                                         <C>
Executive Offices:                          13-01 Pollitt Drive
                                            Fair Lawn, NJ 07410

Collateral Location:                        13-01 Pollitt Drive
                                            Fair Lawn, NJ 07410

Jurisdiction of Incorporation:              Nevada

<CAPTION>
Guarantor:
----------

<S>                                         <C>
Executive Offices:                          13-01 Pollitt Drive
                                            Fair Lawn, NJ 07410

Collateral Location:                        13-01 Pollitt Drive
                                            Fair Lawn, NJ 07410

Jurisdiction of Incorporation:              Delaware
</TABLE>

                                      A-1

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