Document:

Exhibit
        10.1

    

     

    ESCROW
      AGREEMENT

     

    This
      Escrow Agreement is entered into as of May _____, 2007, by and among Modigene
      Inc. (formerly known as LDG, Inc.), a Nevada corporation (the “Parent”), Abraham
      Havron (“Havron”) and Shai Novik (“Novik”) (Havron and Novik shall be referred
      to individually as an “Indemnification Representative” and collectively as the
“Indemnification Representatives”) and Gottbetter & Partners, LLP (the
“Escrow Agent”).

     

    WHEREAS,
      the Parent has entered into an Agreement and Plan of Merger and Reorganization
      (the “Merger Agreement”) with Modigene Inc., a Delaware corporation (the
“Company”), dated as of the date of this Agreement, (i) pursuant to which a
      wholly-owned subsidiary of the Parent will merge with and into the Company,
      with
      the Company surviving the merger and (ii) as a result of which the Company
      will
      become a wholly-owned subsidiary of the Parent (capitalized terms used in this
      Agreement without definition shall have the respective meanings given them
      in
      the Merger Agreement);

     

    WHEREAS,
      the Merger Agreement provides that an escrow account will be established to
      secure the indemnification obligations of the Company Stockholders
      (collectively, and including the permitted assigns of the Company Stockholders,
      the “Indemnifying Stockholders”) to the Parent; and

     

    WHEREAS,
      the parties hereto desire to establish the terms and conditions pursuant to
      which such escrow account will be established and maintained;

     

    NOW,
      THEREFORE, the parties hereto hereby agree as follows:

     

    1. Consent
      of Company Stockholders.
      The
      Indemnifying Stockholders have, by virtue of their approval of the Merger
      Agreement consented to: (a) the establishment of this escrow to secure the
      Indemnifying Stockholders’ indemnification obligations under Article 6 of the
      Merger Agreement in the manner set forth herein, (b) the appointment of the
      Indemnification Representative as their representatives for purposes of this
      Agreement and as attorneys-in-fact and agents for and on behalf of each
      Indemnifying Stockholder, and the taking by the Indemnification Representative
      of any and all actions and the making of any decisions required or permitted
      to
      be taken or made by them under this Agreement and (c) all of the other
      terms, conditions and limitations in this Agreement.

     

    2. Escrow
      and Indemnification.

     

    (a) Escrow
      of Shares.
      Simultaneously with the execution of this Agreement, the Parent shall deposit
      with the Escrow Agent a certificate for 679,428 shares of common stock of the
      Parent, as determined pursuant to Section 1.5(b) of the Merger Agreement,
      issued in the name of the Escrow Agent or its nominee. The Escrow Agent hereby
      acknowledges receipt of such stock certificate. The shares deposited with the
      Escrow Agent pursuant to the first sentence of this Section 2(a) are
      referred to herein as the “Escrow Shares.” The Escrow Shares shall be held as a
      trust fund and shall not be subject to any lien, attachment, trustee process
      or
      any other judicial process of any creditor of any party hereto. The Escrow
      Agent
      agrees to hold the Escrow Shares in an escrow account (the “Escrow Account”),
      subject to the terms and conditions of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Indemnification.
      The
      Indemnifying Stockholders have agreed in Section 6.1 of the Merger Agreement
      to
      indemnify and hold harmless the Parent from and against specified Damages (as
      defined in Section 6.1 of the Merger Agreement). The Escrow Shares shall be
      security for such indemnity obligation of the Indemnifying Stockholders, subject
      to the limitations, and in the manner provided, in this Agreement and in the
      Merger Agreement.

     

    (c) Dividends,
      Etc.
      Any
      securities distributed in respect of or in exchange for any of the Escrow
      Shares, whether by way of stock dividends, stock splits or otherwise, shall
      be
      issued in the name of the Escrow Agent or its nominee, and shall be delivered
      to
      the Escrow Agent, who shall hold such securities in the Escrow Account. Such
      securities shall be considered Escrow Shares for purposes hereof. Any cash
      dividends or property (other than securities) distributed in respect of the
      Escrow Shares shall promptly be distributed by the Escrow Agent to the
      Indemnifying Stockholders in accordance with Section 3(c).

     

    (d) Voting
      of Shares.
      The
      Indemnification Representative shall have the right, in its sole discretion,
      on
      behalf of the Indemnifying Stockholders, to direct the Escrow Agent in writing
      as to the exercise of any voting rights pertaining to the Escrow Shares, and
      the
      Escrow Agent shall comply with any such written instructions. In the absence
      of
      such instructions, the Escrow Agent shall not vote any of the Escrow Shares.
      The
      Indemnification Representative shall have no obligation to solicit consents
      or
      proxies from the Indemnifying Stockholders for purposes of any such
      vote.

     

    (e) Transferability.
      The
      respective interests of the Indemnifying Stockholders in the Escrow Shares
      shall
      not be assignable or transferable, other than by operation of law. Notice of
      any
      such assignment or transfer by operation of law shall be given to the Escrow
      Agent and the Parent, and no such assignment or transfer shall be valid until
      such notice is given.

     

    3. Distribution
      of Escrow Shares.

     

    (a) The
      Escrow Agent shall distribute the Escrow Shares only in accordance with (i)
      a
      written instrument delivered to the Escrow Agent that is executed by both the
      Parent and the Indemnification Representative and that instructs the Escrow
      Agent as to the distribution of some or all of the Escrow Shares, (ii) an
      order of a court of competent jurisdiction, a copy of which is delivered to
      the
      Escrow Agent by either the Parent or the Indemnification Representative, that
      instructs the Escrow Agent as to the distribution of some or all of the Escrow
      Shares, or (iii) the provisions of Section 3(b) hereof.

     

    (b) Within
      five business days after May ____, 2009 (the “Termination Date”), the Escrow
      Agent shall distribute to the Indemnifying Stockholders all of the Escrow Shares
      then held in escrow, registered in the name of the Indemnifying Stockholders
      (subject to the provisions of Section 3(e)). Notwithstanding the foregoing,
      if
      the Parent has previously delivered to the Escrow Agent a copy of a Claim Notice
      and the Escrow Agent has not received written notice of the resolution of the
      claim covered thereby, or if the Parent has previously delivered to the Escrow
      Agent a copy of an Expected Claim Notice, and the Escrow Agent has not received
      written notice of the resolution of the anticipated claim covered thereby,
      the
      Escrow Agent shall retain in escrow after the Termination Date such number
      of
      Escrow Shares as have a Value (as defined in Section 6.3(c) of the Merger
      Agreement) equal to the Claimed Amount covered by such Claim Notice or equal
      to
      the estimated amount of Damages set forth in such Expected Claim Notice, as
      the
      case may be. Any Escrow Shares so retained in escrow shall be distributed only
      in accordance with the terms of clauses (i) or (ii) of Section 3(a) of
      this Agreement. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c) Any
      distribution of all or a portion of the Escrow Shares (or cash or other property
      pursuant to Section 2(c)) to the Indemnifying Stockholders shall be made by
      delivery of stock certificates issued in the name of the Indemnifying
      Stockholders covering such percentage of the Escrow Shares being distributed
      as
      is calculated in accordance with the percentages set forth opposite such
      holders’ respective names on Attachment A
      attached
      hereto. Distributions to the Indemnifying Stockholders shall be made by mailing
      stock certificates to such holders at their respective addresses shown on
Attachment A
      (or such
      other address as may be provided in writing to the Escrow Agent by any such
      holder). No fractional Escrow Shares shall be distributed to Indemnifying
      Stockholders pursuant to this Agreement. Instead, the number of shares that
      each
      Indemnifying Stockholder shall receive shall be rounded to the nearest whole
      number (with 0.5 shares rounded to the nearest whole number; provided,
      that the
      Indemnification Representative shall have the authority to effect such rounding
      in such a manner that the total number of whole Escrow Shares to be distributed
      equals the number of Escrow Shares then held in the Escrow Account).

     

    (d) The
      Parent shall include in any Expected Claim Notice delivered under the Merger
      Agreement the Parent’s estimate of the amount of Damages reasonably anticipated
      to be incurred in connection therewith. If the legal proceeding or written
      claim
      with respect to which an Expected Claim Notice has been given is definitively
      withdrawn or resolved in favor of the Parent, the Parent shall promptly so
      notify the Company Stockholders; and if the Parent has delivered a copy of
      the
      Expected Claim Notice to the Escrow Agent and Escrow Shares have been retained
      in escrow after the Termination Date with respect to such Expected Claim Notice,
      the Company Stockholders and the Parent shall promptly deliver to the Escrow
      Agent a written notice executed by both parties instructing the Escrow Agent
      to
      distribute such retained Escrow Shares to the Company Stockholders in accordance
      with the terms of the Escrow Agreement.

     

    (e) The
      Parent will, or will cause its transfer agent to, provide the Escrow Agent
      with
      share certificates registered in the name of the Indemnifying Stockholders
      so as
      to permit the Escrow Agent to satisfy its obligation to distribute stock
      certificates under Section 3(b) and deliver stock certificates under Section
      3(c).

     

    4. [Intentionally
      omitted]

     

    5. Expenses
      of Escrow Agent.
      The
      Parent shall pay all of the reasonable expenses of the Escrow Agent incurred
      in
      connection with the services to be rendered by the Escrow Agent under this
      Agreement, promptly upon presentation of an invoice and supporting documentation
      in connection therewith.

     

    6. Limitation
      of Escrow Agent’s Liability.

     

    (a) The
      Escrow Agent shall incur no liability with respect to any action taken or
      suffered by it in reliance upon any notice, direction, instruction, consent,
      statement or other documents believed by it to be genuine and duly authorized,
      nor for other action or inaction except its own willful misconduct or gross
      negligence. The Escrow Agent shall not be responsible for the validity or
      sufficiency of this Agreement. In all questions arising under the Escrow
      Agreement, the Escrow Agent may rely on the advice of counsel, and the Escrow
      Agent shall not be liable to anyone for anything done, omitted or suffered
      in
      good faith by the Escrow Agent based on such advice. The Escrow Agent shall
      not
      be required to take any action hereunder involving any expense unless the
      payment of such expense is made or provided for in a manner reasonably
      satisfactory to it. In no event shall the Escrow Agent be liable for indirect,
      punitive, special or consequential damages.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) The
      Parent will indemnify the Escrow Agent for, and hold it harmless against, any
      loss, liability or expense incurred without gross negligence or willful
      misconduct on the part of Escrow Agent, arising out of or in connection with
      its
      carrying out of its duties hereunder.

     

    7. Liability
      and Authority of Indemnification Representative; Successors and
      Assignees.

     

    (a) The
      Indemnification Representative shall not incur any liability to the Parent,
      the
      Escrow Agent or the Indemnifying Stockholders with respect to any action taken
      or suffered by them in reliance upon any note, direction, instruction, consent,
      statement or other documents believed by them to be genuinely and duly
      authorized, nor for other action or inaction except his own willful misconduct
      or gross negligence. The Indemnification Representative may, in all questions
      arising under the Escrow Agreement, rely on the advice of counsel and the
      Indemnification Representative shall not be liable to the Parent, the Escrow
      Agent or the Indemnifying Stockholders for anything done, omitted or suffered
      in
      good faith by the Indemnification Representative based on such
      advice.

     

    (b) In
      the
      event of the death or permanent disability of the Indemnification
      Representative, or any resignation as an Indemnification Representative, a
      successor Indemnification Representative shall be appointed by the other person
      comprising the Indemnification Representative or, absent its appointment, a
      successor Indemnification Representative shall be elected by a majority vote
      of
      the Indemnifying Stockholders, with each such Indemnifying Stockholder (or
      his,
      her or its successors or assigns) to be given a vote equal to the number of
      votes represented by the shares of stock of the Company held by such
      Indemnifying Stockholder immediately prior to the effective time of the share
      purchase under the Merger Agreement. Each successor Indemnification
      Representative shall have all of the power, authority, rights and privileges
      conferred by this Agreement upon the original Indemnification Representative,
      and the term “Indemnification Representative” as used herein shall be deemed to
      include successor Indemnification Representative.

     

    (c) The
      Indemnification Representative shall have full power and authority to represent
      the Indemnifying Stockholders, and their successors, with respect to all matters
      arising under this Agreement and all actions taken by the Indemnification
      Representative hereunder shall be binding upon the Indemnifying Stockholders,
      and their successors, as if expressly confirmed and ratified in writing by
      each
      of them. Without limiting the generality of the foregoing, the Indemnification
      Representative shall have full power and authority to interpret all of the
      terms
      and provisions of this Agreement and Article VI of the Merger Agreement, to
      compromise any claims asserted hereunder or under Article VI of the Merger
      Agreement and to authorize any release of the Escrow Shares to be made with
      respect thereto, on behalf of the Indemnifying Stockholders and their
      successors. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) The
      Escrow Agent may rely on the Indemnification Representative as the exclusive
      agent of the Indemnifying Stockholders under this Agreement and shall incur
      no
      liability to any party with respect to any action taken or suffered by it in
      good faith reliance thereon.

     

    8. [Intentionally
      omitted]

     

    9. Termination.
      This
      Agreement shall terminate upon the distribution by the Escrow Agent of all
      of
      the Escrow Shares in accordance with this Agreement; provided that the
      provisions of Sections 6 and 7 shall survive such termination.

     

    10. Notices.
      All
      notices, instructions and other communications given hereunder or in connection
      herewith shall be in writing. Any such notice, instruction or communication
      shall be sent either (i) by registered or certified mail, return receipt
      requested, postage prepaid, or (ii) via a reputable nationwide overnight
      courier service, in each case to the address set forth below. Any such notice,
      instruction or communication shall be deemed to have been delivered two business
      days after it is sent by registered or certified mail, return receipt requested,
      postage prepaid, or one business day after it is sent via a reputable nationwide
      overnight courier service.

     

    If
      to the
      Parent:

    

    Modigene
      Inc.

    8000
      Towers Crescent Drive, Suite 1300

    Vienna,
      Va. 22182

    Attn:
      Abraham Havron, Chief Executive Officer

    Facsimile:
      703-288-0070

    

    If
      to the
      Indemnification Representatives:

    

    Abraham
      Havron

    Shai
      Novik

    Modigene
      Inc.

    8000
      Towers Crescent Drive, Suite 1300

    Vienna,
      Va. 22182

    Facsimile:
      703-288-0070

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy (in the case of either a notice to the Parent or the Indemnification
      Representatives) to:

     

    If
      before
      or on May 29, 2007:

    

    Barack
      Ferrazzano Kirschbaum Perlman & Nagelberg LLP

    333
      West
      Wacker Drive, Suite 2700

    Chicago,
      IL 60606

    Attn:
      Gretchen Trofa, Esq.

    Facsimile:
      (312) 984-3150

    

    After
      May
      29, 2007: 

    

    Barack
      Ferrazzano Kirschbaum & Nagelberg LLP

    200
      West
      Madison Street, Suite 3900

    Chicago,
      IL 60606 

    Attn:
      Gretchen Trofa, Esq.

    Facsimile:
      (312) 984-3150

    

    If
      to the
      Escrow Agent:

    

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      NY 10022

    Attn:
      Adam S. Gottbetter, Esq.

    Facsimile: (212)
      400-6901

    

    Any
      party
      may give any notice, instruction or communication in connection with this
      Agreement using any other means (including personal delivery, telecopy or
      ordinary mail), but no such notice, instruction or communication shall be deemed
      to have been delivered unless and until it is actually received by the party
      to
      whom it was sent. Any party may change the address to which notices,
      instructions or communications are to be delivered by giving the other parties
      to this Agreement notice thereof in the manner set forth in this
      Section 10.

     

    11. Successor
      Escrow Agent.
      In the
      event the Escrow Agent becomes unavailable or unwilling to continue in its
      capacity herewith, the Escrow Agent may resign and be discharged from its duties
      or obligations hereunder by delivering a resignation to the parties to this
      Escrow Agreement, not less than 60 days prior to the date when such
      resignation shall take effect. The Parent may appoint a successor Escrow Agent
      without the consent of the Indemnification Representative so long as such
      successor is a bank with assets of at least $500 million, and may appoint any
      other successor Escrow Agent with the consent of the Indemnification
      Representative, which shall not be unreasonably withheld. If, within such notice
      period, the Parent provides to the Escrow Agent written instructions with
      respect to the appointment of a successor Escrow Agent and directions for the
      transfer of any Escrow Shares then held by the Escrow Agent to such successor,
      the Escrow Agent shall act in accordance with such instructions and promptly
      transfer such Escrow Shares to such designated successor. If no successor Escrow
      Agent is named as provided in this Section 11 prior to the date on which the
      resignation of the Escrow Agent is to properly take effect, the Escrow Agent
      may
      apply to a court of competent jurisdiction for appointment of a successor Escrow
      Agent.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    12. General.

     

    (a) Governing
      Law; Assigns.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York without regard to conflict-of-law principles
      and
      shall be binding upon, and inure to the benefit of, the parties hereto and
      their
      respective successors and assigns.

     

    (b) Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    (c) Entire
      Agreement.
      Except
      for those provisions of the Merger Agreement referenced herein, this Agreement
      constitutes the entire understanding and agreement of the parties with respect
      to the subject matter of this Agreement and supersedes all prior agreements
      or
      understandings, written or oral, between the parties with respect to the subject
      matter hereof.

     

    (d) Waivers.
      No
      waiver by any party hereto of any condition or of any breach of any provision
      of
      this Agreement shall be effective unless in writing. No waiver by any party
      of
      any such condition or breach, in any one instance, shall be deemed to be a
      further or continuing waiver of any such condition or breach or a waiver of
      any
      other condition or breach of any other provision contained herein.

     

    (e) Amendment.
      This
      Agreement may be amended only with the written consent of the Parent, the Escrow
      Agent and the Indemnification Representative.

     

    (f) Consent
      to Jurisdiction and Service.
      The
      parties hereby absolutely and irrevocably consent and submit to the jurisdiction
      of the courts in the State of New York and of any Federal court located in
      said
      State in connection with any actions or proceedings brought against any party
      hereto by the Escrow Agent arising out of or relating to this Escrow Agreement.
      In any such action or proceeding, the parties hereby absolutely and irrevocably
      waive personal service of any summons, complaint, declaration or other process
      and hereby absolutely and irrevocably agree that the service thereof may be
      made
      by certified or registered first-class mail directed to such party, at their
      respective addresses in accordance with Section 10 hereof.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

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

    
      	 	 	 
	 	
              MODIGENE
                INC.

            
	 
 	 
 	 
 
	
            	By: 	
            
	 	
              

              Name: Peter
                L. Coker

            
	 	
              Title:  President

            

    

    
       

      
        	 	 	 
	 	
                

                
                  Abraham
                    Havron, in his capacity as an 

                  Indemnification
                    Representative

                

              

      

      
        
           

          
            	 	 	 
	 	
                    

                    
                      
                        Shai
                          Novik, in his capacity as an 

                        Indemnification
                          Representative

                      

                    

                  

          

           

        

      

    

    
      	
            	 	 
	 	
              
                GOTTBETTER
                  & PARTNERS, LLP

              

            
	 
 	 
 	 
 
	
            	By: 	
            
	 	
              

              
                Name: Adam
                  S. Gottbetter, Esq.

              

            
	 	
              
                Title:  Partner

              

            

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
         

      

    

    ATTACHMENT
      A

     

    
      	
              Indemnifying
                Stockholder

            	 	
              Percentage

            

    

     

    [to
      come]

     

    
      
        
        

      

      
        9Exhibit
        10.2

       

    

    FORM
      OF SUBSCRIPTION AGREEMENT

     

    THIS
      SUBSCRIPTION AGREEMENT (the “Agreement”)
      is made
      as of this __
      day of
      _____, 2007, by and among Modigene Inc. (f/k/a LDG, Inc.), a Nevada corporation
      (the “Company”),
      Modigene Inc., a Delaware corporation (“Modigene”)
      and
      the investor identified on the signature page to this Agreement (the
      “Investor”).

     

    RECITALS:

     

    WHEREAS,
      the Company and Modigene contemplate that they will enter into an Agreement
      and
      Plan of Merger and Reorganization, pursuant to which a wholly-owned subsidiary
      of the Company will merge with and into Modigene, with Modigene remaining as
      the
      surviving entity and a wholly-owned subsidiary of the Company (the “Merger”),
      upon
      the effective date of the Merger (the “Merger Effective
      Date”);

     

    WHEREAS,
      as a condition to the consummation of the Merger, and to provide the capital
      required by Modigene for working capital and other purposes, the Company is
      offering (the “Offering”),
      in
      compliance with Rule 506 of Regulation D of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      and
      available prospectus exemptions in Canada to accredited investors in a private
      placement transaction, a minimum (the “Minimum”)
      of
      4,000,000 units (the “Units”)
      and a
      maximum (the “Maximum”)
      of
      6,666,666 Units, or such greater amount not to exceed 8,666,666 Units as the
      Company and Modigene may determine, at a purchase price of $1.50 per Unit,
      each
      Unit consisting of one share of the Company’s common stock, par value
      $0.00001 per
      share
      (“Common
      Stock”)
      and a
      warrant (the “Investor
      Warrants”)
      to
      purchase one-quarter, or 25%, of a share of Common Stock for five (5) years
      at
      the exercise price of $2.50 per whole share of Common Stock. A form of Investor
      Warrant is included in the Confidential Private Placement Memorandum dated
      April
      13, 2007;

    

    WHEREAS,
      the Investor desires to subscribe for, purchase and acquire from the Company
      and
      the Company desires to sell and issue to the Investor, the number of Units
      set
      forth on the signature page of this Agreement (the “Investor’s
      Units”)
      upon
      the terms and conditions and subject to the provisions hereinafter set
      forth;

     

    WHEREAS,
      in connection with the purchase of the Investor’s Units, the Company and the
      Investor will execute a Registration Rights Agreement of even date herewith
      pursuant to which the Company will provide certain registration rights to the
      Investor (the “Registration
      Rights Agreement”);
      and

     

    WHEREAS,
      the Company, Modigene,, Spencer Trask Ventures, Inc. (“Spencer
      Trask”)
      and
      Roth Capital Partners, LLC (the “Escrow
      Agent”)
      have
      entered into an Escrow Agreement (the “Escrow
      Agreement”)
      to
      provide for the safekeeping of funds received executed in connection with the
      Offering;

     

    NOW,
      THEREFORE, for and in consideration of the mutual premises contained herein
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereto agree as follows:

     

    1. Purchase
      and Sale of the Units.
      Subject
      to the terms and conditions of this Agreement and the satisfaction of the
      conditions to Closing, the Investor subscribes for and agrees to purchase and
      acquire from the Company, and the Company agrees to sell and issue to the
      Investor the Investor’s Units at the purchase price of $1.50 per Unit (the
“Purchase
      Price”);
      provided,
      that
      the Company reserves the right, in its sole discretion and for any reason,
      to
      reject any Investor’s subscription in whole or in part, or to allot less than
      the number of Units subscribed for.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. The
      Closing.
      The
      Offering will terminate upon the earlier of (i) receipt of acceptable
      subscriptions totaling $10,000,000, or such greater amount up to $13,000,000
      as
      the Company and Modigene may determine, and (ii) the election of the Company
      upon receipt of subscriptions totaling $6,000,000; provided,
      that
      the initial closing of the Offering shall be concurrent with the close of the
      Merger (the “Closing,”
the
      date on which such Closing occurs hereinafter referred to as the “Closing
      Date”)
      at the
      offices of counsel for the Company. Modigene may elect, in its sole discretion,
      not to close the Offering unless the Maximum is sold. On the Closing Date,
      the
      Escrow Agent shall deliver the funds held in escrow as of the Closing Date
      pursuant to the terms of the Escrow Agreement. As soon as practicable after
      the
      Closing Date, the Company shall issue and deliver, or shall cause the issuance
      and delivery of, a stock certificate registered in the name of the Investor
      and
      representing the shares of Common Stock underlying the Investor’s Units, and a
      warrant certificate registered in the name of the Investor representing the
      Investor’s right to purchase the number of shares of Common Stock underlying the
      Investor’s Warrants purchased in the Offering.

     

    3. Closing
      Conditions.

     

    a. Conditions
      to Obligations of Investors.
      The
      respective obligations of the Investors hereunder in connection with the Closing
      are subject to the satisfaction (or waiver) of the following conditions: (i)
      the
      accuracy in all material respects on the Closing Date of the representations
      and
      warranties of the Company contained herein; and (ii)
      all
      obligations, covenants and agreements of the Company required to be performed
      at
      or prior to the Closing Date shall have been performed.

    

    b. Conditions
      to Obligations of the Company.
      The
      obligations of the Company hereunder in connection with the Closing are subject
      to the satisfaction (or waiver) of the following conditions: (i) the
      accuracy in all material respects when made and on the Closing Date of the
      representations and warranties of the Investors contained herein; (ii)
all
      obligations, covenants and agreements of the Investors required to be performed
      at or prior to the Closing Date shall have been performed;
      and
      (iii) the delivery by the Investors of the items set forth in Section 4 of
      this
      Agreement.

     

    4. Subscription
      Procedure.
      To
      complete a subscription for the Units, the Investor must fully comply with
      the
      subscription procedure provided in this Section on or before 5:00 p.m. Eastern
      time on the Closing Date.

     

    a. Transaction
      Documents.
      Before
      5:00 p.m. Eastern time on the Closing Date, the Investor shall review, complete
      and execute this Agreement, the Investor Questionnaire attached hereto as
Appendix
      A
      and the
      Registration Rights Agreement (collectively, the “Transaction
      Documents”)
      and
      deliver the Transaction Documents to Spencer Trask, for the benefit of the
      Company, at the address provided below. Executed agreements and questionnaires
      may be delivered to Spencer Trask by facsimile or electronic mail (e-mail)
      using
      the facsimile number or e-mail address provided below if the Investor
      immediately thereafter confirms receipt of such transmission with Spencer Trask
      and delivers the original copies of the agreements and questionnaire to Spencer
      Trask as soon as practicable thereafter.

     

    Spencer
      Trask - Mailing Address and Facsimile Number:

    

    Spencer
      Trask Ventures, Inc.

    535
      Madison Avenue

    New
      York,
      New York 10022

    Attention:
      DiAnn Ellis, Associate

    Facsimile
      Number: (212) 829-4424

    Telephone
      Number: (800) 622-7078, ext. 672

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    b. Purchase
      Price.
      Simultaneously with the delivery of the Transaction Documents to Spencer Trask
      as provided herein, and in any event on or prior to 5:00 p.m. Eastern time
      on
      the Closing Date, the Investor shall deliver to the Escrow Agent the full
      Purchase Price for the Investor’s Units by wire transfer of immediately
      available funds pursuant to wire transfer instructions provided
      below:

     

    Escrow
      Agent - Wire Transfer Instructions:

    

      
        	
                Bank:
                  

              	 	
                Signature

              
	
                ABA#:

              	 	
                026013576

              
	
                Account
                  Name:

              	 	
                Signature
                  Bank, as Agent For Modigene Inc.

              
	
                Account#:

              	 	
                1500892796

              
	
                FBO:

              	 	
                Investor
                  Name

              
	 	 	
                Social
                  Security Number

              
	 	 	
                Address

              

      

    

     

    c. Purchaser
      Representative.
      If the
      Investor has retained the services of a purchaser representative to assist
      in
      evaluating the merits and risks associated with investing in the Units, the
      Investor must deliver along with the Transaction Documents, a purchaser
      representative certificate in a form acceptable to the Company. 

     

    d. Company
      Discretion.
      The
      Company may accept any subscription in whole or in part or reject any
      subscription in its sole discretion for any reason and may terminate this
      Offering at any time before accepting subscriptions. If the Investor’s
      subscription is rejected or if the conditions to closing this Offering,
      including the receipt and acceptance of subscriptions representing $6,000,000,
      are not satisfied, or if this Offering is otherwise terminated or withdrawn,
      funds delivered by the Investor to the Escrow Agent will be returned to the
      Investor without interest or deduction.

     

    5. Representations
      and Warranties of the Company and Modigene.
      In
      order to induce the Investor to enter into this Agreement, the Company and,
      as
      applicable, Modigene represent and warrant to the Investor the
      following:

     

    a. Subsidiaries.
      The
      Company has no direct or indirect subsidiaries other than Modigene Acquisition
      Corp., and Liaison Design Group, LLC, and those set forth in the Exchange Act
      Documents (as defined in Section 5(g)), or as are necessary or desirable to
      consummate the Merger and the transactions contemplated in the Merger Agreement.
      Except as disclosed in the Exchange Act Documents, the Company owns, directly
      or
      indirectly, all of the capital stock of each of its Subsidiaries (as defined
      below) free and clear of any and all liens, and all the issued and outstanding
      shares of capital stock of each Subsidiary are validly issued and are fully
      paid, non-assessable and free of preemptive and similar rights. Modigene has
      one
      direct subsidiary, ModigeneTech Ltd. Unless the context otherwise indicates,
      references to the terms “Subsidiary”
and
      “Subsidiaries”
used
      herein specifically refer to ModigeneTech Ltd., Modigene Acquisition Corp.,
      and
      Liaison Design Group, LLC, and those set forth in the Exchange Act Documents,
      or
      as are necessary or desirable to consummate the Merger and the transactions
      contemplated in the Merger Agreement.

     

    b. Organization
      and Qualification.
      The
      Company, Modigene and the Subsidiaries, are each an entity duly incorporated
      or
      otherwise organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its incorporation or organization (as applicable), with the
      requisite power and authority to own and use its properties and assets and
      to
      carry on its business as currently conducted. Neither the Company nor Modigene,
      nor any Subsidiary, is in violation or default of any of the provisions of
      its
      respective certificate or articles of incorporation, bylaws or other
      organizational or charter documents. Each of the Company, Modigene and the
      Subsidiaries is duly qualified to conduct business and is in good standing
      as a
      foreign corporation or other entity in each jurisdiction in which the nature
      of
      the business conducted or property owned by it makes such qualification
      necessary, except where the failure to be so qualified or in good standing,
      as
      the case may be, could not have, or reasonably be expected to result in (i)
      a
      material adverse effect on the legality, validity or enforceability of any
      Transaction Document or Investor Warrant, (ii) a material adverse effect on
      the
      results of operations, assets, business, prospects or condition (financial
      or
      otherwise) of the Company, Modigene and the Subsidiaries, taken as a whole,
      or
      (iii) a material adverse effect on the Company’s or Modigene’s ability to
      perform in any material respect on a timely basis its obligations under any
      Transaction Document or Investor Warrant (any of (i), (ii) or (iii), a
“Material
      Adverse Effect”)
      and no
      proceeding has been instituted in any such jurisdiction revoking, limiting
      or
      curtailing or seeking to revoke, limit or curtail such power and authority
      or
      qualification.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    e. Approvals.
      The
      execution, delivery, and performance by the Company of this Agreement and the
      offer and sale of the Units require no consent of, action by or in respect
      of,
      or filing with, any person, governmental body, agency, or official other than
      those consents that have been obtained prior to the Closing and those filings
      required to be made pursuant to the Securities Act and any State Acts which
      the
      Company undertakes to file within the applicable time period or provincial
      filings required in connection with sales in Canada.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    f. Capitalization.
      Upon
      issuance in accordance with the terms of this Agreement against payment of
      the
      Purchase Price therefor, the shares of Common Stock underlying the Investor’s
      Units will be duly and validly issued, fully paid, and nonassessable and free
      and clear of all liens imposed by or through the Company, and, assuming the
      accuracy of the representations and warranties of the Investor and all other
      purchasers of Units in the Offering, will be issued in accordance with a valid
      exemption from the registration or qualification provisions of the Securities
      Act, and any applicable state securities laws (the “State
      Acts”),
      or
      will be issued in accordance with a valid prospectus exemption in Canada. The
      Company has not issued any capital stock since its most
      recently filed periodic report under the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      and
      the
      rules and regulations thereunder, and no
      person
      has any right of first refusal, preemptive right, right of participation, or
      any
      similar right to participate in the transactions contemplated by the Transaction
      Documents. All of the outstanding shares of capital stock of the Company are
      validly issued, fully paid and nonassessable, have been issued in compliance
      with all federal and state securities laws, and none of such outstanding shares
      was issued in violation of any preemptive rights or similar rights to subscribe
      for or purchase securities. No further approval or authorization of any
      stockholder, the board of directors of the Company or others is required for
      the
      issuance and sale of the Units. There are no stockholders agreements, voting
      agreements or other similar agreements with respect to the Company’s capital
      stock to which the Company is a party or, to the knowledge of the Company,
      between or among any of the Company’s stockholders.

     

    g. Exchange
      Act Filing.
      During
      the 12 calendar months immediately preceding the date of this Agreement, all
      reports and statements, including all amendments, required to be filed by the
      Company with the Securities and Exchange Commission (the “Commission”)
      under
      the Exchange Act, have been timely filed. Such filings, together with all
      amendments and all documents incorporated by reference therein, are referred
      to
      as “Exchange
      Act Documents.”
      Each
      Exchange Act Document conformed in all material respects to the requirements
      of
      the Exchange Act and the rules and regulations thereunder, and no Exchange
      Act
      Document, at the time each such document was filed, included any untrue
      statement of a material fact or omitted 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.

     

    h. Company
      Financial Statements. The
      audited financial statements, together with the related notes of the Company
      as
      of December 31, 2006, included in the Company’s Form 10-KSB/A as filed with the
      Commission on March 7, 2007 (the “Company
      Financial Statements”),
      fairly present in all material respects, on the basis stated therein and on
      the
      date thereof, the financial position of the Company at the respective dates
      therein specified and its results of operations and cash flows for the periods
      then ended. Such statements and related notes have been prepared in accordance
      with generally accepted accounting principles in the United States
      (“GAAP”)
      applied on a consistent basis except as expressly noted therein.

     

    i. Material
      Changes; Undisclosed Events, Liabilities or Developments.
      Since
      the date of the latest audited financial statements included within the Exchange
      Act Documents, except as specifically disclosed in a subsequent Exchange Act
      Document filed prior to the date hereof, (i) there has been no event, occurrence
      or development that has had or that could reasonably be expected to result
      in a
      Material Adverse Effect, (ii) the Company has not incurred any liabilities
      (contingent or otherwise) other than (A) trade payables and accrued expenses
      incurred in the ordinary course of business consistent with past practice and
      (B) liabilities not required to be reflected in the Company’s financial
      statements pursuant to GAAP or disclosed in filings made with the Commission,
      (iii) the Company has not altered its method of accounting, (iv) the Company
      has
      not declared or made any dividend or distribution of cash or other property
      to
      its stockholders or purchased, redeemed or made any agreements to purchase
      or
      redeem any shares of its capital stock and (v) the Company has not issued any
      equity securities to any officer, director or affiliate. The Company does not
      have pending before the Commission any request for confidential treatment of
      information. Except for the issuance of the Securities (as defined in Section
      7
      hereof) contemplated by this Agreement, no event, liability or development
      has
      occurred or exists with respect to the Company or its Subsidiaries or their
      respective business, properties, operations or financial condition, that would
      be required to be disclosed by the Company under applicable securities laws
      at
      the time this representation is made.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    j. No
      Disputes or Litigation Against the Company or Modigene.
      There
      is no action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company and Modigene, threatened against
      or
      affecting the Company and Modigene, any Subsidiary or any of their respective
      properties before or by any court, arbitrator, governmental or administrative
      agency or regulatory authority (federal, state, county, local or foreign)
      (collectively, an “Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      any of the Transaction Documents or the Units or (ii) could, if there were
      an
      unfavorable decision, have, or reasonably be expected to result in, a Material
      Adverse Effect. Neither the Company nor Modigene, nor any Subsidiary, nor any
      director or officer thereof, is or has been the subject of any Action involving
      a claim of violation of or liability under federal or state securities laws
      or a
      claim of breach of fiduciary duty. There has not been, and to the knowledge
      of
      the Company or Modigene, there is not pending or contemplated, any investigation
      by the Commission involving the Company and Modigene or any current or former
      director or officer of the Company or Modigene. The Commission has not issued
      any stop order or other order suspending the effectiveness of any registration
      statement filed by the Company or any Subsidiary under the Exchange Act or
      the
      Securities Act.

     

    k. Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company and Modigene,
      is imminent with respect to any of the employees of the Company which could
      reasonably be expected to result in a Material Adverse Effect. None of the
      Company’s, Modigene’s or any Subsidiary’s employees is a member of a union that
      relates to such employee’s relationship with such company, and neither the
      Company nor Modigene, nor any Subsidiary, is a party to a collective bargaining
      agreement, and the Company, Modigene and the Subsidiaries believe that their
      relationships with their respective employees are good. No executive officer,
      to
      the knowledge of the Company or Modigene, is, or is now expected to be, in
      violation of any material term of any employment contract, confidentiality,
      disclosure or proprietary information agreement or non-competition agreement,
      or
      any other contract or agreement or any restrictive covenant, and the continued
      employment of each such executive officer does not subject the Company, Modigene
      nor any of their Subsidiaries to any liability with respect to any of the
      foregoing matters. The Company, Modigene and the Subsidiaries are in compliance
      with all U.S. federal, state, local and foreign laws and regulations relating
      to
      employment and employment practices, terms and conditions of employment and
      wages and hours, except where the failure to be in compliance could not,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    l. Compliance.
      Neither
      the Company nor Modigene, nor any Subsidiary, (i) is in default under or in
      violation of (and no event has occurred that has not been waived that, with
      notice or lapse of time or both, would result in a default by the Company or
      Modigene, or any Subsidiary), nor has the Company or Modigene, or any Subsidiary
      received notice of a claim that it is in default under or that it is in
      violation of, any indenture, loan or credit agreement, or any other agreement
      or
      instrument to which it is a party or by which it or any of its properties is
      bound (whether or not such default or violation has been waived), (ii) is in
      violation of any order of any Court, arbitrator, or governmental body, or (iii)
      is or has been in violation of any statute, rule or regulation of any
      governmental authority, including without limitation all foreign, federal,
      state
      and local laws relating to taxes, environmental protection, occupational health
      and safety, product quality and safety and employment and labor matters, except
      in each case as could not, individually or in the aggregate, have or reasonably
      be expected to result in a Material Adverse Effect. The Company is in compliance
      with the applicable requirements of the Sarbanes-Oxley Act of 2002, as amended,
      and the rules and regulations thereunder, except where such noncompliance could
      not have, or reasonably be expected to result in, a Material Adverse
      Effect.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    o. Patents
      and Trademarks.
      The
      Company and Modigene, and any of their respective Subsidiaries have, or have
      rights to use, all patents, patent applications, trademarks, trademark
      applications, service marks, trade names, copyrights, licenses, and other
      similar rights that are necessary or material for use in connection with their
      respective businesses and which the failure to so have could, individually
      or in
      the aggregate, have or reasonably be expected to result in a Material Adverse
      Effect (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor Modigene, nor any of their respective Subsidiaries,
      has
      received a written notice that the Intellectual Property Rights used by the
      Company or Modigene, or any of their respective Subsidiaries, violates or
      infringes upon the rights of any person. Except as set forth in the Exchange
      Act
      Documents, to the knowledge of the Company, all such Intellectual Property
      Rights are enforceable and there is no existing infringement by another person
      of any of the Intellectual Property Rights, except where such infringement
      could
      not have, or reasonably be expected to result in, a Material Adverse
      Effect.

     

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

     

    q. Transactions
      With Affiliates and Employees.
      Except
      as set forth in the Exchange Act Documents, the Confidential Private Placement
      Memorandum dated April 13, 2007 (the “Memorandum”)
      and
      those transactions contemplated by the Transaction Documents, none of the
      officers or directors of the Company or Modigene and, to the knowledge of the
      Company or Modigene, none of the employees of the Company or Modigene is
      presently a party to any transaction with the Company, Modigene or any
      Subsidiary (other than for services as employees, officers, and directors),
      including any contract, agreement, or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director, or such employee or, to the knowledge of the Company or Modigene,
      any
      entity in which any officer, director, or any such employee has a substantial
      interest or is an officer, director, trustee, or partner.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    r. Internal
      Accounting Controls.
      The
      Company and its Subsidiaries maintain a system of internal accounting controls
      sufficient to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles and
      to
      maintain asset accountability, (iii) access to assets is permitted only in
      accordance with management’s general or specific authorization, and (iv) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate action is taken with respect to any
      differences. The Company has established disclosure controls and procedures
      (as
      defined in Exchange Act rules 13a-15(e) and 15d-15(e)) for the Company and
      designed such disclosure controls and procedures to ensure that material
      information relating to the Company and its Subsidiaries is made known to the
      Company’s certifying officers by others within those entities, particularly
      during the period in which the Company’s Form 10-KSB or 10-QSB, as the case may
      be, are being prepared. The Company’s certifying officers have evaluated the
      effectiveness of the Company’s controls and procedures as of the end of the
      reporting period covered by the Company’s Form 10-KSB and each of the Company’s
      Forms 10-QSB filed with the Commission (each such date, the “Evaluation
      Date”)
      and
      presented in each such report their conclusions about the effectiveness of
      the
      Company’s disclosure controls and procedures based on their evaluations as of
      the applicable Evaluation Date. Since the Evaluation Date of the Company’s most
      recently filed Form 10-KSB or Form 10-QSB, there have been no significant
      changes in the Company’s disclosure controls and procedures, the Company’s
      internal control over financial reporting (as defined in Exchange Act Rules
      13a-15(f) or 15d-15(f) or, to the Company’s knowledge, in other factors that
      could significantly affect the Company’s internal controls over financial
      reporting. 

     

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

     

    t. Certain
      Fees.
      Other
      than the cash and warrants commissions payable on the Closing, no brokerage
      or
      finder’s fees or commissions are or will be payable by the Company to any
      broker, financial advisor or consultant, finder, placement agent, investment
      banker, bank, or other person with respect to the transactions contemplated
      by
      this Agreement. The Investor shall have no obligation with respect to any claims
      (other than such fees or commissions owed by an Investor pursuant to written
      agreements executed by the Investor which fees or commissions shall be the
      sole
      responsibility of such Investor) made by or on behalf of other persons for
      fees
      of a type contemplated in this Section that may be due in connection with the
      transactions contemplated by this Agreement. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    u. Certain
      Registration Matters.
      Assuming the accuracy of the Investor’s representations and warranties set forth
      in this Agreement and the Transaction Documents, and the representations and
      warranties made by all other purchasers of Units in the Offering, no
      registration under the Securities Act is required for the offer and sale of
      the
      Investor’s Units by the Company to the Investor hereunder.

     

    v. Listing
      and Maintenance Requirements.
      The
      Company is, and has no reason to believe that it will not in the foreseeable
      future continue to be, in compliance with the listing and maintenance
      requirements for continued listing of the Common Stock on the NASD Over the
      Counter Bulletin Board.

     

    w. Investment
      Company.
      Neither
      the Company nor Modigene is an “investment company” or an “affiliate” of an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended.

     

    x. No
      Additional Agreements.
      Neither
      the Company nor Modigene has any agreement or understanding with any other
      purchasers of the Units in the Offering with respect to the transactions
      contemplated by this Agreement on terms that differ substantially from those
      set
      forth in this Agreement.

     

    y. Disclosure.
      The
      Investor confirms that in making its decision to enter into this Agreement,
      the
      Investor has relied on the information contained in the Confidential Private
      Placement Memorandum dated April 13, 2007 and on the representations and
      warranties set forth in Section 5 of this Agreement, and not on any other
      materials that have been furnished by or on behalf of the Company or Modigene.
      The information contained in the Memorandum and the representations and
      warranties of the Company and Modigene in this Agreement are true and correct
      in
      all material respects and do not contain any untrue statement of a material
      fact
      or omit to state any material fact necessary in order to make the statements
      made therein, in light of the circumstances under which they were made, not
      misleading. The Company and Modigene confirm that neither they nor any person
      acting on their behalf has provided the Investor, or its agents or counsel,
      with
      any information that the Company or Modigene believes would constitute material,
      non-public information following the announcement of the Closing and the
      transactions contemplated thereby. The Company understands and confirms that
      the
      Investor will rely on the foregoing representations and covenants in effecting
      transactions in securities of the Company.

     

    z. Registration
      Rights.
      Other
      than each of the Investors and the broker-dealers receiving warrants in
      connection with the Offering, no person has any right to cause the Company
      to
      effect the registration under the Securities Act of any securities of the
      Company.

     

    aa. No
      Integrated Offering.
      Assuming
      the accuracy of the Investors’ representations and warranties set forth in
      Section 6, neither the Company, nor any of its affiliates, nor any person acting
      on its or their behalf has, directly or indirectly, made any offers or sales
      of
      any security or solicited any offers to buy any security, under circumstances
      that would cause the Offering of the Units to be integrated with prior offerings
      by the Company for purposes of the Securities Act or any applicable stockholder
      approval provisions of any Trading Market (hereinafter defined) on which any
      of
      the securities of the Company are listed or designated. “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the American Stock Exchange, the Nasdaq
      Stock Market, the New York Stock Exchange or the OTC Bulletin
      Board.

     

    bb. No
      General Solicitation.
      Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Units by any form of general solicitation or general advertising.
      The
      Company has offered the Units for sale only to the Investors and certain other
      “accredited investors” within the meaning of Rule 501 under the Securities
      Act.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    cc. Acknowledgment
      Regarding Investors’ Purchase of Securities.
      The
      Company and Modigene acknowledge and agree that each of the Investors is acting
      solely in the capacity of an arm’s length purchaser with respect to the
      Transaction Documents and the transactions contemplated thereby. The Company
      and
      Modigene further acknowledge that no Investor is acting as a financial advisor
      or fiduciary of the Company or Modigene (or in any similar capacity) with
      respect to the Transaction Documents and the transactions contemplated thereby,
      and any advice given by any Investor or any of their respective representatives
      or agents in connection with the Transaction Documents and the transactions
      contemplated thereby is merely incidental to the Investors’ purchase of the
      Units. The Company and Modigene further represent to each Investor that the
      Company’s and Modigene’s decision to enter into this Agreement and the other
      Transaction Documents has been based solely on the independent evaluation of
      the
      transactions contemplated hereby by the Company and Modigene and their
      representatives.

     

    6. Representations
      and Warranties of the Investor.
      In
      order to induce the Company and Modigene to enter into this Agreement, the
      Investor represents and warrants to the Company and Modigene the
      following:

     

    a. Authority.
      If a
      corporation, partnership, limited partnership, limited liability company, or
      other form of entity, the Investor is duly organized or formed, as the case
      may
      be, validly existing, and in good standing under the laws of its jurisdiction
      of
      organization or formation. The Investor has all requisite individual or entity
      right, power, and authority to execute, deliver, and perform this
      Agreement.

     

    b. Enforceability.
      The
      execution, delivery, and performance of this Agreement by the Investor have
      been
      duly authorized by all requisite partnership, corporate or other entity action,
      as applicable. This Agreement has been duly executed and delivered by the
      Investor, and, upon its execution by the Company and Modigene, shall constitute
      the legal, valid, and binding obligation of the Investor, enforceable in
      accordance with its terms, except to the extent that its enforceability is
      limited by bankruptcy, insolvency, reorganization, moratorium, or other laws
      relating to or affecting the enforcement of creditors’ rights generally and by
      general principles of equity.

     

    c. No
      Violations.
      The
      execution, delivery, and performance of this Agreement by the Investor do not
      and will not, with or without the passage of time or the giving of notice,
      result in the breach of, or constitute a default, cause the acceleration of
      performance, or require any consent under, or result in the creation of any
      lien, charge or encumbrance upon any property or assets of the Investor pursuant
      to, any material instrument or agreement to which the Investor is a party or
      by
      which the Investor or its properties may be bound or affected, and, do not
      or
      will not violate or conflict with any provision of the articles of incorporation
      or bylaws, partnership agreement, operating agreement, trust agreement, or
      similar organizational or governing document of the Investor, as applicable.
      

     

    d. Knowledge
      of Investment and its Risks.
      The
      Investor has such knowledge and experience in financial and business matters
      so
      as to be capable of evaluating the merits and risks of Investor’s investment in
      the Units. The Investor understands that an investment in the Company represents
      a high degree of risk and there is no assurance that the Company’s business or
      operations will be successful. The Investor has considered carefully the risks
      attendant to an investment in the Company, and that, as a consequence of such
      risks, the Investor could lose Investor’s entire investment in the
      Company.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    e. Investment
      Intent.
      The
      Investor hereby represents and warrants that (i) the Investor’s Units are being
      acquired for investment for the Investor’s own account, and not as a nominee or
      agent and not with a view to the resale or distribution of all or any part
      of
      the Investor’s Units, and the Investor has no present intention of selling,
      granting any participation in, or otherwise distributing any of the Investor’s
      Units within the meaning of the Securities Act, (ii) the Investor’s Units are
      being acquired in the ordinary course of the Investor’s business, and (iii) the
      Investor does not have any contracts, understandings, agreements, or
      arrangements, directly or indirectly, with any person and/or entity to
      distribute, sell, transfer, or grant participations to such person and/or entity
      with respect to, any of the Investor’s Units. The Investor is not purchasing the
      Investor’s Units as a result of any advertisement, article, notice or other
      communication regarding the Investor’s Units published in any newspaper,
      magazine or similar media or broadcast over television or radio or presented
      at
      any seminar or any other general solicitation or general
      advertisement.

     

    f. Investor
      Status.
      The
      Investor is an “accredited investor” as that term is defined by Rule 501 of
      Regulation D promulgated under the Securities Act and the information provided
      by the Investor in the Investor Questionnaire, attached hereto as Appendix
      A,
      is
      truthful, accurate, and complete. The Investor is not registered as a
      broker-dealer under Section 15 of the Exchange Act or an affiliate of such
      broker-dealer, except as otherwise provided in the Investor
      Questionnaire.

     

    g. Disclosure.
      The
      Investor has reviewed the information provided to the Investor by the Company
      in
      connection with the Investor’s decision to purchase the Investor’s Units,
      including but not limited to, the Company’s publicly available filings with the
      Commission and the information contained therein. The Company has provided
      the
      Investor with all the information that the Investor has requested in connection
      with the decision to purchase the Investor’s Units. The Investor further
      represents that the Investor has had an opportunity to ask questions and receive
      answers from the Company regarding the business, properties, prospects, and
      financial condition of the Company. All such questions have been answered to
      the
      full satisfaction of the Investor. Neither such inquiries nor any other
      investigation conducted by or on behalf of the Investor or its representatives
      or counsel shall modify, amend, or affect the Investor’s right to rely on the
      truth, accuracy, and completeness of the disclosure materials and the Company’s
      representations and warranties contained herein.

     

    h. No
      Registration.
      The
      Investor understands that Investor may be required to bear the economic risk
      of
      Investor’s investment in the Company for an indefinite period of time. The
      Investor further understands that (i) neither the offering nor the sale of
      the Investor’s Units has been registered under the Securities Act or any
      applicable State Acts in reliance upon exemptions from the registration
      requirements of such laws, (ii) the Investor’s Units must be held by the
      Investor indefinitely unless the sale or transfer thereof is subsequently
      registered under the Securities Act and any applicable State Acts, or an
      exemption from such registration requirements is available, (iii) except as
      set
      forth in the Registration Rights Agreement, dated as of the date hereof, between
      the Company and the Investor, the Company is under no obligation to register
      any
      of the shares of Common Stock underlying the Investor’s Units on the Investor’s
      behalf or to assist the Investor in complying with any exemption from
      registration, and (iv) the Company will rely upon the representations and
      warranties made by the Investor in this Agreement and the Transaction Documents
      in order to establish such exemptions from the registration requirements of
      the
      Securities Act and any applicable State Acts. 

     

    i. Transfer
      Restrictions.
      The
      Investor will not transfer any of the Investor’s Units or the shares of Common
      Stock underlying the Investor’s Units or the Investor Warrants unless such
      transfer is registered or exempt from registration under the Securities Act
      and
      such State Acts, and, if requested by the Company in the case of an exempt
      transaction, the Investor has furnished an opinion of counsel reasonably
      satisfactory to the Company that such transfer is so exempt. The Investor
      understands and agrees that (i) the certificates evidencing the shares of Common
      Stock underlying the Investor’s Units and the Investor’s Warrants will bear
      appropriate legends indicating such transfer restrictions placed upon the Units
      and shares of Common Stock and Investor Warrants, (ii) the Company shall have
      no
      obligation to honor transfers of any of the Investor’s Units, Investor Warrants
      or shares of Common Stock underlying the Investor’s Units or Investor Warrants
      in violation of such transfer restrictions, and (iii) the Company shall be
      entitled to instruct any transfer agent or agents for the securities of the
      Company to refuse to honor such transfers.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    j. No
      Solicitation.
      The
      Investor (i) did not receive or review any advertisement, article, notice or
      other communication published in a newspaper or magazine or similar media or
      broadcast over television or radio, whether closed circuit, or generally
      available, with respect to the Units or (ii) was not solicited by any person,
      other than by representatives of the Company, with respect to a purchase of
      the
      Units.

     

    k. Principal
      Address.
      The
      Investor’s principal residence, if an individual, or principal executive office,
      if an entity, is set forth on the signature page of this Subscription
      Agreement.

     

    l. Reliance
      by the Company and Modigene.
      The
      Investor acknowledges and consents to the Company’s and Modigene’s reliance on
      the Investor’s representations and warranties made above for purposes of
      complying with all applicable securities laws and any applicable exemptions
      from
      registration requirements thereunder and otherwise.

     

    7. Transfer
      Restrictions.

     

    a. The
      Common Stock and Common Stock issuable upon exercise of the Investor Warrants
      (the “Warrant
      Shares”)
      (the
      Common Stock, Investor Warrants and Warrant Shares are collectively referred
      to
      as the “Securities”)
      may
      only be disposed of in compliance with state and federal securities laws. In
      connection with any transfer of Securities other than pursuant to an effective
      registration statement or Rule 144, the Company may require the transferor
      thereof to provide to the Company an opinion of counsel selected by the
      transferor and reasonably acceptable to the Company, the form and substance
      of
      which opinion shall be reasonably satisfactory to the Company, to the effect
      that such transfer does not require registration of such transferred Securities
      under the Securities Act. As a condition of transfer, any such transferee shall
      agree in writing to be bound by the terms of this Agreement and shall have
      the
      rights of an Investor under this Agreement and the Registration Rights
      Agreement.

     

    b. The
      Investors agree to the imprinting, so long as is required by this Section 7,
      of
      a legend on any of the Securities in substantially the following
      form:

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    c. Certificates
      evidencing the Common Stock and Warrant Shares shall not contain any legend
      (including the legend set forth in Section 7(b)), (i) while a registration
      statement (including the Registration Statement) covering the resale of such
      security is effective under the Securities Act, or (ii) following any sale
      of
      such Common Stock or Warrant Shares pursuant to Rule 144, or (iii) if such
      Common Stock or Warrant Shares are eligible for sale under Rule 144(k), or
      (iv)
      if such legend is not required under applicable requirements of the Securities
      Act (including judicial interpretations and pronouncements issued by the staff
      of the Commission). The Company shall cause its counsel to issue a legal opinion
      to the Company’s transfer agent promptly after the effective date of the
      Registration Statement (the “Effective
      Date”)
      if
      required by the Company’s transfer agent to effect the removal of the legend
      hereunder. If all or any portion of an Investor Warrant is exercised at a time
      when there is an effective registration statement to cover the resale of the
      Warrant Shares, such shares shall be issued free of all legends. The Company
      agrees that following the Effective Date or at such time as such legend is
      no
      longer required under this Section 7(c), it will, five Trading Days
      (“Trading
      Days”
shall
      mean the days on which the Common Stock is traded or quoted on a Trading
      Market). following the delivery by an Investor to the Company or the Company’s
      transfer agent of a certificate representing Common Stock or Warrant Shares,
      as
      the case may be, issued with a restrictive legend (such fifth Trading Day,
      the
“Legend
      Removal Date”),
      deliver or cause to be delivered to such Investor a certificate representing
      such shares that is free from all restrictive and other legends. The Company
      may
      not make any notation on its records or give instructions to any transfer agent
      of the Company that enlarge the restrictions on transfer set forth in this
      Section 7. Upon requests by the Investors, the certificates for Securities
      subject to legend removal hereunder shall be transmitted by the transfer agent
      of the Company to the Investors by crediting the account of the Investor’s prime
      broker with the Depository Trust Company System.

     

    d. In
      addition to such Investor’s other available remedies, the Company shall pay to
      an Investor, in cash, as partial liquidated damages and not as a penalty, for
      each $1,000 of Common Stock or Warrant Shares (based on the VWAP of the Common
      Stock on the date such Securities are submitted to the Company’s transfer agent)
      delivered for removal of the restrictive legend and subject to Section 7(c),
      $10
      per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after
      such damages have begun to accrue) for each Trading Day after the Legend Removal
      Date until such certificate is delivered without a legend. Nothing herein shall
      limit such Investor’s right to pursue actual damages for the Company’s failure
      to deliver certificates representing any Securities as required by the
      Transaction Documents, and such Investor shall have the right to pursue all
      remedies available to it at law or in equity including, without limitation,
      a
      decree of specific performance and/or injunctive relief. For purposes of this
      Section 7(d) “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (i) if the Common Stock is then listed or quoted on a Trading Market,
      the daily volume weighted average price of the Common Stock for such date (or
      the nearest preceding date) on the Trading Market on which the Common Stock
      is
      then listed or quoted for trading as reported by Bloomberg L.P. (based on a
      Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City
      time); (ii)  if the OTC Bulletin Board is not a Trading Market, the volume
      weighted average price of the Common Stock for such date (or the nearest
      preceding date) on the OTC Bulletin Board; (iii) if the Common Stock is not
      then
      quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
      are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
      similar organization or agency succeeding to its functions of reporting prices),
      the most recent bid price per share of the Common Stock so reported; or
      (iv) in all other cases, the fair market value of a share of Common Stock
      as determined by an independent appraiser selected in good faith by the Investor
      and reasonably acceptable to the Company, the fees and expenses of which shall
      be paid by the Company. 

     

    e. Each
      Investor, severally and not jointly with the other Investors, agrees that the
      removal of the restrictive legend from certificates representing Securities
      as
      set forth in this Section 7 is predicated upon the Company’s reliance that the
      Investor will sell any Securities pursuant to either the registration
      requirements of the Securities Act, including any applicable prospectus delivery
      requirements, or an exemption therefrom, and that if Securities are sold
      pursuant to a Registration Statement, they will be sold in compliance with
      the
      plan of distribution set forth therein.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    8. Independent
      Nature of Investor’s Obligations and Rights.
      The
      obligations of the Investor under this Agreement and the Transaction Documents
      are several and not joint with the obligations of any other purchaser of Units
      in the Offering, and the Investor shall not be responsible in any way for the
      performance of the obligations of any other purchaser of Units in the Offering
      under any Transaction Document. The decision of the Investor to purchase the
      Investor’s Units pursuant to the Transaction Documents has been made by the
      Investor independently of any other purchaser of Units in the Offering. Nothing
      contained herein or in any Transaction Document or Investor Warrant, and no
      action taken by any purchaser of Units pursuant thereto, shall be deemed to
      constitute such purchasers as a partnership, an association, a joint venture,
      or
      any other kind of entity, or create a presumption that the purchasers of Units
      are in any way acting in concert or as a group with respect to such obligations
      or the transactions contemplated by the Transaction Documents. The Investor
      acknowledges that no other purchaser of Units has acted as agent for the
      Investor in connection with making its investment hereunder and that no other
      purchaser of Units will be acting as agent of the Investor in connection with
      monitoring its investment in the Units or enforcing its rights under the
      Transaction Documents and Investor Warrants. The Investor shall be entitled
      to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement or out of the other Transaction Documents
      or Investor Warrants, and it shall not be necessary for any other purchaser
      of
      Units to be joined as an additional party in any proceeding for such
      purpose.

     

    9. Prospectus
      Delivery Requirement.
      The
      Investor hereby covenants with the Company not to make any sale of the
      Investor’s Units without complying with the provisions hereof and of the
      Registration Rights Agreement, and without effectively causing the prospectus
      delivery requirement under the Securities Act to be satisfied (unless the
      Investor is selling in a transaction not subject to the prospectus delivery
      requirement). 

     

    10. Stockholder
      Approval.
      The
      Company represents and warrants to the Investor that a vote of the stockholders
      of the Company will not be required to approve the issuance of the Investor’s
      Units.

     

    11. Indemnification
      of Investor.
      In
      addition to the indemnity provided in the Registration Rights Agreement, the
      Company will indemnify and hold the Investor and its directors, officers,
      stockholders, members, managers, partners, employees and agents (each, an
“Investor
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs, and reasonable attorneys’ fees and costs of
      investigation (collectively, “Losses”)
      that
      any such Investor Party may suffer or incur as a result of or relating to any
      misrepresentation, breach, or inaccuracy of any representation, warranty,
      covenant, or agreement made by the Company in any Transaction Document. In
      addition to the indemnity contained herein, the Company will reimburse each
      Investor Party for its reasonable legal and other expenses (including the cost
      of any investigation, preparation, and travel in connection therewith) incurred
      in connection therewith, as such expenses are incurred.

     

    12. Contribution.
      If the
      indemnification under Section 11 is unavailable to an indemnified party or
      insufficient to hold an indemnified party harmless 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 fees or expenses incurred
      by such party in connection with any Action 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.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

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

     

    14. Non-Public
      Information.
      Subsequent to the Closing, the Company covenants and agrees that neither it
      nor
      any other person acting on its behalf will provide Investor or its agents or
      counsel with any information that the Company believes constitutes material
      non-public information, unless prior thereto the Investor shall have executed
      a
      written agreement regarding the confidentiality and use of such information.
      

     

    15. Further
      Assurances.
      The
      parties hereto will, upon reasonable request, execute and deliver all such
      further assignments, endorsements, and other documents as may be necessary
      in
      order to perfect the purchase by the Investor of the Investor’s Units. In
      addition, the Company agrees that it will do all such acts necessary to ensure
      that Canadian residents holding shares will be able to trade such securities
      without resale restrictions under Canadian securities legislation within four
      months from the Merger Effective Date, including, if necessary, all acts in
      order for the Company to become a reporting issuer in a Canadian province or
      territory, which may include the filing and receipting of a prospectus by
      Canadian securities regulatory authorities. 

     

    16. Entire
      Agreement; No Oral Modification.
      This
      Agreement and the other Transaction Documents and Investor Warrants contain
      the
      entire agreement among the parties hereto with respect to the subject matter
      hereof and supersede all prior agreements and understandings with respect
      thereto and this Agreement may not be amended or modified except in a writing
      signed by both of the parties hereto.

     

    17. Amendments
      and Waivers.
      The
      provisions of this Agreement may be amended on or before the Closing Date,
      and
      particular provisions of this Agreement may be waived, with and only with an
      agreement or consent in writing signed by the Company and the majority of
      Investors, unless such provision is specific to an Investor. The Investors
      acknowledge that by the operation of this Section 17, the majority of Investors
      may have the right and power to diminish or eliminate all rights of the
      Investors under this Agreement. 

     

    18. Binding
      Effect; Benefits.
      This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective heirs, successors and assigns; however, nothing in this
      Agreement, expressed or implied, is intended to confer on any other person
      other
      than the parties hereto, or their respective heirs, successors, or assigns,
      any
      rights, remedies, obligations, or liabilities under or by reason of this
      Agreement.

     

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

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    20. Governing
      Law.
      This
      Agreement shall be governed by, and construed and enforced in accordance with,
      the laws of the United States of America and the State of New York, both
      substantive and remedial, without regard to New York conflicts of law
      principles. Any
      judicial proceeding brought against any of the parties to this agreement or
      any
      dispute arising out of this Agreement or any matter related hereto shall be
      brought in the courts of the State of New York, New York County, or in the
      United States District Court for the Southern District of New York and, by
      its
      execution and delivery of this agreement, each party to this Agreement accepts
      the jurisdiction of such courts. 

     

    21. Prevailing
      Parties.
      In any
      action or proceeding brought to enforce any provision of this Agreement, or
      where any provision hereof is validly asserted as a defense, the prevailing
      party shall be entitled to receive and the nonprevailing party shall pay upon
      demand reasonable attorneys’ fees in addition to any other remedy.

     

    22. Notices.
      All
      communication hereunder shall be in writing and shall be mailed, delivered,
      telegraphed or sent by facsimile or electronic mail, and such delivery shall
      be
      confirmed to the addresses as provided below: 

     

    if
      to the
      Investor:

    

    to
      the
      address set forth on the signature page of this Agreement

     

    if
      to the
      Company before the Closing Date:

    

    Modigene
      Inc.

    The
      Europa Center

    100
      Europa Dr., Suite 455

    Chapel
      Hill, NC 27517-2369

    Attn:
      Peter L. Coker, Sr., President

    Facsimile:
      (919) 933-2730

     

    with
      copy
      to: 

    

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      New York 10022

    Attention:
      Kenneth S. Goodwin, Esq.

    Facsimile:
      (212) 400-6901

    

    if
      to
      Modigene or to the Company after the Closing Date, to: 

    

    Modigene
      Inc.

    8000
      Towers Crescent Drive

    Suite
      1300

    Vienna,
      VA 22182

    Attention:
      Shai Novik, President

    Facsimile:
      (703) 288-0070

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    with
      a
      copy to:

    

    Barack
      Ferrazzano Kirschbaum Perlman & Nagelberg LLP

    333
      West
      Wacker Drive, Suite 2700

    Chicago,
      IL 60606

    Attn:
      Gretchen Trofa, Esq.

    Facsimile:
      (312) 984-3150

    

    After
      June 30, 2007:

    

    200
      West
      Madison Street, Suite 3900

    Chicago,
      IL 60606

    

    23. Headings.
      The
      section headings herein are included for convenience only and are not to be
      deemed a part of this Agreement.

     

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	
              MODIGENE
                INC.,
                a
                Nevada corporation

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Peter L. Coker, Sr., President 

              Its: President

            

    

     

    [SIGNATURE
      PAGES OF MODIGENE AND INVESTOR FOLLOW]

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	
              MODIGENE
                INC.,
                a Delaware corporation

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Shai Novik

              Its: President

            

    

     

    [SIGNATURE
      PAGE OF INVESTOR FOR SUBSCRIPTION AGREEMENT FOLLOWS]

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

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

    

      
        	
                INVESTOR
                  (individual)

              	 	
                INVESTOR
                  (entity)

              
	 	 	 
	 	 	 
	
                Signature

              	 	
                Name
                  of Entity

              
	 	 	 
	 	 	 
	
                Print
                  Name

              	 	
                Signature

              
	 	 	 
	
                Address
                  of Principal Residence:

              	 	 

      

      
        
          	 	
                	
                  Print
                    Name:    

                	 
	 	 	 	 

        

      

      
        
          	 	
                	
                  Title:
                    

                	 

        

      

      
        	 	 	 
	
                Social
                  Security Number:

              	 	
                Address
                  of Executive Offices:

              
	 	 	 
	 	 	 
	
                Telephone
                  Number:

              	 	 
	 	 	 
	 	 	 
	
                Facsimile
                  Number:

              	 	
                IRS
                  Tax Identification Number:

              
	 	 	 
	 	 	 
	 	 	
                Telephone
                  Number:

              
	 	 	 
	 	 	 
	 	 	
                Facsimile
                  Number:

              
	 	 	 
	 	 	 
	 	 	
                Email
                  Address:

              
	 	 	 

      

    

    

      
        	
                 

              	
                X

              	
                $1.50

              	
                =

              	
                $

              
	
                Number
                  of Units

              	 	
                Price
                  per Unit

              	 	
                Purchase
                  Price

              

      

    

    

    [SIGNATURE
      PAGE OF INVESTOR FOR REGISTRATION RIGHTS AGREEMENT
      FOLLOWS]

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    This
      Registration Rights Agreement is hereby executed as of the date first above
      written.

    

    
      	 	
              PURCHASER
                (Individual)

            
	 	 
	 	 
	 	 
	 	
              (Print
                Name)

            
	 	 
	 	
              PURCHASER
                (Entity)

            
	 	
               

              By:

            	 
	 	 
	 	
              Name:

            	 
	 	
               

              Its:

            	
              (Print
                Name)

            
	 	 	
              (Print
                Title)

            

    

     

    
      
        
        

      

      
        2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]