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Unassociated Document

    

     

    

     

    

    THIS
      WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGIS-TERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS OTHERWISE
      SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF DECEMBER
      1,
      2006, NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED
      OR
      ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRA-TION STATEMENT FOR SUCH
      SECURITIES UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND
      SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT
      REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE
      144
      OR REGULATION S UNDER SUCH ACT.

     

    
      	 	
              Right
                to Purchase 10,000,000 Shares of Common Stock, $.005 par value per
                share

            

    

    STOCK
      PURCHASE WARRANT

     

    THIS
      CERTIFIES THAT,
      for
      value received, AJW OFFSHORE, LTD. or its registered assigns, is entitled to
      purchase from GlobalNet Corporation, a Nevada corporation (the “Company”), at
      any time or from time to time during the period specified in Paragraph 2
      hereof, 10,000,000 fully paid and nonassessable shares of the Company’s Common
      Stock, $.005 par value per share (the “Common Stock”), at an exercise price per
      share equal to $.0002 (the “Exercise Price”). The term “Warrant Shares,” as used
      herein, refers to the shares of Common Stock purchasable hereunder. The Warrant
      Shares and the Exercise Price are subject to adjustment as provided in Paragraph
      4 hereof. The term “Warrants” means this Warrant and the other warrants issued
      pursuant to that certain Securities Purchase Agreement, dated December 1, 2006,
      by and among the Company and the Buyers listed on the execution page thereof
      (the “Securities Purchase Agreement”), including any additional warrants
      issuable pursuant to Section 4(l) thereof. 

     

    This
      Warrant is subject to the following terms, provisions, and conditions:

     

    1. Manner
      of Exercise; Issuance of Certificates; Payment for Shares. 
Subject
      to the provisions hereof and Stockholder Approval (as defined in Section 4(k)
      of
      the Securities Purchase Agreement), this Warrant may be exercised by the holder
      hereof, in whole or in part, by the surrender of this Warrant, together with
      a
      completed exercise agreement in the form attached hereto (the “Exercise
      Agreement”), to the Company during normal business hours on any business day at
      the Company’s principal executive offices (or such other office or agency of the
      Company as it may designate by notice to the holder hereof), and upon (i)
      payment to the Company in cash, by certified or offi-cial bank check or by
      wire
      transfer for the account of the Company of the Exercise Price for the Warrant
      Shares specified in the Exercise Agreement or (ii) if the resale of the Warrant
      Shares by the holder is not then registered pursuant to an effective
      registration statement under the Securities Act of 1933, as amended (the
“Securities Act”), delivery to the Company of a written notice of an election to
      effect a “Cashless Exercise” (as defined in Section 11(c) below) for the Warrant
      Shares specified in the Exercise Agreement. The Warrant Shares so purchased
      shall be deemed to be issued to the holder hereof or such holder’s designee, as
      the record owner of such shares, as of the close of business on the date on
      which this Warrant shall have been surrendered, the completed Exercise Agreement
      shall have been deliv-ered, and payment shall have been made for such shares
      as
      set forth above. Certifi-cates for the Warrant Shares so purchased, representing
      the aggregate number of shares specified in the Exercise Agreement, shall be
      delivered to the holder hereof within a reasonable time, not exceeding three
      (3)
      business days, after this Warrant shall have been so exercised. The certificates
      so delivered shall be in such denominations as may be requested by the holder
      hereof and shall be registered in the name of such holder or such other name
      as
      shall be designated by such holder. If this Warrant shall have been exercised
      only in part, then, unless this Warrant has expired, the Company shall, at
      its
      expense, at the time of delivery of such certificates, deliver to the holder
      a
      new Warrant representing the number of shares with respect to which this Warrant
      shall not then have been exercised. In addition to all other available remedies
      at law or in equity, if the Company fails to deliver certificates for the
      Warrant Shares within three (3) business days after this Warrant is exercised,
      then the Company shall pay to the holder in cash a penalty (the “Penalty”) equal
      to 2% of the number of Warrant Shares that 2-01-06the holder is entitled to
      multiplied by the Market Price (as hereinafter defined) for each day that the
      Company fails to deliver certificates for the Warrant Shares. For example,
      if
      the holder is entitled to 100,000 Warrant Shares and the Market Price is $2.00,
      then the Company shall pay to the holder $4,000 for each day that the Company
      fails to deliver certificates for the Warrant Shares. The Penalty shall be
      paid
      to the holder by the fifth day of the month following the month in which it
      has
      accrued.

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      Notwithstanding
        anything in this Warrant to the contrary, in no event shall the holder of
        this
        Warrant be entitled to exercise a number of Warrants (or portions thereof)
        in
        excess of the number of Warrants (or portions thereof) upon exercise of which
        the sum of (i) the number of shares of Common Stock beneficially owned by
        the
        holder and its affiliates (other than shares of Common Stock which may be
        deemed
        beneficially owned through the ownership of the unexercised Warrants and
        the
        unexercised or unconverted portion of any other securities of the Company
        (including the Notes (as defined in the Securities Purchase Agreement)) subject
        to a limitation on conversion or exercise analogous to the limitation contained
        herein) and (ii) the number of shares of Common Stock issuable upon exercise
        of
        the Warrants (or portions thereof) with respect to which the determination
        described herein is being made, would result in beneficial ownership by the
        holder and its affiliates of more than 4.9% of the outstanding shares of
        Common
        Stock. For purposes of the immediately preceding sentence, beneficial ownership
        shall be determined in accordance with Section 13(d) of the Securities Exchange
        Act of 1934, as amended, and Regulation 13D-G thereunder, except as otherwise
        provided in clause (i) of the preceding sentence. Notwithstanding anything
        to
        the contrary contained herein, the limitation on exercise of this Warrant
        set
        forth herein may not be amended without (i) the written consent of the holder
        hereof and the Company and (ii) the approval of a majority of shareholders
        of
        the Company.

       

      
        
           

        

        
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      2. Period
        of Exercise.  This
        Warrant is exercisable at any time or from time to time on or after the date
        on
        which this Warrant is issued and delivered pursuant to the terms of the
        Securities Purchase Agreement and before 6:00 p.m., New York, New York time
        on
        the seventh (7th)
        anniversary of the date of issuance (the “Exercise Period”).

       

      3. Certain
        Agreements of the Company.  The
        Company hereby covenants and agrees as follows:

       

      (a) Shares
        to be Fully Paid.
        All
        Warrant Shares will, upon issuance in accordance with the terms of this Warrant,
        be validly issued, fully paid, and nonassessable and free from all taxes,
        liens,
        and charges with respect to the issue thereof.

       

      (b) Reservation
        of Shares.
        Subject
        to Stockholder Approval (as defined in Section 4(k) of the Securities Purchase
        Agreement), during the Exercise Period, the Company shall at all times have
        authorized, and reserved for the purpose of issuance upon exercise of this
        Warrant, a suf-ficient number of shares of Common Stock to provide for the
        exercise of this Warrant.

       

      (c) Listing.
        The
        Company shall promptly secure the listing of the shares of Common Stock issuable
        upon exercise of the Warrant upon each national securities exchange or automated
        quotation system, if any, upon which shares of Common Stock are then listed
        (subject to official notice of issuance upon exercise of this Warrant) and
        shall
        maintain, so long as any other shares of Common Stock shall be so listed,
        such
        listing of all shares of Common Stock from time to time issuable upon the
        exercise of this Warrant; and the Company shall so list on each national
        securities exchange or automated quotation system, as the case may be, and
        shall
        maintain such listing of, any other shares of capital stock of the Company
        issuable upon the exercise of this Warrant if and so long as any shares of
        the
        same class shall be listed on such national securities exchange or automated
        quotation system.

       

      (d) Certain
        Actions Prohibited.
        The
        Company will not, by amendment of its charter or through any re-organi-zation,
        transfer of assets, consolidation, mer-ger, dissolution, issue or sale of
        securities, or any other voluntary action, avoid or seek to avoid the observance
        or performance of any of the terms to be observed or performed by it hereunder,
        but will at all times in good faith assist in the carrying out of all the
        provisions of this Warrant and in the taking of all such action as may
        reasonably be requested by the holder of this Warrant in order to protect
        the
        exercise privilege of the holder of this Warrant against dilu-tion or other
        impairment, consistent with the tenor and purpose of this Warrant. Without
        limiting the general-ity of the foregoing, the Company (i) will not increase
        the
        par value of any shares of Common Stock receivable upon the exercise of this
        Warrant above the Exercise Price then in effect, and (ii) will take all such
        actions as may be necessary or appropriate in order that the Company may
        validly
        and legally issue fully paid and nonassessable shares of Common Stock upon
        the
        exercise of this Warrant.

       

      (e) Successors
        and Assigns.
        This
        Warrant will be binding upon any entity succeeding to the Company by merger,
        consolidation, or acquisition of all or sub-stantially all the Company’s
        assets.

       

      4. Antidilution
        Provisions.   During
        the Exercise Period, the Exercise Price and the number of Warrant Shares
        shall
        be subject to adjustment from time to time as provided in this Paragraph
        4.

       

      
        
           

        

        
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      In
        the
        event that any adjustment of the Exercise Price as required herein results
        in a
        fraction of a cent, such Exercise Price shall be rounded up to the nearest
        cent.

       

      (a) Adjustment
        of Exercise Price and Number of Shares upon Issuance of Common
        Stock.
        Except
        as otherwise provided in Paragraphs 4(c) and 4(e) hereof, if and whenever
        on or
        after the date of issuance of this Warrant, the Company issues or sells,
        or in
        accordance with Paragraph 4(b) hereof is deemed to have issued or sold, any
        shares of Common Stock for no consideration or for a consideration per share
        (before deduction of reasonable expenses or commissions or underwriting
        discounts or allowances in connection therewith) less than the Market Price
        on
        the date of issuance (a “Dilutive Issuance”), then immediately upon the Dilutive
        Issuance, the Exercise Price will be reduced to a price determined by
        multiplying the Exercise Price in effect immediately prior to the Dilutive
        Issuance by a fraction, (i) the numerator of which is an amount equal to
        the sum
        of (x) the number of shares of Common Stock actually outstanding immediately
        prior to the Dilutive Issuance, plus (y) the quotient of the aggregate
        consideration, calculated as set forth in Paragraph 4(b) hereof, received
        by the
        Company upon such Dilutive Issuance divided by the Market Price in effect
        immediately prior to the Dilutive Issuance, and (ii) the denominator of which
        is
        the total number of shares of Common Stock Deemed Outstanding (as defined
        below)
        immediately after the Dilutive Issuance. 

       

      (b) Effect
        on Exercise Price of Certain Events.
        For
        purposes of determining the adjusted Exercise Price under Paragraph 4(a)
        hereof,
        the following will be applicable:

       

      (i) Issuance
        of Rights or Options.
        If the
        Company in any manner issues or grants any warrants, rights or options, whether
        or not immediately exercisable, to subscribe for or to purchase Common Stock
        or
        other securities convertible into or exchangeable for Common Stock (“Convertible
        Securities”) (such warrants, rights and options to purchase Common Stock or
        Convertible Securities are hereinafter referred to as “Options”) and the price
        per share for which Common Stock is issuable upon the exercise of such Options
        is less than the Market Price on the date of issuance or grant of such Options,
        then the maximum total number of shares of Common Stock issuable upon the
        exercise of all such Options will, as of the date of the issuance or grant
        of
        such Options, be deemed to be outstanding and to have been issued and sold
        by
        the Company for such price per share. For purposes of the preceding sentence,
        the “price per share for which Common Stock is issuable upon the exercise of
        such Options” is determined by dividing (i) the total amount, if any, received
        or receivable by the Company as consideration for the issuance or granting
        of
        all such Options, plus the minimum aggregate amount of additional consideration,
        if any, payable to the Company upon the exercise of all such Options, plus,
        in
        the case of Convertible Securities issuable upon the exercise of such Options,
        the minimum aggregate amount of additional consideration payable upon the
        conversion or exchange thereof at the time such Convertible Securities first
        become convertible or exchangeable, by (ii) the maximum total number of shares
        of Common Stock issuable upon the exercise of all such Options (assuming
        full
        conversion of Convertible Securities, if applicable). No further adjustment
        to
        the Exercise Price will be made upon the actual issuance of such Common Stock
        upon the exercise of such Options or upon the conversion or exchange of
        Convertible Securities issuable upon exercise of such Options.

       

      
        
           

        

        
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      (ii) Issuance
        of Convertible Securities.
        If the
        Company in any manner issues or sells any Convertible Securities, whether
        or not
        immediately convertible (other than where the same are issuable upon the
        exercise of Options) and the price per share for which Common Stock is issuable
        upon such conversion or exchange is less than the Market Price on the date
        of
        issuance, then the maximum total number of shares of Common Stock issuable
        upon
        the conversion or exchange of all such Convertible Securities will, as of
        the
        date of the issuance of such Convertible Securities, be deemed to be outstanding
        and to have been issued and sold by the Company for such price per share.
        For
        the purposes of the preceding sentence, the “price per share for which Common
        Stock is issuable upon such conversion or exchange” is determined by dividing
        (i) the total amount, if any, received or receivable by the Company as
        consideration for the issuance or sale of all such Convertible Securities,
        plus
        the minimum aggregate amount of additional consideration, if any, payable
        to the
        Company upon the conversion or exchange thereof at the time such Convertible
        Securities first become convertible or exchangeable, by (ii) the maximum
        total
        number of shares of Common Stock issuable upon the conversion or exchange
        of all
        such Convertible Securities. No further adjustment to the Exercise Price
        will be
        made upon the actual issuance of such Common Stock upon conversion or exchange
        of such Convertible Securities.

       

      (iii) Change
        in Option Price or Conversion Rate.
        If there
        is a change at any time in (i) the amount of additional consideration payable
        to
        the Company upon the exercise of any Options; (ii) the amount of additional
        consideration, if any, payable to the Company upon the conversion or exchange
        of
        any Convertible Securities; or (iii) the rate at which any Convertible
        Securities are convertible into or exchangeable for Common Stock (other than
        under or by reason of provisions designed to protect against dilution), the
        Exercise Price in effect at the time of such change will be readjusted to
        the
        Exercise Price which would have been in effect at such time had such Options
        or
        Convertible Securities still outstanding provided for such changed additional
        consideration or changed conversion rate, as the case may be, at the time
        initially granted, issued or sold.

       

      (iv) Treatment
        of Expired Options and Unexercised Convertible
        Securities.
        If, in
        any case, the total number of shares of Common Stock issuable upon exercise
        of
        any Option or upon conversion or exchange of any Convertible Securities is
        not,
        in fact, issued and the rights to exercise such Option or to convert or exchange
        such Convertible Securities shall have expired or terminated, the Exercise
        Price
        then in effect will be readjusted to the Exercise Price which would have
        been in
        effect at the time of such expiration or termination had such Option or
        Convertible Securities, to the extent outstanding immediately prior to such
        expiration or termination (other than in respect of the actual number of
        shares
        of Common Stock issued upon exercise or conversion thereof), never been
        issued.

       

      (v) Calculation
        of Consideration Received.
        If any
        Common Stock, Options or Convertible Securities are issued, granted or sold
        for
        cash, the consideration received therefor for purposes of this Warrant will
        be
        the amount received by the Company therefor, before deduction of reasonable
        commissions, underwriting discounts or allowances or other reasonable expenses
        paid or incurred by the Company in connection with such issuance, grant or
        sale.
        In case any Common Stock, Options or Convertible Securities are issued or
        sold
        for a consideration part or all of which shall be other than cash, the amount
        of
        the consideration other than cash received by the Company will be the fair
        value
        of such consideration, except where such consideration consists of securities,
        in which case the amount of consideration received by the Company will be
        the
        Market Price thereof as of the date of receipt. In case any Common Stock,
        Options or Convertible Securities are issued in connection with any acquisition,
        merger or consolidation in which the Company is the surviving corporation,
        the
        amount of consideration therefor will be deemed to be the fair value of such
        portion of the net assets and business of the non-surviving corporation as
        is
        attributable to such Common Stock, Options or Convertible Securities, as
        the
        case may be. The fair value of any consideration other than cash or securities
        will be determined in good faith by the Board of Directors of the
        Company.

       

      
        
           

        

        
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      (vi) Exceptions
        to Adjustment of Exercise Price.
        No
        adjustment to the Exercise Price will be made (i) upon the exercise of any
        warrants, options or convertible securities granted, issued and outstanding
        on
        the date of issuance of this Warrant; (ii) upon the grant or exercise of
        any
        stock or options which may hereafter be granted or exercised under any employee
        benefit plan, stock option plan or restricted stock plan of the Company now
        existing or to be implemented in the future, so long as the issuance of such
        stock or options is approved by a majority of the independent members of
        the
        Board of Directors of the Company or a majority of the members of a committee
        of
        independent directors established for such purpose; or (iii) upon the exercise
        of the Warrants.

       

      (c) Subdivision
        or Combination of Common Stock.
        If the
        Company at any time subdivides (by any stock split, stock dividend,
        recapitalization, reorganization, reclassification or otherwise) the shares
        of
        Common Stock acquirable hereunder into a greater number of shares, then,
        after
        the date of record for effecting such subdivision, the Exercise Price in
        effect
        immediately prior to such subdivision will be proportionately reduced. If
        the
        Company at any time combines (by reverse stock split, recapitalization,
        reorganization, reclassification or otherwise) the shares of Common Stock
        acquirable hereunder into a smaller number of shares, then, after the date
        of
        record for effecting such combination, the Exercise Price in effect immediately
        prior to such combination will be proportionately increased.

       

      (d) Adjustment
        in Number of Shares.
        Upon
        each adjustment of the Exercise Price pursuant to the provisions of this
        Paragraph 4, the number of shares of Common Stock issuable upon exercise
        of this
        Warrant shall be adjusted by multiplying a number equal to the Exercise Price
        in
        effect immediately prior to such adjustment by the number of shares of Common
        Stock issuable upon exercise of this Warrant immediately prior to such
        adjustment and dividing the product so obtained by the adjusted Exercise
        Price.

       

      (e) Consolidation,
        Merger or Sale.
        In case
        of any consolidation of the Company with, or merger of the Company into any
        other corporation, or in case of any sale or conveyance of all or substantially
        all of the assets of the Company other than in connection with a plan of
        complete liquidation of the Company, then as a condition of such consolidation,
        merger or sale or conveyance, adequate provision will be made whereby the
        holder
        of this Warrant will have the right to acquire and receive upon exercise
        of this
        Warrant in lieu of the shares of Common Stock immediately theretofore acquirable
        upon the exercise of this Warrant, such shares of stock, securities or assets
        as
        may be issued or payable with respect to or in exchange for the number of
        shares
        of Common Stock immediately theretofore acquirable and receivable upon exercise
        of this Warrant had such consolidation, merger or sale or conveyance not
        taken
        place. In any such case, the Company will make appropriate provision to insure
        that the provisions of this Paragraph 4 hereof will thereafter be applicable
        as
        nearly as may be in relation to any shares of stock or securities thereafter
        deliverable upon the exercise of this Warrant. The Company will not effect
        any
        consolidation, merger or sale or conveyance unless prior to the consummation
        thereof, the successor corporation (if other than the Company) assumes by
        written instrument the obligations under this Paragraph 4 and the obligations
        to
        deliver to the holder of this Warrant such shares of stock, securities or
        assets
        as, in accordance with the foregoing provisions, the holder may be entitled
        to
        acquire.

       

      
        
           

        

        
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      (f) Distribution
        of Assets.
        In case
        the Company shall declare or make any distribution of its assets (including
        cash) to holders of Common Stock as a partial liquidating dividend, by way
        of
        return of capital or otherwise, then, after the date of record for determining
        shareholders entitled to such distribution, but prior to the date of
        distribution, the holder of this Warrant shall be entitled upon exercise
        of this
        Warrant for the purchase of any or all of the shares of Common Stock subject
        hereto, to receive the amount of such assets which would have been payable
        to
        the holder had such holder been the holder of such shares of Common Stock
        on the
        record date for the determination of shareholders entitled to such
        distribution.

       

      (g) Notice
        of Adjustment.
        Upon the
        occurrence of any event which requires any adjustment of the Exercise Price,
        then, and in each such case, the Company shall give notice thereof to the
        holder
        of this Warrant, which notice shall state the Exercise Price resulting from
        such
        adjustment and the increase or decrease in the number of Warrant Shares
        purchasable at such price upon exercise, setting forth in reasonable detail
        the
        method of calculation and the facts upon which such calculation is based.
        Such
        calculation shall be certified by the Chief Financial Officer of the
        Company.

       

      (h) Minimum
        Adjustment of Exercise Price.
        No
        adjustment of the Exercise Price shall be made in an amount of less than
        1% of
        the Exercise Price in effect at the time such adjustment is otherwise required
        to be made, but any such lesser adjustment shall be carried forward and shall
        be
        made at the time and together with the next subsequent adjustment which,
        together with any adjustments so carried forward, shall amount to not less
        than
        1% of such Exercise Price.

       

      (i) No
        Fractional Shares.
        No
        fractional shares of Common Stock are to be issued upon the exercise of this
        Warrant, but the Company shall pay a cash adjustment in respect of any
        fractional share which would otherwise be issuable in an amount equal to
        the
        same fraction of the Market Price of a share of Common Stock on the date
        of such
        exercise.

       

      (j) Other
        Notices.
        In case
        at any time:

       

      (i) the
        Company shall declare any dividend upon the Common Stock payable in shares
        of
        stock of any class or make any other distribution (including dividends or
        distributions payable in cash out of retained earnings) to the holders of
        the
        Common Stock;

       

      (ii) the
        Company shall offer for subscription pro rata to the holders of the Common
        Stock
        any additional shares of stock of any class or other rights;

       

      (iii) there
        shall be any capital reorganiza-tion of the Company, or reclassification
        of the
        Common Stock, or consolidation or merger of the Company with or into, or
        sale of
        all or substan-tially all its assets to, another corporation or entity;
        or

       

      (iv) there
        shall be a voluntary or involun-tary dissolution, liquidation or winding
        up of
        the Company;

       

      
        
           

        

        
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      then,
        in
        each such case, the Company shall give to the holder of this Warrant (a)
        notice
        of the date on which the books of the Company shall close or a record shall
        be
        taken for determining the holders of Common Stock entitled to receive any
        such
        divi-dend, distribution, or subscription rights or for determining the holders
        of Common Stock entitled to vote in respect of any such reorganization,
        reclassification, consolidation, merger, sale, dissolution, liquidation or
        winding-up and (b) in the case of any such reorganization, reclassification,
        consolidation, merger, sale, dissolution, liquidation or winding-up, notice
        of
        the date (or, if not then known, a reasonable approximation thereof by the
        Company) when the same shall take place. Such notice shall also specify the
        date
        on which the holders of Common Stock shall be entitled to receive such dividend,
        distribution, or subscription rights or to exchange their Common Stock for
        stock
        or other securities or property deliverable upon such reorganization,
        re-classification, consolidation, merger, sale, dissolution, liquidation,
        or
        winding-up, as the case may be. Such notice shall be given at least 30 days
        prior to the record date or the date on which the Company’s books are closed in
        respect thereto. Failure to give any such notice or any defect therein shall
        not
        affect the validity of the proceedings referred to in clauses (i), (ii),
        (iii)
        and (iv) above.

       

      (k) Certain
        Events.
        If any
        event occurs of the type contemplated by the adjustment provisions of this
        Paragraph 4 but not expressly provided for by such provisions, the Company
        will
        give notice of such event as provided in Paragraph 4(g) hereof, and the
        Company’s Board of Directors will make an appropriate adjustment in the Exercise
        Price and the number of shares of Common Stock acquirable upon exercise of
        this
        Warrant so that the rights of the holder shall be neither enhanced nor
        diminished by such event.

       

      (l) Certain
        Definitions. 

       

      (i) “Common
        Stock Deemed Outstanding”
        shall
        mean the number of shares of Common Stock actually outstanding (not including
        shares of Common Stock held in the treasury of the Company), plus (x) pursuant
        to Paragraph 4(b)(i) hereof, the maximum total number of shares of Common
        Stock
        issuable upon the exercise of Options, as of the date of such issuance or
        grant
        of such Options, if any, and (y) pursuant to Paragraph 4(b)(ii) hereof, the
        maximum total number of shares of Common Stock issuable upon conversion or
        exchange of Convertible Securities, as of the date of issuance of such
        Convertible Securities, if any. 

       

      (ii) “Market
        Price,”
        as of
        any date, (i) means the average of the last reported sale prices for the
        shares
        of Common Stock on the OTCBB for the five (5) Trading Days immediately preceding
        such date as reported by Bloomberg, or (ii) if the OTCBB is not the principal
        trading market for the shares of Common Stock, the average of the last reported
        sale prices on the principal trading market for the Common Stock during the
        same
        period as reported by Bloomberg, or (iii) if market value cannot be calculated
        as of such date on any of the foregoing bases, the Market Price shall be
        the
        fair market value as reasonably determined in good faith by (a) the Board
        of
        Directors of the Company or, at the option of a majority-in-interest of the
        holders of the outstanding Warrants by (b) an independent investment bank
        of
        nationally recognized standing in the valuation of businesses similar to
        the
        business of the corporation. The manner of determining the Market Price of
        the
        Common Stock set forth in the foregoing definition shall apply with respect
        to
        any other security in respect of which a determination as to market value
        must
        be made hereunder.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (iii) “Common
        Stock,”
        for
        purposes of this Paragraph 4, includes the Common Stock, par value $.005
        per
        share, and any additional class of stock of the Company having no preference
        as
        to dividends or distributions on liquidation, provided that the shares
        purchasable pursuant to this Warrant shall include only shares of Common
        Stock,
        par value $.005 per share, in respect of which this Warrant is exercisable,
        or
        shares resulting from any subdivision or combination of such Common Stock,
        or in
        the case of any reorganization, reclassification, consolidation, merger,
        or sale
        of the character referred to in Paragraph 4(e) hereof, the stock or other
        securities or property provided for in such Paragraph.

       

      5. Issue
        Tax.  The
        issuance of certificates for Warrant Shares upon the exercise of this Warrant
        shall be made without charge to the holder of this Warrant or such shares
        for
        any issuance tax or other costs in respect thereof, provided that the Company
        shall not be required to pay any tax which may be payable in respect of any
        transfer involved in the issuance and delivery of any certificate in a name
        other than the holder of this Warrant.

       

      6. No
        Rights or Liabilities as a Shareholder.  This
        Warrant shall not entitle the holder hereof to any voting rights or other
        rights
        as a shareholder of the Company. No provision of this Warrant, in the absence
        of
        affirmative action by the holder hereof to purchase Warrant Shares, and no
        mere
        enumeration herein of the rights or privileges of the holder hereof, shall
        give
        rise to any liability of such holder for the Exercise Price or as a shareholder
        of the Company, whether such liability is asserted by the Company or by
        creditors of the Company.

       

      7. Transfer,
        Exchange, and Replacement of Warrant.

       

      (a) Restriction
        on Transfer.
        This
        Warrant and the rights granted to the holder hereof are transferable, in
        whole
        or in part, upon surrender of this Warrant, together with a properly executed
        assignment in the form attached hereto, at the office or agency of the Company
        referred to in Paragraph 7(e) below, pro-vided, however, that any transfer
        or assignment shall be subject to the conditions set forth in Paragraph 7(f)
        hereof and to the applicable provisions of the Securities Purchase Agreement.
        Until due presentment for registration of transfer on the books of the Company,
        the Company may treat the registered holder hereof as the owner and holder
        hereof for all purposes, and the Company shall not be affected by any notice
        to
        the con-trary. Notwithstanding anything to the contrary contained herein,
        the
        registration rights described in Paragraph 8 are assignable only in accordance
        with the provisions of that certain Registration Rights Agreement, dated
        December 1, 2006, by and among the Company and the other signatories thereto
        (the “Registration Rights Agreement”).

       

      (b) Warrant
        Exchangeable for Different Denomina-tions.
        This
        Warrant is exchange-able, upon the surrender hereof by the holder hereof
        at the
        office or agency of the Company referred to in Paragraph 7(e) below, for
        new
        Warrants of like tenor representing in the aggregate the right to purchase
        the
        number of shares of Common Stock which may be purchased hereunder, each of
        such
        new Warrants to represent the right to purchase such number of shares as
        shall
        be designated by the holder hereof at the time of such surrender.

       

      (c) Replacement
        of Warrant.
        Upon
        receipt of evi-dence reasonably satisfactory to the Company of the loss,
        theft,
        destruction, or mutilation of this Warrant and, in the case of any such loss,
        theft, or destruc-tion, upon delivery of an indemnity agreement reason-ably
        satisfactory in form and amount to the Company, or, in the case of any such
        mutilation, upon surrender and cancellation of this Warrant, the Company,
        at its
        expense, will execute and deliver, in lieu thereof, a new Warrant of like
        tenor.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (d) Cancellation;
        Payment of Expenses.
        Upon the
        surrender of this Warrant in connection with any trans-fer, exchange, or
        replacement as provided in this Paragraph 7, this Warrant shall be promptly
        canceled by the Company. The Company shall pay all taxes (other than securities
        transfer taxes) and all other expenses (other than legal expenses, if any,
        incurred by the holder or transferees) and charges payable in connection
        with
        the preparation, execution, and delivery of Warrants pursuant to this Paragraph
        7.

       

      (e) Register.
        The
        Company shall maintain, at its principal executive offices (or such other
        office
        or agency of the Company as it may designate by notice to the holder hereof),
        a
        register for this Warrant, in which the Company shall record the name and
        address of the person in whose name this Warrant has been issued, as well
        as the
        name and address of each transferee and each prior owner of this
        Warrant.

       

      (f) Exercise
        or Transfer Without Registration.
        If, at
        the time of the surrender of this Warrant in connection with any exercise,
        transfer, or exchange of this Warrant, this Warrant (or, in the case of any
        exercise, the Warrant Shares issuable hereunder), shall not be registered
        under
        the Securities Act of 1933, as amended (the “Securities Act”) and under
        applicable state securities or blue sky laws, the Company may require, as
        a
        condition of allowing such exercise, transfer, or exchange, (i) that the
        holder
        or transferee of this Warrant, as the case may be, furnish to the Company
        a
        written opinion of counsel, which opinion and counsel are acceptable to the
        Company, to the effect that such exercise, transfer, or exchange may be made
        without registration under said Act and under applicable state securities
        or
        blue sky laws, (ii) that the holder or transferee execute and deliver to
        the
        Company an investment letter in form and substance acceptable to the Company
        and
        (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)
        promulgated under the Securities Act; provided that no such opinion, letter
        or
        status as an “accredited investor” shall be required in connection with a
        transfer pursuant to Rule 144 under the Securities Act. The first holder
        of this
        Warrant, by taking and holding the same, represents to the Company that such
        holder is acquiring this Warrant for investment and not with a view to the
        distribution thereof. 

       

      8. Registration
        Rights.   The
        initial holder of this Warrant (and certain assignees thereof) is entitled
        to
        the benefit of such registration rights in respect of the Warrant Shares
        as are
        set forth in Section 2 of the Registration Rights Agreement.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      9. Notices. 
        All
        notices, requests, and other communications required or permitted to be given
        or
        delivered hereunder to the holder of this Warrant shall be in writing, and
        shall
        be personally delivered, or shall be sent by certified or registered mail
        or by
        recognized overnight mail courier, postage prepaid and addressed, to such
        holder
        at the address shown for such holder on the books of the Company, or at such
        other address as shall have been furnished to the Company by notice from
        such
        holder. All notices, requests, and other communications required or permitted
        to
        be given or delivered hereunder to the Company shall be in writing, and shall
        be
        personally delivered, or shall be sent by certified or registered mail or
        by
        recognized overnight mail courier, postage prepaid and addressed, to the
        office
        of the Company at 2616 South Loop West, Suite 660, Houston, Texas 77054,
        Attention: Chief Executive Officer, or at such other address as shall have
        been
        furnished to the holder of this Warrant by notice from the Company. Any such
        notice, request, or other communication may be sent by facsimile, but shall
        in
        such case be subsequently confirmed by a writing personally delivered or
        sent by
        certified or registered mail or by recognized overnight mail courier as provided
        above. All notices, requests, and other communications shall be deemed to
        have
        been given either at the time of the receipt thereof by the person entitled
        to
        re-ceive such notice at the address of such person for purposes of this
        Paragraph 9, or, if mailed by registered or certified mail or with a recognized
        overnight mail courier upon deposit with the United States Post Office or
        such
        overnight mail courier, if postage is prepaid and the mailing is properly
        addressed, as the case may be.

       

      10. Governing
        Law.  THIS
        WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
        ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT
        OF
        LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
        UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO
        ANY
        DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN CONNECTION
        HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
        IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
        OF
        SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
        UPON
        A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
        SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING
        HEREIN
        SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
        BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
        SUIT
        OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
        BY
        SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES
        NOT
        PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL BE RESPONSIBLE FOR
        ALL
        FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
        IN CONNECTION WITH SUCH DISPUTE.

       

      11. Miscellaneous.

       

      (a) Amendments.
        This
        Warrant and any provision hereof may only be amended by an instrument in
        writing
        signed by the Company and the holder hereof.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (b) Descriptive
        Headings.
        The
        descriptive headings of the several paragraphs of this Warrant are in-serted
        for
        purposes of reference only, and shall not affect the meaning or construction
        of
        any of the provisions hereof.

       

      (c) Cashless
        Exercise.
        Notwithstanding anything to the contrary contained in this Warrant, if the
        resale of the Warrant Shares by the holder is not then registered pursuant
        to an
        effective registration statement under the Securities Act, this Warrant may
        be
        exercised by presentation and surrender of this Warrant to the Company at
        its
        principal executive offices with a written notice of the holder’s intention to
        effect a cashless exercise, including a calculation of the number of shares
        of
        Common Stock to be issued upon such exercise in accordance with the terms
        hereof
        (a “Cashless Exercise”). In the event of a Cashless Exercise, in lieu of paying
        the Exercise Price in cash, the holder shall surrender this Warrant for that
        number of shares of Common Stock determined by multiplying the number of
        Warrant
        Shares to which it would otherwise be entitled by a fraction, the numerator
        of
        which shall be the difference between the then current Market Price per share
        of
        the Common Stock and the Exercise Price, and the denominator of which shall
        be
        the then current Market Price per share of Common Stock. For example, if
        the
        holder is exercising 100,000 Warrants with a per Warrant exercise price of
        $0.75
        per share through a cashless exercise when the Common Stock’s current Market
        Price per share is $2.00 per share, then upon such Cashless Exercise the
        holder
        will receive 62,500 shares of Common Stock.

       

      (d) Remedies.
        The
        Company acknowledges that a breach by it of its obligations hereunder will
        cause
        irreparable harm to the holder, by vitiating the intent and purpose of the
        transaction contemplated hereby. Accordingly, the Company acknowledges that
        the
        remedy at law for a breach of its obligations under this Warrant will be
        inadequate and agrees, in the event of a breach or threatened breach by the
        Company of the provisions of this Warrant, that the holder shall be entitled,
        in
        addition to all other available remedies at law or in equity, and in addition
        to
        the penalties assessable herein, to an injunction or injunctions restraining,
        preventing or curing any breach of this Warrant and to enforce specifically
        the
        terms and provisions thereof, without the necessity of showing economic loss
        and
        without any bond or other security being required.

       

      

       

      

       

      

       

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by its duly authorized
        officer.

       

      
        	 	
                GLOBALNET
                  CORPORATION

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:

              	
                _______________________________

              
	 	 	
                Thomas
                  P. Dunn

              
	 	 	
                Chief
                  Financial Officer

              

      

      

       

      Dated
        as
        of December 1, 2006

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
          

        

      

      FORM
        OF EXERCISE AGREEMENT

       

      

       

      Dated:
        ________ __, 200_

       

      

       

      To: ______________________

       

      

       

      

       

      The
        undersigned, pursuant to the provisions set forth in the within Warrant,
        hereby
        agrees to purchase ________ shares of Common Stock covered by such Warrant,
        and
        makes pay-ment herewith in full therefor at the price per share provided
        by such
        Warrant in cash or by certified or official bank check in the amount of,
        or, if
        the resale of such Common Stock by the undersigned is not currently registered
        pursuant to an effective registration statement under the Securities Act
        of
        1933, as amended, by surrender of securities issued by the Company (including
        a
        portion of the Warrant) having a market value (in the case of a portion of
        this
        Warrant, determined in accordance with Section 11(c) of the Warrant) equal
        to
        $_________. Please issue a certificate or certifi-cates for such shares of
        Common Stock in the name of and pay any cash for any fractional share
        to:

       

      

       

      
        	 	
                Name:
                  

              	
                 

              
	 	 	 
	 	 	 
	 	
                Signature:

              	 
	 	
                Address:

              	
                 

              
	 	 	
                 

              
	 	 	 
	 	Note:	
                The
                  above signature should correspond exactly with the name on the
                  face of the within Warrant, if
                  applicable.

              

      

      

       

      and,
        if
        said number of shares of Common Stock shall not be all the shares purchasable
        under the within Warrant, a new Warrant is to be issued in the name of said
        undersigned covering the balance of the shares purchasable thereunder less
        any
        frac-tion of a share paid in cash.

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
          

        

      

      FORM
        OF ASSIGNMENT

       

      

       

      

       

      FOR
        VALUE RECEIVED,
        the
        undersigned hereby sells, assigns, and transfers all the rights of the
        undersigned under the within Warrant, with respect to the number of shares
        of
        Common Stock covered thereby set forth hereinbelow, to:

      

       

      
        	
                Name
                  of Assignee

              	 	
                Address

              	 	
                No
                  of Shares

              

      

      

       

      

       

      

       

      ,
        and
        hereby irrevocably constitutes and appoints ___________________________________
        as agent and attorney-in-fact to trans-fer said Warrant on the books of the
        within-named corporation, with full power of substitution in the
        premises.

       

      

       

      Dated: ________
        __, 200_

       

      

       

      
        	
                In
                  the presence of:

              	 	
                 

              
	 	
                Name:

              	
                 

              
	 	 	 
	 	
                Signature:

              	
                 

              
	 	
                Title
                  of Signing Officer or Agent (if any):

              
	 	
                 

              	
                 

              
	 	
                Address:

              	
                 

              
	 	 	
                 

              
	 	 	 
	 	
                Note:

              	
                The
                  above signature should correspond exactly with the name on the
                  face of the
                  within Warrant, if applicable.NEURO-HITECH,
      INC.

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of November 29, 2006 (the “Effective
      Date”),
      by
      and among Neuro-Hitech, Inc., a Delaware corporation (the “Corporation”)
      and
      Dr. David Dantzker, as “Representative” of the parties listed on Exhibit A
      attached
      hereto (the “Stakeholders”).

     

    A. Pursuant
      to that certain Agreement and Plan of Merger dated November 16, 2006, by and
      among the Corporation, QA Acquisition Corp., a Delaware corporation, QA Merger
      LLC, a Delaware limited liability company, Q-RNA, Inc., a Delaware corporation
      (“Q-RNA”)
      and
      Dr. David Dantzker, as “Representative” of the Stakeholders (the “Merger
      Agreement”),
      the
      Stakeholders have been issued shares of the Corporation’s Common Stock
      (“Common
      Stock”),
      Buyer
      Warrants, Buyer Options and the Weaver Option (as defined in the Merger
      Agreement).

     

    B. Pursuant
      to the Merger Agreement, the Corporation is required to provide the Stakeholders
      certain registration rights with respect to the Registrable Securities (as
      defined below), the Buyer Options and the Weaver Option.

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing recitals and the mutual promises hereinafter
      set
      forth, the parties hereto agree as follows:

     

    1. REGISTRATION
      RIGHTS.

     

    1.1 Definitions.
      For
      purposes of this Section 1:

     

    (a) Registration.
      The
      terms “register,”
      “registration”
and
      “registered”
refer
      to a registration effected by preparing and filing a registration statement
      in
      compliance with the Securities Act of 1933, as amended (“Securities
      Act”),
      and
      the declaration or ordering of effectiveness of such registration
      statement.

     

    (b) Registrable
      Securities.
      The
      term “Registrable
      Securities”
      means:

     

    (1) all
      the
      shares of Common Stock of the Corporation that are issued or issuable upon
      exercise of the Buyer Warrants set forth on Exhibit
      A;

     

    (2) the
      shares of Common Stock set forth in Exhibit A; 

     

    (3) any
      shares of Common Stock of the Corporation issued (or issuable upon the
      conversion or exercise of any warrant, right or other security which is issued
      )
      as a dividend or other distribution with respect to, or in exchange for or
      in
      replacement of, all such shares of Common Stock described in clause (1) or
      (2)
      of this subsection (b); excluding
      in all
      cases, however, any Registrable Securities sold by a person in a transaction
      in
      which rights under this Section 1
      are not
      assigned in accordance with this Agreement or any Registrable Securities with
      respect to which, pursuant to Section 1.12
      hereof,
      the Holders are no longer entitled to registration rights pursuant to Sections
      1.2,
      1.3
      or
1.4
      hereof.

     

    
      
        
        

      

      
        1

        
          

        

      

       

    

     

    (c) Registrable
      Securities Then Outstanding.
      The
      number of shares of “Registrable
      Securities then outstanding”
shall
      mean the number of shares of Common Stock which are Registrable Securities
      that
      are then (1) issued and outstanding or (2) issuable pursuant to the
      exercise or conversion of then outstanding and then exercisable or convertible
      and qualifying options, warrants or convertible securities.

     

    (d) Holder.
      The
      term “Holder”
means
      any person owning of record Registrable Securities or any assignee of record
      of
      such Registrable Securities to whom rights set forth herein have been duly
      assigned in accordance with this Agreement; provided,
      however,
      that
      for purposes of this Agreement, a record holder of Buyer Warrants shall be
      deemed to be the Holder of such Registrable Securities; and provided,
      further,
      that
      the Corporation shall in no event be obligated to register Buyer Warrants,
      and
      that Holders of Registrable Securities will not be required to exercise their
      Buyer Warrants into Common Stock in order to exercise the registration rights
      granted hereunder, until immediately before the closing of the offering to
      which
      the registration relates. 

     

    (e) Form
      S-3.
      The
      term “Form S-3”
means
      such form under the Securities Act as is in effect on the date hereof or any
      successor registration form under the Securities Act subsequently adopted by
      the
      SEC which permits inclusion or incorporation of substantial information by
      reference to other documents filed by the Corporation with the SEC.

     

    (f) SEC.
      The
      term “SEC”
or
      “Commission”
means
      the U.S. Securities and Exchange Commission.

     

    1.2 Demand
      Registration.

     

    (a) Request
      by Holders.
      If the
      Corporation shall receive at any time after the Lock-up Termination
      Date (as
      defined in Section 1.10),
      a
      written request from the Holders of at least 50% of the Registrable Securities
      then outstanding that the Corporation file a registration statement under the
      Securities Act covering the registration of Registrable Securities pursuant
      to
      this Section 1.2,
      then
      the Corporation shall, within 20 days after the receipt of such written request,
      give written notice of such request (the “Request
      Notice”)
      to the
      Representative on behalf of the Holders, and effect, as soon as practicable,
      the
      registration under the Securities Act of all Registrable Securities which
      Holders request to be registered and included in such registration by written
      notice given by the Representative on behalf of such Holders to the Corporation
      within 30 days after receipt of the Request Notice, subject only to the
      limitations of this Section 1.

     

    (b) Underwriting.
      If the
      Holders initiating the registration request under this Section 1.2
      (the
“Initiating
      Holders”)
      intend
      to distribute the Registrable Securities covered by their request by means
      of an
      underwriting, then they shall so advise the Corporation as a part of their
      request made pursuant to this Section 1.2
      and the
      Corporation shall include such information in the Request Notice. In such event,
      the right of any Holder to include his, her, or its Registrable Securities
      in
      such registration shall be conditioned upon such Holder’s participation in such
      underwriting and the inclusion of such Holder’s Registrable Securities in the
      underwriting (unless otherwise mutually agreed by a majority in interest of
      the
      Initiating Holders and such Holder) to the extent provided herein. The
      Corporation shall not be required to include any securities of any Holder in
      such underwriting unless such Holder accepts the terms of the underwriting
      as
      agreed upon between the Corporation and the underwriters selected by it, and
      reasonably acceptable to the Representative, and enters into an underwriting
      agreement in customary form with the underwriter or underwriters selected by
      the
      Corporation. Notwithstanding any other provision of this
      Section 1.2,
      if the
      underwriter(s) advise(s) the Corporation in writing that marketing factors
      require a limitation of the number of securities to be underwritten then the
      Corporation shall so advise all Holders of Registrable Securities that would
      otherwise be registered and underwritten pursuant hereto, and the number of
      Registrable Securities that may be included in the underwriting shall be reduced
      as required by the underwriter(s) and allocated among the Holders of Registrable
      Securities on a pro rata basis according to the number of Registrable Securities
      then outstanding held by each Holder requesting registration (including the
      Initiating Holders). Any Registrable Securities excluded and withdrawn from
      such
      underwriting shall be withdrawn from the registration.

     

    
      
        
        

      

      
        2

        
          

        

      

       

    

     

    (c) Maximum
      Number of Demand Registrations.
      The
      Corporation is obligated to effect only one such registration pursuant to this
      Section 1.2.

     

    (d) Deferral.
      Notwithstanding the foregoing, if the Corporation shall furnish to Holders
      requesting the filing of a registration statement pursuant to this
      Section 1.2,
      a
      certificate signed by the President or Chief Executive Officer of the
      Corporation stating that in the good faith judgment of the Board of Directors
      of
      the Corporation, it would be seriously detrimental to the Corporation and its
      shareholders for such registration statement to be filed and it is therefore
      essential to defer the filing of such registration statement, then the
      Corporation shall have the right to defer such filing for a period of not more
      than 90 days after receipt of the request of the Initiating Holders;
provided,
      however,
      that
      the Corporation may not utilize this right more than once in any 12 month
      period; and further provided,
      that,
      upon any such deferral by the Corporation, at the election of at least a
      majority of the Holders participating in such registration, such Holders may
      withdraw their request for registration under Section 1.2 without forfeiting
      the
      Holders’ rights thereunder.

     

    (e) Expenses.
      All
      expenses incurred in connection with a registration pursuant to this
      Section 1.2,
      including without limitation all registration and qualification fees, printers’
and accounting fees, fees and disbursements of counsel for the Corporation,
      and
      the reasonable fees and disbursements of one counsel for the selling Holders
      (but excluding underwriters’ discounts and commissions), shall be borne by the
      Corporation. Each Holder participating in a registration pursuant to this
      Section 1.2
      shall
      bear such Holder’s proportionate share (based on the number of shares sold by
      such Holder over the total number of shares included in such registration at
      the
      time it is declared effective) of all discounts, commissions or other amounts
      payable to underwriters or brokers in connection with such offering.
      Notwithstanding the foregoing, the Corporation shall not be required to pay
      for
      any expenses of any registration proceeding begun pursuant to this
      Section 1.2
      if the
      registration request is subsequently withdrawn at the request of the Holders
      of
      a majority of the Registrable Securities to be registered, unless the Holders
      of
      a majority of the Registrable Securities then outstanding agree to forfeit
      their
      right to demand registration pursuant to this Section 1.2
      (in
      which case such right shall be forfeited by all Holders of Registrable
      Securities); provided,
      further,
      however,
      that
      (a) if any such withdrawal is during the period of deferral pursuant to Section
      1.2(d) above, or (b) if at the time of such withdrawal, the Holders have learned
      of a material adverse change in the condition, business, or prospects of the
      Corporation not known to the Holders at the time of their request for such
      registration and have withdrawn their request for registration with reasonable
      promptness after learning of such material adverse change, then in each such
      case the Holders shall not be required to pay any of such expenses and shall
      retain their demand registration rights pursuant to this
      Section 1.2.

     

    
      
        
        

      

      
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    1.3 Piggyback
      Registrations.
      The
      Corporation shall notify all Holders of Registrable Securities in writing at
      least 30 days prior to filing any registration statement under the Securities
      Act for purposes of effecting a public offering of securities of the Corporation
      (including, but not limited to, registration statements relating to secondary
      offerings of securities of the Corporation, but excluding
      registration statements relating to any registration under
      Section 1.2
      or
      Section 1.4
      of this
      Agreement or to any employee benefit plan or a corporate reorganization or
      other
      transaction covered by Rule 145 promulgated under the Securities Act, or a
      registration on any registration form which does not permit secondary sales
      or
      does not include substantially the same information as would be required to
      be
      included in a registration statement covering the sale of Registrable
      Securities,) and will afford each such Holder an opportunity to include in
      such
      registration statement all or any part of the Registrable Securities then held
      by such Holder. Each Holder desiring to include in any such registration
      statement all or any part of the Registrable Securities held by such Holder
      shall, within 20 days after receipt of the above-described notice from the
      Corporation, so notify the Corporation in writing, and in such notice shall
      inform the Corporation of the number of Registrable Securities such Holder
      wishes to include in such registration statement. If a Holder decides not to
      include all of its Registrable Securities in any registration statement
      thereafter filed by the Corporation, such Holder shall nevertheless continue
      to
      have the right to include any Registrable Securities in any subsequent
      registration statement or registration statements as may be filed by the
      Corporation with respect to offerings of its securities, all upon the terms
      and
      conditions set forth herein.

     

    (a) Underwriting.
      If a
      registration statement under which the Corporation gives notice under this
      Section 1.3
      is for
      an underwritten offering, then the Corporation shall so advise the Holders
      of
      Registrable Securities. In such event, the right of any such Holder’s
      Registrable Securities to be included in a registration pursuant to this
      Section 1.3
      shall be
      conditioned upon such Holder’s participation in such underwriting and the
      inclusion of such Holder’s Registrable Securities in the underwriting to the
      extent provided herein. All Holders proposing to distribute their Registrable
      Securities through such underwriting shall enter into an underwriting agreement
      in customary form with the managing underwriter or underwriter(s) selected
      for
      such underwriting. Notwithstanding any other provision of this Agreement, if
      the
      managing underwriter determine(s) in good faith that marketing factors require
      a
      limitation of the number of shares to be underwritten, then the managing
      underwriter(s) may exclude shares (including Registrable Securities) from the
      registration and the underwriting, and the number of shares that may be included
      in the registration and the underwriting shall be allocated, first,
      to the
      Corporation, second
      to
      Holders requesting inclusion of their Registrable Securities in such
      registration statement on a pro rata basis based on the number of shares
      proposed to be registered by the Corporation and the number of Registrable
      Securities each such Holder has requested to be included in the registration,
      provided however,
      that
      the right of the underwriters to exclude shares (including Registrable
      Securities) from the registration and underwriting as described above shall
      be
      restricted so that the number of Registrable Securities included in any such
      registration is not reduced below 20% of the shares included in the
      registration. If any Holder disapproves of the terms of any such underwriting,
      such Holder may elect to withdraw therefrom by written notice, given in
      accordance with Section 4.1
      hereof,
      to the Corporation and the underwriter, delivered at least 20 days prior to
      the
      effective date of the registration statement. Any Registrable Securities
      excluded or withdrawn from such underwriting shall be excluded and withdrawn
      from the registration. For any Holder that is a partnership or corporation,
      the
      partners, retired partners and shareholders of such Holder, or the estates
      and
      family members of any such partners and retired partners and any trusts for
      the
      benefit of any of the foregoing persons shall be deemed to be a single “Holder,”
and any pro rata reduction with respect to such “Holder” shall be based upon the
      aggregate amount of shares carrying registration rights owned by all entities
      and individuals included in such “Holder,” as defined in this
      sentence.

     

    
      
        
        

      

      
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    (b) Expenses.
      All
      expenses incurred in connection with a registration pursuant to this
      Section 1.3,
      including without limitation all registration and qualification fees, printers’
and accounting fees, fees and disbursements of counsel for the Corporation,
      and
      the reasonable fees and disbursements of one counsel for the selling
      Holders (but
      excluding underwriters’ discounts and commissions), shall be borne by the
      Corporation. Each Holder participating in a registration pursuant to this
      Section 1.3
      shall
      bear such Holder’s proportionate share (based on the number of shares sold by
      such Holder over the total number of shares included in such registration at
      the
      time it goes effective) of all discounts, commissions or other amounts payable
      to underwriters or brokers in connection with such offering. 

     

    1.4 Form
      S-3 Registration.
      Subject
      to the Corporation’s eligibility to use Form S-3, in case the Corporation shall
      receive from any Holder or Holders of at least 50% of Registrable
      Securities then outstanding a written request or requests that the Corporation
      effect a registration on Form S-3 and any related qualification or compliance
      with respect to all or a part of the Registrable Securities owned by such Holder
      or Holders, then the Corporation will do the following:

     

    (a) Notice.
      Promptly give written notice of the proposed registration and the Holder’s or
      Holders’ request therefor, and any related qualification or compliance, to all
      other Holders of Registrable Securities.

     

    (b) Registration.
      As soon
      as practicable, effect such registration and all such qualifications and
      compliances as may be so requested and as would permit or facilitate the sale
      and distribution of all or such portion of such Holder’s or Holders’ Registrable
      Securities as are specified in such request, together with all or such portion
      of the Registrable Securities of any other Holder or Holders joining in such
      request as are specified in a written request given within 20 days after receipt
      of such written notice from the Corporation; provided,
      however,
      that
      the Corporation shall not be obligated to effect any such registration,
      qualification or compliance pursuant to this Section 1.4:

     

    (1) if
      Form S-3 is not available for such offering;

     

    (2) if
      the
      Holders, together with the holders of any other securities of the Corporation
      entitled to inclusion in such registration, propose to sell Registrable
      Securities and such other securities (if any) at an aggregate price to the
      public of less than $1,000,000;

     

    
      
        
        

      

      
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    (3) if
      the
      Corporation shall furnish to the Holders a certificate signed by the President
      or Chief Executive Officer of the Corporation stating that in the good faith
      judgment of the Board of Directors of the Corporation, it would be seriously
      detrimental to the Corporation and its shareholders for such Form S-3
      Registration to be effected at such time, in which event the Corporation shall
      have the right to defer the filing of the Form S-3 registration statement
      no more than once during any twelve month period for a period of not more than
      90 days after receipt of the request of the Holder or Holders under this
      Section 1.4;

     

    (4) if
      the
      Corporation has, within the six month period preceding the date of such request,
      already effected one registration on Form S-3 for the Holders pursuant to this
      Section 1.4;
      or

     

    (5) in
      any
      particular jurisdiction in which the Corporation would be required to qualify
      to
      do business or to execute a general consent to service of process (other than
      pursuant to a standard Form U-2 or any successor form) in effecting such
      registration, qualification or compliance.

     

    (c) Expenses.
      Subject
      to the foregoing, the Corporation shall file a Form S-3 registration
      statement covering the Registrable Securities and other securities so requested
      to be registered pursuant to this Section 1.4
      as soon
      as practicable after receipt of the request or requests of the Holders for
      such
      registration. The Corporation shall pay all expenses incurred in connection
      with
      the first registration requested pursuant to this Section 1.4,
      (excluding underwriters’ or brokers’ discounts and commissions), including
      without limitation all filing, registration and qualification, printers’
      and accounting fees and the reasonable fees and disbursements of one counsel
      for
      the selling Holder or Holders and counsel for the Corporation. Each Holder
      participating in a registration pursuant to this Section 1.3
      shall
      bear such Holder’s proportionate share (based on the number of shares sold by
      such Holder over the total number of shares included in such registration at
      the
      time it goes effective) of all discounts, commissions or other amounts payable
      to underwriters or brokers in connection with such offering. All expenses
      incurred in connection with any subsequent registration requested pursuant
      to
      this Section 1.4
      shall be
      borne by the Holders who participate in such registration on a pro rata basis
      according to the number of shares sold by such Holder over the total number
      of
      shares included in such registration at the time it goes effective.

     

    (d) Not
      Demand Registration.
      Form S-3 registrations shall not be deemed to be demand registrations as
      described in Section 1.2
      above.

     

    1.5 Form
      S-8 Registration.
      The
      Corporation will cause the Common Stock issued upon exercise of the Buyer
      Options and the Weaver Option to be registered on Form S-8 of the SEC within
      90
      days after the Effective Date and will exercise reasonable efforts to maintain
      the effectiveness of such registration statement for so long as such options
      remain outstanding.

     

    
      
        
        

      

      
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    1.6 Obligations
      of the Corporation.
      Whenever required to effect the registration of any Registrable Securities
      under
      Sections 1.2,
      1.3
      or
1.4
      this
      Agreement, the Corporation shall, subject to the provisions of
      Section 1.5(g)
      below,
      as expeditiously as reasonably possible:

     

    (a) Prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use reasonable efforts to cause such registration statement
      to
      become effective, and, upon the request of the Holders of a majority of the
      Registrable Securities registered thereunder, keep such registration statement
      effective for up to 90 days.

     

    (b) Prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement.

     

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

     

    (d) Use
      reasonable efforts to register and qualify the securities covered by such
      registration statement under such other securities or Blue Sky laws of such
      jurisdictions as shall be reasonably requested by the Holders, provided that
      the
      Corporation shall not be required in connection therewith or as a condition
      thereto to qualify to do business or to file a general consent to service of
      process (other than pursuant to a standard Form U-2 or any successor form)
      in
      any such states or jurisdictions.

     

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

     

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

     

    (g) Notwithstanding
      any other provision of this Agreement, from and after the time a registration
      statement filed under this Section 1
      covering
      Registrable Securities is declared effective, the Corporation shall have the
      right to suspend the registration statement and the related prospectus in order
      to prevent premature disclosure of any material non-public information related
      to corporate developments by delivering notice of such suspension to the
      Holders, provided, however,
      that
      the Corporation may exercise the right to such suspension only once in any
      12-month period and for a period not to exceed 90 days. From and after the
      date
      of a notice of suspension under this Section 1.5(g),
      each
      Holder agrees not to use the registration statement or the related prospectus
      for resale of any Registrable Security until the earlier of (1) notice from
      the
      Corporation that such suspension has been lifted or (2) the 90th
      day
      following the giving of the notice of suspension.

     

    
      
        
        

      

      
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    1.7 Furnish
      Information.
      It
      shall be a condition precedent to the obligations of the Corporation to take
      any
      action pursuant to Sections 1.2,
      1.3
      or
1.4
      that the
      selling Holders shall furnish to the Corporation such information regarding
      themselves, the Registrable Securities held by them, and the intended method
      of
      disposition of such securities as shall be required to timely effect the
      registration of their Registrable Securities.

     

    1.8 Delay
      of Registration.
      No
      Holder shall have any right to obtain or seek an injunction restraining or
      otherwise delaying any such registration as the result of any controversy that
      might arise with respect to the interpretation or implementation of this
      Section 1.

     

    1.9 Indemnification.
      In the
      event any Registrable Securities are included in a registration statement under
      Sections 1.2,
      1.3
      or
1.4:

     

    (a) By
      the
      Corporation.
      To the
      extent permitted by law, the Corporation will indemnify and hold harmless each
      Holder, the partners, officers and directors of each Holder, any underwriter
      (as
      defined in the Securities Act) for such Holder and each person, if any, who
      controls such Holder or underwriter within the meaning of the Securities Act
      or
      the Securities Exchange Act of 1934, as amended, (the “Exchange
      Act”),
      against any losses, claims, damages, or liabilities (joint or several) to which
      they may become subject under the Securities Act, the Exchange Act or other
      federal or state law, insofar as such losses, claims, damages, or liabilities
      (or actions in respect thereof) arise out of or are based upon any of the
      following statements, omissions or violations (collectively, the “Violations”
and,
      individually, a “Violation”):

     

    (1) any
      untrue statement or alleged untrue statement of a material fact contained in
      such registration statement, including any preliminary prospectus or final
      prospectus contained therein or any amendments or supplements thereto;
      or

     

    (2) the
      omission or alleged omission to state therein a material fact required to be
      stated therein, or necessary to make the statements therein not misleading;
      or

     

    (3) any
      violation or alleged violation by the Corporation of the Securities Act, the
      Exchange Act, any federal or state securities law or any rule or regulation
      promulgated under the Securities Act, the Exchange Act or any federal or state
      securities law in connection with the offering covered by such registration
      statement.

     

    The
      Corporation will advance to each such Holder, partner, officer or director,
      underwriter or controlling person for any legal or other expenses reasonably
      incurred by them in connection with investigating or defending any such loss,
      claim, damage, liability or action; provided however,
      that
      the indemnity agreement contained in this subsection 1.9(a)
      shall
      not apply to amounts paid in settlement of any such loss, claim, damage,
      liability or action if such settlement is effected without the consent of the
      Corporation (which consent shall not be unreasonably withheld or delayed),
      nor
      shall the Corporation be liable in any such case for any such loss, claim,
      damage, liability or action to the extent that it arises out of or is based
      upon
      a Violation which occurs in reliance upon and in conformity with written
      information furnished expressly for use in connection with such registration
      by
      such Holder, partner, officer, director, underwriter or controlling person
      of
      such Holder.

     

    
      
        
        

      

      
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    (b) By
      Selling Holders.
      To the
      extent permitted by law, each selling Holder will indemnify and hold harmless
      the Corporation, each of its directors, each of its officers who have signed
      the
      registration statement, each person, if any, who controls the Corporation within
      the meaning of the Securities Act, any underwriter and any other Holder selling
      securities under such registration statement or any of such other Holder’s
      partners, directors or officers or any person who controls such Holder within
      the meaning of the Securities Act or the Exchange Act, against any losses,
      claims, damages or liabilities (joint or several) to which the Corporation
      or
      any such director, officer, controlling person, underwriter or other such
      Holder, partner or director, officer or controlling person of such other Holder
      may become subject under the Securities Act, the Exchange Act or other federal
      or state law, insofar as such losses, claims, damages or liabilities (or actions
      in respect thereto) arise out of or are based upon any Violation, in each case
      to the extent (and only to the extent) that such Violation occurs in reliance
      upon and in conformity with written information furnished by such Holder
      expressly for use in connection with such registration. Each such Holder will
      reimburse any legal or other expenses reasonably incurred by the Corporation
      or
      any such director, officer, controlling person, underwriter or other Holder,
      partner, officer, director or controlling person of such other Holder in
      connection with investigating or defending any such loss, claim, damage,
      liability or action; within three months after a request for reimbursement
      has
      been received by the indemnifying Holder, provided,
      however,
      that
      the indemnity agreement contained in this subsection 1.9(b)
      shall
      not apply to amounts paid in settlement of any such loss, claim, damage,
      liability or action if such settlement is effected without the consent of the
      Holder, which consent shall not be unreasonably withheld or delayed; and
provided further,
      that
      the total amounts payable in indemnity by a Holder under this
      Section 1.9(b)
      in
      respect of any Violation shall not exceed the net proceeds received by such
      Holder in the registered offering out of which such Violation
      arises.

     

    (c) Notice.
      Promptly after receipt by an indemnified party under this
      Section 1.9
      of
      notice of the commencement of any action (including any governmental action),
      such indemnified party will, if a claim in respect thereof is to be made against
      any indemnifying party under this Section  1.9,
      deliver
      to the indemnifying party a written notice of the commencement thereof. The
      indemnifying party shall have the right to participate in, and, to the extent
      the indemnifying party so desires, jointly with any other indemnifying party
      similarly noticed, to assume the defense thereof with counsel mutually
      satisfactory to the parties; provided,
      however,
      that an
      indemnified party shall have the right to retain its own counsel, with the
      fees
      and expenses to be paid by the indemnifying party, if representation of such
      indemnified party by the counsel retained by the indemnifying party would be
      inappropriate due to actual or potential conflict of interests between such
      indemnified party and any other party represented by such counsel in such
      proceeding. The failure to deliver written notice to the indemnifying party
      within a reasonable time of the commencement of any such action, if prejudicial
      to its ability to defend such action, shall relieve such indemnifying party
      of
      any liability to the indemnified party under this Section 1.9,
      but the
      omission so to deliver written notice to the indemnifying party will not relieve
      it of any liability that it may have to any indemnified party otherwise than
      under this Section 1.9.

     

    
      
        
        

      

      
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    (d) Defect
      Eliminated in Final Prospectus.
      The
      foregoing indemnity agreements of the Corporation and Holders are subject to
      the
      condition that, insofar as they relate to any Violation made in a preliminary
      prospectus but eliminated or remedied in the amended prospectus on file with
      the
      SEC at the time the registration statement in question becomes effective or
      the
      amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the
“Final
      Prospectus”),
      such
      indemnity agreement shall not inure to the benefit of any person if a copy
      of
      the Final Prospectus was furnished to the indemnified party and was not
      furnished to the person asserting the loss, liability, claim or damage at or
      prior to the time such action is required by the Securities Act.

     

    (e) Contribution.
      If the
      indemnification provided for in this Section 1.9
      is held
      by a court of competent jurisdiction to be unavailable to an indemnified party
      with respect to any loss, liability, claim, damage or expense referred to
      herein, then the indemnifying party, in lieu of indemnifying the indemnified
      party, shall contribute to the amount paid or payable by such indemnified party
      with respect to such loss, liability, claim, damage or expense in the proportion
      that is appropriate to reflect the relative fault of the indemnifying party
      and
      the indemnified party in connection with the statements or omissions that
      resulted in such loss, liability, claim, damage or expense, as well as any
      other
      relevant equitable considerations. The relative fault of the indemnifying party
      and the indemnified party shall be determined by reference to, among other
      things, whether the untrue or alleged untrue statement of material fact or
      the
      omission to state a material fact relates to information supplied by the
      indemnifying party or by the indemnified party, and the parties’ relative
      intent, knowledge, access to information and opportunity to correct or prevent
      such statement or omission. In any such case, (A) no such Holder will be
      required to contribute any amount in excess of the public offering price of
      all
      such Registrable Securities offered and sold by such Holder pursuant to such
      registration statement; and (B) no person or entity guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities
      Act) will be entitled to contribution from any person or entity who was not
      guilty of such fraudulent misrepresentation.

     

    (f) Conflict
      with Underwriting Agreement.
      Notwithstanding the foregoing, to the extent that the provisions on
      indemnification and contribution contained in the underwriting agreement entered
      into in connection with the underwritten public offering are in conflict with
      the foregoing provisions, the provisions in the underwriting agreement will
      control.

     

    (g) Survival.
      The
      obligations of the Corporation and Holders under this Section 1.9
      shall
      survive the completion of any offering of Registrable Securities in a
      registration statement, and otherwise.

     

    1.10 “Market
      Stand-Off” Agreement.
      

     

    (a) Each
      Holder hereby agrees that it shall not sell or otherwise transfer or dispose
      of
      any Registrable Securities then owned by such Holder (other than estate
      planning transfers to the parents, siblings, children or grandchildren of the
      Holder (or a trust or other entity for their exclusive benefit), other
      transfers
      to
      donees or to partners of the Holder who agree to be similarly bound) prior
      to
      the Lock-up Termination Date (as defined below).
      For
      purposes of this Agreement, the “Lock-up Termination Date” shall mean the
      earlier of (i) the two year anniversary of the Effective Date or (ii) the first
      date on which (A) the average daily trading volume for the preceding 10
      consecutive trading days of the Common stock is at least 150,000 shares, as
      reported by Bloomberg.com (or its successor), and (B) the average closing price
      for the preceding 10 consecutive trading days of one share of the Common Stock
      is at least 2.5 times the per share purchase price of the Common Stock (on
      an
      as-converted to Common Stock basis) sold in the next transaction or series
      of
      related transactions occurring after the Effective Date, which sale or sales
      result in aggregate proceeds to the Corporation of no less than $9,300,000,
      or
      such lesser amount as may be approved by Wheatley
      MedTech Partners, L.P., Wheatley New York Partners LP and Durand Venture
      Associates, LLC
      (but in
      no event, greater than $15.00 per share).

     

    
      
        
        

      

      
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    (b) Each
      Holder hereby further agrees that it will not, without the prior written consent
      of the managing underwriter, during the period commencing on the date of the
      final prospectus relating to the Company’s initial underwritten public offering
      and ending on the date specified by the Company and the managing underwriter
      (such period not to exceed one hundred eighty (180) calendar days) (i) lend,
      offer, pledge, sell, contract to sell, sell any option or contract to purchase,
      purchase any option or contract to sell, grant any option, right or warrant
      to
      purchase, or otherwise transfer or dispose of, directly or indirectly, any
      securities of the Company, including (without limitation) shares of Common
      Stock
      or any securities convertible into or exercisable or exchangeable for Common
      Stock (whether now owned or hereafter acquired) or (ii) enter into any swap
      or
      other arrangement that transfers to another, in whole or in part, any of the
      economic consequences of ownership of any securities of the Company, including
      (without limitation) shares of Common Stock or any securities convertible into
      or exercisable or exchangeable for Common Stock (whether now owned or hereafter
      acquired), whether any such transaction described in clause (i) or (ii) above
      is
      to be settled by delivery of securities, in cash or otherwise. The foregoing
      covenants shall apply only to the Company’s initial underwritten public offering
      of equity securities, shall not apply to the sale of any shares by a Holder
      to
      an underwriter pursuant to an underwriting agreement and shall only be
      applicable to the Holders if all the Company’s executive officers, directors and
      greater than five percent (5%) stockholders enter into similar agreements.
      Each
      Holder agrees to execute an agreement(s) reflecting (i) and (ii) above as may
      be
      requested by the managing underwriter at the time of the initial underwritten
      public offering. The underwriters in connection with the Company’s initial
      underwritten public offering are intended third party beneficiaries of the
      covenants in this Section 1.10(b) and shall have the right, power and authority
      to enforce such covenants as though they were a party hereto.

     

    (c) In
      order
      to enforce the foregoing covenants, the Corporation shall have the right to
      place restrictive legends on the certificates representing the shares subject
      to
      this Section and to impose stop transfer instructions with respect to the
      Registrable Securities (and the shares or securities of every other person
      subject to the foregoing restriction) until the end of the applicable period.
      

     

    
      
        
        

      

      
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      1.11 Rule 144
        Reporting.
        With a
        view to making available the benefits of certain rules and regulations of
        the
        Commission which may at any time permit the sale of the Registrable Securities
        to the public without registration, after such time as a public market exists
        for the Common Stock of the Corporation, the Corporation agrees to:

       

    

    (a) Make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act, at all times after the effective date of
      the first registration under the Securities Act filed by the Corporation for
      an
      offering of its securities to the general public;

     

    (b) Use
      reasonable, diligent efforts to file with the Commission in a timely manner
      all
      reports and other documents required of the Corporation under the Securities
      Act
      and the Exchange Act; and

     

    (c) So
      long
      as a Holder owns any Registrable Securities, to furnish to the Holder forthwith
      upon request a written statement by the Corporation as to its compliance with
      the reporting requirements of said Rule 144 and of the Securities Act and
      the Exchange Act, a copy of the most recent annual or quarterly report of the
      Corporation, and such other reports and documents of the Corporation as a Holder
      may reasonably request in availing itself of any rule or regulation of the
      Commission allowing a Holder to sell any such securities without registration
      (at any time after the Corporation has become subject to the reporting
      requirements of the Exchange Act).

     

    1.12 Termination
      of the Corporation’s Obligations.
      The
      Corporation shall have no obligations pursuant to Sections 1.2
      through
1.4
      with
      respect to: (a) any request or requests for registration made by any Holder
      on a date more than five years after the Lock-Up Termination Date; or
      (b) any Registrable Securities proposed to be sold by a Holder in a
      registration pursuant to Section 1.2,
      1.3
      or
1.4
      if, in
      the opinion of counsel to the Corporation, all such Registrable Securities
      proposed to be sold by a Holder may be sold in a three month period without
      registration under the Securities Act pursuant to Rule 144 under the
      Securities Act.

     

    2. ASSIGNMENT
      AND AMENDMENT.

     

    2.1 Assignment.
      Notwithstanding anything herein to the contrary,
      the
      registration rights of a Holder under Section 1
      hereof
      may be assigned only to a party who (a) acquires at least 2,000 shares of Common
      Stock and/or an equivalent number (on an as-converted basis) of Registrable
      Securities issued upon conversion thereof or (b) is a partner, member or
      affiliate of a Holder; provided,
      however
      that no
      party may be assigned any of the foregoing rights unless the Corporation is
      given written notice by the assigning party at the time of such assignment
      stating the name and address of the assignee and identifying the securities
      of
      the Corporation as to which the rights in question are being assigned;
provided further,
      that
      any such assignee of such rights is not deemed by the Board of Directors of
      the
      Corporation, in its reasonable judgment, to be a competitor of the Corporation;
      and provided further
      that any
      such assignee shall receive such assigned rights subject to all the terms and
      conditions of this Agreement, including without limitation the provisions of
      this Section 2.
      

     

    2.2 Amendment
      and Waiver of Rights.
      Any
      provision of this Agreement may be amended and the observance thereof may be
      waived (either generally or in a particular instance and either retroactively
      or
      prospectively), only with the written consent of the Corporation and the
      Representative. Any amendment or waiver effected in accordance with this
      Section 2.2
      shall be
      binding upon each Holder, each permitted successor or assignee of such Holder
      and the Corporation.

     

    
      
        
        

      

      
        12

        
          

        

      

       

    

     

    3. LEGEND.

     

    3.1 Each
      certificate representing the shares of Common Stock held by the Stakeholders
      shall be endorsed with the following legend (the “Legend”).

     

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP
      TO
      TWO YEARS FOLLOWING THE DATE OF ISSUANCE OF THESE SHARES, AS SET FORTH IN THAT
      CERTAIN REGISTRATION RIGHTS AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL
      HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE COMPANY’S
      PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE
      SHARES.

     

    3.2 The
      Corporation agrees that, during the term of this Agreement, it will not remove,
      and will not permit to be removed (upon registration of transfer, re-issuance
      or
      otherwise), the Legend on any new certificate theretofore represented by a
      certificate carrying the Legend.

     

    4. GENERAL
      PROVISIONS.

     

    4.1 Notices.
      Any
      notice or other communication required or permitted to be given under this
      Agreement will be in writing, will be delivered personally or by registered
      or
      certified mail, postage prepaid and will be deemed given upon delivery, if
      delivered personally, or three days after deposit in the mails, if mailed,
      to
      the following addresses:

     

    (a) 
       If
      to the
      Corporation:

     

    Neuro-Hitech,
      Inc.

    One
      Penn
      Plaza, Suite 2514

    New
      York,
      NY 10119

    Attention:
      President

    

    with
      a
      copy to:

    

    Arent
      Fox
      PLLC

    1050
      Connecticut Avenue, NW

    Washington,
      DC 20036

    Attn:
      Jeffrey E. Jordan, Esq.

    

    (b)  
       If
      to the
      Representative or the Stakeholders:

     

    Dr.
      David
      Dantzker

    c/o
      Wheatley Partners

    80
      Cuttermill Road

    Great
      Neck, NY 11021

    
      
        
        

      

      
        13

        
          

        

      

       

    

    

    with
      a
      copy to:

    

    Duane
      Morris LLP

    470
      Atlantic Avenue, Suite 500

    Boston,
      MA 02210

    Attn:
      Daniel R. Pierce and Lance A. Kawesch

    

    or
      to
      such other address as a party may have furnished to the other parties in writing
      pursuant to this Section 4.1.

     

    4.2 Entire
      Agreement.
      This
      Agreement and the documents referred to herein, together with all the Exhibits
      hereto, constitute the entire agreement and understanding of the parties with
      respect to the subject matter of this Agreement, and supersede any and all
      prior
      understandings and agreements, whether oral or written, between or among the
      parties hereto with respect to the specific subject matter hereof. 

     

    4.3 Governing
      Law.
      The
      internal laws of the State of Delaware (irrespective of its choice of law
      principles) will govern the validity of this Agreement, the construction of
      its
      terms, and the interpretation and enforcement of the rights and duties of the
      parties hereto.

     

    4.4 Severability.
      If any
      provision of this Agreement, or the application thereof, will for any reason
      and
      to any extent be invalid or unenforceable, the remainder of this Agreement
      and
      application of such provision to other persons or circumstances will be
      interpreted so as reasonably to effect the intent of the parties hereto. The
      parties further agree to replace such void or unenforceable provision of this
      Agreement with a valid and enforceable provision that will achieve, to the
      extent possible, the economic, business and other purposes of the void or
      unenforceable provision.

     

    4.5 Successors
      And Assigns.
      Subject
      to the provisions of Section 2.1,
      this
      Agreement, and the rights and obligations of the parties hereunder, will be
      binding upon and inure to the benefit of their respective successors, assigns,
      heirs, executors, administrators and legal representatives.

     

    4.6 Titles
      and Headings.
      The
      titles, captions and headings of this Agreement are included for ease of
      reference only and will be disregarded in interpreting or construing this
      Agreement. Unless otherwise specifically stated, all references herein to
“sections” and “exhibits” will mean “sections” and “exhibits” to this
      Agreement.

     

    4.7 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which will
      be
      an original as regards any party whose signature appears thereon and all of
      which together will constitute one and the same instrument. This Agreement
      will
      become binding when one or more counterparts hereof, individually or taken
      together, will bear the signatures of both parties reflected hereon as
      signatories.

     

    
      
        
        

      

      
        14

        
          

        

      

       

    

     

    4.8 Costs
      And Attorneys’ Fees.
      In the
      event that any action, suit or other proceeding is instituted concerning or
      arising out of this Agreement or any transaction contemplated hereunder, the
      prevailing party shall recover all of such party’s costs and attorneys’ fees
      incurred in each such action, suit or other proceeding, including any and all
      appeals or petitions therefrom.

     

    4.9 Adjustments
      for Stock Splits, Etc.
      Wherever
      in this Agreement there is a reference to a specific number of shares of Common
      Stock of the Corporation of any class or series, then, upon the occurrence
      of
      any subdivision, combination or stock dividend of such class or series of stock,
      the specific number of shares so referenced in this Agreement shall
      automatically be proportionally adjusted to reflect the affect on the
      outstanding shares of such class or series of stock by such subdivision,
      combination or stock dividend.

     

    4.10 Further
      Assurances.
      The
      parties agree to execute such further documents and instruments and to take
      such
      further actions as may be reasonably necessary to carry out the purposes and
      intent of this Agreement.

     

    4.11 Facsimile
      Signatures.
      This
      Agreement may be executed and delivered by facsimile and upon such delivery
      the
      facsimile signature will be deemed to have the same effect as if the original
      signature had been delivered to the other party. 

     

    [Signature
      Page Next]

     

    
      
        
        

      

      
        15

        
          

        

      

       

    

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

     

    
      	
              THE
                CORPORATION:

               

              NEURO-HITECH,
                INC.

               

            
	
              Name:

            	
              /s/
                Reuben Seltzer

            
	 	
              

            
	
              By:

            	
              Reuben
                Seltzer

            
	
              Title:

            	
              Chief
                Executive Officer

            

    

    

     

    REPRESENTATIVE:

     

    
      	 	 	 	 
	/s/ David
              Dantzker	 	 	 
	
              
Dr.
              David Dantzker

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