exv10w79



 




Exhibit 10.79



WARRANT



THIS WARRANT AND THE COMMON STOCK OR OTHER SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS AND NEITHER THIS WARRANT NOR THE COMMON STOCK OR OTHER SECURITIES ISSUABLE UPON THE
EXERCISE OF THIS WARRANT MAY BE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES




SYNTAX-BRILLIAN CORPORATION




COMMON STOCK PURCHASE WARRANT




			
	No. W-3
	 	Dated: October 26, 2007






Warrant to Purchase 147,917

shares of Common Stock




          SYNTAX-BRILLIAN CORPORATION, a company incorporated under the laws of the State of Delaware
(the “Company”), for value received, hereby certifies that SPCP GROUP III LLC, a Delaware
limited liability company, or its registered assigns (the “Holder”), is entitled to purchase from
the Company the number of duly authorized, validly issued, fully paid and nonassessable shares of
common stock, par value US$.001 per share, of the Company (“Common Stock”) equal to 147,917
shares of Common Stock (the “Initial Warrant Quantity”), at an exercise price equal to
US$0.01 (the initial “Exercise Price”, subject to adjustment as provided herein) per share
(the “Warrant”), at any time or from time to time on or after the date hereof, but not
after 11:59 p.m., New York time, on the Expiration Date, all subject to the terms, conditions and
adjustments set forth below in this Warrant. Capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned such terms in the Warrantholder Rights Agreement.
This Warrant is the Warrant originally issued pursuant to the terms of the Warrantholder Rights
Agreement (this Warrant or any portion of this Warrant subsequently assigned or transferred, each a
“Issued Warrant” and collectively, the “Issued Warrants” and each holder of a
Issued Warrant, a “Warrantholder”).




          1. DEFINITIONS. As used herein, the following terms shall have the meanings
indicated:




          “Additional Common Stock” shall mean all shares of Common Stock (including treasury
shares) issued or sold by the Company after the date hereof, whether or not subsequently reacquired
or retired by the Company, other than shares of Common Stock issued upon the exercise of the
Warrants and other than the Excluded Securities.




 









 








          “Affiliate” shall mean, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (a) vote 5% or more of the Capital Stock having ordinary voting
power for the election of directors of such Person or (b) direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Notwithstanding anything
to the contrary herein, in no event shall the Holder be considered an Affiliate of the Company.




          “Aggregate Exercise Price” shall have the meaning assigned to it in Section 2(a)(i).




          “Applicable Securities” shall mean any have the meaning assigned to it in Section 10.




          “Approved Stock Plan” shall mean any employee benefit plan existing on the day
immediately preceding the date hereof and as set forth in Schedule A attached hereto which has been
approved by the Board of Directors of the Company, pursuant to which the Company’s securities may
be issued to any employee, consultant, officer or director for services provided to the Company.




          “Asset Distribution” shall have the meaning assigned to it in Section 3(e).




          “Authorized Share Failure” shall have the meaning assigned to it in Section 2(g).




          “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which
commercial banking institutions in the City of New York are authorized or required by law to be
closed. Any reference to “days” (unless Business Days are specified) shall mean calendar days.




          “Buy-In” shall have the meaning assigned to it in Section 2(e).




          “Buy-In Price” shall have the meaning assigned to it in Section 2(e).




          “Capital Stock” shall mean (a) with respect to any Person that is a corporation, any
and all shares, interests, participations or other equivalents (however designated and whether or
not voting) of corporate stock, and (b) with respect to any Person that is not a corporation, any
and all partnership, membership or other equity interests of such Person.




          “Commission” shall mean the Securities and Exchange Commission or any successor agency
having jurisdiction to enforce the Securities Act.




          “Common Stock” shall have the meaning assigned to it in the introduction to this
Warrant, such term to include any shares into which such Common Stock shall have been converted or
changed or any shares resulting from any reclassification of such Common Stock, and all other
shares of any class or classes (however designated) of the Company the holders of which have the
right, without limitation as to amount, either to all or to a share of the balance of



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current dividends and liquidating dividends after the payment of dividends and distributions
on any shares entitled to preference.




          “Company” shall have the meaning assigned to it in the introduction to this Warrant,
such term to include any company or other entity which shall succeed to or assume the obligations
of the Company hereunder in compliance with Section 4.




          “Convertible Securities” shall mean any evidences of indebtedness, shares (other than
Common Stock) or other securities directly or indirectly convertible into, exercisable for, or
exchangeable for Additional Common Stock.




          “Corporate Event” shall have the meaning assigned to it in Section 4(a).




          “Current Market Price” shall mean, on any date specified herein, the average of the
daily VWAP during the 10 consecutive Trading Days commencing 13 Trading Days before such date,
except that, if on any such date the Common Stock are not listed or admitted for trading on any
national securities exchange or quoted in the over-the-counter market, the Current Market Price
shall be the Market Price on such date.




          “Dilutive Other Securities Event” shall have the meaning assigned to it in Section
3(g).




          “DTC” shall have the meaning assigned to it in Section 2(c).




          “Eligible Market” shall mean the Principal Market, the American Stock Exchange, The
New York Stock Exchange, Inc., The NASDAQ Capital Market or The NASDAQ Global Select Market.




          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations thereunder, or any successor statute.




          “Exchange Cap” shall have the meaning assigned to it in Section 2(f).




          “Exchange Cap Allocation” shall have the meaning assigned to it in Section 2(f).




          “Excluded Securities” shall mean any Common Stock issued or issuable: (i) in
connection with any Approved Stock Plan to the extent such Common Stock would not result in a
Dilutive Issuance; (ii) upon exercise of the Warrants; (iii) pursuant to a bona fide firm
commitment underwritten public offering with a nationally recognized underwriter which generates
gross proceeds to the Company in excess of $50,000,000 (other than an “at-the-market offering” as
defined in Rule 415(a)(4) under the 1933 Act and “equity lines”); (iv) to strategic suppliers to
the Company (as determined in good faith by the Board of Directors of the Company) other than
issuances to those persons disclosed (the “Disclosed Persons”) in writing to the Holder
prior to the Closing Date, provided that the consideration received by the Company consist of all
cash and such consideration received per Common Stock is not less than 95.0% of the arithmetic
average of the daily VWAP during the 30 consecutive Trading Days prior to such issuance; and (v)
upon exercise of any Options or Convertible Securities which are outstanding



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on the day immediately preceding the date hereof, provided that the terms of such Options or
Convertible Securities are not amended, modified or changed on or after the date hereof.




          “Exercise Delivery Documents” shall have the meaning assigned to it in Section 2(b).




          “Exercise Price” shall mean the initial Exercise Price set forth in the introduction
to this Warrant, as adjusted from time to time pursuant to Sections 3 and 4 hereof.




          “Expiration Date” shall mean October 26, 2017.




          “Fair Value” shall mean, on any date specified herein (i) in the case of cash, the
dollar amount or equivalent thereof, (ii) in the case of a security, the Current Market Price, and
(iii) in all other cases, the fair value thereof (as of a date which is within 20 days of the date
as of which the determination is to be made) determined jointly and in good faith by the Company
and the Holder; provided, however, that if such parties are unable to reach
agreement within a reasonable period of time (not to exceed twenty (20) Business Days), the Fair
Value shall be determined in good faith, by an independent investment banking firm selected jointly
by the Company and the Holder or, if that selection cannot be made within ten days, by an
independent investment banking firm selected by the American Arbitration Association in accordance
with its rules, and provided further, that all of the fees and expenses of any
third parties incurred in connection with determining the Fair Value will be paid by the Company.
If required by any such investment banking firm or arbitrator, the Company shall execute a retainer
and engagement letter containing reasonable terms and conditions, including without limitation,
customary provisions concerning the rights of indemnification and contribution by the Company in
favor of such investment banking firm or arbitrator and its officers, directors, partners,
employees, agents and Affiliates.




          “Fundamental Transaction” shall mean that the Company shall directly or indirectly, in
one or more related transactions, (i) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of the Company to another Person,
or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of either the outstanding shares of Common Stock (not including any
shares of Common Stock held by the Person or Persons making or party to, or associated or
affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv)
consummate a stock purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby
such other Person acquires more than the 50% of the outstanding shares of Common Stock (not
including any shares of Common Stock held by the other Person or other Persons making or party to,
or associated or affiliated with the other Persons making or party to, such stock purchase
agreement or other business combination), or (v) reorganize, recapitalize or reclassify its Common
Stock, or (vi) allow any “person” or “group” (as these terms are used for purposes of Sections
13(d) and 14(d) of the Exchange Act), to become the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or



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indirectly, of 50% of the aggregate ordinary voting power represented by issued and
outstanding Common Stock.




          “Fully Diluted Basis” shall mean, without duplication, the sum of (a) all Common Stock
issued and outstanding at the date of determination, (b) all Common Stock issuable, as of the date
of determination, upon the exercise of this Warrant and any other Option, warrant or similar right
outstanding at the time of determination, whether or not presently exercisable, and (c) all Common
Stock issuable, as of the date of determination, upon the exercise of any conversion or exchange
right contained in any security convertible into or exchangeable for Common Stock.




          “Holder” shall have the meaning assigned to it in the introduction to this Warrant.




          “Initial Warrant Quantity” shall have the meaning assigned to it in the introduction
to this Warrant.




          “Issued Warrant” shall have the meaning assigned to it in the introduction to this
Warrant.




          “Market Price” shall mean for any security as of any date, the last closing sale for
such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins
to operate on an extended hours basis and does not designate the closing sale price, then the last
trade price, respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by
Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market
for such security, the last closing sale price of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last closing sale price of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no
closing sale price is reported for such security by Bloomberg, the average of the sale prices of
any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly
the National Quotation Bureau, Inc.).




          “Maximum Percentage” shall have the meaning assigned to it in Section 2(f).




          “NASD” shall mean the National Association of Securities Dealers, Inc.




          “Options” shall mean any rights, options or warrants to subscribe for, purchase or
otherwise acquire either Additional Common Stock or Convertible Securities.




          “Other Securities” shall mean any shares (other than Common Stock) and other
securities of the Company or any other Person (corporate or otherwise) which the holders of the
Warrants at any time shall be entitled to receive, or shall have received, upon the exercise of the
Warrants, in lieu of or in addition to Common Stock, or which at any time shall be issuable or
shall have been issued in exchange for or in replacement of Common Stock or Other Securities
pursuant to Section 4 or otherwise.




          “Parent Entity” of a Person means an entity that, directly or indirectly, controls the
applicable Person and whose common stock or equivalent equity security is quoted or listed



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on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person
or Parent Entity with the largest public market capitalization as of the date of consummation of
the Fundamental Transaction.




          “Person” shall mean any individual, firm, partnership, corporation, trust, joint
venture, association, joint stock company, limited liability company, unincorporated organization
or any other entity or organization, including a government or agency or political subdivision
thereof, and shall include any successor (by merger or otherwise) of such entity.




          “Principal Market” shall mean The NASDAQ Global Market.




          “Registration Rights Agreement” shall mean the Registration Rights Agreement dated as
of the date hereof, as the same may be amended or otherwise modified or supplemented from time to
time, among the Holder and the Company.




          “Required Holders” shall mean the holders of the Issued Warrants representing at least
a majority of shares of Common Stock underlying the Issued Warrants then outstanding.




          “Required Reserve Amount” shall have the meaning assigned to it in Section 2(g).




          “Restricted Securities” shall mean (i) any Warrants bearing the applicable legend set
forth in Section 8, (ii) any Common Stock (or Other Securities) issued or issuable upon the
exercise of Warrants which are (or, upon issuance, will be) evidenced by a certificate or
certificates bearing the applicable legend set forth in such Section, and (iii) any Common Stock
(or Other Securities) issued subsequent to the exercise of any of the Warrants as a dividend or
other distribution with respect to, or resulting from a subdivision of the outstanding Common Stock
(or Other Securities) into a greater number of shares of Common Stock by reclassification, stock
splits or otherwise, or in exchange for or in replacement of the Common Stock (or Other Securities)
issued upon such exercise, which are evidenced by a certificate or certificates bearing the
applicable legend set forth in such Section.




          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time,
and the rules and regulations thereunder, or any successor statute.




          “Share Delivery Date” shall have the meaning assigned to it in Section 2(c).




          “Subsidiary” shall mean, with respect to any Person at any time, any partnership
(general or limited), joint venture, corporation, trust, estate, limited liability company,
association, joint-stock company, unincorporated organization or other entity of which (or in
which) more than 50% of (a) the issued and outstanding shares of capital stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of
whether at the time shares of capital stock of any other class or classes of such corporation shall
or might have voting power upon the occurrence of any contingency), (b) the interest in the capital
or profits of such partnership, joint venture, association, joint stock company, unincorporated
organization, limited liability company or other entity, or (c) the beneficial interest in such
trust or estate, is, at such time, directly or indirectly owned or controlled by such Person, by
such Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.




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          “Successor Entity” means the Person (or, if so elected by the Required Holders, the
Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person
(or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental
Transaction shall have been entered into.




          “Trading Day” means any day on which the Common Stock is traded on the Principal
Market, or, if the Principal Market is not the principal trading market for the Common Stock, then
on the principal securities exchange or securities market on which the Common Stock is then traded;
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is
suspended from trading during the final hour of trading on such exchange or market (or if such
exchange or market does not designate in advance the closing time of trading on such exchange or
market, then during the hour ending at 4:00:00 p.m., New York Time).




          “Transfer Agent” shall have the meaning assigned to it in Section 2(c).




          “Transaction Documents” shall mean the Issued Warrants, Warrantholder Rights Agreement
and the Registration Rights Agreement.




          “VWAP” means, for any security as of any date, the dollar volume-weighted average
price for such security on the Principal Market during the period beginning at 9:30:01 a.m., New
York City time (or such other time as the Principal Market publicly announces is the official open
of trading), and ending at 4:00:00 p.m., New York City time (or such other time as the Principal
Market publicly announces is the official close of trading) as reported by Bloomberg through its
“Volume at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted
average price of such security in the over-the-counter market on the electronic bulletin board for
such security during the period beginning at 9:30:01 a.m., New York City time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New
York City time (or such other time as such market publicly announces is the official close of
trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the weighted average
price cannot be calculated for a security on a particular date on any of the foregoing bases, the
weighted average price of such security on such date shall be the Fair Value (as set forth in
subsection (iii) of the definition of Fair Value). All such determinations are to be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during
the applicable calculation period.




          “Warrantholder Rights Agreement” shall mean the Warrantholder Rights Agreement dated
as of the date hereof, as the same may be amended or otherwise modified or supplemented from time
to time, among the Holder and the Company.




          “Warrants” shall have the meaning assigned to it in the introduction to this Warrant.




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          “Warrantholder” shall have the meaning assigned to it in the introduction to this
Warrant.




          “Warrant Quantity” shall mean the Initial Warrant Quantity, subject to adjustment from
time to time pursuant to Sections 3, 4 and 5.




          “Warrant Register” shall have the meaning assigned to it in Section 11.




          2. EXERCISE OF WARRANT.




               (a) Manner of Exercise; Payment of the Exercise Price; Certain Adjustments Upon
Exercise.




                    (i) This Warrant may be exercised by the Holder hereof, in whole or in part, at any
time or from time to time on or after the date hereof, but prior to the Expiration Date, by
(i) delivery of a written notice to the Company, in the form attached hereto Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant and
accompanied by payment of the Exercise Price for the number of shares of Common Stock (the
“Aggregate Exercise Price”) specified in such form.




                    (ii) Payment of the Aggregate Exercise Price may be made as follows (or by any
combination of the following):




                         (A) in United States currency by cash or delivery of a certified check or bank
draft payable to the order of the Company or by wire transfer to the Company;




                         (B) by surrender to the Company for cancellation certificates representing
Common Stock owned by the Holder (properly endorsed for transfer in blank) having a
Current Market Price on the date of Warrant exercise equal to the Exercise Price;
and




                         (C) in lieu of making the cash payment otherwise contemplated to be made to the
Company upon such exercise in payment of the Aggregate Exercise Price, the “Net
Number” of shares of Common Stock determined according to the following formula:




	 	 	 	Net Number = (A x B) - (A x C)

                                        B
	 
	 	 	 	For purposes of the foregoing formula:
	 
	 	 	 	A= the total number of shares with respect to which this Warrant is then being exercised.




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	 	 	 	B= the Market Price of the shares of Common Stock (as reported by Bloomberg) on the date
immediately preceding the date of the Exercise Notice.
	 
	 	 	 	C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such
exercise.






                    (iii) The Holder shall not be required to deliver the original Warrant in order to
effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to
less than all of the Common Stock issuable under this Warrant shall have the same effect as
cancellation of the original Warrant and issuance of a new Warrant evidencing the right to
purchase the remaining number of shares of Common Stock exersicable under this Warrant.



               (b) When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the Business Day on which this Warrant
shall have been surrendered to, and the Exercise Price (the “Exercise Delivery Documents”)
shall have been received by the Company as provided in Section 2(a), and at such time the Person or
Persons in whose name or names any certificate or certificates for Common Stock (or Other
Securities) shall be issuable upon such exercise as provided in Section 2(c) shall be deemed to
have become the holder or holders of record thereof for all purposes.



               (c) Delivery of Share Certificates, etc.; Charges, Taxes and Expenses.




                    (i) On or before the second Business Day following the date on which the exercise of
this Warrant shall be deemed to have been effected, the Company shall transmit by facsimile
an acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the
Holder and the Company’s transfer agent (the “Transfer Agent”).




                    (ii) On or before the third Trading Day following the date on which the Company has
received all of the Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall (X), provided that the Transfer Agent is participating in The Depository Trust
Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of shares of Common Stock to which the Holder is
entitled pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch
by overnight courier to the address as specified in the Exercise Notice, a certificate,
registered in the Company’s share register in the name of the Holder or its designee, for
the number of shares of Common Stock to which the Holder is entitled pursuant to such
exercise.




                    (iii) Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Common Stock with respect
to which this Warrant has been exercised, irrespective of the date such Common Stock are
credited to the Holder’s DTC account or the date of



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delivery of the certificates evidencing such Common Stock, as the case may be. If this
Warrant is submitted in connection with any exercise pursuant to Section 2(a) and the number
of shares of Common Stock represented by this Warrant submitted for exercise is greater than
the number of shares of Common Stock being acquired upon an exercise, then the Company shall
as soon as practicable and in no event later than three (3) Business Days after any exercise
and at its own expense, issue a new Warrant representing the right to purchase number of
shares of Common Stock purchasable immediately prior to such exercise under this
Warrant, less the number of shares of Common Stock with respect to which this Warrant is exercised.




                    (iv) No fractional shares of Common Stock are to be issued upon the exercise of this
Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to
the nearest whole number.




                    (v) All shares of Common Stock issuable upon exercise of this Warrant pursuant to the
terms hereof shall be validly issued, fully paid and nonassessable, issued without violation
of any preemptive right or similar rights of any stock of the Company and free and clear of
all liens. The Company shall pay all expenses in connection with, and all taxes and other
governmental charges which may be payable with respect to the issuance and delivery of
Warrant Shares upon exercise of this Warrant.




                    (vi) In the case of any dispute with respect to the number of shares of Common Stock to
be issued upon exercise of this Warrant, the Company shall promptly issue to the Holder such
number of shares of Common Stock that is not disputed and shall submit the disputed
determinations or arithmetic calculations to the Holder via facsimile within five (5)
Business Days after each exercise of this Warrant. If the Holder and the Company are unable
to agree as to the determination of the number of shares of Common Stock to be issued within
three (3) Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the dispute with respect to the number of shares of Common
Stock to be issued upon exercise of this Warrant shall be determined in good faith by any
firm of independent public accountants of national standing, selected jointly by the Company
and the Holder or, if that selection cannot be made within ten days, by any firm of
independent public accountants of national standing selected by the American Arbitration
Association in accordance with its rules, and provided further, that all of
the fees and expenses of any third parties incurred in connection with resolving such
dispute will be paid one-half by the Company and one-half by the Holder. The Company shall
then, on the next Business Day, issue certificate(s) representing the
appropriate number of shares of Common Stock upon exercise of the Warrant in accordance with such accounting
firm’s determination under this Section 2(c)(vi).



               (d) Company to Reaffirm Obligations. The Company shall, at the time of each exercise
of this Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing
obligation to afford to such Holder all rights to which such Holder shall continue to be entitled
after such exercise in accordance with the terms of this Warrant, provided that if



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the Holder of this Warrant shall fail to make any such request, such failure shall not affect
the continuing obligation of the Company to afford such rights to the Holder.



               (e) Company’s Failure to Timely Deliver Securities. If the Company shall fail for any
reason or for no reason to issue to the Holder within three (3) Trading Days of receipt of the
Exercise Delivery Documents, a certificate for the number of shares of Common Stock to which the
Holder is entitled and register such shares of Common Stock on the Company’s share register or to
credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the
Holder is entitled upon the Holder’s exercise of this Warrant, then, in addition to all other
remedies available to the Holder, the Company shall pay in cash to the Holder on each day after
such third Trading Day that the issuance of such shares of Common Stock is not timely effected an
amount equal to 1.5% of the product of (A) the sum of the number of shares of Common Stock not
issued to the Holder on a timely basis and to which the Holder is entitled and (B) the Market Price
of the shares of Common Stock on the Trading Day immediately preceding the last possible date which
the Company could have issued such shares of Common Stock to the Holder without violating Section
2(c). In addition to the foregoing, if within three (3) Trading Days after the Company’s receipt
of the facsimile copy of a Exercise Notice the Company shall fail to issue and deliver a
certificate to the Holder and register such shares of Common Stock on the Company’s share register
or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which
the Holder is entitled upon the Holder’s exercise hereunder, and if on or after such third Trading
Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such
exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then the
Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase
price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and
to issue such shares of Common Stock) or credit such Holder’s balance account with DTC shall
terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or
certificates representing such shares of Common Stock or credit such Holder’s balance account with
DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of shares of Common Stock, times (B) the Market Price on the date of
exercise.



               (f) Limitations on Exercises.




                    (i) The Company shall not effect the exercise of this Warrant, and the Holder shall not
have the right to exercise this Warrant, to the extent that after giving effect to such
exercise, such Person (together with such Person’s affiliates) would beneficially own in
excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding
immediately after giving effect to such exercise. For purposes of the foregoing sentence,
the aggregate number of shares of Common Stock beneficially owned by such Person and its
affiliates shall include the number of shares of Common Stock issuable upon exercise of this
Warrant with respect to which the determination of such sentence is being made, but shall
exclude shares of Common Stock which would be issuable upon (A) exercise of the remaining,
unexercised portion of this



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Warrant beneficially owned by such Person and its affiliates and (B) exercise or
conversion of the unexercised or unconverted portion of any other securities of the Company
beneficially owned by such Person and its affiliates (including, without limitation, any
convertible notes or convertible preferred stock or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein. Except as set forth in
the preceding sentence, for purposes of this paragraph, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act. For purposes of this
Warrant, in determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s
most recent Form 10-K, Form 10-KSB, Form 10-Q, Form 10-QSB, Current Report on Form 8-K or
other public filing with the Commission, as the case may be, (2) a more recent public
announcement by the Company or (3) any other notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding. For any reason at any time,
upon the written request of the Holder, the Company shall within one (1) Business Day
confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the exercise of securities of the Company, by the Holder
and its affiliates since the date as of which such number of outstanding shares of Common
Stock was reported. By written notice to the Company, the Holder may from time to time
increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99%
specified in such notice; provided that (i) any such increase will not be effective until
the sixty-first (61st) day after such notice is delivered to the Company, and
(ii) any such increase or decrease will apply only to the Holder and not to any other holder
of the Warrants.




                    (ii) Principal Market Regulation. The Company shall not be obligated to issue
any shares of Common Stock upon exercise of this Warrant and no Warrantholder shall be
entitled to receive any shares of Common Stock if the issuance of such shares of Common
Stock would exceed that number of shares of Common Stock which the Company may issue upon
exercise of the Issued Warrants or otherwise without breaching the Company’s obligations
under the rules or regulations of any applicable Eligible Market (the “Exchange
Cap”), except that such limitation shall not apply in the event that the Company (A)
obtains the approval of its stockholders as required by the applicable rules of the Eligible
Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a
written opinion from outside counsel to the Company that such approval is not required,
which opinion shall be reasonably satisfactory to the Required Holders. Until such approval
or written opinion is obtained, no Warrantholder shall be issued in the aggregate, upon
exercise of any Issued Warrants, shares of Common Stock in an amount greater than the
product of the Exchange Cap multiplied by a fraction, the numerator of which is the total
number of shares of Common Stock underlying the Issued Warrants issued to such Warrantholder
and the denominator of which is the aggregate number of shares of Common Stock underlying
the Issued Warrants issued to the Warrantholder (with respect to each Warrantholder, the
“Exchange Cap Allocation”). In the event that any Warrantholder shall sell or
otherwise transfer any of such Warrantholder’s Issued Warrants, the transferee shall be
allocated a pro rata portion of such Warrantholder’s Exchange Cap Allocation, and the
restrictions of the prior sentence shall apply to such transferee with respect to the
portion of the Exchange



12









 







Cap Allocation allocated to such transferee. In the event that any holder of Issued
Warrants shall exercise all of such holder’s Issued Warrants into a number of shares of
Common Stock which, in the aggregate, is less than such holder’s Exchange Cap Allocation,
then the difference between such holder’s Exchange Cap Allocation and the number of shares
of Common Stock actually issued to such holder shall be allocated to the respective Exchange
Cap Allocations of the remaining holders of Issued Warrants on a pro rata basis in
proportion to the shares of Common Stock underlying the Issued Warrants then held by each
such holder. In the event that the Company is prohibited from issuing any Warrant Shares
for which an Exercise Notice has been received as a result of the operation of this Section
2(f)(ii), the Company shall pay cash in exchange for cancellation of such Common Stock, at a
price per Common Stock equal to the difference between the Market Price and the Exercise
Price as of the date of the attempted exercise.



               (g) Insufficient Authorized Shares. If at any time while this Warrant remains
outstanding the Company does not have a sufficient number of authorized and unreserved shares of
Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at
least a number of shares of Common Stock equal to 130% (the “Required Reserve Amount”) of
the number of shares of Common Stock as shall from time to time be necessary to effect the exercise
of all of the Issued Warrants then outstanding (an “Authorized Share Failure”), then the
Company shall immediately take all action necessary to increase the Company’s authorized shares of
Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount
for the Issued Warrant then outstanding. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure,
the Company shall hold a meeting of its stockholders for the approval of an increase in the number
of authorized shares of Common Stock. In connection with such meeting, the Company shall provide
each stockholder with a proxy statement and shall use its reasonable best efforts to solicit its
stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board
of directors to recommend to the stockholders that they approve such proposal.



          3. DIVIDENDS AND DISTRIBUTIONS.




               (a) General; Warrant Quantity. This Warrant evidences the right to purchase a number
of shares of Common Stock equal to the Warrant Quantity. Prior to the exercise of the Warrants, no
Holder of a Warrant shall be entitled to any rights of a stockholder of the Company, including
without limitation, the right to vote or to consent to any action of the stockholders, to receive
dividends or other distributions, to exercise any preemptive right or to receive any notice of any
meeting of stockholders or any proceedings of the Company, in each case except as otherwise
provided in this Warrant (including, without limitation, Sections 3(b) and 7 hereof) or any of the
other Transaction Documents.



               (b) Issuance of Additional Common Stock. In case the Company at any time or from time
to time after the date hereof until the third anniversary of the date hereof shall issue or sell
Additional Common Stock (including without limitation Additional Common Stock deemed to be issued
pursuant to Section 3(c) or 3(d)), other than Excluded Securities, without consideration or for
consideration per share less than the Current Market Price of the



13









 







Common Stock (such issuances, “Dilutive Issuances”), then, in each such case, subject
to Section 3(h), the Exercise Price shall be adjusted to a price equal to the price obtained by
multiplying the Exercise Price in effect immediately prior to the such Dilutive Issuance by a
fraction of which:




                    (i) the numerator shall be the sum of (A) the number of shares of Common Stock
outstanding on a Fully Diluted Basis (including Common Stock issuable upon exercise of this
Warrant) immediately prior to such issue or sale and (B) the number of shares of Common
Stock that the aggregate consideration received by the Company for the total number of such
Additional Common Stock so issued or sold would purchase at an amount equal to the Current
Market Price; and




                    (ii) the denominator shall be the number of shares of Common Stock outstanding on a
Fully Diluted Basis (including Common Stock issuable upon exercise of this Warrant)
immediately after such issue or sale; provided, that for the purposes of this
Section 3(b)(ii), immediately after any Common Stock are deemed to have been issued pursuant
to Section 3(d) or 3(e), such Common Stock shall be deemed to be outstanding.



                         Upon each such adjustment of the Exercise Price hereunder, the Warrant Quantity shall be
adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in
effect immediately prior to such adjustment by the number of shares of Common Stock acquirable upon
exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by
the Exercise Price resulting from such adjustment.



                         Notwithstanding the foregoing, this Section 3(b) shall be applicable until the Expiration Date
for issuances or sales of any Additional Common Stock to the Disclosed Persons.



               (c) Upon Acquisition of Common Stock. If the Company or any of its Subsidiaries
shall, at any time or from time to time after the date hereof, directly or indirectly redeem,
purchase or otherwise acquire any shares of Common Stock, Options or Convertible Securities for a
consideration per share (plus in case of such Options or Convertible Securities, the additional
consideration required to be paid to the Company upon exercise or conversion or exchange) greater
than the Current Market Price immediately prior to such event, then the Exercise Price shall be
adjusted to a price obtained by multiplying the Exercise Price in effect immediately prior to such
event by a fraction of which:




                    (i) the numerator shall be the result of dividing:




                         (A) the product of (I) the number of shares of Common Stock outstanding on a Fully
Diluted Basis (including Common Stock issuable upon exercise of this Warrant) and (II) the
Current Market Price, in each case immediately prior to such event, minus (II) the aggregate
consideration paid by the Company in such event (plus in case of such Options or Convertible
Securities, the additional consideration required to be paid to the Company upon exercise or
conversion or exchange) by



14









 






                         (B) the number of shares of Common Stock outstanding on a Fully Diluted Basis
(including Common Stock issuable upon exercise of this Warrant) immediately after such
event.




                    (ii) the denominator shall be the Current Market Price immediately prior to such event.



                         Upon each such adjustment of the Exercise Price hereunder, the Warrant Quantity shall be
adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in
effect immediately prior to such adjustment by the number of shares of Common Stock acquirable upon
exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by
the Exercise Price resulting from such adjustment.



               (d) Treatment of Options and Convertible Securities. In case the Company at any time
or from time to time after the date hereof shall issue, sell, grant or assume, or shall fix a
record date for the determination of holders of any class of securities of the Company entitled to
receive, any Options or Convertible Securities (whether or not the rights thereunder are
immediately exercisable), then, and in each such case, the maximum number of Additional Common
Stock (as set forth in the instrument relating thereto, without regard to any provisions contained
therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or,
in the case of Convertible Securities and Options therefor, the conversion or exchange of such
Convertible Securities, shall be deemed to be Additional Common Stock issued as of the time of such
issue, sale, grant or assumption or, in case such a record date shall have been fixed, as of the
close of business on such record date; provided, that such Additional Common Stock shall
not be deemed to have been issued unless the consideration per Common Stock (determined pursuant to
Section 3(j)) would be less than the Current Market Price of the Common Stock in effect on the date
of and immediately prior to such issue, sale, grant or assumption or immediately prior to the close
of business on such record date, as the case may be, and provided, further, that in
any such case in which Additional Common Stock are deemed to be issued:




                    (i) whether or not the Additional Common Stock underlying such Options or Convertible
Securities are deemed to be issued, no further adjustment of the Warrant Quantity shall be
made upon the subsequent issue or sale of Convertible Securities or Common Stock upon the
exercise of such Options or the conversion or exchange of such Convertible Securities,
except in the case of any such Options or Convertible Securities which contain provisions
requiring an adjustment, subsequent to the date of the issue or sale thereof, of the number
of Additional Common Stock issuable upon the exercise of such Options or the conversion or
exchange of such Convertible Securities by reason of (i) a change of control of the Company,
(ii) the acquisition by any Person or group of Persons of any specified number or percentage
of the voting securities of the Company or (iii) any other event or occurrence, such as a
reset of pricing with respect to the conversion of convertible securities, each such case to
be deemed hereunder to involve a separate issuance of Additional Common Stock, Options or
Convertible Securities, as the case may be;



15









 






                    (ii) if such Options or Convertible Securities by their terms provide, with the passage
of time or otherwise, for any increase in the consideration payable to the Company, or
decrease in the number of Additional Common Stock issuable, upon the exercise, conversion or
exchange thereof (by change of rate or otherwise), the Warrant Quantity computed upon the
original issue, sale, grant or assumption thereof, and any subsequent adjustments based
thereon, shall, upon any such increase or decrease becoming effective, be recomputed to
reflect such increase or decrease insofar as it affects such Options, or the rights of
conversion or exchange under such Convertible Securities, which are outstanding at such
time; and




                    (iii) no readjustment pursuant to subdivision (i) or (ii) above shall have the effect
of increasing the Exercise Price or decreasing the Warrant Quantity by an amount in excess
of the amount of the adjustment thereof originally made in respect of the issue, sale, grant
or assumption of such Options or Convertible Securities.



               (e) Rights upon Distribution of Assets. If the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares
of Common Stock, by way of return of capital or otherwise (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin
off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Asset Distribution”), at any time after the issuance of this Warrant, then, in each
such case:




                    (i) any Exercise Price in effect immediately prior to the close of business on the
record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Asset Distribution shall be reduced, effective as of the close of business on
such record date, to a price determined by multiplying such Exercise Price by a fraction of
which (i) the numerator shall be the Market Price of the shares of Common Stock on the
trading day immediately preceding such record date minus the value of the Asset Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of
shares of Common Stock, and (ii) the denominator shall be the Market Price of the shares of
Common Stock on the trading day immediately preceding such record date; and




                    (ii) the Warrant Quantity shall be increased to a number of shares equal to the number
of shares of Common Stock obtainable immediately prior to the close of business on the
record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Asset Distribution multiplied by the reciprocal of the fraction set forth in the
immediately preceding paragraph (a); provided that in the event that the Asset Distribution
is of shares of Common Stock (or common stock) (“Other Shares of Common Stock”) of a
company whose common shares are traded on a national securities exchange or a national
automated quotation system, then the Holder may elect to receive a warrant to purchase Other
Shares of Common Stock in lieu of an increase in the number of Warrant Quantity, the terms
of which shall be identical to those of this Warrant, except that such warrant shall be
exercisable into the number of shares of Other Shares of Common Stock that would have been
payable to the Holder pursuant to the Asset Distribution had the Holder exercised this
Warrant immediately prior to such



16









 







record date and with an aggregate exercise price equal to the product of the amount by
which the exercise price of this Warrant was decreased with respect to the Asset
Distribution pursuant to the terms of the immediately preceding paragraph (a) and the
Warrant Quantity calculated in accordance with the first part of this paragraph (b).



               (f) Extraordinary Dividends and Distributions. In case the Company at any time or
from time to time after the date hereof shall declare, order, pay, issue, sell or make a dividend
or other distribution, including, without limitation, (i) any distribution of other or additional
Stock, (ii) other securities, cash or property or (iii) Options, by way of dividend, or spin-off,
reclassification, recapitalization or similar corporate rearrangement, but excluding distributions
of the Excluded Securities (each a “Stockholder Distribution”), then the Holder will be
entitled to acquire, upon the terms applicable to such Stockholder Distribution, the aggregate
Stockholder Distribution which the Holder could have acquired if the Holder had held the number of
shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) immediately before the date on which a record is taken
for the grant, issuance or sale of such Stockholder Distribution, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the
grant, issue or sale of such Stockholder Distribution.



               (g) Adjustment upon Subdivision or Combination of shares of Common Stock. If the
Company at any time on or after the date hereof subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the Exercise Price in effect immediately prior to such subdivision will
be proportionately reduced and the Warrant Quantity in effect immediately prior to such subdivision
will be proportionately increased. If the Company at any time on or after the date hereof combines
(by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of
Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to
such subdivision will be proportionately increased and the Warrant Quantity will be proportionately
decreased. Any adjustment under this Section 3(g) shall become effective at the close of business
on the date the subdivision or combination becomes effective.



               (h) Dilution in Case of Other Securities. In case any Other Securities shall be
issued or sold or shall become subject to issue or sale upon the conversion or exchange of any
Common Stock (or Other Securities) of the Company (or any issuer of Other Securities or any other
Person referred to in Section 4) or to subscription, purchase or other acquisition pursuant to any
Options issued or granted by the Company (or any such other issuer or Person) for a consideration
such as to dilute, on a basis consistent with the standards established in the other provisions of
this Section 3, the purchase rights granted by this Warrant (a “Dilutive Other Securities
Event”), then, and in each such case, the computations, adjustments and readjustments provided
for in this Section 3 with respect to the Warrant Quantity shall be made as nearly as possible in
the manner so provided and applied to determine the amount of Other Securities from time to time
receivable upon the exercise of this Warrant, so as to protect the Holder of this Warrant against
the effect of such dilution, provided that no such computations, adjustments or readjustments under
this Section 3(h) shall be required if (a) none of the members of the Company and their respective
Affiliates are provided more favorable terms or receive disproportionate benefits than provided or
received by Holder in connection with such Dilutive



17









 







Other Securities Event and (b) the Board approves such Dilutive Other Securities Event
pursuant to a good faith determination that such issuance is in the best interests of the Company.



               (i) Issuances to Disclosed Persons. Notwithstanding anything to the contrary in this
Agreement, to the extent the Company issues or sells any Additional Common Stock to a Disclosed
Person at any time or from time to time after the date hereof until the third anniversary of the
date hereof, the Warrant Quantity shall be increased to an amount, on a pro rata basis, such that
the aggregate Warrant Quantity of the Issued Warrants shall be equal to 5.0% of the shares of the
Common Stock outstanding, on a Fully Diluted Basis, after giving effect to the issuances of
Additional Common Stock.



               (j) Computation of Consideration. For the purposes of this Section 3,




                    (i) the consideration for the issue or sale of any Additional Common Stock shall,
irrespective of the accounting treatment of such consideration, (A) insofar as it consists
of cash, be computed at the net amount of cash received by the Company, without deducting
any expenses paid or incurred by the Company or any commissions or compensations paid or
concessions or discounts allowed to underwriters, dealers or others performing similar
services in connection with such issue or sale, (B) insofar as it consists of property
(including securities) other than cash, be computed at the Fair Value thereof at the time of
such issue or sale, and (C) in case Additional Common Stock are issued or sold together with
other securities or other assets of the Company for a consideration which covers both, be
the portion of such consideration so received, computed as provided in clauses (A) and (B)
above, allocable to such Additional Common Stock, such allocation to be determined in the
same manner that the Fair Value of property not consisting of cash or securities is to be
determined as provided in the definition of “Fair Value” herein; and




                    (ii) Additional Common Stock deemed to have been issued pursuant to Section 3(c),
relating to Options and Convertible Securities, shall be deemed to have been issued for a
consideration per Common Stock determined by dividing: (A) the total amount, if any,
received and receivable by the Company as consideration for the issue, sale, grant or
assumption of the Options or Convertible Securities in question, plus the minimum aggregate
amount of additional consideration (as set forth in the instruments relating thereto,
without regard to any provision contained therein for a subsequent adjustment of such
consideration to protect against dilution) payable to the Company upon the exercise in full
of such Options or the conversion or exchange of such Convertible Securities or, in the case
of Options for Convertible Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible Securities, in each case
computing such consideration as provided in the foregoing subdivision (a), by (ii) the
maximum number of Additional Common Stock (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent adjustment of
such number to protect against dilution) issuable upon the exercise of such Options or the
conversion or exchange of such Convertible Securities.



          4. CONSOLIDATION, MERGER, ETC.




18









 








               (a) The Company shall not enter into or be party to a Fundamental Transaction unless the
Successor Entity assumes in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this Section 4(a) pursuant to
written agreements in form and substance satisfactory to the Required Holders and approved by the
Required Holders prior to such Fundamental Transaction, including agreements to deliver to each
holder of Issued Warrants in exchange for such Issued Warrants a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant,
including, without limitation, an adjusted exercise price equal to the value for the shares of
Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for a
corresponding number of shares of capital stock equivalent to the shares of Common Stock or Other
Securities acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
satisfactory to the Required Holders. Upon the occurrence of any Fundamental Transaction, the
Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein. Upon consummation of the Fundamental
Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be
issued upon exercise of this Warrant at any time after the consummation of the Fundamental
Transaction, in lieu of the shares of the Common Stock (or Other Securities, cash, assets or other
property) purchasable upon the exercise of the Warrant prior to such Fundamental Transaction, such
shares of the publicly traded common stock (or its equivalent) of the Successor Entity (including
its Parent Entity), as adjusted in accordance with the provisions of this Warrant. In addition to
and not in substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive
Other Securities or other assets with respect to or in exchange for shares of Common Stock (a
“Corporate Event”), the Company shall make appropriate provision to insure that the Holder
will thereafter have the right to receive upon an exercise of this Warrant at any time after the
consummation of the Fundamental Transaction but prior to the Expiration Date, in lieu of the shares
of the Common Stock (or Other Securities, cash, assets or other property) purchasable upon the
exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities,
cash, assets or any other property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening of such Fundamental
Transaction had the Warrant been exercised immediately prior to such Fundamental Transaction.
Provision made pursuant to the preceding sentence shall be in a form and substance reasonably
satisfactory to the Required Holders. The provisions of this Section shall apply similarly and
equally to successive Fundamental Transactions and Corporate Events and shall be applied without
regard to any limitations on the exercise of this Warrant.



               (b) Notwithstanding the foregoing and the provisions of Section 4(a) above, in the event of a
Fundamental Transaction, the Company may, at its option, redeem the Warrant by delivering a written
notice thereof via facsimile and overnight courier to the Holder (a “Fundamental Transaction
Redemption Notice”) no sooner than sixty (60) days but not later than fifteen (15) days prior to
the consummation of a Fundamental Transaction, for a cash payment equal to the product of (i) the
greater of (I) the Market Price of Common Stock on the



19









 







date immediately preceding the consummation of the Fundamental Transaction and (II) the Market
Price of the Common Stock on the date the Company delivers its Fundamental Transaction Redemption
Notice and (ii) 100% of the number of shares of Common Stock into which the Warrant is
exercisable.



               (c) Notwithstanding the foregoing and the provisions of Section 4(a) above, in the event of a
Fundamental Transaction, at the request of the Holder delivered before the ninetieth (90th) day
after the consummation of such Fundamental Transaction, the Company (or the Successor Entity) shall
purchase this Warrant from the Holder by paying to the Holder, within five (5) Business Days of
such request (or, if later, on the effective date of the Fundamental Transaction, cash in an amount
equal to the Black-Scholes Value of the remaining unexercised portion of this Warrant on the date
of such Fundamental Transaction.



          5. OTHER DILUTIVE EVENTS. In case any event shall occur as to which the provisions of
Section 3 or Section 4 or the other anti-dilution provisions herein are not strictly applicable or
if strictly applicable (which for purposes of this Section 5 would only apply to Section 3(b) and
3(i) from the date hereof until the third anniversary of the date hereof) would not fairly protect
the purchase rights represented by this Warrant in accordance with the essential intent and
principles of such provisions, then, in each such case, the Company shall at its own expense
appoint a firm of independent certified public accountants of recognized national standing (which
may be the regular auditors of the Company), which shall give their opinion on the adjustment, if
any, on a basis consistent with the essential intent and principles established in such provisions,
necessary to preserve, without dilution, the purchase rights represented by this Warrant. Upon
receipt of such opinion, the Company shall promptly mail a copy thereof to the Holder and shall
make the adjustments described therein; provided that no such adjustment pursuant to this Section 5
will decrease the Warrant Quantity as otherwise determined pursuant to this Sections 3 or 4.




          6. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will
not, by amendment of its Articles of Incorporation, Bylaws or through any reorganization, transfer
of assets, consolidation, merger, scheme of arrangement, 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 of this Warrant, and will at all times in good faith carry out all the provisions of this
Warrant and take all action as may be required to protect the rights of the Holder. Without
limiting the generality of the foregoing, the Company (i) shall 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, (ii) shall 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 and (iii) shall, so long as any of the Issued Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of the Issued Warrants, 130% of
the number of shares of Common Stock as shall from time to time be necessary to effect the exercise
of the Issued Warrants then outstanding (without regard to any limitations on exercise).




          7. BOARD OBSERVATION. If requested by the Holder, the Company shall permit one Person
designated by the Holder to be appointed as a non-voting observer (the




20









 







“Board Observer”) to the board of directors of the Company (the “Board”). The
Board Observer shall have the right to attend all meetings of the Board and any committees thereof
(including, without limitation, the audit committee and compensation committee), shall receive
notices of all meetings of the Board and/or any committees thereof and all written materials
distributed to members of the Board and/or any committees thereof, but shall not be entitled to
vote on any matters before the Board or any committees thereof; provided, however,
that the Board Observer shall execute and deliver, upon his appointment and prior to any attendance
at the first such meeting or to being furnished the first such written materials, a confidentiality
and nondisclosure agreement in the form agreed to prior to the date hereof. The right hereunder
shall only inure to such Holder so long as such Holder is an Affiliate of Silver Point Finance, LLC
and if there are more than one holder of Issued Warrants that is an Affiliate of Silver Point
Finance, LLC, such right shall that inure to one holder as determined by the Silver Point Finance,
LLC; provided that the right hereunder shall only inure to such Holder so long as the Holders that
are Affiliates of Silver Point Finance, LLC collectively own Warrants representing greater than 50%
of the Warrant Shares outstanding on the date hereof.




          8. LEGENDS.




                    (a) Restrictive Legends. Except as otherwise permitted by this Section 8, each
Warrant (including each Warrant issued upon the transfer of any Warrant) shall be stamped or
otherwise imprinted with a legend in substantially the following form:




          “THIS WARRANT AND COMMON STOCK OR OTHER SECURITIES ISSUABLE UPON THE EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER THIS WARRANT NOR THE COMMON STOCK
OR OTHER SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT MAY BE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE ACT AND THE RULES AND
REGULATIONS THEREUNDER. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
THE SECURITIES.”


Except as otherwise permitted by this Section 8, each certificate for Common Stock (or Other
Securities) issued upon the exercise of any Warrant, and each certificate issued upon the transfer
of any such Common Stock (or Other Securities), shall be stamped or otherwise imprinted with a
legend in substantially the following form:





          “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES
LAWS AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA



21









 







FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”



                    (b) Termination of Restrictions. The restrictions imposed on the transferability of
Restricted Securities set forth in the legend of this Warrant shall cease and terminate as to any
particular Restricted Securities (i) when a registration statement with respect to the sale of such
securities shall have been declared effective under the Securities Act and such securities shall
have been disposed of in accordance with such registration statement, (ii) when such securities are
sold pursuant to Rule 144 or Rule 144A (or any similar provision then in force) under the
Securities Act, or (iii) when such restrictions are no longer required or necessary in order to
protect the Company against a violation of the Securities Act upon any sale or other disposition of
such securities without registration thereunder. Whenever such restrictions shall cease and
terminate as to any Restricted Securities, the Holder shall be entitled to receive from the
Company, without expense, new securities of like tenor not bearing the legend set forth in this
Warrant. If the Company shall fail for any reason or for no reason to issue to the holder of the
Securities within three (3) Trading Days (as defined below) shares of Common Stock to deliver in
satisfaction of a sale by the holder of such Securities that the holder anticipated receiving
without legend from the Company, then the Company shall, within three (3) Business Days after the
holder’s request and in the holder’s discretion, either (i) pay cash to the holder in an amount
equal to the Buy-In Price, at which point the Company’s obligation to deliver such unlegended
Securities shall terminate, or (ii) promptly honor its obligation to deliver to the holder such
unlegended Securities as provided above and pay cash to the holder in an amount equal to the excess
(if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times
(B) the Market Price on the date of exercise.



          9. NOTICES OF CORPORATE ACTION. In the event of:




          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase or otherwise acquire any Common Stock or any
other securities or property, or to receive any other right, or




          (b) any capital reorganization of the Company, any reclassification or recapitalization of the
securities of the Company, any consolidation or merger involving the Company and any other Person,
any transaction or series of transactions in which more than 50% of the voting securities of the
Company are transferred to another Person, or any transfer, sale or other disposition of all or
substantially all the assets of the Company to any other Person, or




          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company,
the Company shall mail to each Holder of a Warrant a notice specifying (i) the date or expected
date on which any such record is to be taken for the purpose of such dividend, distribution or
right, and the amount and character of such dividend, distribution or right, and (ii) the date or
expected date on which any such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, sale, disposition, dissolution, liquidation or winding-up is to take place and
the time, if any such time is to be fixed, as of which the holders of Common Stock (or Other



22









 






Securities) shall be entitled to exchange their Common Stock (or Other Securities) for the
securities or other property deliverable upon such reorganization, reclassification,
recapitalization, consolidation, merger, transfer, dissolution, liquidation or winding-up. Such
notice shall be mailed at least 15 days prior to the date therein specified.




          10. REGISTRATION AND TRANSFER OF WARRANTS, ETC.




               (a) Warrant Register; Ownership of Warrants. Each Warrant issued by the Company shall
be numbered and shall be registered in a warrant register (the “Warrant Register”) as it is
issued and transferred, which Warrant Register shall be maintained by the Company at its principal
office or, at the Company’s election and expense, by a Warrant Agent or the Transfer Agent. The
Company shall be entitled to treat the registered Holder of any Warrant on the Warrant Register as
the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrant on the part of any other Person, and shall not be
affected by any notice to the contrary, except that, if and when any Warrant is properly assigned
in blank, the Company may (but shall not be obligated to) treat the bearer thereof as the owner of
such Warrant for all purposes.



               (b) Transfer of Warrants. If applicable, this Warrant and all rights hereunder are
transferable in whole or in part, without charge to the Holder hereof, upon surrender of this
Warrant with a properly executed Form of Assignment attached hereto as Exhibit B at the
principal office of the Company; provided, that any transfer shall comply with the Securities Act
and other applicable securities laws and regulations. Upon any partial transfer, the Company shall
at its expense issue and deliver to the Holder a new Warrant of like tenor, in the name of the
Holder, which shall be exercisable for such number of shares of Common Stock with respect to which
rights under this Warrant were not so transferred. Notwithstanding the foregoing, the Holder may
not transfer this Warrant in whole or in part (i) from the date hereof until the date that is
ninety (90) days following the date hereof (other than to its Affiliates)or (ii) at any time and
from time to time if the number of shares underlying such Warrant represents less than 5,000 shares
of Common Stock.



               (c) Replacement of Warrants. On receipt by the Company of evidence 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 destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of
any such mutilation, on surrender of such Warrant to the Company at its principal office and
cancellation thereof, the Company at its expense shall execute and deliver, in lieu thereof, a new
Warrant of like tenor.



               (d) Adjustments To Number of Common Stock. Notwithstanding any adjustment in the
number or kind of Common Stock purchasable upon exercise of this Warrant, any Warrant theretofore
or thereafter issued may continue to express the same number and kind of Common Stock as are stated
in this Warrant, as initially issued. In the event of any adjustments to the Exercise Price
pursuant to this Warrant, such Exercise Price shall be rounded up to the nearest cent.



23









 





          11. REMEDIES; SPECIFIC PERFORMANCE. The Company stipulates that there would be no
adequate remedy at law to the Holder of this Warrant in the event of any default or threatened
default by the Company in the performance of or compliance with any of the terms of this Warrant
and accordingly, the Company agrees that, in addition to any other remedy to which the Holder may
be entitled at law or in equity, the Holder shall be entitled to seek to compel specific
performance of the obligations of the Company under this Warrant, without the posting of any bond,
in accordance with the terms and conditions of this Warrant in any court specified in Section 16,
and if any action should be brought in equity to enforce any of the provisions of this Warrant, the
Company shall not raise the defense that there is an adequate remedy at law. A delay or omission
by the Holder hereto in exercising any right or remedy accruing upon any such breach shall not
impair the right or remedy or constitute a waiver of or acquiescence in any such breach. No remedy
shall be exclusive of any other remedy. All available remedies shall be cumulative.




          12. NO RIGHTS OR LIABILITIES AS STOCKHOLDER. Nothing contained in this Warrant shall
be construed as conferring upon the Holder hereof any rights as a stockholder of the Company or as
imposing any obligation on the Holder to purchase any securities or as imposing any liabilities on
the Holder as a stockholder of the Company, whether such obligation or liabilities are asserted by
the Company or by creditors of the Company.




          13. NOTICES. All notices and other communications (and deliveries) provided for or
permitted hereunder shall be made in writing by hand delivery, telecopier, any courier guaranteeing
overnight delivery or first class registered or certified mail, return receipt requested, postage
prepaid, addressed (a) if to the Company:




                    Syntax-Brillian Corporation

                    1600 N. Desert Drive

                    Tempe, Arizona 85281

                    Attention: General Counsel, Chief Financial

                                        Officer and Treasurer

                    Telecopier: 602-389-8869




          or such other address as may hereafter be designated in writing by the Company to the Holder
in accordance with the provisions of this Section, or (b) if to the Holder, at its address as it
appears in the Warrant Register.




          All such notices and communications (and deliveries) shall be deemed to have been duly given:
at the time delivered by hand, if personally delivered; when transmitted with a receipt of
successful transmission, if by facsimile; on the next Business Day, if timely delivered to a
courier guaranteeing overnight delivery; and five days after being deposited in the mail, if sent
first class or certified mail, return receipt requested, postage prepaid; provided, that
the exercise of any Warrant shall be effective in the manner provided in Section 2.




          14. AMENDMENTS. This Warrant and any term hereof may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the provisions hereof may
not be established, without the written consent of the Company and the Holder of this Warrant. All
Issued Warrants may be amended by the written consent of the



24









 






Company and Required Holders; provided however, that with respect to any
amendment, modification, supplement, termination or waiver of any provisions of this Warrant that
would disproportionately adversely affect the rights of any Warrantholder, the Company shall seek
from each Warrantholder adversely affected, a consent in writing to such amendment, modification,
supplement, termination or waiver of such provisions of this Warrant, which consent may be withheld
by such Warrantholder in its sole discretion. If the Company is unable to obtain a consent from
each Warrantholder whose rights would be adversely affected by the proposed amendment,
modification, supplement, termination or waiver of provisions of this Warrant, then such amendment,
modification, supplement, termination or waiver of provisions of this Warrant shall not be adopted
by the Company.




          15. DESCRIPTIVE HEADINGS, ETC. The headings in this Warrant are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms contained herein.
Unless the context of this Warrant otherwise requires: (a) words of any gender shall be deemed to
include each other gender; (b) words using the singular or plural number shall also include the
plural or singular number, respectively; (c) the words “hereof”, “herein” and “hereunder” and words
of similar import when used in this Warrant shall refer to this Warrant as a whole and not to any
particular provision of this Warrant, and Section and paragraph references are to the Sections and
paragraphs of this Warrant unless otherwise specified; (d) the word “including” and words of
similar import when used in this Warrant shall mean “including, without limitation,” unless
otherwise specified; (e) “or” is not exclusive; and (f) provisions apply to successive events and
transactions.




          16. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in
accordance with, and all questions concerning the construction, validity, interpretation and
performance of this Warrant shall be governed by, the internal laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Delaware or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of Delaware. The Company and the Holder hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New
York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company
and the Holder hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Warrant and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. THE COMPANY
AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.




25









 








          17. COSTS AND ATTORNEYS’ FEES. If any action, suit or other proceeding is instituted
concerning or arising out of this Warrant, the Company agrees and the Holder, by taking and holding
this Warrant agrees, that the prevailing party shall recover from the non-prevailing party all of
such prevailing party’s costs and reasonable attorneys’ fees incurred in each and every such
action, suit or other proceeding, including any and all appeals or petitions therefrom.




          18. SUCCESSORS AND ASSIGNS. This Warrant shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors and permitted assigns. For purposes
of this Warrant, “successor” for any entity other than a natural person shall mean a successor to
such entity as a result of such entity’s merger, consolidation, sale of substantially all of its
assets or similar transaction.




          19. SEVERABILITY. In the event that any one or more of the provisions, paragraphs,
words, clauses, phrases or sentences contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision, paragraph, word, clause, phrase or
sentence in every other respect and of the other remaining provisions, paragraphs, words, clauses,
phrases or sentences hereof shall not be in any way impaired, it being intended that all rights,
powers and privileges of the parties hereto shall be enforceable to the fullest extent permitted by
law; provided that this Section 20 shall not cause this Warrant to differ
materially from the intent of the parties as herein expressed.




          20. ENTIRE AGREEMENT. This Warrant, the Warrantholder Rights Agreement and the
Registration Rights Agreement (collectively, the “Other Agreements”) are intended by the
parties as a final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, representations, warranties, covenants or
undertakings relating to such subject matter, other than those set forth or referred to herein or
in the Other Agreements. This Agreement and the Other Agreements supersede all prior agreements
and understandings between the parties to this Warrant, both written and oral, with respect to such
subject matter.




          21. CONSTRUCTION. The parties hereto acknowledge that each of them has had the
benefit of legal counsel of its own choice and has been afforded an opportunity to review this
Warrant with its legal counsel and that this Warrant shall be construed as if jointly drafted by
the parties.




          22. MOST FAVORED HOLDER. The Company agrees that if at any time or from time to time
prior to the Expiration Date it enters into any agreement with, or issues Options or other
securities to, any Person other than a Holder of a Warrant, which provides such Person with more
favorable terms (only with respect to anti-dilution protections and exercise price and redemption
premiums) of the type set forth in the Warrant, then the Company shall issue to the Holders of any
Warrants new warrants in exchange for such Warrants, which shall contain such more favorable terms,
effective from the date such agreement is consummated or Option or other security is issued until
the Expiration Date.




26









 








[Signature Page Follows]




27









 








          IN WITNESS WHEREOF, the undersigned has executed and delivered this Warrant as of the date
first written above.




	 	 	 	 	 
	 	SYNTAX-BRILLIAN CORPORATION
 	 
	 	By:  	 	/s/ John S. Hodgson 
	 	Name: 	 	John S. Hodgson
	 	Title:	 	Executive Vice
President, Chief Financial Officer and Treasurer



28









 






	 	 	 	 	 



SCHEDULE A





	•	 	2003 Incentive Compensation Plan






	•	 	2003 Employee Stock Purchase Plan






	•	 	Syntax Groups Corporation 2005 Stock Incentive Plan 2005 Deferred and Restricted Stock
Plan






 











 





	 	 	 
	 

	 	EXHIBIT A to Common Stock
	 

	 	Purchase Warrant






EXERCISE NOTICE




TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK




SYNTAX-BRILLIAN CORPORATION




     The
undersigned holder hereby exercises the right to purchase ___ of the shares
of Common Stock of Syntax-Brillian Corporation, a Delaware corporation (the “Company”),
evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the
Warrant.



     1. Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be
made as:




	 	_____	 	a “Cash Exercise” with respect to
___ shares of
Common Stock; and/or
	 
	 	_____	 	by surrender to the Company for cancellation pursuant to
Section 2(a)(ii)(B) certificates representing [          ] shares of Common Stock owned by the Holder (properly endorsed
for transfer in blank) having a Current Market Price on the
date of Warrant exercise equal to the Exercise Price; and/or
	 
	 	_____	 	a “Cashless Exercise” with respect to
___ shares
of Common Stock.





     2. Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with
respect to some or all of the Common Stock to be issued pursuant hereto, the holder shall pay the
Aggregate Exercise Price in the sum of $___ to the Company in accordance with the
terms of the Warrant.



     3. Delivery
of Warrant Shares. The Company shall deliver to the holder ___ Warrant
Shares in accordance with the terms of the Warrant.



Date: _________________, ______




	 	 	 	 	 
	 	 	 
	Name of Registered Holder

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 



 









 






	 	 	 	 	 



	 	 	 
	 
	 	EXHIBIT B to Common Stock
	 
	 	Purchase Warrant






FORM OF ASSIGNMENT




     
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto the Assignee named below all of the rights of the undersigned to purchase shares of common stock, par value
US$.001 per share (“Common Stock”), of Syntax-Brillian Corporation. (the “Company”)
represented by the Warrant, with respect to the number of shares of Common Stock set forth below:




	 	 	 	 	 	 	 	 	 
	Name of Assignee	 	Address	 	 	No. of Common Stock	 
	 
	 	 	 	 	 	 	 	 




and does
hereby irrevocably constitute and appoint _____ Attorney to make such transfer on the
books of Syntax-Brillian Corporation maintained for that purpose, with full power of substitution
in the premises.




	 	 	 	 	 
	Dated:  _______________, 200_ 	[NAME OF HOLDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: