Document:

Unassociated Document

    

    EXHIBIT
      10.1

    

    TRANSACTION
      AGREEMENT 

    

    This
      TRANSACTION
      AGREEMENT
      (the
“Agreement”),
      dated
      as of July 25, 2007, by and among Workstream Inc., a corporation existing
      pursuant to the Canada Business Corporations Act, with offices located at 495
      March Road, Ottawa, Ontario, Canada K2K-3G1 (the “Company”),
      and
      the investors listed on the Schedule of Buyers attached hereto (individually,
      a
“Buyer”
and
      collectively, the “Buyers”).

    

    RECITALS

    

    A. The
      Company and each Buyer is executing and delivering this Agreement in reliance
      upon the exemption from securities registration afforded by Section 4(2) of
      the
      Securities Act of 1933, as amended (the “1933
      Act”),
      and
      Rule 506 of Regulation D (“Regulation D”)
      as
      promulgated by the United States Securities and Exchange Commission (the
“SEC”)
      under
      the 1933 Act.

    

    B. The
      Company has authorized the sale of special warrants, in the form attached hereto
      as Exhibit
      A
      (the
“Special Warrants”),
      which
      Special Warrants shall be convertible into the Company’s common shares, no par
      value (the “Common
      Shares”),
      at
      the Conversion Rate (as defined in the Special Warrants) in accordance with
      the
      terms thereof.

    

    C.
       Each
      Buyer wishes to purchase, and the Company wishes to sell, upon the terms and
      conditions stated in this Agreement, (i) a Special Warrant with the Conversion
      Amount (as defined in the Special Warrants) set forth opposite such Buyer’s name
      in column (3) on the Schedule of Buyers convertible into Common Shares (as
      converted, collectively, the “Conversion
      Shares”)
      and
      (ii) a warrant to acquire up to that number of Common Shares set forth opposite
      such Buyer’s name in column (4) on the Schedule of Buyers (the “Warrants”),
      in
      the form attached hereto as Exhibit
      B
      (as
      exercised, collectively, the “Warrant
      Shares”).

    

    D. At
      the
      Closing, the parties hereto shall execute and deliver a Registration Rights
      Agreement, in the form attached hereto as Exhibit
      C
      (the
“Registration
      Rights Agreement”),
      pursuant to which the Company has agreed to provide certain registration rights
      with respect to the Registrable Securities (as defined in the Registration
      Rights Agreement), under the 1933 Act and the rules and regulations promulgated
      thereunder, and applicable state securities laws.

    

    E. The
      Special Warrants, the Conversion Shares, the Warrants and the Warrant Shares
      are
      collectively referred to herein as the “Securities.”

    

    AGREEMENT

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.

            	
              PURCHASE
                AND SALE OF SPECIAL WARRANTS AND
                WARRANTS.

            

    

    

    (a) Special
      Warrants and Warrants. Subject to the satisfaction (or waiver) of the
      conditions set forth in Sections 6
      and
7
      below,
      the Company shall issue and sell to each Buyer, and each Buyer severally, but
      not jointly, agrees to purchase from the Company on the Closing Date (as defined
      below), a Special Warrant for the Conversion Amount as is set forth opposite
      such Buyer’s name in column (3) on the Schedule of Buyers, along
      with the
      Warrants to acquire that number of Warrant Shares as is set forth opposite
      such
      Buyer’s name in column (4), on the Schedule of Buyers.

    

    (b) Closing.
      The closing (the “Closing”)
      of the
      purchase of the Special Warrants and the Warrants by the Buyers shall occur
      at
      the offices of Greenberg Traurig, LLP, 77 W. Wacker Drive, Suite 2400, Chicago,
      Illinois 60601. The date and time of the Closing (the “Closing
      Date”)
      shall
      be 10:00 a.m., Chicago Time, on the first (1st)
      Business Day on which the conditions to the Closing set forth in Sections
6
      and
7
      below
      are satisfied or waived (or such later date as is mutually agreed to by the
      Company and each Buyer). As used herein “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which commercial banks
      in
      Chicago, Illinois are authorized or required by law to remain
      closed.

    

    (c) Purchase
      Price. The aggregate purchase price for the Special Warrants and the
      Warrants to be purchased by each Buyer (the “Purchase
      Price”)
      shall
      be the amount set forth opposite such Buyer’s name in column (5) on the Schedule
      of Buyers. Each Buyer shall pay its respective Purchase Price for the Special
      Warrant and related Warrants to be purchased by such Buyer at the
      Closing.

    

    (d) Form
      of Payment. On the Closing Date, (i) each Buyer shall pay its respective
      Purchase Price to the Company for the Special Warrants and the Warrants to
      be
      issued and sold to such Buyer at the Closing, by wire transfer of immediately
      available funds in accordance with the Company’s written wire instructions and
      (ii) the Company shall issue and deliver to each Buyer (A) a Special
      Warrant for the Conversion Amount as is set forth opposite such Buyer’s name in
      column (3) of the Schedule of Buyers) and (B) a Warrant pursuant to which such
      Buyer shall have the right to acquire such number of Warrant Shares as is set
      forth opposite such Buyer’s name in column (4) of the Schedule of Buyers, in all
      cases duly executed on behalf of the Company and registered in the name of
      such
      Buyer or its designee.

     

    
      	
              2.

            	
              BUYER’S
                REPRESENTATIONS AND
                WARRANTIES.

            

    

    

    Each
      Buyer represents and warrants to the Company with respect to only itself that:
      

     

    (a) Organization;
      Authority. Such Buyer is an entity duly organized, validly existing and in
      good standing under the laws of the jurisdiction of its organization with the
      requisite power and authority to enter into and to consummate the transactions
      contemplated by the Transaction Documents (as defined below) to which it is
      a
      party and otherwise to carry out its obligations hereunder and
      thereunder.
      For
      purposes of this Agreement, “Transaction
      Documents”
means
      this Agreement, the Special Warrants, the Warrants, the Registration Rights
      Agreement, the Irrevocable Transfer Agent Instructions (as defined in Section
      5(b)),
      and
      each of the other agreements and instruments entered into by the parties hereto
      in connection with the transactions contemplated hereby and
      thereby.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (b) No
      Public Sale or Distribution.
      Such
      Buyer is (i) acquiring the Special Warrants and the Warrants, (ii) upon
      conversion of the Special Warrants will acquire the Conversion Shares issuable
      upon conversion thereof, and (iii) upon exercise of the Warrants will
      acquire the Warrant Shares issuable upon exercise thereof, in each case, for
      its
      own account and not with a view towards, or for resale in connection with,
      the
      public sale or distribution thereof, except pursuant to sales registered or
      exempted under the 1933 Act; provided, however, that by making the
      representations herein, such Buyer does not agree, or make any representation
      or
      warranty (except as set forth in Section 4(o)),
      to
      hold any of the Securities for any minimum or other specific term and reserves
      the right to dispose of the Securities at any time in accordance with or
      pursuant to a registration statement or an exemption under the 1933 Act. Such
      Buyer is not a broker-dealer registered, or required to be registered, with
      the
      SEC under the 1934 Act. Such Buyer is acquiring the Securities hereunder in
      the
      ordinary course of its business. Such Buyer does not presently have any
      agreement or understanding, directly or indirectly, with any Person to
      distribute any of the Securities.

    

    (c) Accredited
      Investor Status. Such Buyer is an “accredited investor” as that term is
      defined in Rule 501(a) of Regulation D.

    

    (d) Reliance
      on Exemptions. Such Buyer understands that the Securities are being offered
      and sold to it in reliance on specific exemptions from the registration
      requirements of United States federal and state securities laws and that the
      Company is relying in part upon the truth and accuracy of, and such Buyer’s
      compliance with, the representations, warranties, agreements, acknowledgments
      and understandings of such Buyer set forth herein in order to determine the
      availability of such exemptions and the eligibility of such Buyer to acquire
      the
      Securities.

     

    (e) Information.
      Such
      Buyer and its advisors, if any, have been furnished with all materials relating
      to the business, finances and operations of the Company and materials relating
      to the offer and sale of the Securities which have been requested by such Buyer.
      Such Buyer and its advisors, if any, have been afforded the opportunity to
      ask
      questions of the Company. Neither such inquiries nor any other due diligence
      investigations conducted by such Buyer or its advisors, if any, or its
      representatives shall modify, amend or affect such Buyer’s right to rely on the
      Company’s representations and warranties contained herein or any representations
      and warranties contained in any other Transaction Document or any other document
      or instrument executed and/or delivered in connection with this Agreement or
      the
      consummation of the transaction contemplated hereby. Such Buyer understands
      that
      its investment in the Securities involves a high degree of risk. Such Buyer
      has
      sought such accounting, legal and tax advice as it has considered necessary
      to
      make an informed investment decision with respect to its acquisition of the
      Securities.

     

    (f) No
      Governmental Review.
      Such
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities or the fairness or suitability of the investment
      in the Securities nor have such authorities passed upon or endorsed the merits
      of the offering of the Securities.

     

    (g) Transfer
      or Resale.
      Such
      Buyer understands that except as provided in the Registration Rights Agreement
      and Section 4(h)
      hereof:
      (i) the Securities have not been and are not being registered under the 1933
      Act
      or any state securities laws, and may not be offered for sale, sold, assigned
      or
      transferred unless (A) subsequently registered thereunder, (B) such Buyer shall
      have delivered to the Company an opinion of counsel to such Buyer, in a form
      reasonably acceptable to the Company, to the effect that such Securities to
      be
      sold, assigned or transferred may be sold, assigned or transferred pursuant
      to
      an exemption from such registration, or (C) such Buyer provides the Company
      with
      reasonable assurance that such Securities can be sold, assigned or transferred
      pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor
      rule thereto) (collectively, “Rule
      144”);
      (ii)
      any sale of the Securities made in reliance on Rule 144 may be made only in
      accordance with the terms of Rule 144 and further, if Rule 144 is not
      applicable, any resale of the Securities under circumstances in which the seller
      (or the Person (as defined in Section 3(s))
      through
      whom the sale is made) may be deemed to be an underwriter (as that term is
      defined in the 1933 Act) may require compliance with some other exemption under
      the 1933 Act or the rules and regulations of the SEC promulgated thereunder;
      and
      (iii) neither the Company nor any other Person is under any obligation to
      register the Securities under the 1933 Act or any state securities laws or
      to
      comply with the terms and conditions of any exemption thereunder.

     

    
      
        
        

      

      
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    (h) Validity;
      Enforcement. This Agreement and the Registration Rights Agreement have been
      duly and validly authorized, executed and delivered on behalf of such Buyer
      and
      shall constitute the legal, valid and binding obligations of such Buyer
      enforceable against such Buyer in accordance with their respective terms, except
      as such enforceability may be limited by general principles of equity or to
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      and
      other similar laws relating to, or affecting generally, the enforcement of
      applicable creditors’ rights and remedies.

    

    (i) No
      Conflicts. The execution, delivery and performance by such Buyer of this
      Agreement and the Registration Rights Agreement and the consummation by such
      Buyer of the transactions contemplated hereby and thereby will not (i) result
      in
      a violation of the organizational documents of such Buyer or (ii) conflict
      with,
      or constitute a default (or an event which with notice or lapse of time or
      both
      would become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation of, any agreement, indenture or
      instrument to which such Buyer is a party, or (iii) result in a violation of
      any
      law, rule, regulation, order, judgment or decree (including federal and state
      securities laws) applicable to such Buyer, except in the case of clauses (ii)
      and (iii) above, for such conflicts, defaults, rights or violations which would
      not, individually or in the aggregate, reasonably be expected to have a material
      adverse effect on the ability of such Buyer to perform its obligations
      hereunder.

    

    (j) Residency.
      Such Buyer is a resident of that jurisdiction specified below its address on
      the
      Schedule of Buyers.

     

    (k) Certain
      Trading Activities. Such Buyer has not directly or indirectly, nor has any
      Person acting on behalf of or pursuant to any understanding with such Buyer,
      engaged in any transactions in the securities of the Company (including without
      limitation, any Short Sales involving the Company’s securities) since the time
      that the Buyer was first contacted regarding the investment in the Company
      contemplated herein. “Short
      Sales”
      include, without limitation, all “short sales” as defined in Rule 200
      promulgated under Regulation SHO under the 1934 Act (“Regulation
      SHO”)
      and
      all types of direct and indirect stock pledges, forward sale contracts, options,
      puts, calls, swaps and similar arrangements (including on a total return basis),
      and sales and other transactions through non-U.S. broker dealers or foreign
      regulated brokers. Such Buyer does not as of the date hereof, and will not
      immediately following the Closing, own 10% or more of the Company’s issued and
      outstanding Common Shares (calculated based on the assumption that all
      Equivalents (as defined below) owned by such Buyer, whether or not presently
      exercisable or convertible, have been fully exercised or converted (as the
      case
      may be) but taking into account any limitations on exercise or conversion
      (including “blockers”) contained therein).

     

    
      
        
        

      

      
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    (l) General
      Solicitation. No Buyer is purchasing the Securities as a result of any
      advertisement, article, notice or other communication regarding the Securities
      published in any newspaper, magazine or similar media or broadcast over
      television or radio or presented at any seminar.

     

    
      	
              3.

            	
              REPRESENTATIONS
                AND WARRANTIES OF THE
                COMPANY.

            

    

    

    The
      Company represents and warrants to each of the Buyers that:

     

    (a) Organization
      and Qualification.
      The
      Company and each Subsidiary are entities duly organized and validly existing
      and
      in good standing under the laws of the jurisdiction in which they are formed,
      and have the requisite power and authorization to own their properties and
      to
      carry on their business as now being conducted and as presently proposed to
      be
      conducted. Each of the Company and each of the Subsidiaries is duly qualified
      as
      a foreign entity to do business and is in good standing in every jurisdiction
      in
      which its ownership of property or the nature of the business conducted by
      it
      makes such qualification necessary, except to the extent that the failure to
      be
      so qualified or be in good standing would not have a Material Adverse Effect.
      As
      used in this Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on (i) the business, properties, assets,
      liabilities, operations (including results thereof), condition (financial or
      otherwise) or prospects of the Company or any Subsidiary, individually or taken
      as a whole, (ii) the transactions contemplated hereby or in the other
      Transaction Documents or (iii) the authority or ability of the Company to
      perform its obligations under the Transaction Documents (as defined below).
      Other than the Subsidiaries, there is no Person in which the Company, directly
      or indirectly, owns capital stock or holds an equity or similar interest. For
      purposes of this Agreement, Workstream USA, Inc., a Delaware corporation, Paula
      Allen Holdings, Inc., a Florida corporation, The Omni Partners, Inc., a Florida
      corporation, and 6FigureJobs.com, Inc., a Delaware corporation, are collectively
      referred to herein as the “Subsidiaries”
and
      individually as a “Subsidiary.”
      

     

    (b) Authorization;
      Enforcement; Validity.
      The
      Company has the requisite power and authority to enter into and perform its
      obligations under the Transaction Documents and to issue the Securities in
      accordance with the terms hereof and thereof. The execution and delivery of
      this
      Agreement and the other Transaction Documents by the Company, and the
      consummation by the Company of the transactions contemplated hereby and thereby,
      including, without limitation, the issuance of the Special Warrants and the
      reservation for issuance and issuance of the Conversion Shares issuable upon
      conversion of the Special Warrants, the issuance of the Warrants and the
      reservation for issuance and issuance of the Warrant Shares issuable upon
      exercise of the Warrants, have been duly authorized by the Company’s Board of
      Directors, and (other than the filing with the SEC of one or more Registration
      Statements in accordance with the requirements of the Registration Rights
      Agreement and any other filings as may be required by any state securities
      agencies) no further filing, consent or authorization is required by the
      Company, its Board of Directors or its stockholders. This Agreement and the
      other Transaction Documents have been duly executed and delivered by the
      Company, and constitute the legal, valid and binding obligations of the Company,
      enforceable against the Company in accordance with their respective terms,
      except as such enforceability may be limited by general principles of equity
      or
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      or
      similar laws relating to, or affecting generally, the enforcement of applicable
      creditors’ rights and remedies and except as rights to indemnification and to
      contribution may be limited by federal or state securities law. 

     

    
      
        
        

      

      
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    (c) Issuance
      of Securities. The issuance of the Special Warrants and the Warrants has
      been duly authorized and, upon issuance in accordance with the terms of the
      Transaction Documents, the Special Warrants and the Warrants shall be validly
      issued, fully paid and non-assessable and free from all taxes, liens, charges
      and other encumbrances with respect to the issue thereof. As of the Closing,
      the
      Company shall have reserved from its duly authorized capital stock not less
      than
      110% of the sum of (i) the maximum number of Conversion Shares issuable upon
      conversion of the Special Warrants (assuming for purposes hereof that the
      Special Warrants are convertible at the initial Conversion Price (as defined
      in
      the Special Warrants) and without taking into account any limitations on the
      conversion of the Special Warrants set forth therein) and (ii) the maximum
      number of Warrant Shares issuable upon exercise of the Warrants (without regard
      to any limitations on the exercise of the Warrants set forth therein). Upon
      conversion in accordance with the Special Warrants or exercise in accordance
      with the Warrants (as the case may be), the Conversion Shares and the Warrant
      Shares will be validly issued, fully paid and nonassessable and free from all
      preemptive or similar rights, taxes, liens, charges and other encumbrances
      with
      respect to the issue thereof, with the holders being entitled to all rights
      accorded to a holder of Common Shares. Subject to the accuracy of the
      representations and warranties of the Buyers in this Agreement, the offer and
      issuance by the Company of the Securities is exempt from registration under
      the
      1933 Act.

    

    (d) No
      Conflicts. The execution, delivery and performance of the Transaction
      Documents by the Company and the consummation by the Company of the transactions
      contemplated hereby and thereby (including, without limitation, the issuance
      of
      the Special Warrants, the Warrants, the Conversion Shares and Warrant Shares
      and
      the reservation for issuance of the Conversion Shares and Warrant Shares) will
      not (i) result in a violation of the Articles of Incorporation (as defined
      in
      Section 3(r))
      or
      other organizational documents of the Company or any of the Subsidiaries, any
      capital stock of the Company or any of the Subsidiaries or Bylaws (as defined
      in
      Section 3(r))
      of the
      Company or bylaws of any of the Subsidiaries, (ii) conflict with, or constitute
      a default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any agreement, indenture or instrument to
      which
      the Company or any of the Subsidiaries is a party, except to the extent such
      conflict, default or termination right would not reasonably be expected to
      have
      a Material Adverse Effect, or (iii) result in a violation of any law, rule,
      regulation, order, judgment or decree (including federal and state securities
      laws and regulations and the rules and regulations of The
      Nasdaq Capital Market
      and the
      Boston Stock Exchange (together, the “Principal
      Market”)
      and
      including all applicable Canadian laws, rules and regulations) applicable to
      the
      Company or any of the Subsidiaries or by which any property or asset of the
      Company or any of the Subsidiaries is bound or affected except, in the case
      of
      clause (ii) or (iii) above, to the extent such violations that could not
      reasonably be expected to have a Material Adverse Effect. 

     

    
      
        
        

      

      
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    (e) Consents.
      The Company is not required to obtain any consent, authorization or order of,
      or
      make any filing or registration with, any court, governmental agency or any
      regulatory or self-regulatory agency or any other Person in order for it to
      execute, deliver or perform any of its obligations under or contemplated by
      the
      Transaction Documents, in each case, in accordance with the terms hereof or
      thereof. All consents, authorizations, orders, filings and registrations which
      the Company is required to obtain pursuant to the preceding sentence have been
      obtained or effected on or prior to the Closing Date, and the Company is not
      aware of any facts or circumstances which might prevent the Company from
      obtaining or effecting any of the registration, application or filings pursuant
      to the preceding sentence. The Company is not in violation of the requirements
      of the Principal Market and has no knowledge of any facts or circumstances
      which
      could reasonably lead to delisting or suspension of the Common Shares in the
      foreseeable future. 

    

    (f) Acknowledgment
      Regarding Buyer’s Purchase of Securities. The Company acknowledges and
      agrees that each Buyer is acting solely in the capacity of an arm’s length
      purchaser with respect to the Transaction Documents and the transactions
      contemplated hereby and thereby and that no Buyer is (i) an officer or director
      of the Company or any of the Subsidiaries, (ii) an “affiliate” (as defined in
      Rule 144) of the Company or any of the Subsidiaries or (iii) to its knowledge,
      a
“beneficial owner” of more than 10% of the Common Shares (as defined for
      purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the
      “1934
      Act”)).
      The
      Company further acknowledges that no Buyer is acting as a financial advisor
      or
      fiduciary of the Company or any of the Subsidiaries (or in any similar capacity)
      with respect to the Transaction Documents and the transactions contemplated
      hereby and thereby, and any advice given by a Buyer or any of its
      representatives or agents in connection with the Transaction Documents and
      the
      transactions contemplated hereby and thereby is merely incidental to such
      Buyer’s purchase of the Securities. The Company further represents to each Buyer
      that the Company’s decision to enter into the Transaction Documents has been
      based solely on the independent evaluation by the Company and its
      representatives.

    

    (g) No
      General Solicitation; Placement Agent’s Fees. Neither the Company, nor any
      of the Subsidiaries or affiliates, nor any Person acting on its or their behalf,
      has engaged in any form of general solicitation or general advertising (within
      the meaning of Regulation D) in connection with the offer or sale of the
      Securities. The Company shall be responsible for the payment of any placement
      agent’s fees, financial advisory fees, or brokers’ commissions (other than for
      persons engaged by any Buyer or its investment advisor) relating to or arising
      out of the transactions contemplated hereby. Neither the Company nor any of
      the
      Subsidiaries has engaged any placement agent or other agent in connection with
      the sale of the Securities.

    

    (h) No
      Integrated Offering. None of the Company, the Subsidiaries or any of their
      affiliates, nor any Person acting on its or their behalf has, directly or
      indirectly, made any offers or sales of any security or solicited any offers
      to
      buy any security, under circumstances that would require registration of any
      of
      the Securities under the 1933 Act or cause this offering of the Securities
      to be
      integrated with prior offerings by the Company for purposes of the 1933 Act
      or
      any applicable stockholder approval provisions, including, without limitation,
      under the rules and regulations of any exchange or automated quotation system
      on
      which any of the securities of the Company are listed or designated. None of
      the
      Company, the Subsidiaries, their affiliates nor any Person acting on their
      behalf will take any action or steps referred to in the preceding sentence
      that
      would require registration of any of the Securities under the 1933 Act or cause
      the offering of any of the Securities to be integrated with other
      offerings.

     

    
      
        
        

      

      
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    (i) Dilutive
      Effect. The Company understands and acknowledges that the number of
      Conversion Shares and Warrant Shares will increase in certain circumstances.
      The
      Company further acknowledges that its obligation to issue the Conversion Shares
      upon conversion of the Special Warrants and the Warrant Shares upon exercise
      of
      the Warrants in accordance with this Agreement, the Special Warrants and the
      Warrants is, absolute and unconditional regardless of the dilutive effect that
      such issuance may have on the ownership interests of other stockholders of
      the
      Company.

    

    (j) Application
      of Takeover Protections; Rights Agreement. The Company and its board of
      directors have taken all necessary action, if any, in order to render
      inapplicable any control share acquisition, business combination, poison pill
      (including any distribution under a rights agreement) or other similar
      anti-takeover provision under the Articles of Incorporation or other
      organizational document or the laws of the jurisdiction of its incorporation
      or
      otherwise which is or could become applicable to any Buyer as a result of the
      transactions contemplated by this Agreement, including, without limitation,
      the
      Company’s issuance of the Securities and any Buyer’s ownership of the
      Securities. Neither the Company nor any Subsidiary has adopted a stockholder
      rights plan or similar arrangement relating to accumulations of beneficial
      ownership of Common Shares or a change in control of the Company or any of
      the
      Subsidiaries.

    

    (k) SEC
      Documents; Financial Statements. During the two (2) years prior to the date
      hereof, the Company has timely filed all reports, schedules, forms, statements
      and other documents required to be filed by it with the SEC pursuant to the
      reporting requirements of the 1934 Act (all of the foregoing filed prior to
      the
      date hereof and all exhibits included therein and financial statements, notes
      and schedules thereto and documents incorporated by reference therein being
      hereinafter referred to as the “SEC
      Documents”).
      The
      Company has delivered to the Buyers or their respective representatives true,
      correct and complete copies of each of the SEC Documents not available on the
      EDGAR system. As of their respective dates, the SEC Documents complied in all
      material respects with the requirements of the 1934 Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading. As of their respective dates, the financial statements of the
      Company included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the SEC with respect thereto as in effect as of the time of
      filing. Such financial statements have been prepared in accordance with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (i) as may be otherwise indicated in such financial
      statements or the notes thereto, or (ii) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements) and fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments which will not be
      material, either individually or in the aggregate). No other information
      provided by or on behalf of the Company to the Buyers which is not included
      in
      the SEC Documents, including, without limitation, information referred to in
      Section 2(e)
      of this
      Agreement, contains any untrue statement of a material fact or omits to state
      any material fact necessary in order to make the statements therein not
      misleading, in the light of the circumstance under which they are or were
      made.

     

    
      
        
        

      

      
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    (l) Absence
      of Certain Changes.
      Since
      the date of the Company’s most recent audited financial statements contained in
      a Form 10-K, there has been no material adverse change and no material adverse
      development in the business, assets, liabilities, properties, operations
      (including results thereof), condition (financial or otherwise) or prospects
      of
      the Company or any of the Subsidiaries. Since the date of the Company’s most
      recent audited financial statements contained in a Form 10-K, neither the
      Company nor any of the Subsidiaries has (i) declared or paid any dividends,
      (ii)
      sold any material assets outside of the ordinary course of business or (iii)
      made any material capital expenditures. Neither the Company nor any of the
      Subsidiaries has taken any steps to seek protection pursuant to any law or
      statute relating to bankruptcy, insolvency, reorganization, liquidation or
      winding up, nor does the Company or any Subsidiary have any knowledge or reason
      to believe that any of their respective creditors intend to initiate involuntary
      bankruptcy proceedings or any actual knowledge of any fact which would
      reasonably lead a creditor to do so. The Company and the Subsidiaries,
      individually and on a consolidated basis, are not as of the date hereof, and
      after giving effect to the transactions contemplated hereby to occur at the
      Closing, will not be Insolvent (as defined below). For purposes of this Section
      3(l),
      “Insolvent”
means,
      (I) with respect to the Company and the Subsidiaries, on a consolidated basis,
      (i) the present fair saleable value of the Company’s and the Subsidiaries’
assets is less than the amount required to pay the Company’s and the
      Subsidiaries’ total Indebtedness (as defined in Section 3(s)),
      (ii)
      the Company and the Subsidiaries are unable to pay their debts and liabilities,
      subordinated, contingent or otherwise, as such debts and liabilities become
      absolute and matured or (iii) the Company and the Subsidiaries intend to incur
      or believe that they will incur debts that would be beyond their ability to
      pay
      as such debts mature; and (II) with respect to the Company and each Subsidiary,
      individually, (i) the present fair saleable value of the Company’s or any of the
      Subsidiaries’ assets is less than the amount required to pay each of their
      respective total Indebtedness, (ii) the Company or any of the Subsidiaries
      are
      unable to pay their respective debts and liabilities, subordinated, contingent
      or otherwise, as such debts and liabilities become absolute and matured or
      (iii)
      the Company or any of the Subsidiaries intend to incur or believe that they
      will
      incur debts that would be beyond their respective ability to pay as such debts
      mature. Neither the Company nor any of the Subsidiaries has engaged in business
      or in any transaction, and is not about to engage in business or in any
      transaction, for which the Company’s or such Subsidiary’s remaining assets
      constitute unreasonably small capital.

    

    (m) No
      Undisclosed Events, Liabilities, Developments or Circumstances. No event,
      liability, development or circumstance has occurred or exists, or is reasonably
      foreseeable to exist or occur with respect to the Company, any of the
      Subsidiaries or their respective business, properties, liabilities, prospects,
      operations (including results thereof) or condition (financial or otherwise),
      that (i) would be required to be disclosed by the Company under applicable
      securities laws on a registration statement on Form S-1 filed with the SEC
      relating to an issuance and sale by the Company of its Common Shares and which
      has not been publicly announced or (ii) could have a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (n) Conduct
      of Business; Regulatory Permits.
      Neither
      the Company nor any of the Subsidiaries is in violation of any term of or in
      default under its Articles of Incorporation, any certificate of designation,
      preferences or rights of any other outstanding series of preferred stock of
      the
      Company or any of the Subsidiaries or Bylaws or their organizational charter,
      certificate of formation or certificate of incorporation or bylaws,
      respectively. Neither the Company nor any of the Subsidiaries is in violation
      of
      any judgment, decree or order or any statute, ordinance, rule or regulation
      applicable to the Company or any of the Subsidiaries, and neither the Company
      nor any of the Subsidiaries will conduct its business in violation of any of
      the
      foregoing, except in all cases for possible violations which would not,
      individually or in the aggregate, have a Material Adverse Effect. Without
      limiting the generality of the foregoing, the Company is not in violation of
      any
      of the rules, regulations or requirements of the Principal Market and has no
      knowledge of any facts or circumstances that could reasonably lead to delisting
      or suspension of the Common Shares by the Principal Market in the foreseeable
      future. Except as set forth on Schedule 3(n),
      since
      January 1, 2006, (i) the Common Shares have been designated for quotation on
      the
      Principal Market, (ii) trading in the Common Shares has not been suspended
      by
      the SEC or the Principal Market and (iii) the Company has received no
      communication, written or oral, from the SEC or the Principal Market regarding
      the suspension or delisting of the Common Shares from the Principal Market.
      The
      Company and each of the Subsidiaries possess all certificates, authorizations
      and permits issued by the appropriate regulatory authorities necessary to
      conduct their respective businesses, except where the failure to possess such
      certificates, authorizations or permits would not have, individually or in
      the
      aggregate, a Material Adverse Effect, and neither the Company nor any such
      Subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such certificate, authorization or permit.

    

    (o) Foreign
      Corrupt Practices. Neither the Company nor any of the Subsidiaries nor any
      director, officer, agent, employee or other Person acting on behalf of the
      Company or any of the Subsidiaries has, in the course of its actions for, or
      on
      behalf of, the Company or any of the Subsidiaries (i) used any corporate funds
      for any unlawful contribution, gift, entertainment or other unlawful expenses
      relating to political activity; (ii) made any direct or indirect unlawful
      payment to any foreign or domestic government official or employee from
      corporate funds; (iii) violated or is in violation of any provision of the
      U.S.
      Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful
      bribe, rebate, payoff, influence payment, kickback or other unlawful payment
      to
      any foreign or domestic government official or employee.

    

    (p) Sarbanes-Oxley
      Act. The Company and each Subsidiary is in compliance in all material
      respects with all applicable requirements of the Sarbanes-Oxley Act of 2002
      that
      are effective as of the date hereof, and all applicable rules and regulations
      promulgated by the SEC thereunder that are effective as of the date
      hereof.

     

    (q) Transactions
      With Affiliates.
      Other
      than as set forth on Schedule 3(q),
      none of
      the officers, directors or employees of the Company or any of the Subsidiaries
      is presently a party to any transaction with the Company or any of the
      Subsidiaries (other than for ordinary course services as employees, officers
      or
      directors), including any contract, agreement or other arrangement providing
      for
      the furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such
      officer, director or employee or, to the knowledge of the Company or any of
      the
      Subsidiaries, any corporation, partnership, trust or other entity in which
      any
      such officer, director, or employee has a substantial interest or is an officer,
      director, trustee or partner.

     

    
      
        
        

      

      
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    (r) Equity
      Capitalization.
      As of
      the date hereof, the authorized capital stock of the Company consists of (i)
      unlimited Common Shares, of which as of the date hereof, 51,963,081, including
      323,625 shares held in treasury, are issued and outstanding and 11,434,044
      shares are reserved for issuance pursuant to securities (other than the Special
      Warrants and the Warrants) exercisable or exchangeable for, or convertible
      into,
      Common Shares, and (ii) unlimited shares of preferred stock, none of which,
      as
      of the date hereof, are issued and outstanding. All of such outstanding shares
      are duly authorized and have been, or upon issuance will be, validly issued
      and
      are fully paid and nonassessable. 9,810,971 shares of the Company’s issued and
      outstanding Common Shares on the date hereof are as of the date hereof owned
      by
      Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and
      calculated based on the assumption that only officers, directors and holders
      of
      at least 10% of
      the
      Company’s issued and outstanding Common Shares
      are
“affiliates” without conceding that any such Persons are “affiliates” for
      purposes of federal securities laws) of the Company or any of the Subsidiaries.
      To
      the
      Company’s knowledge, as of the date hereof no Person (other than the Persons
      identified in the Schedule 13G/A filed with the SEC on February 14, 2007 by
      Janus Capital Management LLC) owns 10% or more of the Company’s issued and
      outstanding Common Shares (calculated based on the assumption that all
      Equivalents, whether or not presently exercisable or convertible, have been
      fully exercised or converted (as the case may be) but taking account
      of any limitations on exercise or conversion (including “blockers”) contained
      therein without conceding that such identified Person is a 10% stockholder
      for
      purposes of federal securities laws).
      Except
      as disclosed in Schedule 3(r):
      (i)
      none of the Company’s or any Subsidiary’s capital stock is subject to preemptive
      rights or any other similar rights or any liens or encumbrances suffered or
      permitted by the Company or any Subsidiary; (ii) there are no outstanding
      options, warrants, scrip, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities or rights convertible into,
      or
      exercisable or exchangeable for, any capital stock of the Company or any of
      the
      Subsidiaries, or contracts, commitments, understandings or arrangements by
      which
      the Company or any of the Subsidiaries is or may become bound to issue
      additional capital stock of the Company or any of the Subsidiaries or options,
      warrants, scrip, rights to subscribe to, calls or commitments of any character
      whatsoever relating to, or securities or rights convertible into, or exercisable
      or exchangeable for, any capital stock of the Company or any of the
      Subsidiaries; (iii) there are no outstanding debt securities, notes, credit
      agreements, credit facilities or other agreements, documents or instruments
      evidencing Indebtedness (as defined in Section 3(s))
      of the
      Company or any of the Subsidiaries or by which the Company or any of the
      Subsidiaries is or may become bound; (iv) there are no financing statements
      securing obligations in any material amounts, either individually or in the
      aggregate, filed in connection with the Company or any of the Subsidiaries;
      (v)
      there are no agreements or arrangements under which the Company or any of the
      Subsidiaries is obligated to register the sale of any of their securities under
      the 1933 Act (except pursuant to the Registration Rights Agreement); (vi) there
      are no outstanding securities or instruments of the Company or any of the
      Subsidiaries which contain any redemption or similar provisions, and there
      are
      no contracts, commitments, understandings or arrangements by which the Company
      or any of the Subsidiaries is or may become bound to redeem a security of the
      Company or any of the Subsidiaries; (vii) there are no securities or instruments
      containing anti-dilution or similar provisions that will be triggered by the
      issuance of the Securities; (viii) neither the Company nor any Subsidiary has
      any stock appreciation rights or “phantom stock” plans or agreements or any
      similar plan or agreement; and (ix) neither the Company nor any of the
      Subsidiaries have any liabilities or obligations required to be disclosed in
      the
      SEC Documents which are not so disclosed in the SEC Documents, other than those
      incurred in the ordinary course of the Company’s or the Subsidiaries’ respective
      businesses and which, individually or in the aggregate, do not or could not
      have
      a Material Adverse Effect. The Company has furnished to the Buyers true, correct
      and complete copies of the Company’s Articles of Amendment, Articles of
      Incorporation, as amended and as in effect on the date hereof (the “Articles of
      Incorporation”),
      and
      the Company’s bylaws, as amended and as in effect on the date hereof (the
“Bylaws”),
      and
      the terms of all securities convertible into, or exercisable or exchangeable
      for, Common Shares and the material rights of the holders thereof in respect
      thereto.

     

    (s) Indebtedness
      and Other Contracts.
      Except
      as disclosed on Schedule 3(s),
      neither
      the Company nor any of the Subsidiaries (i) has any outstanding Indebtedness
      (as
      defined below), (ii) is a party to any contract, agreement or instrument, the
      violation of which, or default under which, by the other party(ies) to such
      contract, agreement or instrument could reasonably be expected to result in
      a
      Material Adverse Effect, (iii) is in violation of any term of or in default
      under any contract, agreement or instrument relating to any Indebtedness, except
      where such violations and defaults would not result, individually or in the
      aggregate, in a Material Adverse Effect, or (iv) is a party to any contract,
      agreement or instrument relating to any Indebtedness, the performance of which,
      in the judgment of the Company’s officers, has or is expected to have a Material
      Adverse Effect. For purposes of this Agreement: (x) “Indebtedness”
of
      any
      Person means, without duplication (A) all indebtedness for borrowed money,
      (B)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services (including, without limitation, “capital leases” in
      accordance with generally accepted accounting principles) (other than trade
      payables entered into in the ordinary course of business), (C) all reimbursement
      or payment obligations with respect to letters of credit, surety bonds and
      other
      similar instruments, (D) all obligations evidenced by notes, bonds, debentures
      or similar instruments, including obligations so evidenced incurred in
      connection with the acquisition of property, assets or businesses, (E) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement, or incurred as financing, in either case with respect
      to
      any property or assets acquired with the proceeds of such indebtedness (even
      though the rights and remedies of the seller or bank under such agreement in
      the
      event of default are limited to repossession or sale of such property), (F)
      all
      monetary obligations under any leasing or similar arrangement which, in
      connection with generally accepted accounting principles, consistently applied
      for the periods covered thereby, is classified as a capital lease, (G) all
      indebtedness referred to in clauses (A) through (F) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
      or obligations of others of the kinds referred to in clauses (A) through (G)
      above; (y) “Contingent
      Obligation”
means,
      as to any Person, any direct or indirect liability, contingent or otherwise,
      of
      that Person with respect to any indebtedness, lease, dividend or other
      obligation of another Person if the primary purpose or intent of the Person
      incurring such liability, or the primary effect thereof, is to provide assurance
      to the obligee of such liability that such liability will be paid or discharged,
      or that any agreements relating thereto will be complied with, or that the
      holders of such liability will be protected (in whole or in part) against loss
      with respect thereto; and (z) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    
      
        
        

      

      
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    (t) Absence
      of Litigation.
      Except
      as set forth on Schedule 3(t),
      there
      is no action, suit, proceeding, inquiry or investigation before or by the
      Principal Market, any court, public board, government agency, self-regulatory
      organization or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company or any of the Subsidiaries, the Common Shares
      or any of the Company’s or the Subsidiaries’ officers or directors which is
      outside of the ordinary course of business or individually or in the aggregate
      material to the Company or any of the Subsidiaries.

    

    (u) Insurance.
      The Company and each of the Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and the Subsidiaries are engaged. Neither the Company
      nor
      any such Subsidiary has been refused any insurance coverage sought or applied
      for, and neither the Company nor any such Subsidiary has any reason to believe
      that it will be unable to renew its existing insurance coverage as and when
      such
      coverage expires or to obtain similar coverage from similar insurers as may
      be
      necessary to continue its business at a cost that would not have a Material
      Adverse Effect.

    

    (v) Employee
      Relations. Neither the Company nor any of the Subsidiaries is a party to any
      collective bargaining agreement or employs any member of a union. The Company
      and the Subsidiaries believe that their relations with their employees are
      good.
      No executive officer (as defined in Rule 501(f) promulgated under the 1933
      Act)
      or other key employee of the Company or any of the Subsidiaries has notified
      the
      Company or any such Subsidiary that such officer intends to leave the Company
      or
      any such Subsidiary or otherwise terminate such officer’s employment with the
      Company or any such Subsidiary. No executive officer or other key employee
      of
      the Company or any of the Subsidiaries is, or is now expected to be, in
      violation of any material term of any employment contract, confidentiality,
      disclosure or proprietary information agreement, non-competition agreement,
      or
      any other contract or agreement or any restrictive covenant, and the continued
      employment of each such executive officer or other key employee (as the case
      may
      be) does not subject the Company or any of the Subsidiaries to any liability
      with respect to any of the foregoing matters. The Company and the Subsidiaries
      are in compliance with all federal, state, local and foreign laws and
      regulations respecting labor, employment and employment practices and benefits,
      terms and conditions of employment and wages and hours, except where failure
      to
      be in compliance would not, either individually or in the aggregate, reasonably
      be expected to result in a Material Adverse Effect.

     

    (w) Title.
      Except
      as set forth on Schedule 3(w),
      the
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and marketable title to all personal property owned
      by
      them which is material to the business of the Company and the Subsidiaries,
      in
      each case, free and clear of all liens, encumbrances and defects except such
      as
      do not materially affect the value of such property and do not interfere with
      the use made and proposed to be made of such property by the Company and any
      of
      the Subsidiaries. Any real property and facilities held under lease by the
      Company or any of the Subsidiaries are held by them under valid, subsisting
      and
      enforceable leases with such exceptions as are not material and do not interfere
      with the use made and proposed to be made of such property and buildings by
      the
      Company or any of the Subsidiaries. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (x) Intellectual
      Property Rights. The Company and the Subsidiaries own or possess adequate
      rights or licenses to use all trademarks, trade names, service marks, service
      mark registrations, service names, patents, patent rights, copyrights,
      inventions, licenses, approvals, governmental authorizations, trade secrets
      and
      other intellectual property rights (“Intellectual
      Property Rights”)
      necessary to conduct their respective businesses as now conducted and as
      presently proposed to be conducted. None of the Company’s or the Subsidiaries’
Intellectual Property Rights have expired, terminated or been abandoned, or
      are
      expected to expire, terminate or be abandoned, within three years from the
      date
      of this Agreement. The Company does not have any knowledge of any infringement
      by the Company or any of the Subsidiaries of Intellectual Property Rights of
      others. There is no claim, action or proceeding being made or brought, or to
      the
      knowledge of the Company, being threatened, against the Company or any of the
      Subsidiaries regarding their Intellectual Property Rights. The Company is
      unaware of any facts or circumstances which might give rise to any of the
      foregoing infringements or claims, actions or proceedings. The Company and
      each
      of the Subsidiaries have taken reasonable security measures to protect the
      secrecy, confidentiality and value of all of their Intellectual Property
      Rights.

    

    (y) Environmental
      Laws. The Company and the Subsidiaries (i) are in compliance with all
      Environmental Laws (as hereinafter defined), (ii) have received all permits,
      licenses or other approvals required of them under applicable Environmental
      Laws
      to conduct their respective businesses and (iii) are in compliance with all
      terms and conditions of any such permit, license or approval where, in each
      of
      the foregoing clauses (i), (ii) and (iii), the failure to so comply could be
      reasonably expected to have, individually or in the aggregate, a Material
      Adverse Effect. The term “Environmental
      Laws”
means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, “Hazardous
      Materials”)
      into
      the environment, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Hazardous Materials, as well as all authorizations, codes, decrees, demands
      or
      demand letters, injunctions, judgments, licenses, notices or notice letters,
      orders, permits, plans or regulations issued, entered, promulgated or approved
      thereunder.

    

    (z) Subsidiary
      Rights. The Company or one of the Subsidiaries has the unrestricted right to
      vote, and (subject to limitations imposed by applicable law) to receive
      dividends and distributions on, all capital securities of the Subsidiaries
      as
      owned by the Company or such Subsidiary.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (aa) Tax
      Status. The Company and each of the Subsidiaries (i) has timely made or
      filed all foreign, federal and state income and all other tax returns, reports
      and declarations required by any jurisdiction to which it is subject, (ii)
      has
      timely paid all taxes and other governmental assessments and charges that are
      material in amount, shown or determined to be due on such returns, reports
      and
      declarations, except those being contested in good faith and (iii) has set
      aside
      on its books provision reasonably adequate for the payment of all taxes for
      periods subsequent to the periods to which such returns, reports or declarations
      apply. There are no unpaid taxes in any material amount claimed to be due by
      the
      taxing authority of any jurisdiction, and the officers of the Company and the
      Subsidiaries know of no basis for any such claim. The Company is not operated
      in
      such a manner as to qualify as a passive foreign investment company, as defined
      in Section 1297 of the U.S. Internal Revenue Code of 1986, as
      amended.

     

    (bb) Internal
      Accounting and Disclosure Controls.
      The
      Company and each of the Subsidiaries maintains a system of internal accounting
      controls reasonably sufficient to provide reasonable assurance that (i)
      transactions are executed in accordance with management’s general or specific
      authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with generally accepted
      accounting principles and to maintain asset and liability accountability, (iii)
      access to assets or incurrence of liabilities is permitted only in accordance
      with management’s general or specific authorization and (iv) the recorded
      accountability for assets and liabilities is compared with the existing assets
      and liabilities at reasonable intervals and appropriate action is taken with
      respect to any difference. The Company maintains disclosure controls and
      procedures (as such term is defined in Rule 13a-14 under the 1934 Act) that
      are
      reasonably effective in ensuring that information required to be disclosed
      by
      the Company in the reports that it files or submits under the 1934 Act is
      recorded, processed, summarized and reported, within the time periods specified
      in the rules and forms of the SEC, including, without limitation, controls
      and
      procedures designed to ensure that information required to be disclosed by
      the
      Company in the reports that it files or submits under the 1934 Act is
      accumulated and communicated to the Company’s management, including its
      principal executive officer or officers and its principal financial officer
      or
      officers, as appropriate, to allow timely decisions regarding required
      disclosure. Neither the Company nor any of the Subsidiaries has received any
      notice or correspondence from any accountant relating to any potential material
      weakness in any part of the system of internal accounting controls of the
      Company or any of the Subsidiaries.

    

    (cc) Off
      Balance Sheet Arrangements. There is no transaction, arrangement, or other
      relationship between the Company or any of the Subsidiaries and an
      unconsolidated or other off balance sheet entity that is required to be
      disclosed by the Company in its 1934 Act filings and is not so disclosed or
      that
      otherwise could be reasonably likely to have a Material Adverse
      Effect.

    

    (dd) Investment
      Company Status. The Company is not, and upon consummation of the sale of the
      Securities will not be, an “investment company,” an affiliate of an “investment
      company,” a company controlled by an “investment company” or an “affiliated
      person” of, or “promoter” or “principal underwriter” for, an “investment
      company” as such terms are defined in the Investment Company Act of 1940, as
      amended. 

    

    (ee) Acknowledgement
      Regarding Buyers’ Trading Activity. It is understood and acknowledged by the
      Company (i) that, other than as contemplated by Section 2(k)
      and
      Section 4(o),
      following the public disclosure of the transactions contemplated by the
      Transaction Documents, in accordance with the terms thereof, none of the Buyers
      have been asked by the Company or any of the Subsidiaries to agree, nor has
      any
      Buyer agreed with the Company or any of the Subsidiaries, to desist from
      purchasing or selling, long and/or short, securities of the Company, or
“derivative” securities based on securities issued by the Company or to hold the
      Securities for any specified term; (ii) that any Buyer, and counter parties
      in
“derivative” transactions to which any such Buyer is a party, directly or
      indirectly, presently may have a “short” position in the Common Shares which
      were established prior to such Buyer’s knowledge of the transactions
      contemplated by the Transaction Documents, and (iii) that each Buyer shall
      not
      be deemed to have any affiliation with or control over any arm’s length counter
      party in any “derivative” transaction. The Company further understands and
      acknowledges that, except as set forth in Section 4(o),
      following the public disclosure of the transactions contemplated by the
      Transaction Documents pursuant to the Press Release one or more Buyers may
      engage in hedging and/or trading activities at various times during the period
      that the Securities are outstanding, including, without limitation, during
      the
      periods that the value of the Warrant Shares or Conversion Shares, as
      applicable, deliverable with respect to the Securities are being determined
      and
      (b) such hedging and/or trading activities, if any, can reduce the value of
      the
      existing stockholders’ equity interest in the Company both at and after the time
      the hedging and/or trading activities are being conducted. Subject to the
      provisions of Section 2(b)
      and
      Section 4(o),
      the
      Company acknowledges that such aforementioned hedging and/or trading activities
      do not constitute a breach of this Agreement or any other Transaction Document
      or any of the documents executed in connection herewith or
      therewith.

     

    
      
        
        

      

      
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    (ff) Manipulation
      of Price. Neither the Company nor any of the Subsidiaries has, and to their
      knowledge no Person acting on their behalf has, (i) taken, directly or
      indirectly, any action designed to cause or to result in the stabilization
      or
      manipulation of the price of any security of the Company or any of the
      Subsidiaries to facilitate the sale or resale of any of the Securities, (ii)
      sold, bid for, purchased, or paid any compensation for soliciting purchases
      of,
      any of the Securities, or (iii) paid or agreed to pay to any person any
      compensation for soliciting another to purchase any other securities of the
      Company or any of the Subsidiaries.

    

    (gg) U.S.
      Real Property Holding Corporation. Neither the Company nor any of the
      Subsidiaries is, or has ever been, a U.S. real property holding corporation
      within the meaning of Section 897 of the Internal Revenue Code of 1986, as
      amended, and the Company and each Subsidiary shall so certify upon any Buyer’s
      request.

    

    (hh) Registration
      Eligibility. The Company is eligible to register the Registrable Securities
      for resale by the Buyers using Form S-3 promulgated under the 1933
      Act.

    

    (ii) Disclosure.
      The Company confirms that neither it nor any other Person acting on its behalf
      has provided any of the Buyers or their agents or counsel with any information
      that constitutes or could reasonably be expected to constitute material,
      nonpublic information. The Company understands and confirms that each of the
      Buyers will rely on the foregoing representations in effecting transactions
      in
      securities of the Company. All disclosure provided to the Buyers regarding
      the
      Company and the Subsidiaries, their businesses and the transactions contemplated
      hereby, including the Schedules to this Agreement, furnished by or on behalf
      of
      the Company or any of the Subsidiaries is true and correct and does not contain
      any untrue statement of a material fact or omit to state any material fact
      necessary in order to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading. Each press release
      issued by the Company or any of the Subsidiaries during the twelve (12) months
      preceding the date of this Agreement did not at the time of release contain
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary in order to make the statements therein, in
      the
      light of the circumstances under which they are made, not misleading. No event
      or circumstance has occurred or information exists with respect to the Company
      or any of the Subsidiaries or its or their business, properties, liabilities,
      prospects, operations (including results thereof) or conditions (financial
      or
      otherwise), which, under applicable law, rule or regulation, requires public
      disclosure at or before the date hereof or announcement by the Company but
      which
      has not been so publicly announced or disclosed. The Company acknowledges and
      agrees that no Buyer makes or has made any representations or warranties with
      respect to the transactions contemplated hereby other than those specifically
      set forth in Sections 2
      and
4(o).

     

    
      
        
        

      

      
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              4.

            	
              COVENANTS.

            

    

    

    (a) Best
      Efforts. Each party shall use its best efforts timely to satisfy each of the
      conditions to be satisfied by it as provided in Sections 6
      and
7
      of this
      Agreement.

     

    (b) Form
      D
      and Blue Sky.
      The
      Company agrees to file a Form D with respect to the Securities as required
      under
      Regulation D and to provide a copy thereof to each Buyer promptly after such
      filing. The Company shall, on or before the Closing Date, take such action
      as
      the Company shall reasonably determine is necessary in order to obtain an
      exemption for, or to, qualify the Securities for sale to the Buyers at the
      Closing pursuant to this Agreement under applicable securities or “Blue Sky”
laws of the states of the United States (or to obtain an exemption from such
      qualification), and shall provide evidence of any such action so taken to the
      Buyers on or prior to the Closing Date. The Company shall make all filings
      and
      reports relating to the offer and sale of the Securities required under
      applicable securities or “Blue Sky” laws of the states of the United States
      following the Closing Date. 

    

    (c) Reporting
      Status. Until the date on which the Buyers shall have sold or otherwise
      transferred or disposed of all of the Securities (the “Reporting
      Period”),
      the
      Company shall timely file all reports required to be filed with the SEC pursuant
      to the 1934 Act, and the Company shall not terminate its status as an issuer
      required to file reports under the 1934 Act even if the 1934 Act or the rules
      and regulations thereunder would no longer require or otherwise permit such
      termination.

     

    (d) Use
      of
      Proceeds.
      The
      Company shall use the proceeds from the sale of the Securities solely as set
      forth on Schedule 4(d),
      and the
      Company shall repay the Indebtedness set forth on such schedule immediately
      following the Closing.

    

    (e) Financial
      Information. The Company agrees to send the following to each Investor (as
      defined in the Registration Rights Agreement) during the Reporting Period (i)
      unless the following are filed with the SEC through EDGAR and are available
      to
      the public through the EDGAR system, within one (1) Business Day after the
      filing thereof with the SEC, a copy of its Annual Reports on Form 10-K or Form
      10-KSB (as the case may be) and Quarterly Reports on Form 10-Q or Form 10-QSB
      (as the case may be), any interim reports or any consolidated balance sheets,
      income statements, stockholders’ equity statements and/or cash flow statements
      for any period other than annual, any Current Reports on Form 8-K and any
      registration statements (other than on Form S-8) or amendments filed pursuant
      to
      the 1933 Act, (ii) on the same day as the release thereof, facsimile copies
      of
      all press releases issued by the Company or any of the Subsidiaries and (iii)
      copies of any notices and other information made available or given to the
      shareholders of the Company generally, contemporaneously with the making
      available or giving thereof to the shareholders.

     

    
      
        
        

      

      
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    (f) Listing.
      The
      Company shall promptly secure the listing of all of the Registrable Securities
      (as defined in the Registration Rights Agreement) upon each national securities
      exchange and automated quotation system, if any, upon which the Common Shares
      are then listed (subject to official notice of issuance) and shall maintain
      such
      listing of all Registrable Securities from time to time issuable under the
      terms
      of the Transaction Documents on such national securities exchange or automated
      quotation system. The Company shall maintain the Common Shares’ authorization
      for quotation on the Principal Market, the New York Stock Exchange, the Nasdaq
      Global Market or the Nasdaq Global Select Market (each, an “Eligible
      Market”).
      The
      Company shall not take any action which could be reasonably expected to result
      in the delisting or suspension of the Common Shares on an Eligible Market.
      The
      Company shall pay all fees and expenses in connection with satisfying its
      obligations under this Section 4(f).

     

    (g) Fees.
      The
      Company shall reimburse Magnetar Capital Master Fund, Ltd or its designee(s)
      (in
      addition to any other expense amounts paid to any Buyer prior to the date of
      this Agreement) for all reasonable costs and expenses incurred by it or its
      affiliates in connection with the transactions contemplated by the Transaction
      Documents (including, without limitation, all reasonable legal fees and
      disbursements in connection therewith, documentation and implementation of
      the
      transactions contemplated by the Transaction Documents and due diligence in
      connection therewith), which amount shall be withheld by Magnetar Capital Master
      Fund, Ltd from its Purchase Price at the Closing or paid by the Company upon
      termination of this Agreement so long as such termination did not occur as
      a
      result of a material breach by Magnetar Capital Master Fund, Ltd of any of
      its
      obligations hereunder (as the case may be). The Company shall be responsible
      for
      the payment of any placement agent’s fees, financial advisory fees, or broker’s
      commissions (other than for Persons engaged by any Buyer) relating to or arising
      out of the transactions contemplated hereby. The Company shall pay, and hold
      each Buyer harmless against, any liability, loss or expense (including, without
      limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in
      connection with any claim relating to any such payment.

     

    (h) Pledge
      of Securities.
      Notwithstanding anything to the contrary contained in Section 2(g),
      the
      Company acknowledges and agrees that the Securities may be pledged by a Buyer
      in
      connection with a bona fide margin agreement or other loan or financing
      arrangement that is secured by the Securities. The pledge of Securities shall
      not be deemed to be a transfer, sale or assignment of the Securities hereunder,
      and no Buyer effecting a pledge of Securities shall be required to provide
      the
      Company with any notice thereof or otherwise make any delivery to the Company
      pursuant to this Agreement or any other Transaction Document. The Company hereby
      agrees to execute and deliver such documentation as a pledgee of the Securities
      may reasonably request in connection with a pledge of the Securities to such
      pledgee by a Buyer.

     

    
      
        
        

      

      
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    (i) Disclosure
      of Transactions and Other Material Information.
      The
      Company shall, on or before 8:30 a.m., New York City Time, on the first
      (1st)
      Business Day after the date of this Agreement, issue a press release (the
“Press
      Release”)
      reasonably acceptable to each of the Buyers disclosing all the material terms
      of
      the transactions contemplated by the Transaction Documents. On
      or
      before 8:30 a.m., New York City Time, on the fourth (4th)
      Business Day following the date of this Agreement, the Company shall file a
      Current Report on Form 8-K describing all the material terms of the transactions
      contemplated by the Transaction Documents in the form required by the 1934
      Act
      and attaching all the material Transaction Documents (including, without
      limitation, this Agreement (and all schedules to this Agreement), the form
      of
      the Special Warrants, the form of Warrants and the Registration Rights
      Agreement) (including all attachments, the “8-K
      Filing”).
      From
      and after the issuance of the Press Release, the Company shall have disclosed
      all material, nonpublic information delivered to any of the Buyers by the
      Company or any of the Subsidiaries, or any of their respective officers,
      directors, employees or agents (if any) in connection with the transactions
      contemplated by the Transaction Documents. The Company shall not, and the
      Company shall cause each of the Subsidiaries and each of its and their
      respective officers, directors, employees and agents not to, provide any Buyer
      with any material, nonpublic information regarding the Company or any of the
      Subsidiaries from and after the issuance of the Press Release without the
      express prior written consent of such Buyer, except as expressly contemplated
      by
      Section 4(p)(viii).
      If a
      Buyer has, or believes it has, received any material, nonpublic information
      regarding the Company or any of its Subsidiaries in breach of the immediately
      preceding sentence, such Buyer shall provide the Company with written notice
      thereof in which case the Company shall, within two (2) Trading Days (as defined
      in the Special Warrants) of the receipt of such notice, make a public disclosure
      of all such material, nonpublic information so provided. In the event of a
      breach of any of the foregoing covenants by the Company, any of the
      Subsidiaries, or any of its or their respective officers, directors, employees
      and agents (as determined in the reasonable good faith judgment of such Buyer),
      in addition to any other remedy provided herein or in the Transaction Documents,
      such Buyer shall have the right to make a public disclosure, in the form of
      a
      press release, public advertisement or otherwise, of such material, nonpublic
      information without the prior approval by the Company, any of the Subsidiaries,
      or any of its or their respective officers, directors, employees or agents.
      No
      Buyer shall have any liability to the Company, any of the Subsidiaries, or
      any
      of its or their respective officers, directors, employees, stockholders or
      agents, for any such disclosure. Subject to the foregoing, neither the Company,
      the Subsidiaries nor any Buyer shall issue any press releases or any other
      public statements with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the
      prior approval of any Buyer, to make any press release or other public
      disclosure with respect to such transactions (i) in substantial conformity
      with
      the 8-K Filing and contemporaneously therewith and (ii) as is required by
      applicable law and regulations (provided that in the case of clause (i)
      each Buyer shall be consulted by the Company in connection with any such press
      release or other public disclosure prior to its release). Without the prior
      written consent of any applicable Buyer, the Company shall not (and shall cause
      each of the Subsidiaries to not) disclose the name of such Buyer in any filing,
      announcement, release or otherwise unless required by applicable law or
      regulations. 

    

    (j) Additional
      Registration Statements. Until the Effective Date (as defined in the
      Registration Rights Agreement) of the initial Registration Statement required
      to
      be filed by the Company pursuant to Section 2(a) of the Registration Rights
      Agreement which covers all of the securities required to be covered thereunder
      and at any time while such Registration Statement is not effective, the Company
      shall not file a registration statement under the 1933 Act relating to
      securities that are not the Registrable Securities; provided, however, that
      the
      Company shall be permitted to file post-effective amendments with respect to
      registration statements filed prior to the date hereof so long as no such
      amendment (i) increases the amount of securities covered by any such
      registration statements or (ii) adds any securities to any such registration
      statements.

     

    
      
        
        

      

      
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    (k) Additional
      Issuance of Securities.
      The
      Company agrees that for the period commencing on the date hereof and ending
      twelve (12) months after the Closing Date (the “Restricted Period”),
      neither the Company nor any of the Subsidiaries shall directly or indirectly
      issue, offer, sell, grant any option to purchase, or otherwise dispose of (or
      announce any issuance, offer, sale, grant or any option to purchase or other
      disposition of) any of their respective equity or equity equivalent securities,
      including, without limitation, any debt, preferred stock, rights, options,
      warrants or other instrument that is at any time and under any circumstances
      convertible into or exchangeable for, or otherwise entitles the holder thereof
      to receive, capital stock and other securities of the Company (including,
      without limitation, any securities of the Company or any Subsidiary which
      entitle the holder thereof to acquire Common Shares at any time, including
      without limitation, any debt, preferred stock, rights, options, warrants or
      other instrument that is at any time convertible into or exchangeable for,
      or
      otherwise entitles the holder thereof to receive, Common Shares or other
      securities that entitle the holder to receive, directly or indirectly, Common
      Shares) (collectively with such capital stock or other securities of the
      Company, “Equivalents”)
      (any
      such issuance, offer, sale, grant, disposition or announcement being referred
      to
      as a “Subsequent
      Placement”).
      Notwithstanding the foregoing, this Section 4(k)
      shall
      not apply in respect of the issuance of (A) Common Shares or standard options
      to
      purchase Common Shares issued to directors, officers, employees or consultants
      of the Company in connection with their service as directors or officers of
      the
      Company, their employment by the Company or their retention as consultants
      by
      the Company pursuant to an equity compensation program or other contract or
      arrangement approved by the Board of Directors of the Company (or the
      compensation committee of the Board of Directors of the Company),
provided that all such issuances after the date hereof pursuant to this
      clause (A) do not, in the aggregate, exceed more than 5% of the Common Shares
      issued and outstanding immediately prior to the date hereof, (B) Common Shares
      in connection with strategic alliances, acquisitions, mergers, strategic
      partnerships, joint ventures, vendor and supplier arrangements and as equity
      kickers in lease and financing transactions, the primary purpose of which is
      not
      to raise capital, and which are approved in good faith by the Company’s Board of
      Directors, provided that all such issuances after the date hereof
      pursuant to this clause (B) do not, in the aggregate, exceed more than 10%
      of
      the Common Shares issued and outstanding immediately prior to the date hereof,
      (C) Common Shares issued upon the conversion or exercise of Equivalents issued
      prior to the date hereof, provided that such Equivalents have not been
      amended since the date of this Agreement to increase the number of shares
      issuable thereunder or to lower the exercise or conversion price thereof or
      otherwise materially change the terms or conditions thereof in any manner that
      adversely affects any of the Buyers, (D) Common Shares issued or issuable by
      reason of a dividend, stock split or other distribution on Common Shares, (E)
      Common Shares or standard warrants to purchase Common Shares issued to the
      plaintiffs in connection with the settlement of (1) the class action lawsuit
      filed on or about August 10, 2005 against the Company, its chief executive
      officer and former chief financial officer, (2) the lawsuit filed on September
      27, 2006 by Sunrise Equity Partners, L.P. against the Company and its former
      chief executive officer and (3) the lawsuit filed on April 11, 2007 by Nathan
      A.
      Low and Sunrise Foundation Trust, in each case, alleging, among other things,
      violations of the 1934 Act (all as further described in the Company’s most
      recently filed Form 10-Q), provided that all such Common Shares issued
      after the date hereof pursuant to this clause (E) (including pursuant to the
      exercise of any such warrants so issued) do not, in the aggregate, exceed more
      than 2,000,000 Common Shares, provided further that no such warrants (i)
      shall contain (I) any anti-dilution or other adjustment provisions, other than
      provisions providing for standard adjustments in the event of stock dividends,
      stock splits and stock combinations or (II) an exercise price that is less
      than
      the fair market value of the Common Shares on the date such warrant is issued
      or
      (ii) are amended to increase the number of shares issuable thereunder or to
      lower the exercise price thereof or the terms or conditions thereof are
      otherwise materially changed in any manner that adversely affects any of the
      Buyers, (F) Conversion Shares or (G) Warrant Shares (each of the foregoing
      in
      clauses (A) through (G), collectively the “Excluded
      Securities”).

     

    
      
        
        

      

      
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    (l) Reservation
      of Shares. The Company shall take all action necessary to at all times have
      authorized, and reserved for the purpose of issuance, no less than 110% of
      (i)
      the maximum number of Common Shares issuable upon conversion of the Special
      Warrants (assuming for purposes hereof, that the Special Warrants are
      convertible at the Conversion Price (as defined in the Special Warrants) and
      without regard to any limitations on the exercise of the Special Warrants set
      forth therein) and (ii) the maximum number of Common Shares issuable upon
      exercise of the Warrants (without regard to any limitations on the exercise
      of
      the Warrants set forth therein).

    

    (m) Conduct
      of Business. The business of the Company and the Subsidiaries shall not be
      conducted in violation of any law, ordinance or regulation of any governmental
      entity, except where such violations would not result, either individually
      or in
      the aggregate, in a Material Adverse Effect.

    

    (n) Variable
      Rate Transaction. From the date hereof until 24 months after the Effective
      Date of the initial Registration Statement required to be filed by the Company
      pursuant to Section 2(a) of the Registration Rights Agreement which covers
      all
      of the securities required to be covered thereunder, the Company and each
      Subsidiary shall be prohibited from effecting or entering into an agreement
      to
      effect any Subsequent Placement involving a “Variable
      Rate Transaction.”
The
      term “Variable
      Rate Transaction”
shall
      mean a transaction in which the Company or any Subsidiary (i) issues or sells
      any Equivalents either (A) at a conversion, exercise or exchange rate or other
      price that is based upon and/or varies with the trading prices of or quotations
      for the Common Shares at any time after the initial issuance of such
      Equivalents, or (B) with a conversion, exercise or exchange price that is
      subject to being reset at some future date after the initial issuance of such
      Equivalents or upon the occurrence of specified or contingent events directly
      or
      indirectly related to the business of the Company or the market for the Common
      Shares, other than pursuant to a customary “weighted average” anti-dilution
      provision or (ii) enters into any agreement (including, but not limited to,
      an
      equity line of credit) whereby the Company or any Subsidiary may sell securities
      at a future determined price (other than standard and customary “preemptive” or
“participation” rights). Each Buyer shall be entitled to obtain injunctive
      relief against the Company and the Subsidiaries to preclude any such issuance,
      which remedy shall be in addition to any right to collect damages. 

     

    
      
        
        

      

      
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    (o) Trading
      Restrictions. Each Buyer represents and warrants to, and covenants with, the
      Company that it will not (and its affiliates acting on its behalf or pursuant
      to
      any understanding with it will not) engage in or effect, directly or indirectly,
      any transactions in any securities of the Company (including, without
      limitation, any Short Sales, “locking-up” borrow or hedging activities involving
      the Company’s securities) during the period commencing on the date hereof and
      ending on the earlier to occur of (i) one (1) year after the Effective Date
      (as
      defined in the Registration Rights Agreement) of the initial Registration
      Statement covering the Registrable Securities to be filed by the Company
      pursuant to Section 2(a) of the Registration Rights Agreement, (ii) two (2)
      years from the Closing Date, (iii) the date (if any) on which the Common Shares
      are trading at a price that is at least two (2) times the initial Conversion
      Price (as defined in the Special Warrants) (subject to adjustment as provided
      therein) but only if such date is after the applicable Effectiveness Deadline
      (as defined in the Registration Rights Agreement) of the initial Registration
      Statement covering the Registrable Securities to be filed by the Company
      pursuant to Section 2(a) of the Registration Rights Agreement and such
      Registration Statement has not been declared effective by the SEC and (iv)
      the
      date this Agreement is terminated pursuant to Section 8.
      In
      furtherance (and without limitation) of the foregoing, during such restricted
      period, neither such Buyer nor any of such affiliates, (a) will directly or
      indirectly, sell, agree to sell, grant any call option or purchase any put
      option with respect to, pledge, borrow or otherwise dispose of any securities
      of
      the Company, or (b) will establish or increase any “put equivalent position” or
      liquidate or decrease any “call equivalent position” with respect to any such
      securities (in each case within the meaning of Section 16 of the Exchange Act
      and the rules and regulations promulgated thereunder), or otherwise enter into
      any swap, derivative or other transaction or arrangement that transfers to
      another, in whole or in part, any economic consequence of ownership of any
      such
      securities, whether or not such transaction is to be settled by delivery of
      any
      such securities, other securities, cash or other consideration. Notwithstanding
      the foregoing, it is understood and agreed that nothing contained in this
      Section 4(o)
      shall
      prohibit such Buyer (or such affiliates) from (1) purchasing or agreeing to
      purchase unrestricted securities of the Company or securities which are covered
      by an effective registration statement and the prospectus included therein
      is
      available for use on the date of such purchase (including through block trades
      or privately negotiated transactions), (2) purchasing or agreeing to purchase
      securities of the Company pursuant to Section 4(p)
      or
      otherwise from the Company, (3) converting any or all Special Warrants to
      acquire Conversion Shares or otherwise acting under or enforcing, or receiving
      any right or benefit or adjustment under, the Special Warrants (including,
      without limitation, the redemption, purchase and repurchase rights set forth
      therein), (4) exercising any or all Warrants to acquire Warrant Shares or
      otherwise acting under or enforcing, or receiving any right or benefit or
      adjustment under, the Warrants, (5) selling or agreeing to sell “long”
securities of the Company (because such Buyer or such affiliate is “deemed to
      own such securities” pursuant to paragraph (b) of Rule 200 under Regulation
      SHO), including, without limitation, (I) any Special Warrants, Conversion
      Shares, Warrants or Warrant Shares acquired hereunder or pursuant to the
      transactions contemplated hereby or any of the Transaction Documents (including,
      without limitation, pursuant to the terms of a Fundamental Transaction (as
      defined in the Warrants)) or (II) securities acquired after the date hereof
      in
      accordance with this paragraph, (6) pledging or hypothecating any securities
      of
      the Company in connection with leverage arrangements engaged in by such Buyer
      (or such affiliates) without the purpose of transferring economic risk relating
      to such securities, (7) from transferring any of the Securities to any affiliate
      who agrees in writing to be bound by this Section 4(o),
      in each
      case, provided such sale is in compliance with all applicable securities
      laws and following the public announcement of the transaction contemplated
      hereby pursuant to Section 4(i)
      or (8)
      disposing of, or hedging against (including, without limitation, via Short
      Sales
      or otherwise), in accordance with applicable securities laws, any securities,
      swaps, derivates or similar financial instruments involving or related to the
      Company’s securities, provided that the position was held by such Buyer prior to
      the date hereof and such
      dispositions and hedging are limited in amount to, and do not do more than
      fully
      offset, the position owned by such Buyer prior to the date hereof.

     

    
      
        
        

      

      
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    (p) Participation
      Right. From the date hereof until the two year anniversary of the Closing
      Date, neither the Company nor any Subsidiary shall, directly or indirectly,
      effect any Subsequent Placement unless the Company shall have first complied
      with this Section 4(p).
      The
      Company acknowledges and agrees that the right set forth in this Section
4(p)
      is a
      right granted by the Company, separately, to each Buyer.

     

    (i) The
      Company shall deliver to each Buyer a written notice (the “Offer
      Notice”)
      of any
      proposed or intended issuance or sale or exchange (the “Offer”)
      of the
      securities being offered (the “Offered
      Securities”)
      in a
      Subsequent Placement, which Offer Notice shall (w) identify and describe the
      Offered Securities, (x) describe the price and other terms upon which they
      are
      to be issued, sold or exchanged, and the number or amount of the Offered
      Securities to be issued, sold or exchanged, (y) identify the Persons (if known)
      to which or with which the Offered Securities are to be offered, issued, sold
      or
      exchanged and (z) offer to issue and sell to or exchange with such Buyer in
      accordance with the terms of the Offer at least 50% of the Offered Securities,
      provided
      that the
      number of Offered Securities which such Buyer shall have the right to subscribe
      for under this Section 4(p)
      shall be
      (a) based on such Buyer’s pro rata portion of the aggregate Conversion Amounts
      of the Special Warrants purchased hereunder by all Buyers (the “Basic
      Amount”),
      and
      (b) with respect to each Buyer that elects to purchase its Basic Amount, any
      additional portion of the Offered Securities attributable to the Basic Amounts
      of other Buyers as such Buyer shall indicate it will purchase or acquire should
      the other Buyers subscribe for less than their Basic Amounts (the “Undersubscription
      Amount”).

    

    (ii) To
      accept
      an Offer, in whole or in part, such Buyer must deliver a written notice to
      the
      Company prior to the end of the fifth (5th)
      Business Day after such Buyer’s receipt of the Offer Notice (the “Offer
      Period”),
      setting forth the portion of such Buyer’s Basic Amount that such Buyer elects to
      purchase and, if such Buyer shall elect to purchase all of its Basic Amount,
      the
      Undersubscription Amount, if any, that such Buyer elects to purchase (in either
      case, the “Notice
      of Acceptance”).
      If
      the Basic Amounts subscribed for by all Buyers are less than the total of all
      of
      the Basic Amounts, then such Buyer who has set forth an Undersubscription Amount
      in its Notice of Acceptance shall be entitled to purchase, in addition to the
      Basic Amounts subscribed for, the Undersubscription Amount it has subscribed
      for; provided,
      however,
      that if
      the Undersubscription Amounts subscribed for exceed the difference between
      the
      total of all the Basic Amounts and the Basic Amounts subscribed for (the
“Available
      Undersubscription Amount”),
      such
      Buyer who has subscribed for any Undersubscription Amount shall be entitled
      to
      purchase only that portion of the Available Undersubscription Amount as the
      Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that
      have subscribed for Undersubscription Amounts, subject to rounding by the
      Company to the extent it deems reasonably necessary. Notwithstanding the
      foregoing, if the Company desires to modify or amend the terms and conditions
      of
      the Offer in any material respect prior to the expiration of the Offer Period,
      the Company may deliver to each Buyer a new Offer Notice and the Offer Period
      shall expire on the fifth (5th)
      Business Day after such Buyer’s receipt of such new Offer Notice.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (iii) The
      Company shall have ten (10) Business Days from the expiration of the Offer
      Period above (i) to offer, issue, sell or exchange all or any part of such
      Offered Securities as to which a Notice of Acceptance has not been given by
      a
      Buyer (the “Refused
      Securities”)
      pursuant to a definitive agreement(s) (the “Subsequent
      Placement Agreement”),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not materially more favorable to the acquiring Person
      or Persons or materially less favorable to the Company than those set forth
      in
      the Offer Notice and (ii) to publicly announce (a) the execution of such
      Subsequent Placement Agreement, and (b) either (x) the consummation of the
      transactions contemplated by such Subsequent Placement Agreement or (y) the
      termination of such Subsequent Placement Agreement, which shall be filed with
      the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement
      and any documents contemplated therein filed as exhibits thereto.

    

    (iv) In
      the
      event the Company shall propose to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in Section
4(p)(iii)
      above),
      then such Buyer may, at its sole option and in its sole discretion, reduce
      the
      number or amount of the Offered Securities specified in its Notice of Acceptance
      to an amount that shall be not less than the number or amount of the Offered
      Securities that such Buyer elected to purchase pursuant to Section 4(p)(ii)
      above
      multiplied by a fraction, (i) the numerator of which shall be the number or
      amount of Offered Securities the Company actually proposes to issue, sell or
      exchange (including Offered Securities to be issued or sold to Buyers pursuant
      to this Section 4(p)
      prior to
      such reduction) and (ii) the denominator of which shall be the original amount
      of the Offered Securities. In the event that any Buyer so elects to reduce
      the
      number or amount of Offered Securities specified in its Notice of Acceptance,
      the Company may not issue, sell or exchange more than the reduced number or
      amount of the Offered Securities unless and until such securities have again
      been offered to the Buyers in accordance with Section 4(p)(i)
      above.

    

    (v) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, such Buyer shall acquire from the Company, and the Company shall
      issue to such Buyer, the number or amount of Offered Securities specified in
      the
      Notices of Acceptance. The purchase by such Buyer of any Offered Securities
      is
      subject in all cases to the preparation, execution and delivery by the Company
      and such Buyer of a separate purchase agreement relating to such Offered
      Securities reasonably satisfactory in form and substance to such Buyer and
      its
      counsel.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (vi) Any
      Offered Securities not acquired by a Buyer or other Persons in accordance with
      this Section 4(p)
      may not
      be issued, sold or exchanged until they are again offered to such Buyer under
      the procedures specified in this Agreement.

    

    (vii) The
      Company and each Buyer agree that if any Buyer elects to participate in the
      Offer, neither the Subsequent Placement Agreement with respect to such Offer
      nor
      any other transaction documents related thereto (collectively, the “Subsequent
      Placement Documents”)
      shall
      include any term or provision whereby such Buyer shall be required to agree
      to
      any restrictions on trading as to any securities of the Company owned by such
      Buyer prior to such Subsequent Placement more restrictive in any material
      respect than the restrictions contained in the Transaction
      Documents.

    

    (viii) Notwithstanding
      anything to the contrary in this Section 4(p)
      and
      unless otherwise agreed to by such Buyer, the Company shall either confirm
      in
      writing to such Buyer that the transaction with respect to the Subsequent
      Placement has been abandoned or shall publicly disclose its intention to issue
      the Offered Securities, in either case in such a manner such that such Buyer
      will not be in possession of any material, non-public information, by the tenth
      (10th)
      day
      following delivery of the Offer Notice. If by such tenth (10th)
      day, no
      public disclosure regarding a transaction with respect to the Offered Securities
      has been made, and no notice regarding the abandonment of such transaction
      has
      been received by such Buyer, such transaction shall be deemed to have been
      abandoned and such Buyer shall not be deemed to be in possession of any
      material, non-public information with respect to the Company or any of the
      Subsidiaries. Should the Company decide to pursue such transaction with respect
      to the Offered Securities, the Company shall provide such Buyer with another
      Offer Notice and such Buyer will again have the right of participation set
      forth
      in this Section 4(p).
      The
      Company shall not be permitted to deliver more than one such Offer Notice to
      such Buyer in any sixty (60) day period.

    

    (ix) The
      restrictions contained in this Section 4(p)
      shall
      not apply in connection with the issuance of any Excluded Securities. The
      Company shall not circumvent the provisions of this Section 4(p)
      by
      providing terms or conditions to one Buyer that are not provided to
      all.

    

    (q) Passive
      Foreign Investment Company. The Company shall conduct its business in such a
      manner as will ensure that the Company will not be deemed to constitute a
      passive foreign investment company within the meaning of Section 1297 of the
      U.S. Internal Revenue Code of 1986, as amended.

     

    
      	
              5.

            	
              REGISTER;
                TRANSFER AGENT INSTRUCTIONS;
                LEGEND.

            

    

    

    (a) Register.
      The Company shall maintain at its principal executive offices (or such other
      office or agency of the Company as it may designate by notice to each holder
      of
      Securities), a register for the Special Warrants and the Warrants in which
      the
      Company shall record the name and address of the Person in whose name the
      Special Warrants and the
      Warrants have been issued (including the name and address of each transferee),
      the Conversion Amount of the Special Warrants held by such Person, the number
      of
      Conversion Shares issuable upon conversion of the Special Warrants and the
      number of Warrant Shares issuable upon exercise of the Warrants held by such
      Person. The Company shall keep the register open and available at all times
      during business hours for inspection of any Buyer or its legal
      representatives.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (b) Transfer
      Agent Instructions.
      The
      Company shall issue irrevocable instructions to its transfer agent and any
      subsequent transfer agent in the form reasonably acceptable to each of the
      Buyers (the “Irrevocable
      Transfer Agent Instructions”)
      to
      issue certificates or credit shares to the applicable balance accounts at The
      Depository Trust Company (“DTC”),
      registered in the name of each Buyer or
      its
      respective nominee(s),
      for the
      Conversion Shares and the Warrant Shares in such amounts as specified from
      time
      to time by each Buyer to the Company upon conversion of the Special Warrants
      or
      the exercise of the Warrants (as the case may be). The Company represents and
      warrants that no instruction other than the Irrevocable Transfer Agent
      Instructions referred to in this Section 5(b),
      and
      stop transfer instructions to give effect to Section 2(g)
      hereof,
      will be given by the Company to its transfer agent with respect to the
      Securities, and that the Securities shall otherwise be freely transferable
      on
      the books and records of the Company, to the extent provided in this Agreement
      and the other Transaction Documents. If a Buyer effects a sale, assignment
      or
      transfer of the Securities in accordance with Section 2(g),
      the
      Company shall permit the transfer and shall promptly instruct its transfer
      agent
      to issue one or more certificates or credit shares to the applicable balance
      accounts at DTC in such name and in such denominations as specified by such
      Buyer to effect such sale, transfer or assignment. In the event that such sale,
      assignment or transfer involves Conversion Shares or Warrant Shares sold,
      assigned or transferred pursuant to an effective registration statement or
      in
      compliance with Rule 144, the transfer agent shall issue such shares to the
      Buyer, assignee or transferee (as the case may be) without any restrictive
      legend in accordance with Section 5(d)
      below.
      The Company acknowledges that a breach by it of its obligations hereunder will
      cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that
      the remedy at law for a breach of its obligations under this Section
5(b)
      will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Section 5(b),
      that a
      Buyer shall be entitled, in addition to all other available remedies, to an
      order and/or injunction restraining any breach and requiring immediate issuance
      and transfer, without the necessity of showing economic loss and without any
      bond or other security being required. The Company shall cause its counsel
      to
      issue the legal opinion referred to in the Irrevocable Transfer Agent
      Instructions to the Company’s transfer agent on each Effective Date. Any fees
      (with respect to the transfer agent, counsel to the Company or otherwise)
      associated with the issuance of such opinion or the removal of any legends
      on
      any of the Securities shall be borne by the Company.

     

    (c) Legends.
      Each
      Buyer understands that the certificates or other instruments representing the
      Special Warrants and the Warrants and, until such time as the resale of the
      Conversion Shares and the Warrant Shares have been registered under the 1933
      Act
      as contemplated by the Registration Rights Agreement, the stock certificates
      representing the Conversion Shares and the Warrant Shares, except as set forth
      below, shall bear any legend as required by the “blue sky” laws of any state and
      a restrictive legend in substantially the following form (and a stop-transfer
      order may be placed against transfer of such stock certificates):

    
       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

    

    [NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE] [EXERCISABLE] HAVE
      BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
      TO
      THE HOLDER, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION
      IS
      NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
      144A UNDER SAID ACT. 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.

     

    (d) Removal
      of Legends.
      Certificates evidencing the Conversion Shares or Warrant Shares shall not be
      required to contain the legend set forth in Section 5(c)
      above or
      any other legend (i) while a registration statement (including the Registration
      Statement) covering the resale of such Securities is effective under the
      Securities Act and the applicable Buyer indicates in its conversion or exercise
      notice that it intends to, immediately following such conversion or exercise,
      sell the number of Conversion Shares or Warrant Shares specified in such notice
      under such Registration Statement, (ii) following any sale of such Securities
      pursuant to Rule 144 (assuming the transferor is not an affiliate of the
      Company), (iii) if such Securities are eligible to be sold, assigned or
      transferred under Rule 144(k) (provided that a Buyer provides the Company
      with reasonable assurances that such Securities are eligible for sale,
      assignment or transfer under Rule 144(k) which shall not include an opinion
      of
      counsel), (iv) in connection with a sale, assignment or other transfer (other
      than under Rule 144) provided such Buyer provides the Company with an
      opinion of counsel to such Buyer, in a generally acceptable form, to the effect
      that such sale, assignment or transfer of the Securities may be made without
      registration under the applicable requirements of the 1933 Act or (v) if such
      legend is not required under applicable requirements of the 1933 Act (including,
      without limitation, controlling judicial interpretations and pronouncements
      issued by the SEC). If a legend is not required pursuant to the foregoing,
      the
      Company shall no later than two (2) Trading Days following the delivery by
      a
      Buyer to the Company or the transfer agent (with notice to the Company) of
      a
      legended certificate representing such Securities (endorsed or with stock powers
      attached, signatures guaranteed, and otherwise in form necessary to affect
      the
      reissuance and/or transfer, if applicable), together with any other deliveries
      from such Buyer as may be required above in this Section 5(d),
      as
      directed by such Buyer, either: (A) deliver (or cause to be delivered to) such
      Buyer a certificate representing such Securities that is free from all
      restrictive and other legends or (B) credit the balance account of such Buyer’s
      or such Buyer’s nominee with DTC with a number of Common Shares equal to the
      number of Conversion Shares or Warrant Shares (as the case may be) represented
      by the certificate or conversion or exercise notice so delivered by such Buyer
      (the date by which such certificate is required to be delivered to such Buyer
      or
      such credit is so required to be made to the balance account of such Buyer’s or
      such Buyer’s nominee with DTC pursuant to the foregoing is referred to herein as
      the “Required
      Delivery Date”).
      

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    (e) Failure
      to Timely Deliver; Buy-In.
      If the
      Company fails to use its best efforts to (i) issue and deliver (or cause to
      be
      delivered) to a Buyer by the Required Delivery Date a certificate representing
      the Conversion Shares or Warrant Shares required to be so delivered by the
      Company to such Buyer that is free from all restrictive and other legends or
      (ii) credit the balance account of such Buyer’s or such Buyer’s nominee with DTC
      for such number of shares of Conversion Shares or Warrant Shares required to
      be
      so delivered by the Company, then, in addition to all other remedies available
      to such Buyer, the Company shall pay in cash to such Buyer on each day after
      the
      Required Delivery Date that the issuance or credit of such shares is not timely
      effected an amount equal to 1% of the initial Conversion Amount of such Buyer’s
      Special Warrant. In addition to the foregoing, if the Company fails to so
      properly deliver such unlegended certificates or so properly credit the balance
      account of such Buyer’s or such Buyer’s nominee with DTC by the Required
      Delivery Date, and if on or after the Required Delivery Date such Buyer
      purchases (in an open market transaction or otherwise) Common Shares to deliver
      in satisfaction of a sale by such Buyer of Common Shares that such Buyer
      anticipated receiving from the Company without any restrictive legend (a
“Buy-In”),
      then
      the Company shall, within three (3) Trading Days after such Buyer’s request and
      in such Buyer’s sole discretion, either (i) pay cash to such Buyer in an amount
      equal to such Buyer’s total purchase price (including brokerage commissions, if
      any) for the Common Shares so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate or credit such
      Buyer’s balance account shall terminate and such shares shall be cancelled, or
      (ii) promptly honor its obligation to deliver to such Buyer a certificate or
      certificates or credit such Buyer’s DTC account representing such number of
      Common Shares that would have been issued if the Company timely complied with
      its obligations hereunder and pay cash to such Buyer in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (A) such number of
      shares of Conversion Shares or Warrant Shares (as the case may be) that the
      Company was required to deliver to such Buyer by the Required Delivery Date
      times (B) the VWAP of the Common Shares for the five (5) Trading Day period
      immediately preceding the Required Delivery Date. 

    

    For
      purposes of this Section 5(e),
      “VWAP”
      means,
      for any security as of any date, the dollar volume-weighted average price for
      such security on the Principal Market (or, if the Principal Market is not the
      principal trading market for the Common Shares, then on the principal securities
      exchange or securities market on which the Common Shares is then traded) during
      the period beginning at 9:30:01 a.m., New York City Time, and ending at 4:00:00
      p.m., New York City Time, as reported by Bloomberg through its “Volume at Price”
function 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, and ending at 4:00:00 p.m., New York City Time, 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 VWAP cannot be calculated for such security
      on such date on any of the foregoing bases, the VWAP of such security on such
      date shall be the fair market value as mutually determined by the Company and
      the Buyer. If the Company and the Buyer are unable to agree upon the fair market
      value of such security, then they shall agree in good faith on a reputable
      investment bank to make such determination of fair market value, whose
      determination shall be final and binding and whose fees and expenses shall
      be
      borne by the Company. All such determinations shall be appropriately adjusted
      for any share dividend, share split or other similar transaction during such
      period. 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              CONDITIONS
                TO THE COMPANY’S OBLIGATION TO
                SELL.

            

    

    

    (a) The
      obligation of the Company hereunder to issue and sell the Special
      Warrants and
      the
      related Warrants to each Buyer at the Closing is subject to the satisfaction,
      at
      or before the Closing Date, of each of the following conditions, provided
      that these conditions are for the Company’s sole benefit and may be waived by
      the Company at any time in its sole discretion by providing each Buyer with
      prior written notice thereof:

    

    (i) Such
      Buyer shall have executed each of the Transaction Documents to which it is
      a
      party and delivered the same to the Company.

    

    (ii) Such
      Buyer and each other Buyer shall have delivered to the Company the Purchase
      Price (less, in the case of Magnetar Capital Master Fund, Ltd, the amount
      withheld pursuant to Section 4(g))
      for the
      Special Warrants and the related Warrants being
      purchased by such Buyer at the Closing by wire transfer of immediately available
      funds pursuant to the wire instructions provided by the Company.

    

    (iii) The
      representations and warranties of such Buyer shall be true and correct in all
      material respects as of the date when made and as of the Closing Date as though
      originally made at that time (except for representations and warranties that
      speak as of a specific date, which shall be true and correct as of such date),
      and such Buyer shall have performed, satisfied and complied in all material
      respects with the covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by such Buyer at or prior
      to the Closing Date.

     

    
      	
              7.

            	
              CONDITIONS
                TO EACH BUYER’S OBLIGATION TO PURCHASE. 

            

    

    

    (a) The
      obligation of each Buyer hereunder to purchase the Special Warrants and
      the
      related Warrants at the Closing is subject to the satisfaction, at or before
      the
      Closing Date, of each of the following conditions, provided that these
      conditions are for each Buyer’s sole benefit and may be waived by such Buyer at
      any time in its sole discretion by providing the Company with prior written
      notice thereof:

    

    (i) The
      Company shall have duly executed and delivered to such Buyer (A) each of
      the Transaction Documents and (B) the Special Warrants for such Conversion
      Amount as is set forth across from such Buyer’s name in column (3) of the
      Schedule of Buyers and
      the
      related Warrants (in such numbers as is set forth across from such Buyer’s name
      in column (4) of the Schedule of Buyers) being purchased by such Buyer at the
      Closing pursuant to this Agreement.

    

    (ii) Such
      Buyer shall have received the opinion of Cozen O’Connor, the Company’s outside
      U.S. counsel, and Perley-Robertson, Hill & McDougall LLP, the Company’s
      Canadian counsel, in each case dated as of the Closing Date, in forms reasonably
      acceptable to such Buyer.

    

    (iii) The
      Company shall have delivered to such Buyer a copy of the Irrevocable Transfer
      Agent Instructions, in form reasonably acceptable to such Buyer, which
      instructions shall have been delivered to and acknowledged in writing by the
      Company’s transfer agent.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (iv) The
      Company shall have delivered to such Buyer a certificate evidencing the
      formation and good standing of the Company and each of the Subsidiaries in
      each
      such entity’s jurisdiction of formation issued by the Secretary of State (or
      equivalent) of such jurisdiction of formation as of a date within ten (10)
      days
      of the Closing Date.

    

    (v) The
      Company shall have delivered to such Buyer a certificate evidencing the
      Company’s qualification as a foreign corporation and good standing issued by the
      Secretary of State (or comparable office) of each jurisdiction in which the
      Company conducts business and is required to so qualify, as of a date within
      ten
      (10) days of the Closing Date.

     

    (vi) The
      Company shall have delivered to such Buyer a certified copy of the Articles
      of
      Incorporation within ten (10) days of the Closing Date.

    

    (vii) The
      Company shall have delivered to such Buyer a certificate, executed by the
      Secretary of the Company and dated as of the Closing Date, as to (i) the
      resolutions consistent with Section 3(b)
      as
      adopted by the Company’s board of directors in a form reasonably acceptable to
      such Buyer, (ii) the Articles of Incorporation and (iii) the Bylaws, each as
      in
      effect at the Closing, in form reasonably acceptable to such Buyer.

    

    (viii) Each
      and
      every representation and warranty of the Company shall be true and correct
      as of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date,
      which shall be true and correct as of such date) and the Company shall have
      performed, satisfied and complied in all respects with the covenants, agreements
      and conditions required to be performed, satisfied or complied with by the
      Company at or prior to the Closing Date. Such Buyer shall have received a
      certificate, executed by the Chief Executive Officer of the Company, dated
      as of
      the Closing Date, to the foregoing effect and as to such other matters as may
      be
      reasonably requested by such Buyer in form reasonably acceptable to such
      Buyer.

    

    (ix) The
      Company shall have delivered to such Buyer a letter from the Company’s transfer
      agent certifying the number of Common Shares outstanding on the Closing Date
      immediately prior to the Closing.

    

    (x) The
      Common Shares (I) shall be designated for quotation or listed on the Principal
      Market and (II) shall not have been suspended, as of the Closing Date, by the
      SEC or the Principal Market from trading on the Principal Market nor shall
      suspension by the SEC or the Principal Market have been threatened, as of the
      Closing Date, either (A) in writing by the SEC or the Principal Market or (B)
      by
      falling below the minimum maintenance requirements of the Principal
      Market.

    

    (xi) The
      Company shall have obtained all governmental, regulatory or third party consents
      and approvals, if any, necessary for the sale of the Securities, including
      without limitation, those required by the Principal Market.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    (xii) No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents.

    

    (xiii) Since
      the
      date of execution of this Agreement, no event or series of events shall have
      occurred that reasonably would have or result in a Material Adverse
      Effect.

    

    (xiv) The
      Company shall have obtained approval of the Principal Market to list the
      Conversion Shares and the Warrant Shares.

    

    (xv) The
      aggregate Purchase Price paid to the Company for the Securities by the Buyers
      at
      the Closing shall not be less than $20 million.

    

    (xvi) The
      Company shall have delivered to such Buyer such other documents relating to
      the
      transactions contemplated by this Agreement as such Buyer or its counsel may
      reasonably request.

     

    
      	
              8.

            	
              TERMINATION. 

            

    

    

    In
      the
      event that the Closing shall not have occurred with respect to a Buyer on or
      before ten (10) days from the date hereof due to the Company’s or such Buyer’s
      failure to satisfy the conditions set forth in Sections 6
      and
7
      above
      (and a non-breaching party’s failure to waive such unsatisfied condition(s)),
      any such non-breaching party at any time shall have the right to terminate
      its
      obligations under this Agreement with respect to such breaching party on or
      after the close of business on such date without liability of such non-breaching
      party to any other party; provided,
      however,
      that
      the abandonment of the sale and purchase of the Special Warrants and the
      Warrants shall be applicable only to such non-breaching party providing such
      written notice; provided
      further,
      notwithstanding any such termination the Company shall remain obligated to
      reimburse the non-breaching Buyers for the expenses described in Section
4(g)
      above.
      Nothing contained in this Section 8
      shall be
      deemed to release any party from any liability for any breach by such party
      of
      the terms and provisions of this Agreement or the other Transaction Documents
      or
      to impair the right of any party to compel specific performance by any other
      party of its obligations under this Agreement or the other Transaction
      Documents.

     

    
      	
              9.

            	
              MISCELLANEOUS.

            

    

    

    (a) Governing
      Law; Jurisdiction; Jury Trial. The parties hereby agree that pursuant to 735
      Illinois Compiled Statutes 105/5-5 they have chosen that all questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of Illinois,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of Illinois or any other jurisdictions) that would cause
      the application of the laws of any jurisdictions other than the State of
      Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in Chicago, Illinois, 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. Each party 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 Agreement and agrees that such service
      shall constitute good and sufficient service of process and notice thereof.
      Nothing contained herein shall be deemed to limit in any way any right to serve
      process in any manner permitted by law. EACH PARTY 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. 

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (b) Counterparts.
      This Agreement may be executed in two or more identical counterparts, all of
      which shall be considered one and the same agreement and shall become effective
      when counterparts have been signed by each party and delivered to the other
      party. In the event that any signature is delivered by facsimile transmission
      or
      by an e-mail which contains a portable document format (.pdf) file of an
      executed signature page, such signature page shall create a valid and binding
      obligation of the party executing (or on whose behalf such signature is
      executed) with the same force and effect as if such signature page were an
      original thereof.

    

    (c) Headings;
      Gender. The headings of this Agreement are for convenience of reference and
      shall not form part of, or affect the interpretation of, this Agreement. Unless
      the context clearly indicates otherwise, each pronoun herein shall be deemed
      to
      include the masculine, feminine, neuter, singular and plural forms thereof.
      The
      terms “including,” “includes,” “include” and words of like
      import shall be construed broadly as if followed by the words “without
      limitation.” The terms “herein,” “hereunder,” “hereof” and
      words of like import refer to this entire Agreement instead of just the
      provision in which they are found. For purposes of this Agreement for each
      Buyer’s benefit, the word “state” or “states” includes any “province” or
“provinces” in Canada and the concept of “law, rules or regulations” includes
      laws, rules and regulations under applicable law, rules and regulations in
      Canada.

    

    (d) Severability.
      If any provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    (e) Entire
      Agreement; Amendments.
      This
      Agreement, the other Transaction Documents and the schedules and exhibits
      attached hereto and thereto and the instruments referenced herein and therein
      supersede all other prior oral or written agreements between the Buyers, the
      Company, their affiliates and Persons acting on their behalf with respect to
      the
      matters contained herein and therein, and this Agreement, the other Transaction
      Documents, the schedules and exhibits attached hereto and thereto and the
      instruments referenced herein and therein contain the entire understanding
      of
      the parties with respect to the matters covered herein and therein and, except
      as specifically set forth herein or therein, neither the Company nor any Buyer
      makes any representation, warranty, covenant or undertaking with respect to
      such
      matters. No provision of this Agreement may be amended or waived other than
      by
      an instrument in writing signed by the Company and the holders of at least
      a
      majority of the then outstanding Conversion Amounts of the Special Warrants
      issued hereunder, and any amendment to, or waiver of any provision of, this
      Agreement made in conformity with the provisions of this Section 9(e)
      shall be
      binding on all Buyers and holders of Securities, as applicable, provided
      that (i) any party may give a waiver in writing as to itself, and (ii) Section
      4(o)
      may not
      be amended or waived. No such amendment or waiver (unless given pursuant to
      the
      foregoing proviso) shall be effective to the extent that it applies to less
      than
      all of the holders of the Special Warrants then outstanding. No consideration
      shall be offered or paid to any Person to amend or consent to a waiver or
      modification of any provision of any of the Transaction Documents unless the
      same consideration also is offered to all of the parties to the Transaction
      Documents, holders of the Special Warrants or holders of the Warrants (as the
      case may be). The Company has not, directly or indirectly, made any agreements
      with any Buyers relating to the terms or conditions of the transactions
      contemplated by the Transaction Documents except as set forth in the Transaction
      Documents. Without limiting the foregoing, the Company confirms that, except
      as
      set forth in this Agreement, no Buyer has made any commitment or promise or
      has
      any other obligation to provide any financing to the Company, any Subsidiary
      or
      otherwise.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    (f) Notices.
      Any notices, consents, waivers or other communications required or permitted
      to
      be given under the terms of this Agreement must be in writing and will be deemed
      to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) Business Day after deposit with an overnight courier service
      with next day delivery specified, in each case, properly addressed to the party
      to receive the same. The addresses and facsimile numbers for such communications
      shall be:

     

    
      	
              If
                to the Company:

            
	 
	
              Workstream
                Inc.

            
	
              495
                March Road

            
	
              Ottawa,
                Ontario, Canada K2K-3G1

            
	
              Telephone:
                

            	
              613-270-0619

            
	
              Facsimile:
                

            	
              613-236-9819

            
	
              Attention:
                

            	
              CEO

            
	 	 
	
              With
                a copy (for informational purposes only) to:

            
	 
	
              Cozen
                O’Connor

            
	
              1900
                Market Street

            
	
              Philadelphia,
                Pennsylvania 19103

            
	
              Telephone:
                

            	
              (215)
                665-4141

            
	
              Facsimile:
                

            	
              (215)
                665-2013

            
	
              Attention:
                

            	
              Michael
                J. Heller, Esquire

            
	 	 
	
              If
                to the Transfer Agent:

            
	 
	
              American
                Stock Transfer and Trust Company 

            
	
              59
                Maiden Lane

            
	
              New
                York, NY 10038 

            
	
              Telephone:
                

            	
              (718) 921-8124 

            
	
              Facsimile:
                

            	
              (718) 921-8327
                

            
	
              Attention:
                

            	
              Joseph
                Comito

            

    

    

    

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of Buyers,
      with copies to such Buyer’s representatives as set forth on the Schedule of
      Buyers, 

     

    
      	
              with
                a copy (for informational purposes only) to:

            
	 
	
              Greenberg
                Traurig, LLP 

            
	
              77
                W. Wacker Drive, Suite 2400

            
	
              Chicago,
                Illinois 60602

            
	
              Telephone:
                

            	
              (312)
                456-8400

            
	
              Facsimile:
                

            	
              (312)
                456-8435

            
	
              Attention:
                

            	
              Peter
                H. Lieberman, Esq.

            
	 	
              Todd
                A. Mazur, Esq.

            

    

     

    or
      to
      such other address and/or facsimile number and/or to the attention of such
      other
      Person as the recipient party has specified by written notice given to each
      other party five (5) days prior to the effectiveness of such change;
provided
      that
      Greenberg Traurig, LLP shall only be provided copies of notices sent to Magnetar
      Capital Master Fund, Ltd. Written confirmation of receipt (A) given by the
      recipient of such notice, consent, waiver or other communication, (B)
      mechanically or electronically generated by the sender’s facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by an overnight courier service shall
      be rebuttable evidence of personal service, receipt by facsimile or receipt
      from
      an overnight courier service in accordance with clause (i), (ii) or (iii) above,
      respectively.

    

    (g) Successors
      and Assigns. This Agreement shall be binding upon and inure to the benefit
      of the parties and their respective successors and assigns, including any
      purchasers of any of the Securities. The Company shall not assign this Agreement
      or any rights or obligations hereunder without the prior written consent of
      the
      holders of at least a majority of the aggregate number of Registrable Securities
      issued and issuable under the Transaction Documents, including, without
      limitation, by way of a Fundamental Transaction (as defined in the Warrants)
      (unless the Company is in compliance with the applicable provisions governing
      Fundamental Transactions set forth in the Warrants). A Buyer may assign some
      or
      all of its rights hereunder in connection with transfer of any of its Securities
      without the consent of the Company, in which event such assignee shall be deemed
      to be a Buyer hereunder with respect to such assigned rights.

    

    (h) No
      Third Party Beneficiaries. This Agreement is intended for the benefit of the
      parties hereto and their respective permitted successors and assigns, and is
      not
      for the benefit of, nor may any provision hereof be enforced by, any other
      Person, other than the Indemnitees referred to in Section 9(k).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (i) Survival.
      Unless this Agreement is terminated under Section 8
      in
      accordance with the terms thereof, the representations, warranties, agreements
      and covenants shall survive the Closing. Each Buyer shall be responsible only
      for its own representations, warranties, agreements and covenants
      hereunder.

    

    (j) Further
      Assurances. Each party shall do and perform, or cause to be done and
      performed, all such further acts and things, and shall execute and deliver
      all
      such other agreements, certificates, instruments and documents, as any other
      party may reasonably request in order to carry out the intent and accomplish
      the
      purposes of this Agreement and the consummation of the transactions contemplated
      hereby.

     

    (k) Indemnification.
      In
      consideration of each Buyer’s execution and delivery of the Transaction
      Documents and acquiring the Securities thereunder and in addition to all of
      the
      Company’s other obligations under the Transaction Documents, the Company shall
      defend, protect, indemnify and hold harmless each Buyer and each affiliate
      of a
      Buyer that holds any Securities and all of their stockholders, partners,
      members, officers, directors, employees and direct or indirect investors and
      any
      of the foregoing Persons’ agents or other representatives (including, without
      limitation, those retained in connection with the transactions contemplated
      by
      this Agreement) (collectively, the “Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys’ fees
      and disbursements (the “Indemnified
      Liabilities”),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (a)
      any misrepresentation or breach of any representation or warranty made by the
      Company in any of the Transaction Documents, (b) any breach of any covenant,
      agreement or obligation of the Company contained in any of the Transaction
      Documents or (c) any cause of action, suit or claim brought or made against
      such
      Indemnitee by a third party (including for these purposes a derivative action
      brought on behalf of the Company) and arising out of or resulting from (i)
      the
      execution, delivery, performance or enforcement of any of the Transaction
      Documents, (ii) any transaction financed or to be financed in whole or in part,
      directly or indirectly, with the proceeds of the issuance of the Securities,
      (iii) any disclosure properly made by such Buyer pursuant to Section
4(i),
      or (iv)
      the status of such Buyer or holder of the Securities as an investor in the
      Company pursuant to the transactions contemplated by the Transaction Documents;
      provided, that no Buyer shall be entitled to indemnification to the
      extent any of the foregoing is caused by its gross negligence or willful
      misconduct. To the extent that the foregoing undertaking by the Company may
      be
      unenforceable for any reason, the Company shall make the maximum contribution
      to
      the payment and satisfaction of each of the Indemnified Liabilities which is
      permissible under applicable law. Except as otherwise set forth herein, the
      mechanics and procedures with respect to the rights and obligations under this
      Section 9(k)
      shall be
      the same as those set forth in Section 6 of the Registration Rights
      Agreement.

    

    (l) No
      Strict Construction. The language used in this Agreement will be deemed to
      be the language chosen by the parties to express their mutual intent, and no
      rules of strict construction will be applied against any party.

    

    (m) Remedies.
      Each Buyer and each affiliate of a Buyer that holds any Securities shall have
      all rights and remedies set forth in the Transaction Documents and all rights
      and remedies which such holders have been granted at any time under any other
      agreement or contract and all of the rights which such holders have under any
      law. Any Person having any rights under any provision of this Agreement shall
      be
      entitled to enforce such rights specifically (without posting a bond or other
      security), to recover damages by reason of any breach of any provision of this
      Agreement and to exercise all other rights granted by law. Furthermore, the
      Company recognizes that in the event that it fails to perform, observe, or
      discharge any or all of its obligations under the Transaction Documents, any
      remedy at law may prove to be inadequate relief to the Buyers. The Company
      therefore agrees that the Buyers shall be entitled to seek specific performance
      and/or temporary, preliminary and permanent injunctive or other equitable relief
      from any court of competent jurisdiction in any such case without the necessity
      of proving damages and without posting a bond or other security.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (n) Withdrawal
      Right. Notwithstanding anything to the contrary contained in (and without
      limiting any similar provisions of) the Transaction Documents, whenever any
      Buyer exercises a right, election, demand or option under a Transaction Document
      and the Company does not timely perform its related obligations within the
      periods therein provided, then such Buyer may rescind or withdraw, in its sole
      discretion from time to time upon written notice to the Company, any relevant
      notice, demand or election in whole or in part without prejudice to its future
      actions and rights

    

    (o) Payment
      Set Aside. To the extent that the Company makes a payment or payments to the
      Buyers hereunder or pursuant to any of the other Transaction Documents or the
      Buyers enforce or exercise their rights hereunder or thereunder, and such
      payment or payments or the proceeds of such enforcement or exercise or any
      part
      thereof are subsequently invalidated, declared to be fraudulent or preferential,
      set aside, recovered from, disgorged by or are required to be refunded, repaid
      or otherwise restored to the Company, a trustee, receiver or any other Person
      under any law (including, without limitation, any bankruptcy law, foreign,
      state
      or federal law, common law or equitable cause of action), then to the extent
      of
      any such restoration the obligation or part thereof originally intended to
      be
      satisfied shall be revived and continued in full force and effect as if such
      payment had not been made or such enforcement or setoff had not
      occurred.

    

    (p) Independent
      Nature of Buyers’ Obligations and Rights. The obligations of each Buyer
      under the Transaction Documents are several and not joint with the obligations
      of any other Buyer, and no Buyer shall be responsible in any way for the
      performance of the obligations of any other Buyer under any Transaction
      Document. Nothing contained herein or in any other Transaction Document, and
      no
      action taken by any Buyer pursuant hereto or thereto, shall be deemed to
      constitute the Buyers as a partnership, an association, a joint venture or
      any
      other kind of group or entity, or create a presumption that the Buyers are
      in
      any way acting in concert or as a group or entity with respect to such
      obligations or the transactions contemplated by the Transaction Documents or
      any
      matters, and the Company acknowledges that the Buyers are not acting in concert
      or as a group with respect to such obligations or the transactions contemplated
      by the Transaction Documents. The decision of each Buyer to purchase Securities
      pursuant to the Transaction Documents has been made by such Buyer independently
      of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as
      agent for such Buyer in connection with such Buyer making its investment
      hereunder and that no other Buyer will be acting as agent of such Buyer in
      connection with monitoring such Buyer’s investment in the Securities or
      enforcing its rights under the Transaction Documents. The Company and each
      Buyer
      confirms that each Buyer has independently participated with the Company in
      the
      negotiation of the transaction contemplated hereby with the advice of its own
      counsel and advisors. Each Buyer shall be entitled to independently protect
      and
      enforce its rights, including, without limitation, the rights arising out of
      this Agreement or out of any other Transaction Documents, and it shall not
      be
      necessary for any other Buyer to be joined as an additional party in any
      proceeding for such purpose. The use of a single agreement to effectuate the
      purchase and sale of the Securities contemplated hereby was solely in the
      control of the Company, not the action or decision of any Buyer, and was done
      solely for the convenience of the Company and not because it was required or
      requested to do so by any Buyer. It is expressly understood and agreed that
      each
      provision contained in this Agreement and in each other Transaction Document
      is
      between the Company and a Buyer, solely, and not between the Company and the
      Buyers collectively and not between and among the Buyers.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (q) Delivery
      of Securities. Notwithstanding anything contained in this Agreement or any
      other Transaction Document to the contrary, unless otherwise directed in writing
      by the applicable Buyer, the Company shall, and shall cause its agents and
      representatives to, deliver all of such Buyer’s securities purchased pursuant to
      this Agreement (and all securities which are issuable to such Buyer pursuant
      to
      the terms of this Agreement or any other Transaction Document) to the address
      for delivery of securities set forth on such Buyer’s signature page to this
      Agreement, and copies of the certificates representing such securities shall
      be
      sent to such Buyer to the address of such Buyer as set forth on such Buyer’s
      signature page to this Agreement. 

    

    [signature
      pages follow]

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

     

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	WORKSTREAM INC.
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              Mullarkey  
	 	
              
Name:
              Michael Mullarkey
	 	
              Title:
                Chairman

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

     

    
      	 	 	 
	 	
              BUYERS:

            
	 	 
	 	MAGNETAR CAPITAL MASTER FUND,
              LTD
	 	 	 
	 
 	 
By: 	 
Magnetar
              Financial LLC
	 	Its:	Investment Manager
	 	 	 
	 	 /s/ Doug
              Litowitz    
	 	By:	Doug Litowitz
	 	Its:	Counsel

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

     

    
      	 	 	 
	 	
              BUYERS:

            
	 	 
	 	SRB Greenway Capital (QP),
              L.P.
	 	 	 
	 	By: 	SRB Management, L.P., General Partner
	 	By:	BC Advisors, L.L.C., General Partner
	 
 	 
 	 
 
	 	By:  	/s/ Steven
              R.
              Becker    
	 	
              
Name:
              Steven R. Becker
	 	Title:
              Member 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

     

    
      
        	 	 	 
	 	
                BUYERS:

              
	 	 
	 	SRB Greenway Capital,
                L.P.
	 	 	 
	 	By: 	SRB Management, L.P., General Partner
	 	By:	BC Advisors, L.L.C., General Partner
	 
 	 
 	 
 
	 	By:  	/s/ Steven
                R.
                Becker    
	 	
                
Name:
                Steven R. Becker
	 	Title:
                Member 

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
       

      
        
          	 	 	 
	 	
                  BUYERS:

                
	 	 
	 	SRB Greenway Offshore Operating
                  Fund,
                  L.P.
	 	 	 
	 	By: 	SRB Management, L.P., General Partner
	 	By:	BC Advisors, L.L.C., General Partner
	 
 	 
 	 
 
	 	By:  	/s/ Steven
                  R.
                  Becker    
	 	
                  
Name:
                  Steven R. Becker
	 	Title:
                  Member 

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
       

      
        
          	 	 	 
	 	
                  BUYERS:

                
	 	 
	 	TALKOT FUND, L.P.
	 
 	 
 	 
 
	 	By:  	/s/ Thomas
                  B.
                  Akin   
	 	
                  
Name:
                  Thomas B. Akin
	 	Title:
                  General Partner

        

         

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
      
         

        
          
            	 	 	 
	 	
                    BUYERS:

                  
	 	 
	 	TOM AKIN IRA INDIVIDUAL
                    ACCOUNT
	 
 	 
 	 
 
	 	By:  	/s/ Thomas
                    B.
                    Akin   
	 	
                    
Name:
                    Thomas B. Akin
	 	Title: 
                    

          

           

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
      
         

        
          
            	 	 	 
	 	
                    BUYERS:

                  
	 	 
	 	CRESTVIEW CAPITAL MASTER,
                    LLC
	 
 	 
 	 
 
	 	By:  	/s/ Stewart
                    Flink  
	 	
                    
Name:
                    Stewart Flink
	 	Title: Manager
                    

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
       

      
        
          	 	 	 
	 	
                  BUYERS:

                
	 	 
	 	FORT MASON PARTNERS,
                  LP
	 
 	 
 	 
 
	 	By:  	/s/ Dan
                  German 
	 	
                  
Name:
                  Dan German
	 	Title: Managing
                  Member

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
       

      
        
          	 	 	 
	 	
                  BUYERS:

                
	 	 
	 	FORT MASON MASTER,
                  LP
	 
 	 
 	 
 
	 	By:  	/s/ Dan
                  German 
	 	
                  
Name:
                  Dan German
	 	Title: Managing
                  Member

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Agreement to be duly executed as of the date first written above.

    
       

      
        
          	 	 	 
	 	
                  BUYERS:

                
	 	 
	 	CCM MASTER QUALIFIED FUND,
                  LTD
	 
 	 
 	 
 
	 	By:  	/s/ Clint
                  D.
                  Coghill 
	 	
                  
Name:
                  Clint D. Coghill
	 	Title: Director

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    

    SCHEDULE
      OF BUYERS

     

    
      	
              (1)

            	 	
              (2)

            	 	
              (3)

            	 	
              (4)

            	 	
              (5)

            	 	
              (6)

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Buyer

            	 	
              Address
                and Facsimile Number

            	 	
              Conversion
                Amount of Special Warrants

            	 	
              Aggregate
                Number of Warrants

            	 	
              Purchase
                Price

            	 	
              Legal
                Representative’s

              Address
                and Facsimile Number

            
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Magnetar
                Capital Master Fund, Ltd

            	 	
              1603
                Orrington Avenue, 13th
                Floor

              Evanston,
                IL 60201

              Attn:
                Michael Balkin

              Facsimile:
                (847) 905-5603

            	 	
              $5,000,000

            	 	
              1,000,000

            	 	
              $5,000,000

            	 	
              Greenberg
                Traurig, LLP

              77
                W. Wacker Drive, Suite 2500

              Chicago,
                Illinois 60601

              Attention:
                Peter H. Lieberman
        
                Todd
                A. Mazur

              Facsimile:
                (312) 456-8435

              Telephone:
                (312) 456-8400

            
	 	 	 	 	 	 	 	 	 	 	 
	
              SRB
                Greenway Capital (QP), L.P.

            	 	
              300
                Crescent Court, Suite 1111

              Dallas,
                Texas 75201

              Attn:
                George Lee

              Facsimile:
                (214) 756-6079

            	 	
              $1,728,300

            	 	
              345,660

            	 	
              $1,728,300

            	 	
              Lowenstein
                Sandler PC

              65
                Livingston Avenue

              Roseland,
                NJ 07068

              Attn:
                John D. Hogoboom

              Facsimile:
                (973) 597-2383

              Telephone:
                (973) 597-2382

            
	 	 	 	 	 	 	 	 	 	 	 
	
              SRB
                Greenway Capital, L.P.

            	 	
              300
                Crescent Court, Suite 1111

              Dallas,
                Texas 75201

              Attn:
                George Lee

              Facsimile:
                (214) 756-6079

            	 	
              $199,500

            	 	
              39,900

            	 	
              $199,500

            	 	
              Lowenstein
                Sandler PC

              65
                Livingston Avenue

              Roseland,
                NJ 07068

              Attn:
                John D. Hogoboom

              Facsimile:
                (973) 597-2383

              Telephone:
                (973) 597-2382

            
	 	 	 	 	 	 	 	 	 	 	 
	
              SRB
                Greenway Offshore Operating Fund, L.P.

            	 	
              300
                Crescent Court, Suite 1111

              Dallas,
                Texas 75201

              Attn:
                George Lee

              Facsimile:
                (214) 756-6079

            	 	
              $72,200

            	 	
              14,440

            	 	
              $72,200

            	 	
              Lowenstein
                Sandler PC

              65
                Livingston Avenue

              Roseland,
                NJ 07068

              Attn:
                John D. Hogoboom

              Facsimile:
                (973) 597-2383

              Telephone:
                (973) 597-2382

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Tom
                Akin IRA Individual Account

            	 	
              2400
                Bridgeway

              Suite
                300

              Sausalito,
                CA 94965

              Attn:
                Thomas B. Akin

              Facsimile:
                (415) 332-6019

            	 	
              $1,000,000

            	 	
              200,000

            	 	
              $1,000,000

            	 	
              Elected
                Not To Provide

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Talkot
                Fund, L.P.

            	 	
              2400
                Bridgeway

              Suite
                300

              Sausalito,
                CA 94965

              Attn:
                Thomas B. Akin

              Facsimile:
                (415) 332-6019

            	 	
              $2,000,000

            	 	
              400,000

            	 	
              $2,000,000

            	 	
              Elected
                Not To Provide

            
	 	 	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	 	 	 	 	 	 	 	 
	
              Crestview
                Capital Master, LLC

            	 	
              95
                Revere Drive, Ste. A

              Northbrook,
                IL 60062

              Attn:
                Stewart Flink

              Facsimile:
                (847) 559-5807

            	 	
              $2,000,000

            	 	
              400,000

            	 	
              $2,000,000

            	 	
              Elected
                Not To Provide

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Fort
                Mason Partners, LP

            	 	
              c/o
                Fort Mason Capital, LLC

              4
                Embarcadero Center

              Suite
                2050

              San
                Francisco, CA 94111

              Facsimile:
                (415) 288-8113

              mjensen@fortmasoncapital.com

              dsmolen@fortmasoncapital.com

            	 	
              $182,700

            	 	
              36,540

            	 	
              $182,700

            	 	
              Elected
                Not To Provide

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Fort
                Mason Master, LP

            	 	
              c/o
                Fort Mason Capital, LLC

              4
                Embarcadero Center

              Suite
                2050

              San
                Francisco, CA 94111

              Facsimile:
                (415) 288-8113

              mjensen@fortmasoncapital.com

              dsmolen@fortmasoncapital.com

            	 	
              $2,817,300

            	 	
              563,460

            	 	
              $2,817,300

            	 	
              Elected
                Not To Provide

            
	 	 	 	 	 	 	 	 	 	 	 
	
              CCM
                Master Qualified Fund, Ltd

            	 	
              One
                North Wacker Drive

              Suite
                4350

              Chicago,
                IL 60606

              Attn:
                James Schuler

              Facsimile:
                (312) 324-2001

            	 	
              $5,000,000

            	 	
              1,000,000

            	 	
              $5,000,000

            	 	
              Seward
                & Kissel, LLP

              One
                Battery Park Plaza

              New
                York, New York 10004

              Attn:
                Craig A. Sklar

              Telephone: (212)
                574-1386

              Facsimile: (212)
                480-8421

            

    

     

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    EXHIBITS

     

    
      	
              Exhibit
                A

            	
              Form
                of Special Warrants

            
	
              Exhibit
                B

            	
              Form
                of Warrant

            
	
              Exhibit
                C

            	
              Form
                of Registration Rights Agreement

            

    

     

    
      	
              Schedule
                3(n)

            	
              Notice
                from Principal Market

            
	
              Schedule
                3(q)

            	
              Transactions
                with Affiliates

            
	
              Schedule
                3(r)

            	
              Capitalization

            
	
              Schedule
                3(s)

            	
              Indebtedness
                and Other Contracts

            
	
              Schedule
                3(t)

            	
              Litigation

            
	
              Schedule
                3(w)

            	
              Title

            
	
              Schedule
                4(d)

            	
              Use
                of ProceedsEXHIBIT 10.1

               DATED                             15th June, 2007
               -------------------------------------------------

                 (1) BIOTECHNOLOGY RESEARCH CORPORATION LIMITED

                              (2) GERON CORPORATION

                    -----------------------------------------

                             RESTRUCTURING AGREEMENT

                    -----------------------------------------

<PAGE>

                                    CONTENTS
                                    --------

1.       Definitions and Interpretation........................................1

2.       Restructuring of Share Capital........................................4

3.       Sale and Purchase of Sale Shares......................................7

4.       Closing...............................................................7

5.       Warranties............................................................9

6.       Restrictions on Announcements........................................10

7.       Costs................................................................10

8.       Stamp Duty...........................................................10

9.       Further Assurance....................................................11

10.      Assignment...........................................................11

11.      Entire Agreement.....................................................11

12.      Variation............................................................12

13.      Notices..............................................................12

14.      Waiver...............................................................12

15.      Severability.........................................................12

16.      Counterparts.........................................................12

17.      Survival of Provisions...............................................12

18.      Governing Law and Dispute Resolution.................................13

Schedule 1 Undertaking of BRC.................................................14

Schedule 2 First Written Resolutions of Shareholders..........................15

Schedule 3 New Articles of Association........................................17

Schedule 4 Written Resolution of Directors....................................55

Schedule 5 Second Written Resolution of Shareholders..........................57

Schedule 6 Form of Resignation of Director....................................58

Schedule 7 Second Written Resolution of Directors.............................59

Schedule 8 Amended and Restated Joint Venture Agreement.......................61

Schedule 9 Amended BRC Services Agreement.....................................62

<PAGE>

THIS AGREEMENT is made on the 15th day of June 2007

BETWEEN:

(1)      BIOTECHNOLOGY RESEARCH CORPORATION LIMITED, a company incorporated
         under the laws of Hong Kong whose registered office is at The Hong Kong
         University of Science and Technology, Clear Water Bay, Kowloon, Hong
         Kong ("BRC").

(2)      GERON CORPORATION, a company incorporated under the laws of the state
         of Delaware whose registered office is at 230 Constitution Drive,
         Menlo Park, California 94025, United States of America ("Geron").

RECITALS:

(A)      TA Therapeutics Limited (the "Company") is a company incorporated under
         the Companies Ordinance with registered number 953612 whose registered
         office is at 14th Floor, Hutchison House, 10 Chater Road, Central Hong
         Kong.

(B)      Immediately upon the signing of this Agreement the Company has an
         authorised share capital of US$36,000 divided into * class A shares and
         * class B shares, all of US$1.00 each and an issued share capital of
         US$24,000 divided into * class A Shares and * class B shares all of
         US$1.00 each.

(C)      The Parties have agreed to restructure the share capital of the Company
         and BRC has agreed to sell and Geron has agreed to purchase the Sale
         Shares all on the terms set out in this Agreement.

(D)      Each of the Parties enters into this Agreement in consideration of the
         other Party entering into this Agreement and accepting the terms,
         undertakings and covenants contained herein.

TERMS AGREED:

1.       Definitions and Interpretation
         ------------------------------

1.1      In this Agreement and the Recitals, where the context so admits, the
         following words and expressions shall have the following meanings:

         "Amended and Restated
         Joint Venture Agreement"          means the amended and restated joint
                                           venture agreement to be entered into
                                           between BRC, Geron and the Company on
                                           Closing in the form of Schedule 8;

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       1
<PAGE>

         "Amended BRC
         Services Agreement"               means the amended services agreement
                                           to be entered into between the
                                           Company and BRC on Closing in the
                                           form of Schedule 9;

         "A Share"                         means a class A share of US$1 par
                                           value in the share capital of the
                                           Company having the rights and
                                           benefits and being subject to the
                                           restrictions set out in the Existing
                                           Articles of Association;

         "Associated Company"              means, in relation to any company,
                                           any subsidiary or holding company of
                                           that company or any other subsidiary
                                           of such holding company (and for this
                                           purpose, HKUST shall be deemed to be
                                           a holding company of BRC until such
                                           time as BRC ceases to be a subsidiary
                                           of HKUST);

         "Board"                           means the Company's board of
                                           Directors;

         "BRC Services Agreement"          means the  services  agreement  dated
                                           21 March 2005 entered into between
                                           the Company and BRC;

         "B Share"                         means a class B Share of US$1 par
                                           value in the share capital
                                           of the Company having the rights and
                                           benefits and being subject to the
                                           restrictions set out in the Existing
                                           Articles of Association;

         "Closing"                         means completion of the restructuring
                                           of share capital, the sale and
                                           purchase of the Sale Shares and all
                                           the other matters referred to in
                                           Clause 4;

         "Companies Ordinance"             means the Companies Ordinance
                                           (Chapter 32 of the Laws of
                                           Hong Kong);

         "company"                         means   any   company   or  body
                                           corporate   wherever incorporated;

         "Director"                        means any director of the Company
                                           from time to time;

         "Encumbrance"                     means  and  includes  any  interest
                                           or  equity  of  any  person
                                           (including  any  right  to  acquire,
                                           option  or  right  of  pre-emption),
                                           voting arrangement,   mortgage,
                                           charge,   pledge,   bill  of   sale,
                                           lien,   deposit, hypothecation,
                                           assignment  or  any  other
                                           encumbrance,   priority  or  security
                                           interest  or  arrangement  or
                                           interest  under any  contract or
                                           trust or any other interest  of any

                                       2
<PAGE>

                                          third party of whatsoever nature over
                                          or in the relevant property;

         "Existing Articles
         of Association"                  means the articles of association of
                                          the Company as in effect immediately
                                          before Closing;

         "Geron's Solicitors"             means  Cheng  Wong Lam &  Partners,
                                          50th  Floor,  Bank of China Tower,
                                          Garden Road, Central, Hong Kong;

         "HKUST"                          means  The  Hong  Kong University of
                                          Science and Technology;

         "holding company"                has the meaning  attributed  to it in
                                          section 2 of the Companies Ordinance;

         "Hong Kong"                      means the Hong Kong  Special
                                          Administrative  Region of the People's
                                          Republic of China;

         "New Articles of Association"    means the new articles of  association
                                          of the Company to be adopted at
                                          Closing in the form of Schedule 3;

         "Party"                          means a party to this Agreement;

         "Sale Shares"                    means * fully paid up unclassified
                                          ordinary shares of US$1.00 each in
                                          the capital of the Company to be sold
                                          by BRC to Geron under this Agreement
                                          resulting from the re-designation of
                                          Shares to occur on Closing as set out
                                          in Clauses 2.2 and 4.4, but
                                          immediately prior to their sale and
                                          purchase pursuant to Clauses 3 and
                                          4.6;

         "Share"                          means any share (of whatever class or
                                          denomination) in the share capital
                                          from time to time of the Company;

         "subsidiary"                     has the  meaning  attributed  to it in
                                          section 2 of the Companies Ordinance;

         "US$" or "US Dollars"            means United States dollars, the
                                          lawful currency of the United States
                                          of America.

1.2      Save where the context otherwise requires words and phrases the
         definitions of which are contained or referred to in the Companies
         Ordinance shall be construed as having the meaning thereby attributed
         to them.

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       3
<PAGE>

1.3      Any references, express or implied, to statutes or statutory provisions
         shall be construed as references to those statutes or provisions as
         respectively amended or re-enacted or as their application is modified
         from time to time by other provisions (whether before or after the date
         hereof) and shall include any statutes or provisions of which they are
         re-enactments (whether with or without modification) and any orders,
         regulations, instruments or other subordinate legislation under the
         relevant statute or statutory provision. References to sections of
         consolidating legislation shall wherever necessary or appropriate in
         the context be construed as including references to the sections of the
         previous legislation from which the consolidating legislation has been
         prepared.

1.4      Except where the context requires otherwise, references to any document
         (including this Agreement) are references to that document as amended,
         consolidated, supplemented, novated or replaced from time to time;

1.5      References in this Agreement to recitals, clauses, paragraphs and
         schedules are to clauses and paragraphs in and recitals and schedules
         to this Agreement (unless the context otherwise requires). The Recitals
         and Schedules to this Agreement shall be deemed to form part of this
         Agreement.

1.6      Headings are inserted for convenience only and shall not affect the
         construction of this Agreement.

1.7      References to a Party include its respective successors and permitted
         assigns.

1.8      References to "persons" shall include any individual, any form of body
         corporate, unincorporated association, firm, partnership, joint
         venture, consortium, association, organisation or trust (in each case
         whether or not having a separate legal personality).

1.9      References to writing shall include any methods of reproducing words in
         a legible and non-transitory form.

1.10     The masculine gender shall include the feminine and neuter and the
         singular number shall include the plural and vice versa.

1.11     In construing this Agreement:

         1.11.1     the rule known as the ejusdem generis rule shall not apply
                    and, accordingly, general words introduced by the word
                    "other" shall not be given a restrictive meaning by reason
                    of the fact that they are preceded by words indicating a
                    particular class of acts, matters or things; and

         1.11.2     general words shall not be given a restrictive meaning by
                    reason of the fact that they are followed by particular
                    examples intended to be embraced by the general words.

2.       Restructuring of Share Capital
         ------------------------------

2.1      The Parties acknowledge that upon signing of this Agreement the issued
         capital of the Company comprises:

                                       4
<PAGE>

2.1.1    * A Shares, of which:

         (a)        * A Shares are registered in the name of BRC and are fully
                    paid up;

         (b)        * A Share is registered in the name of BRC and is paid up as
                    to the nominal amount of such Share of US$1.00, but is not
                    yet paid up as to the premium of US$* payable on such Share;

         (c)        * A Shares are registered in the name of Geron and are
                    fully paid up; and

         (d)        * A Share is registered in the name of Geron and is paid
                    up as to the nominal amount of such Share of US$1.00, but is
                    not yet paid up as to the premium of US$* payable on such
                    Share; and

2.1.2    * B Shares, of which:

         (a)        * B Shares are registered in the name of BRC and are
                    fully paid up;

         (b)        one B Share is registered in the name of BRC and is paid
                    up as to the nominal amount of such Share of US$1.00, but is
                    not yet paid up in full as to the premium of US$* payable on
                    such Share;

         (c)        * B Shares are registered in the name of Geron and are
                    fully paid up; and

         (d)        one B Share is registered in the name of Geron and is
                    paid up as to the nominal amount of such Share of US$1.00,
                    but is not yet paid up in full as to the premium of US$*
                    payable on such Share.

2.2      The Parties agree that on Closing, each of the following events, among
         other things, shall occur:

         2.2.1      BRC shall pay to the Company the balance of the
                    premium payable on its partly paid A Share;

         2.2.2      Geron shall pay to the Company the balance of the
                    premium payable on its partly paid A Share and partly paid B
                    Share;

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       5
<PAGE>

         2.2.3      the share capital of the Company shall be restructured
                    by the variation of the rights attaching to the B Shares and
                    the redesignation of all the A Shares and B Shares as
                    unclassified ordinary shares of US$1.00 each but so that the
                    one partly paid Share held by BRC shall following such
                    variation and redesignation remain partly paid to the same
                    extent and subject to the same liability for the premium
                    thereof as before such variation and re-designation;

         2.2.4      the New Articles of Association shall be adopted;

         2.2.5      the changes in the classification of share capital
                    shall be recorded in the register of members;

         2.2.6      BRC shall complete the sale of the Sale Shares to
                    Geron so that Geron shall become the holder of 75% of the
                    issued Shares and BRC shall become the holder of 25% of the
                    issued Shares; and

         2.2.7      the Parties shall pass a special resolution pursuant
                    to Section 58 Companies Ordinance to the effect that,
                    subject to the approval of the Court, the liability of BRC
                    to pay the premium on its one partly paid Share (previously
                    classified as a partly paid up B Share) shall be reduced
                    from US$* to US$*,

         all in accordance with the further terms of this Agreement.

2.3      The Parties further agree and undertake that following Closing they
         shall, and shall procure that the Company shall, take all such further
         lawful action as may be necessary or desirable to procure that the
         reduction of the liability of BRC to pay the premium on its one partly
         paid Share shall be approved by the Court in accordance with the
         procedures specified in the Companies Ordinance and if the Court fails
         to approve such reduction of capital the provisions of clause 2.3 of
         the Amended and Restated Joint Venture Agreement shall have effect.

2.4      Each of the Parties, being all the members of the Company and all
         the members of the classes of members holding A Shares or B Shares
         respectively:

         2.4.1      consents to any variation of the rights attached to
                    the A Shares and the B Shares made by any of the special
                    resolutions to be passed by the members of the Company as
                    provided in this Agreement; and

         2.4.2      waives, and undertakes to the other Party that it
                    shall not exercise, any and all rights that it may have to
                    apply to Court to object to the matters contemplated by this
                    Agreement whether under Section 64 Companies Ordinance,
                    pursuant to any right of pre-emption, or otherwise.

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       6
<PAGE>

3.       Sale and Purchase of Sale Shares
         --------------------------------

3.1      Subject only to the passing of the resolutions and completion of the
         matters referred to in Clauses 2.2.1 to 2.2.5, BRC as beneficial owner
         shall sell the Sale Shares and Geron shall purchase the Sale Shares
         free from all Encumbrances together with all rights of any nature
         whatsoever attaching or accruing to them at Closing.

3.2      The aggregate consideration payable by Geron to BRC for the Sale Shares
         is US$1.00 payable in cash at Closing.

4.       Closing
         -------

4.1      Closing shall take place at the offices of Geron's Solicitors
         immediately upon execution of this Agreement when all (but not some
         only) of the events described in this Clause 4 shall be performed (if
         not already performed).

4.2      Before Closing, the Parties shall procure that copies of the
         resolutions of members of the Company shall be supplied to the auditors
         in accordance with Section 116BA Companies Ordinance.

4.3      At Closing:

         4.3.1      BRC shall pay to the Company by bank cashier's order
                    or by credit transfer in immediately available funds to the
                    bank account of the Company the sum of HK$* (being the HK
                    Dollar equivalent of US$*) being the net sum of (a) the
                    balance of the share premium on the one partly paid A Share
                    registered in its name in the amount of US$* less (b) the
                    amount of US$* representing capital contributions paid
                    towards such share premium and expenses incurred by BRC;

         4.3.2      BRC shall deliver to the Company and Geron an
                    unconditional undertaking in the form of Schedule 1 to pay
                    up a total of US$* being the balance of the premium which
                    the parties agree shall remain payable on the one partly
                    paid B Share registered in its name, such payment to be made
                    in two instalments of US$* on * and US$* on *;

         4.3.3      Geron shall pay to the Company by bank cashier's order
                    or by credit transfer in immediately available funds to the
                    bank account of the Company the sum of HK$ (being the HK
                    Dollar equivalent of US$*) being the net sum of (a) the
                    balance of the share premium on the one partly paid A share
                    and one partly paid B Share registered in its name in the
                    amount of US$* less (b) the amount of US$* representing
                    capital contributions paid towards such share premium and
                    expenses incurred by Geron.

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       7
<PAGE>

4.4      At Closing, subject to the payments to the Company specified in
         Clause 4.3 having been made, each of the Parties shall:

         4.4.1      deliver to the Company the written resolutions of the
                    members in the form of Schedule 2 duly signed by its
                    respective authorized signatory on its behalf to approve the
                    reclassification of the authorized share capital of the
                    Company into unclassified ordinary Shares and the
                    redesignation of all the issued A Shares and B Shares into
                    unclassified ordinary Shares and to adopt the Articles of
                    Association);

         4.4.2      deliver to the Company the written resolutions of the
                    Board in the form of Schedule 4 duly signed by the Directors
                    respectively appointed by them to the Board; and

         4.4.3      deliver to the Company the shares certificates in its
                    name in respect of the shares held by it as previously
                    designated as class A Shares or class B shares (as the case
                    may be) or (if required) an indemnity therefor;

         4.4.4      procure that changes to the share capital referred to
                    in the resolutions of the members specified in Schedule 2
                    are duly reflected in the register of members of the
                    Company.

4.5      At Closing, subject to the matters specified in Clause 4.4 having been
         completed, each of the Parties shall deliver to the Company the written
         resolutions of the members in the form of Schedule 5 duly signed by its
         respective authorized signatory on its behalf to approve the reduction
         of the liability of BRC for the premium payable on its one partly paid
         Share to US$*.

4.6      At  Closing,  subject to the  matters  referred  to in Clause  4.5
         having  been  completed,  BRC shall  deliver or cause to be delivered
         to Geron and the Company:

         4.6.1      duly executed transfers and sold notes in respect of
                    the Sale Shares in favour of Geron accompanied by the
                    relevant certificates for the Sale Shares;

         4.6.2      all powers of attorney, board resolutions or other
                    authorities under which the transfers and sold notes in
                    respect of the Sale Shares (and the other documents executed
                    by BRC pursuant to this Agreement) have been executed;

         4.6.3      all statutory books and records (including financial
                    records) duly written up to date of the Company and its
                    certificate of incorporation, current business registration
                    certificate and common seal, cheque and deposit books, and
                    any other books, papers, records and documents of the
                    Company and in the possession of BRC or HKUST or any of
                    their respective Associated Companies;

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       8
<PAGE>

         4.6.4      the resignation of Mr. Chu Ching-wu as a Director in
                    the form specified in Schedule 6;

         4.6.5      the Amended BRC Services Agreement and the Amended and
                    Restated Joint Venture Agreement, each duly executed by BRC;

4.7      At Closing, subject to delivery of the documents specified in
         Clause 4.6, Geron shall:

         4.7.1      deliver to BRC the Amended and Restated Joint Venture
                    Agreement and the Amended BRC Services Agreement duly
                    executed by Geron;

         4.7.2      deliver to BRC all powers of attorney, board
                    resolutions or other authorities under which the documents
                    executed by Geron pursuant to this Agreement have been
                    executed; and

         4.7.3      pay to BRC the consideration payable for the Sale
                    Shares in the sum of US$1.00 against an acknowledgement of
                    receipt therefore.

4.8      At Closing, the Parties shall deliver to each other the written
         resolutions of the Board in the form of Schedule 7 duly signed by the
         Directors respectively appointed by them to the Board;

4.9      At Closing, the Parties shall procure that the Company delivers to each
         of the Parties the Amended BRC Services Agreement and the Amended and
         Restated Joint Venture Agreement duly executed by the Company.

5.       Warranties
         ----------

5.1      Each of BRC and Geron represents, warrants and undertakes to the other
         that (a) it is duly incorporated, (b) it has the power to enter into
         and to exercise its rights and to perform its obligations under this
         Agreement, (c) it has taken and will take all necessary action to
         authorise the execution of and the performance of its obligations under
         this Agreement, (d) the obligations expressed to be assumed by it under
         this Agreement are legal, valid and binding, and (e) neither the
         execution nor performance of this Agreement will contravene any
         provision of any existing law, treaty or regulation, its memorandum and
         articles of association or equivalent constitutive documents or any
         obligation (contractual or otherwise) which is binding upon it, or upon
         any of its assets.

5.2      BRC warrants, represents and undertakes to Geron (to the intent
         that the provisions of Clause 5 shall continue to have full force and
         effect notwithstanding Closing) that:

         5.2.1      BRC is the legal and beneficial owner of all the Sale
                    Shares, free and clear of any lien, charge or Encumbrance
                    whatsoever;

         5.2.2      all the Sale Shares are fully paid up;

         5.2.3      BRC has and will continue to have on the dates for
                    payment of the premium payable on its partly paid Share as
                    specified in Clause 4.3.2, cash sufficient to pay such
                    amounts of premium in accordance with that Clause 4.3.2,

                                       9
<PAGE>

                    whether from within its own resources or by virtue of an
                    unconditional contractual right to receive such amounts
                    (whether from its Associated Companies or from Third
                    Parties).

5.3      Each Party acknowledges that the other Party in entering into this
         Agreement is relying on the respective representations, warranties and
         undertakings given by such other Party in this Agreement.

5.4      Each Party undertakes to indemnify and keep indemnified the other Party
         against any loss or liability suffered by such other Party as a result
         of or in connection with any breach of any of the representations,
         warranties or undertakings by such Party under Clause 5.1 of this
         Agreement and any reasonable costs and expenses incurred as a result of
         the breach.

5.5      BRC undertakes to indemnify and keep indemnified Geron against any loss
         or liability suffered by Geron as a result of or in connection with any
         breach of any of the representations, warranties or undertakings by BRC
         under Clause 5.2 of this Agreement and any reasonable costs and
         expenses incurred as a result of the breach and without limitation this
         indemnity applies to indemnify Geron for any loss incurred by Geron by
         reason of the market value of the Sale Shares (regardless of the agreed
         consideration for the Sale Shares payable under Clause 3.2) being less
         than it would have been if the breach had not occurred.

5.6      Each Party will both before and after Closing promptly notify the other
         Party in writing of any matter or thing of which such Party becomes
         aware which is a breach of or inconsistent with any of the
         representations, warranties or undertakings of such Party under this
         Agreement.

6.       Restrictions on Announcements
         -----------------------------

         Each of the Parties undertakes that it will not (save as required by
         law or any applicable regulatory body) make any announcement in
         connection with this Agreement unless the other Party shall have given
         its consent to such announcement (which consents may not be
         unreasonably withheld and may be given either generally or in a
         specific case or cases and may be subject to conditions).

7.       Costs
         -----

         Each Party shall pay its own costs and disbursements of and incidental
         to the preparation and execution of this Agreement.

8.       Stamp Duty
         ----------

         Any stamp duty payable on the instruments of transfer and bought and
         sold notes (and any other document) relating to the transfer of the
         Sale Shares pursuant to this Agreement shall be borne equally by BRC
         and Geron.

                                       10
<PAGE>

9.       Further Assurance
         -----------------

9.1      At any time, whether before or after Closing, each of the Parties shall
         do and execute, or procure to be done and executed, all necessary acts,
         deeds, documents and things as may be reasonably requested of it by the
         other Party to give effect to this Agreement.

9.2      At any time (whether before or after Closing) and upon a Party's
         reasonable request (the "Requesting Party") from time to time, the
         other Party (the "Disclosing Party") shall:

         9.2.1      provide, or procure to be provided, to the Requesting
                    Party all information relating to the business and affairs
                    of the Company as conducted up to Closing which is in the
                    possession or under the control of the Disclosing Party or
                    any of its Associated Companies, but excluding any
                    confidential or proprietary information of the Disclosing
                    Party;

         9.2.2      give, or procure to be given, to the Requesting Party,
                    its directors and any persons authorized by the Requesting
                    Party, access to any documents or electronic data (however
                    stored) containing any of the information referred to in
                    Clause 9.2.1, but excluding any documents or electronic data
                    which contain any proprietary or confidential information of
                    the Disclosing Party and the Requesting Party, its directors
                    and authorized persons may make copies of such documents or
                    data.

10.      Assignment
         ----------

         Save as otherwise provided herein, the benefits and obligations
         conferred by this Agreement upon each of the Parties are personal to
         that Party and shall not be, and shall not be capable of being,
         assigned, delegated, transferred or otherwise disposed of save with the
         written consent of each of the other Parties. Notwithstanding the
         foregoing provisions, Geron may assign and transfer this Agreement and
         the benefits and obligations thereof in connection with the merger or
         consolidation of Geron with another company, or the sale of all or
         substantially all of its assets (or of the portion of its business
         related to the subject matter of this Agreement) provided that Geron
         notifies BRC and the Company in writing prior to any such merger or
         consolidation or sale.

11.      Entire Agreement
         ----------------

         This Agreement (together with any documents referred to herein or
         executed contemporaneously by the Parties in connection herewith)
         constitutes the whole agreement between the Parties and supersedes any
         previous agreements, arrangements or understandings between them
         relating to the subject matter hereof. Each of the Parties acknowledges
         that it is not relying on any statements, warranties or representations
         given or made by any of them relating to the subject matter hereof,
         save as expressly set out in this Agreement.

                                       11
<PAGE>

12.      Variation
         ---------

         No variation or amendment to this Agreement shall be effective unless
         in writing signed by authorised representatives of each of the Parties.

13.      Notices
         -------

         Any notice required to be given by either Party to other Party may be
         made (i) by hand delivery by Federal Express or comparable private
         courier service to the other Party's address given herein or such other
         address as may from time to time be notified for this purpose or (ii)
         by facsimile transmission to a facsimile number notified in writing by
         the other Party for this purpose. Any properly addressed notice served
         by hand shall be deemed to have been served on delivery and any notice
         served by facsimile transmission shall be deemed to have been served
         when received, as shown by a confirmed transmission report.

14.      Waiver
         ------

         No failure of any Party to exercise, and no delay in exercising, any
         right or remedy in respect of any provision of this Agreement shall
         operate as a waiver of such right or remedy, nor shall any single or
         partial exercise of the same preclude any further exercise thereof or
         the exercise of any other right, power or remedy. Without limitation,
         no waiver by a Party of any breach by the other Party of any provision
         of this Agreement shall be deemed a waiver of any subsequent breach of
         that or any other provision in this Agreement. The rights and remedies
         of each Party contained in this Agreement are cumulative and not
         exclusive of any rights or remedies provided by law.

15.      Severability
         ------------

         If any provision or part of a provision of this Agreement or its
         application to any Party, shall be, or be found by any authority of
         competent jurisdiction to be, invalid or unenforceable, such invalidity
         or unenforceability shall not affect the other provisions or parts of
         such provisions of this Agreement, all of which shall remain in full
         force and effect.

16.      Counterparts
         ------------

         This Agreement may be entered into on separate engrossments, each of
         which when so executed and delivered shall be an original but each
         engrossment shall together constitute one and the same instrument and
         shall take effect from the time of execution of the last engrossment.

17.      Survival of Provisions
         ----------------------

         All of the provisions of this Agreement shall remain in full force and
         effect notwithstanding Closing (except insofar as they set out
         obligations which have been fully performed at Closing).

                                       12
<PAGE>

18.      Governing Law and Dispute Resolution
         ------------------------------------

18.1     This Agreement shall be governed by and construed in accordance with
         the laws of Hong Kong.

18.2     In the event of any dispute arising out of or in connection with this
         Agreement, including any question regarding its existence, validity,
         breach or termination, the Parties shall attempt in good faith to reach
         a resolution satisfactory to all Parties. In the event the Parties do
         not reach such a resolution within thirty (30) days after the relevant
         dispute arises (or such longer period as the Parties may agree in
         writing), then any Party may, by written notice to the other Parties,
         demand arbitration, and the relevant dispute shall be referred to and
         finally resolved by arbitration in Singapore in accordance with the
         Arbitration Rules of SIAC for the time being in force which rules are
         deemed to be incorporated by reference into this Clause. The tribunal
         for any arbitration shall consist of three arbitrators to be appointed
         by the Chairman of SIAC. The language of the arbitration shall be
         English. Judgment on the award rendered by the arbitrators may be
         entered in any court having jurisdiction thereof.

                                       13
<PAGE>

                                   Schedule 1
                                   ----------
                               Undertaking of BRC
                               ------------------

To:      TA Therapeutics Limited
14th Floor, Hutchison House, 10 Chater Road, Central Hong Kong

and

Geron Corporation
230 Constitution Drive, Menlo Park, California 94025, United States of America

Date:    15th of June 2007

Dear Sirs

We irrevocably and unconditionally undertake to pay to the Company the sum of
US$* in respect of the premium on the one partly paid Share registered in our
name and numbered * in the register of members of the Company, such sum to be
paid in two instalments as to US$* on * and as to US$* on *, each such payment
to be made without deduction or set off in immediately available funds for value
on the relevant dates for payment specified above.

Yours faithfully

/s/ Yuk Shan Wong
--------------------
For and on behalf of
Biotechnology Research Corporation

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       14
<PAGE>

                                   Schedule 2
                                   ----------
                    First Written Resolutions of Shareholders
                    -----------------------------------------

                             TA THERAPEUTICS LIMITED
                             -----------------------

RESOLUTIONS IN WRITING OF ALL THE SHAREHOLDERS OF THE COMPANY PURSUANT TO
SECTION 116B OF THE COMPANIES ORDINANCE

--------------------------------------------------------------------------------

Resolved that the following resolutions be passed as Special Resolutions:

(1)      Special Resolution - Re-classification of Shares
         ------------------------------------------------

         "That, the authorized share capital of the Company of US$36,000 divided
         into two classes of shares consisting of * class A shares and * class B
         shares, all of US$1.00 each, be and is hereby re-classified into one
         class of unclassified ordinary shares, all of US$1.00 each, such shares
         to have attached thereto the rights and privileges and be subject to
         the restrictions set out in the new Articles of Association of the
         Company as adopted by Special Resolution as set out below."

 (2)     Special Resolution - Re-designation of Shares
         ---------------------------------------------

         "That, notwithstanding the provisions of the Articles of Association of
         the Company:

         (a)        all the existing * issued and fully paid up class A
                    shares in the capital of the Company registered in the name
                    of Biotechnology Research Corporation Limited and all the
                    existing * issued and fully paid up class A shares in the
                    capital of the Company registered in the name of Geron
                    Corporation be re-designated as unclassified ordinary shares
                    of US$1.00 each in the capital of the Company, on the basis
                    of one ordinary share for each class A share held, and each
                    such ordinary share shall have attached thereto the rights
                    and privileges and be subject to the restrictions set out in
                    the new Articles of Association of the Company as adopted by
                    Special Resolution as set out below;

         (b)        all the existing * issued and fully paid up class B
                    shares in the capital of the Company registered in the name
                    of Biotechnology Research Corporation Limited and all the *
                    issued and fully paid up class B shares in the capital of
                    the Company registered in the name of Geron Corporation be
                    re-designated as unclassified ordinary shares of US$1.00
                    each in the capital of the Company, on the basis of one
                    ordinary share for each class B share held, and each such
                    ordinary share shall have attached thereto the rights and
                    privileges and be subject to the restrictions set out in the
                    new Articles of Association of the Company as adopted by
                    Special Resolution as set out below;

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       15
<PAGE>

         (c)        the existing one issued class B share in the capital of
                    the Company registered in the name of Biotechnology Research
                    Corporation Limited in respect of which the nominal value of
                    US$1.00 has been paid up and in respect of which the premium
                    of HK$* has not been paid up be re-designated as one partly
                    paid up unclassified ordinary share of US$1.00 in the
                    capital of the Company, paid up as to the nominal value and
                    as to which a share premium of US$* shall remain payable
                    thereon, and such ordinary share shall have attached thereto
                    the rights and privileges and be subject to the restrictions
                    set out in the new Articles of Association of the Company as
                    adopted by Special Resolution as set out below; and

         (d)        the existing * unissued class A shares in the capital of
                    the Company be re-designated as unclassified ordinary shares
                    of US$1.00 each and such shares shall have attached thereto
                    the rights and privileges and be subject to the restrictions
                    set out in the new Articles of Association of the Company as
                    adopted by Special Resolution as set out below."

(3)      Special Resolution - Adoption of New Articles of Association
         ------------------------------------------------------------

         "That the regulations contained in the attached printed document be and
         are hereby approved and adopted as the new Articles of Association of
         the Company, in substitution for, and to the exclusion of, the existing
         Articles of Association of the Company."

Dated as of 15th June  2007.

/s/ Yuk Shan Wong                                           /s/ David J. Earp
--------------------                                        --------------------
For and on behalf of                                        For and on behalf of
Biotechnology Research Corporation Limited                  Geron Corporation

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       16
<PAGE>

                                   Schedule 3
                                   ----------
                           New Articles of Association
                           ---------------------------

                      THE COMPANIES ORDINANCE (Chapter 32)

                            Company Limited by Shares

                             Articles of Association

                                       of

                             TA Therapeutics Limited

             (as adopted by Special Resolution dated 15 June 2007)

                                   Preliminary

1.        The regulations contained in Table "A" in the First Schedule to the
          Companies Ordinance (Cap. 32) shall not apply to the Company.

2.        In these Articles, unless the context requires otherwise:

          "Affiliate " means, in respect of a person, any other person who has
          Control of, is under the Control of or is under common Control with
          the first mentioned person and includes an Affiliated Company of the
          first mentioned person;

          "Affiliated Company" means in relation to any Member, any Associated
          Company of such Member and any company in which such Member or any
          holding company of such Member holds or controls directly or
          indirectly not less than 20% of the issued share capital, provided
          that, for the purposes of the foregoing, the terms "company" and
          "holding company" shall be deemed to include, in addition to a body
          corporate, any other type of legal entity, including any limited
          liability company, unincorporated association, firm, partnership,
          joint venture, consortium, association, organisation or trust, and the
          meanings given to the terms "company" and "holding company" in the
          Ordinance shall, for the purposes of the foregoing, be deemed to
          apply, mutatis mutandis, to such other entities;

          "Articles" means the Articles of Association of the Company for the
          time being in force;

          "Associated Company" means, in relation to any Member, any subsidiary
          or holding company of that Member or any other subsidiary of such
          holding company , provided that, for the purposes of the foregoing,
          the terms "company", "subsidiary" and "holding company" shall be
          deemed to include, in addition to a body corporate, any other type of

                                       17
<PAGE>

          legal entity, including any limited liability company, unincorporated
          association, firm, partnership, joint venture, consortium,
          association, organisation or trust, and the meanings given to the
          terms "company" and "holding company" in the Ordinance shall, for the
          purposes of the foregoing, be deemed to apply, mutatis mutandis, to
          such other entities;

          "Board" means the board of Directors;

          "BRC" means Biotechnology Research Corporation Limited, a company
          incorporated under the laws of Hong Kong;

          "Chairman" means the chairman of the board of directors of the
          Company;

          "Control" when used with respect to any person means the possession,
          directly or indirectly, of power to direct or cause the direction of
          the management and policies of such person, whether through the
          ownership of voting securities, the right to control the composition
          of the governing body of the person or by contract or otherwise and
          "Controlled" shall have a correlative meaning and a "change in
          Control" shall be deemed to have occurred if any person having
          previously Controlled the relevant person, ceases to do so, or if any
          person acquires Control of the relevant person;

          "Directors" means the Directors of the Company for the time being, the
          sole Director or as the case may be the Directors assembled as a board
          or a committee of the board;

          "Geron" means Geron Corporation, a company incorporated under the laws
          of the State of Delaware;

          "Hong Kong" shall have the same meaning as defined in the
          Interpretation and General Clauses Ordinance (Cap.1);

          "Member" means a person who is registered as the holder of shares in
          the capital of the Company;

          "Memorandum of Association" means the Memorandum of Association of the
          Company for the time being in force;

          "Month" means calendar month;

          "Office" means the registered office for the time being of the
          Company;

          "Ordinance" means the Companies Ordinance (Cap. 32) as modified from
          time to time;

          "Paid up" or "paid" includes credited as paid up or paid;

          "Register" means the register of Members to be kept pursuant to
          Ordinance;

          "Relevant Percentage" means, in relation to a Member, a fraction, the
          numerator of which is the total number of Shares held by that Member
          at the time in question and the denominator of which is the total
          number of Shares in issue at that time;

                                       18
<PAGE>

          Reserve Director" means a person nominated as a reserve Director of
          the Company under section 153A(6) of the Ordinance;

          "Seal" means the common seal of the Company or, where appropriate, any
          official seal for use in any particular state, country or territory
          outside Hong Kong or, where appropriate, any securities seal for use
          by the Company in accordance with the Ordinance;

          "Secretary" means any person appointed to perform the duties of the
          Secretary of the Company and includes any person appointed to perform
          such duties temporarily and any duly appointed assistant Secretary;

          "Share" means a share in the share capital of the Company having the
          rights and benefits and subject to the restrictions set out in these
          Articles;

          "Third Party" means any person other than BRC, Geron or any of their
          Affiliated Companies;

          "US$" means United States dollars, the lawful currency of the United
          States of America;

          "Year" means calendar year.

          Any provision of these Articles that refers (in whatever words) to:

          (a) the Directors;
          (b) the Board of Directors;
          (c) a majority of the Directors; or
          (d) a specified number of percentage of the Directors of the Company

          shall, unless the context otherwise requires, apply with necessary
          modifications in case the Company has only one Director.

          Any provision of these Articles that refers (in whatever words) to:

          (a) the Members;
          (b) a majority of Members; or
          (c) a specified number or percentage of Members of the Company

          shall, unless the context otherwise requires, apply with necessary
          modifications in case the Company has only one Member.

          Wherever any provision of these Articles (except a provision for the
          appointment of a proxy) requires that a communication as between the
          Company, its Directors or Members be effected in writing, the
          requirement may be satisfied by the communication being given in the
          form of an electronic record unless the person to whom the
          communication is given signifies refusal to communications being given
          to him in that form.

                                       19
<PAGE>

          Expressions used in these Articles referring to "writing" or "written"
          shall, unless the contrary intention appears, be construed as
          including references to printing, lithography, photography and other
          modes of representing or reproducing words in a visible form.

          Unless the context otherwise requires, words or expressions used in
          these Articles shall have the same meaning as in the Ordinance or any
          statutory modification thereof in force at the date at which these
          Articles become binding on the Company.

          The singular includes the plural and vice versa. Words importing any
          gender include the other genders.

          The headings shall not affect the construction of these Articles.

                                 Private Company

3.        The Company shall be a private company, and accordingly the
          following provisions shall have effect:-

          (a)       the Company shall not offer any of its shares or
                    debentures to the public for subscription;

          (b)       the number of Members (not including persons who are in
                    the employment of the Company and persons who, having been
                    formerly in the employment of the Company, were while in
                    that employment, and have continued after the determination
                    of that employment to be, Members) shall not at any time
                    exceed fifty provided that where two or more persons hold
                    one or more shares in the Company jointly, they shall, for
                    the purposes of this Article, be treated as a single Member;
                    and

          (c)       the right to transfer shares in the Company shall be
                    restricted in the manner hereinafter provided.

                                   19. Shares
                                       ------

4.        (A)       Subject to the provisions of the Ordinance (and in
                    particular section 57B thereof) and of the Articles relating
                    to new shares and of Article 5, all unissued shares in the
                    Company including any new shares created upon an increase of
                    capital shall be under the control of the Directors who may
                    offer, allot, grant options over or otherwise dispose of
                    them to such persons, on such terms and conditions and at
                    such times as the Directors shall in their sole and absolute
                    discretion think fit, but so that no shares shall be issued
                    at a discount, except in accordance with the provisions of
                    the Ordinance.

          (B)       Subject to the provisions, if any, in that regard in the
                    Memorandum of Association or these Articles, and without
                    prejudice to any special rights previously conferred on the
                    holders of existing shares, any share may be issued with
                    such preferred, deferred, or other special rights, or such
                    restrictions, whether in regard to dividend, voting, return
                    of share capital, or otherwise, as the Company may from time
                    to time by special resolution determine, (or, in the absence
                    of any such determination or so far as the same shall not

                                       20
<PAGE>

                    make specific provision, as the Directors may determine) and
                    any preference share or any other share may, with the
                    sanction of a special resolution, be issued on the terms
                    that it is, or at the option of the Company is liable, to be
                    redeemed.

5.        (A)       The Company will not issue any new Shares to any person
                    unless the Board of Directors has offered each of BRC and
                    Geron (for the purposes of this Article 5, each, a "Current
                    Member" and collectively the "Current Members") the
                    opportunity, but without any obligation, to subscribe for
                    such Shares on a pro rata basis in accordance with their
                    then Relevant Percentage (a "New Subscription"), such offer
                    to be made by written notice to the Current Members
                    specifying (a) the aggregate amount to be raised by such new
                    issue; (b) the number of Shares offered to the Current
                    Member, (c) the terms of the offer (including the
                    subscription price per Share to be subscribed). If it is
                    intended or anticipated by the Company that the new Shares
                    shall be subscribed wholly by a Current Member and/or any of
                    its Affiliates, then the subscription price per Share to be
                    subscribed shall be such amount as is agreed by the Company
                    and all the Current Members or, failing such agreement
                    within seven (7) days of written notice from the Company
                    requiring such agreement, not less than the fair market
                    value thereof as appraised by a reputable independent
                    expert.

          (B)       If either Current Member (a "Diluting Current Member")
                    fails to apply for its pro rata entitlement to the new
                    Shares in accordance with this Article 5 within a period of
                    14 days after from the Board's call therefor, then the other
                    Current Member shall have the right within 14 days
                    thereafter to elect by written notice to the Board and to
                    the Diluting Current Member to subscribe for both the Shares
                    offered to it and the Shares offered to the Diluting Current
                    Member, on the same terms as previously offered to both the
                    Current Members, and the Current Members shall promptly
                    procure that the necessary authorisations are given
                    (including the passing of any resolutions of Current
                    Members) and steps taken for such Shares to be allotted and
                    issued to such other Current Member, such Shares to be paid
                    up and issued in accordance with the terms of the offer as
                    specified in the notice of the offer given under Article
                    5(A).

          (C)       If the subscriptions elected to be made by the Current
                    Members in accordance with Articles 5(A) and 5(B) are
                    insufficient to provide the Company with funding in the
                    aggregate amount specified in the notice given under Article
                    5(A), then the Company may, during a period of 6 months
                    following the last date for payment of the subscriptions
                    under Articles 5(A) and 5(B) offer the balance of any Shares
                    to any other person or person for subscription on such terms
                    as the Board of Directors may determine, provided always
                    that the subscription price per Share to be subscribed shall
                    not be less than the price offered to the Current Members
                    under Article 5(A).

          (D)       Subject to Article 5(E), the provisions of Articles 5(A)
                    to 5(C) shall apply in the same manner, adjusted as
                    necessary, to the issue of any securities convertible into
                    or exchangeable for Shares and the grant by the Company of
                    any rights (by way of option or warrant or otherwise) to
                    subscribe for or acquire Shares.

                                       21
<PAGE>

          (E)       Nothing in this Article 5 shall restrict or apply to the
                    grant of options or the issue of Shares in accordance with
                    the terms of any share option or share incentive scheme
                    established in accordance with the terms of any agreement
                    between the Members.

                             Modification of Rights
                             ----------------------

6.        (A)       Subject to Article 102, all or any of the rights
                    attached to any class of shares in the capital of the
                    Company for the time being may, at any time, as well before
                    as during liquidation, be altered or abrogated either with
                    the consent in writing of the holders of not less than
                    three-fourths of the issued shares of the class or with the
                    sanction of a special resolution passed at a separate
                    general meeting of the holders of shares of the class, and
                    all the provisions contained in these Articles relating to
                    general meetings shall mutatis mutandis apply to every such
                    meeting, but so that the quorum thereof shall be not less
                    than two persons personally present and holding or
                    representing by proxy one-third in nominal value of the
                    issued shares of the class, and that any holder of shares of
                    the class present in person or by proxy may demand a poll,
                    and that each holder of shares of the class present in
                    person or by proxy shall on a poll be entitled to one vote
                    for each share of the class held by him, and if at any
                    adjourned meeting of such holders such quorum as aforesaid
                    is not present, any two holders of shares of the class who
                    are personally present in person or by proxy shall be a
                    quorum. If the Company has only one member, one member
                    present in person or by proxy shall be a quorum for all
                    purposes.

          (B)       The foregoing provisions of this Article shall apply to
                    the variation or abrogation of the rights attached to some
                    only of the shares of any class as if each group of shares
                    of the class differently treated formed a separate class,
                    the rights whereof are to be varied.

          (C)       The rights conferred upon the holders of the shares of
                    any class shall not, unless otherwise expressly provided by
                    the terms of issue of the shares of that class, be deemed to
                    be varied by the creation or issue of further shares ranking
                    pari passu therewith.

7.        (A)       The Company may in connection with the issue of any
                    shares exercise all powers of paying interest out of capital
                    and of paying commission and brokerage conferred or
                    permitted by the Ordinance.

          (B)       If any share is issued partly paid and, by the terms and
                    conditions on which such share is issued, the amount of any
                    premium payable on such share is to be determined by the
                    holder of such share at any time following such issue in
                    accordance with any agreement in writing between all of the
                    Members, then such share shall be deemed to be fully paid
                    when the nominal amount, and the premium thereon as
                    determined by the holder in accordance with any agreement in
                    writing between all of the Members and such terms of issue,
                    shall have been paid thereon.

                                       22
<PAGE>

                        Redemption and Purchase of Shares

8.        (A)       Subject always to the provisions of the Ordinance, the
                    Company may:

                    (i)    issue shares which are to be redeemed or are liable
                    to be redeemed at the option of the Company or holder;

                    (ii)   purchase its own shares (including any redeemable
                    shares); and

                    (iii)  make a payment in respect of the redemption or
                    purchase of its own shares otherwise than out of profits or
                    the proceeds of a fresh issue of its shares.

                    For purposes of Article 8(A), the Directors are authorised
                    to make statements or take such other steps as may be
                    required by the Ordinance in relation to the redemption or
                    purchase by the Company of its own shares out of capital.

          (B)       The redemption of shares may be effected upon such terms
                    and in such manner as the Company before or upon issue of
                    the shares shall by ordinary resolution determine.

                                     General

9.        Except as required by law, no person shall be recognised by the
          Company as holding any share upon any trust, and the Company shall not
          be bound by or be compelled in any way to recognise (even when having
          notice thereof) any equitable, contingent, future or partial interest
          in any share or any other rights in respect of any share except an
          absolute right to the entirety thereof in the registered holder.

10.       Subject always to the provisions of the Ordinance, the Directors may
          exercise the power of the Company to purchase or otherwise acquire its
          own shares and/or warrants upon such terms and subject to such
          conditions as the Directors may deem fit.

11.       Subject always to the provisions of the Ordinance, the Company may
          give financial assistance for the purpose of or in connection with a
          purchase made or to be made by any person of, or a subscription for,
          any shares in the capital of the Company or its holding company, or
          for the purpose of or in connection with reducing or discharging any
          liability so incurred. The Directors are authorised to make statements
          or take such other steps as may be required by the Ordinance in
          relation to the giving of financial assistance to acquire shares in
          the Company.

                         Register and Share Certificates

12.       The Directors shall cause to be kept a Register and there shall be
          entered therein the particulars required under the Ordinance. No
          person shall become a member until his name shall have been entered
          into the Register.

                                       23
<PAGE>

13.       (A)       Every person whose name is entered as a Member in the
                    Register shall, without payment, be entitled to a
                    certificate under seal specifying the share or shares held
                    by him and the amount paid up thereon, provided that in
                    respect of a share or shares held jointly by several persons
                    the Company shall not be bound to issue more than one
                    certificate, and delivery of a certificate for a share to
                    one of several joint holders shall be sufficient delivery to
                    all.

          (B)       If a share certificate is defaced, lost or destroyed, it
                    may be renewed on payment of such fee, if any, not exceeding
                    one dollar, and on such terms, if any, as to evidence and
                    indemnity, as the Directors think fit.

14.       If any share shall stand in the names of two or more persons, the
          person first named in the Register shall be deemed the sole holder
          thereof as regards service of notices and, subject to the provisions
          of the Articles, all or any other matters connected with the Company,
          except the transfer of such share.

                                      Lien

15.       The Company shall have a first and paramount lien on every share
          (not being a fully paid share) for all moneys (whether presently
          payable or not) called or payable at a fixed time in respect of that
          share, and the Company shall also have a first and paramount lien on
          all shares (other than fully paid shares) standing registered in the
          name of a single person for all monies presently payable by him or his
          estate to the Company and whether the same shall have been incurred
          before or after notice to the Company of any equitable or other
          interest of any person other than such Member and whether the period
          for the payment or discharge of the same shall have actually arrived
          or not and notwithstanding that the same are joint debts or
          liabilities of such Member or his estate and any other person, whether
          a Member or not. Notwithstanding the foregoing, the Directors may at
          any time declare any share to be wholly or in part exempt from the
          provisions of this Article. The Company's lien, if any, on a share
          shall extend to all dividends, bonuses and distributions payable in
          respect thereof.

16.       The Company may sell, in such manner as the Directors think fit,
          any shares on which the Company has a lien, but no sale shall be made
          unless some sum in respect of which the lien exists is presently
          payable, nor until the expiration of 14 days after a notice in
          writing, stating and demanding payment of such part of the amount in
          respect of which the lien exists as is presently payable, has been
          given to the registered holder for the time being of the share, or the
          person entitled thereto by reason of the death, mental disorder or
          bankruptcy of the registered holder.

17.       For giving effect to any such sale the Directors may authorise
          some person to transfer the shares sold to the purchaser thereof. The
          purchaser shall be registered as the holder of the shares comprised in
          any such transfer and he shall not be bound to see to the application
          of the purchase money, nor shall his title to the shares be affected
          by any irregularity or invalidity in the proceedings in reference to
          the sale.

18.       The net proceeds of the sale shall be received by the Company and
          after the payment of the costs of such sale shall be applied in
          payment of such part of the amount in respect of which the lien exists
          as is presently payable, and the residue shall (subject to a like lien

                                       24
<PAGE>

          for sums not presently payable as existed upon the shares prior to the
          sale) be paid to the person entitled to the shares at the date of the
          sale.

                                 Calls on Shares

19.       The Directors may from time to time, or at times determined in
          accordance with any agreement in writing between the Members, make
          such calls as they think fit upon the Members in respect of all or any
          part of the monies unpaid on the shares held by them respectively
          (whether on account of the nominal value of the shares and/or by way
          of premiums) and not by the conditions of allotment thereof made
          payable at fixed times and each Member shall (subject to receiving at
          least 14 days' notice specifying the time or times of payment) pay to
          the Company at the time or times so specified the amount called on his
          shares. A call shall be deemed to have been made when the resolution
          of the Directors authorising such call is passed and may be made
          payable by instalments. A call may be revoked or postponed as the
          Directors may determine. A person upon whom a call is made shall
          remain liable on such call notwithstanding any subsequent transfer of
          the shares in respect of which the call was made.

20.       The joint holders of a share shall be jointly and severally liable
          to pay all calls and instalments due in respect of such share or other
          monies due in respect thereof.

21.       The Directors may from time to time at their discretion extend the
          time fixed for any call and may extend such time as regards all or any
          of the Members whom, by reason of residence outside Hong Kong or other
          cause, the Directors may deem entitled to any such extension.

22.       If a sum called in respect of a share is not paid before or on the
          day appointed for payment thereof, the person from whom the sum is due
          shall pay interest upon the sum at the rate of 20 per cent per annum
          from the day appointed for the payment thereof to the time of the
          actual payment, but the Directors shall be at liberty to waive payment
          of that interest wholly or in part.

23.       No holder of a partly paid share shall be entitled to receive any
          dividend or bonus or to be present and vote (save as proxy for another
          Member who is entitled) at any general meeting, either personally or
          by proxy or authorised representative or be reckoned in a quorum or to
          exercise any other privilege as a holder of a share unless all calls
          and instalments due from him to the Company in respect of such partly
          paid share, whether alone or jointly with any other person, together
          with interest and expenses (if any) shall have been paid.

24.       Any sum (whether on account of the nominal value of the share or
          by way of premium) which by the terms of issue of a share becomes
          payable upon allotment or at any fixed date or on dates determined in
          accordance with any agreement in writing between the Members shall for
          all the purposes of the Articles be deemed to be a call duly made,
          notified and payable on the date on which by the terms of issue the
          same becomes payable. In case of non-payment all the relevant
          provisions of the Articles as to payment of interest, forfeiture or
          otherwise shall apply as if such sum had become payable by virtue of a
          call duly made and notified.

                                       25
<PAGE>

25.       The Directors may make arrangements on the issue of shares for
          differences in the amount of calls to be paid and in the times of
          payment between one holder and another.

26.       The Directors may, if they think fit, receive from any Member
          willing to advance the same all or any part of the monies uncalled and
          unpaid upon any shares held by him and upon all or any of the monies
          so advanced may (until the same would, but for such advance, become
          presently payable) pay interest at such rate (not exceeding, without
          the sanction of the Company in general meeting, 6 per cent per annum)
          as may be agreed upon between the Member paying the sum in advance and
          the Directors. The Directors may at any time repay the amount so
          advanced or any part thereof upon giving to such Member not less than
          one month's notice in writing of their intention to do so, unless
          before the expiration of such notice the amount proposed to be repaid
          shall have been called up on the shares in respect of which it was
          advanced in which event the same shall be applied in or towards
          satisfaction of the call under the applicable provisions of the
          Articles.

                              Forfeiture of Shares

27.       If a Member fails to pay in full any call or instalment of a call
          on the day appointed for the payment thereof, the Directors may at any
          time thereafter serve a notice on him requiring payment of so much of
          the call or instalment as is unpaid, together with any interest which
          may have accrued and which may accrue up to the date of payment and
          all other costs, charges and expenses incurred or suffered by the
          Company in connection with the failure to pay any call.

28.       The notice shall name a further day (not earlier than 14 days
          after the date of service of the notice) on or before which the
          payment required by the notice is to be made, and shall state that in
          the event of non-payment at or before the time appointed the shares in
          respect of which the call was made will be liable to be forfeited.

29.       If the requirements of any such notice as aforesaid are not
          complied with, any share in respect of which the notice has been given
          may at any time thereafter, before the payment required by the notice
          has been made, be forfeited by a resolution of the Directors to that
          effect. Such forfeiture shall include all dividends declared in
          respect of the forfeited shares but not paid before forfeiture. The
          Directors may accept a surrender of any share liable to be forfeited
          hereunder and, in such case, references in these Articles to
          forfeiture shall include surrender.

30.       Until cancelled in accordance with the requirements of the
          Ordinance, any share so forfeited shall be deemed to be the property
          of the Company and may be sold, reallotted or otherwise disposed of
          either to the person who was, before the forfeiture, the holder
          thereof or entitled thereto or to any other person on such terms and
          in such manner as the Directors think fit and at any time before a
          sale or disposition thereof the forfeiture may be cancelled on such
          terms as the Directors think fit.

31.       A person whose shares have been forfeited shall cease to be a
          Member in respect of the forfeited shares, but shall, notwithstanding,
          remain liable to pay to the Company all monies which, at the date of
          forfeiture, were presently payable by him to the Company in respect of
          the shares (together with interest thereon at the rate of 20 per cent
          per annum from the date of forfeiture if the Directors think fit to
          enforce payment of such interest and all other costs, charges and

                                       26
<PAGE>

          expenses incurred and suffered by the Company in connection with the
          failure to pay any call), but his liability shall cease if and when
          the Company shall receive payment in full of all such monies in
          respect of the shares. For the purposes of this Article, any sum which
          by the terms of issue of a share is payable thereon at a fixed time or
          at a time determined in accordance with any agreement in writing
          between the Members which time is subsequent to the date of
          forfeiture, whether on account of the nominal value of the share
          and/or by way of premium, shall, notwithstanding that such time has
          not yet arrived be deemed to be payable at the date of forfeiture and
          the same shall become due and payable immediately upon the forfeiture
          but interest thereon shall only be payable in respect of any period
          between the said fixed time and, if later, the date of actual payment.

32.       A statement in writing from a Director or the Secretary that a share
          in the Company has been duly forfeited or surrendered on a date stated
          in the statement, shall be conclusive evidence of the facts therein
          stated as against all persons claiming to be entitled to the share.
          The Company may receive the consideration, if any, given for the share
          on any sale or disposition thereof and may, subject to the
          restrictions contained in the Articles execute a transfer of the share
          in favour of the person to whom the share is sold or disposed of, and
          he shall thereupon be registered as the holder of the share, and shall
          not be bound to see to the application of the purchase money, if any,
          nor shall his title to the share be affected by any irregularity or
          invalidity in the proceedings in reference to the forfeiture, sale or
          disposal of the share.

33.       When any share shall have been forfeited, notice of the resolution
          shall be given to the Member in whose name it stood immediately prior
          to the forfeiture and an entry of the forfeiture, with the date
          thereof, shall forthwith be made in the Register.

34.       (A)       Notwithstanding any such forfeiture as aforesaid, the
                    Directors may at any time, before any shares so forfeited
                    shall have been sold, reallotted or otherwise disposed of,
                    anul the forfeiture thereof upon such terms (if any) as they
                    think fit.

          (B)       The forfeiture of a share shall not prejudice the right
                    of the Company to any call already made or instalment
                    payable thereon.

          (C)       The provisions of these Articles as to forfeiture shall
                    apply in the case of non-payment of any sum which, by the
                    terms of issue of a share, becomes payable at a fixed time
                    or at a time determined in accordance with any agreement in
                    writing between the Members, whether on account of the
                    nominal value of the share or by way of premium, as if the
                    same had been payable by virtue of a call duly made and
                    notified.

                               Transfer of Shares

35.       (A)       All transfers of shares shall be effected by transfer in
                    writing in any usual or common form or in any other form
                    acceptable to the Directors and may be under hand only.

          (B)       The instrument of transfer shall be signed by or on
                    behalf of both the transferor and the transferee.

                                       27
<PAGE>

          (C)       The transferor shall remain the holder of the shares
                    concerned until the name of the transferee is entered in the
                    Register in respect thereof.

36.       (A)       The Directors in their absolute discretion and without
                    assigning any reason therefor may decline to register any
                    transfer of any share whether or not it is a fully paid
                    share and shall refuse to register any transfer of shares if
                    registration thereof would cause the number of Members to
                    exceed the number permitted under these Articles. The
                    Directors shall not register a transfer to a person who is
                    known to them to be an infant, bankrupt or person of unsound
                    mind provided that the Directors shall not be bound to
                    enquire into the age or soundness of mind of any transferee
                    or whether or not he is a bankrupt. The Directors may also
                    decline to register any transfer unless (a) the instrument
                    of transfer is in respect of only one class of shares; (b)
                    in the case of a transfer to joint holders, the number of
                    joint holders to whom the shares are to be transferred does
                    not exceed three; and (c) the shares concerned are free of
                    any lien in favour of the Company.

          (B)       Save as provided in paragraph (I) of this Article and
                    subject to any agreement in writing between all of the
                    Members no transfer or disposal of any shares or any
                    interest in any shares shall be made by a Member except in
                    compliance with the following provisions of this Article and
                    no Member shall otherwise sell, mortgage, charge or
                    otherwise dispose of or encumber any shares or assign or
                    otherwise purport to deal with the beneficial interest
                    therein or any right in relation thereto separate from the
                    legal interest.

          (C)       A Member shall be entitled to transfer its shares to a
                    Third Party who has made a bona fide offer therefor provided
                    that before transferring its shares such Member (the
                    "Transferor") shall give a notice in writing (a "Transfer
                    Notice") to the other Member (the "Recipient") that it
                    desires to transfer the same. The Transfer Notice shall
                    specify:

                    (i)      the number of shares which the Transferor wishes to
                             transfer (which may be all or part only of the
                             shares then held by the Transferor)
                             (the "Relevant Shares");

                    (ii)     the name of the Third Party who has made the bona
                             fide offer for the Relevant Shares
                             (the "Prospective Purchaser");

                    (iii)    the price which the Prospective Purchaser has
                             offered for the Relevant Shares; and

                    (iv)     details of any other material terms of the offer
                             made by the Prospective Purchaser and any other
                             material terms or circumstances known to the
                             Transferor which affect or may affect the offer.

          (D)       The Recipient may within a period of one month after the
                    Transfer Notice is given require the Transferor to produce
                    to it such further evidence as it may reasonably require to
                    enable it to establish the bona fides of the offer by the
                    Prospective Purchaser.

                                       28
<PAGE>

          (E)       The Recipient shall be entitled within a period of three
                    months after the Transfer Notice is given, or, if later, the
                    provision to it of such further evidence, to serve a
                    purchase notice (a "Purchase Notice") on the Transferor
                    requiring it to sell the Relevant Shares to it at the same
                    price and on the same terms as those offered by the
                    Prospective Purchaser (as set out in the Transfer Notice).

          (F)       Subject to paragraph (H) of this Article, if the
                    Recipient serves a Purchase Notice within the said three
                    month period referred to in paragraph (E), the Transferor
                    shall be bound upon payment to transfer such of the Relevant
                    Shares to the Recipient as he has applied for. The purchase
                    shall be completed at a place and time to be appointed by
                    the Directors being not less than three days nor more than
                    ten days after the Purchase Notice is served and the
                    Directors shall be bound to register the transfer.

          (G)       If the Recipient has not served a Purchase Notice within
                    the period referred to in paragraph (E), the Transferor
                    shall be entitled to sell the Relevant Shares to the
                    Prospective Purchaser at the price and on the terms set out
                    in the Transfer Notice provided that if such sale is not
                    completed within six months after the Transfer Notice is
                    given the right to sell the Relevant Shares to the
                    Prospective Purchaser shall lapse. The Directors shall be
                    bound to register a transfer effected pursuant to this
                    paragraph (G) provided that the registration of such
                    transfer does not cause a breach of Article 3(b).

          (H)       If Purchase Notices shall have been served in respect of
                    part only of the Relevant Shares, the Transferor shall be
                    entitled to sell the remaining Relevant Shares to the
                    Prospective Purchaser in accordance with the provisions of
                    paragraph (G) of this Article or by notice in writing to the
                    Recipient may withdraw all the Relevant Shares from sale in
                    which event the Transfer Notice shall be deemed to have been
                    withdrawn and no transfers shall take place.

          (I)       The restrictions contained in paragraph (B) of this
                    Article shall not apply to any transfer:

                    (i)    by any Member of all of its shares to (i) a
                           wholly-owned subsidiary of the ultimate holding
                           company of the transferor Member; (ii) the ultimate
                           holding company of the transferor Member; or (iii) a
                           wholly-owned subsidiary of the transferor Member; or

                    (ii)   by the sole Member; or

                    (iii)  to which the consent in writing of all the Members
                           for the time being is given.

          (J)       For the purpose of ensuring that a transfer of shares is
                    a permitted transfer or that no circumstances have arisen
                    whereby a Transfer Notice is required to be given or to be
                    deemed to have been given hereunder the Directors may from
                    time to time require any Member or any person named as
                    transferee in any transfer lodged for registration to
                    furnish to the Company such reasonable information and
                    evidence as the Directors may think fit regarding any matter

                                       29
<PAGE>

                    which they may deem relevant to such purpose. Failing such
                    information or evidence being furnished to the reasonable
                    satisfaction of the Directors within a reasonable time after
                    request, the Directors shall be entitled to refuse to
                    register the transfer in question or (in case no transfer is
                    in question) to require by notice in writing that a Transfer
                    Notice be given in respect of the shares concerned. If such
                    information or evidence discloses that a Transfer Notice
                    ought to have been given in respect of any shares the
                    Directors may by notice in writing require that a Transfer
                    Notice be given in respect of the shares concerned.

37.       Every instrument of transfer shall be left at the Office for
          registration accompanied by the certificate of the shares to be
          transferred and such other evidence as the Directors may require to
          prove the title of the transferor or his right to transfer the shares.
          If the Directors refuse to register a transfer they shall within 2
          months after the date on which the transfer was lodged with the
          Company send to the transferor and transferee notice of the refusal.
          All instruments of transfer which are registered may be retained by
          the Company but any instrument of transfer which the Directors may
          decline to register shall (except in the case of fraud) be returned to
          the person depositing the same together with the share certificate
          within 2 months after the date on which the transfer was lodged with
          the Company.

38.       The Register may be closed during such time or times as the
          Directors may from time to time think fit (not exceeding a total of 30
          days in any year).

                           20. Untraced Shareholders
                               ---------------------

39.       The Company may sell any shares in the Company if:

          (i)       all cheques or warrants, being not less than 3 in total
                    number, or any sum payable in cash to the holder of such
                    shares in respect of them sent in the manner authorised by
                    these Articles have remained uncashed for a period of 12
                    years;

          (ii)      the Company has not at any time during the relevant
                    period received any indication of the existence of the
                    Member or of any person who is entitled to such shares; and

          (iii)     the Company has caused an advertisement to be inserted
                    in at least one leading English language and one leading
                    Chinese language daily Hong Kong newspaper giving notice of
                    its intention to sell such shares and a period of 3 months
                    has elapsed since the date of such advertisement.

          To give effect to any such sale the Directors may authorise any person
          to transfer the said shares and an instrument of transfer signed or
          otherwise executed by or on behalf of such person shall be as
          effective as if it has been executed by the registered holder or the
          person entitled by transmission to such shares, and the purchaser
          shall not be bound to see to the application of the purchase monies
          nor shall his title to the shares be affected by any irregularity or
          invalidity in the proceedings relating to the sale. The net proceeds
          of the sale shall belong to the Company and upon receipt by the
          Company of such net proceeds it shall become indebted to the former
          Member for an amount equal to such net proceeds. No trust shall be
          created in respect of such debt and no interest shall be payable in
          respect of it and the Company shall not be required to account for any

                                       30
<PAGE>
          monies earned from the net proceeds which may be employed in the
          business of the Company or as it thinks fit. Any sale under this
          Article shall be valid and effective notwithstanding that the Member
          holding the shares sold is dead, bankrupt or otherwise under any legal
          disability or incapacity.

                           21. Transmission of Shares
                               ----------------------

40.       In case of the death of a Member, the survivor or survivors where
          the deceased was a joint holder, and the legal personal
          representatives of the deceased where he was a sole holder, shall be
          the only persons recognised by the Company as having any title to his
          interest in the share provided that nothing herein contained shall
          release the estate of the deceased (whether a sole or joint holder)
          from any liability in respect of any share which had been jointly held
          by him with other persons.

41.       Any person to whom the right to any share has been transmitted by
          operation of law may, upon such evidence being produced as may from
          time to time properly be required by the Directors and subject as
          hereinafter provided, elect either to be registered himself as holder
          of the share or to have some person nominated by him registered as the
          transferee thereof, but the Directors shall, in either case, have the
          same right to decline or suspend registration as they would have had
          in the case of a transfer of the share by that Member before the event
          giving rise to the transmission. The merger of any two or more
          corporations under the laws of one or more foreign countries or states
          shall constitute a transmission by operation of law for the purposes
          of this Article.

42.       If the person so becoming entitled shall elect to be registered
          himself, whether in whole or in part, he shall deliver or send to the
          Company a notice in writing signed by him stating that he so elects.
          If he shall elect to have another person registered, he shall testify
          his election by executing to that person a transfer of the relevant
          shares. All the limitations, restrictions and provisions of the
          Articles (except paragraphs (B) - (I) (inclusive) of Article 36)
          relating to the right to transfer and the registration of transfers of
          shares shall be applicable to any such notice or transfer as aforesaid
          as if the transmission had not occurred and the notice or transfer
          were a transfer signed by the registered holder.

43.       Any person to whom the right to any share has been transmitted by
          operation of law shall be entitled to the same dividends and other
          advantages to which he would be entitled if he were the registered
          holder of the share, provided always that the Directors may at any
          time give notice requiring any such person to elect either to be
          registered himself or to transfer the share, and if the notice is not
          complied with within 90 days the Directors may thereafter withhold
          payment of all dividends, bonuses or other monies payable in respect
          of the share until the requirements of the notice have been complied
          with but, subject to the requirements of Article 67 being met, such
          person may vote at meetings of the Company.

44.       Any person to whom the right to any shares in the Company has been
          transmitted by operation of law shall, if the Directors refuse to
          register the transfer, be entitled to call on the Directors to furnish
          within 28 days a statement of the reasons for the refusal.

                                       31
<PAGE>

                              Alteration of Capital

45.       The Company may from time to time by ordinary resolution increase
          the share capital by such sum, to be divided into shares of such
          amount, as the resolution shall prescribe.

46.       Except so far as otherwise provided by the conditions of issue or
          by these Articles, any new shares issued as a consequence of an
          alteration of capital shall be subject to the same provisions with
          reference to the payments of calls and instalments, liens, transfer,
          transmission, forfeiture, cancellation, surrender, voting and
          otherwise as the shares in the capital of the Company existing at the
          date of creation of such new shares.

47.       The Company may by ordinary resolution:-

          (a)       consolidate and divide all or any of its share capital
                    into shares of a larger amount than its existing shares;

          (b)       sub-divide its existing shares, or any of them, into
                    shares of a smaller amount than is fixed by the Memorandum
                    of Association subject, nevertheless, to the provisions of
                    section 53(1)(d) of the Ordinance and so that the resolution
                    whereby any share is subdivided may determine that as
                    between the holders of the shares resulting from such
                    subdivision one or more of the shares may, as compared with
                    the others, have any such preferred, deferred or other
                    special rights or be subject to any such restrictions as the
                    Company has power to attach to unissued or new shares; and

          (c)       cancel any shares which, at the date of the passing of
                    the resolution, have not been taken or agreed to be taken by
                    any person.

          Where any difficulty arises in regard to any consolidation and
          division under paragraph (a) of Article 47, the Directors may settle
          the same as they think expedient and in particular may arrange for the
          sale of the shares representing fractions and the distribution of the
          net proceeds of sale in due proportion amongst the members who would
          have been entitled to the fractions, and for this purpose the
          Directors may authorise some person to transfer the shares
          representing fractions to the purchaser thereof, who shall not be
          bound to see to the application of the purchase money nor shall his
          title to the shares be affected by any irregularity or invalidity in
          the proceedings relating to the sale.

48.       Subject to Article 102, the Company may by special resolution
          reduce its share capital, any capital redemption reserve fund or any
          share premium account in any manner prescribed by law.

                                General Meetings

49.       The Company shall in each year hold a general meeting as its
          annual general meeting in addition to any other meetings in that year,
          and shall specify the meeting as such in the notices calling it, and
          not more than 15 months shall elapse between the date of one annual
          general meeting of the Company and that of the next. Provided that so
          long as the Company holds its first annual general meeting within 18
          months of its incorporation, it need not hold it in the year of its
          incorporation or in the following year. The annual general meeting
          shall be held at such time and place as the Directors shall appoint.

                                       32
<PAGE>

          All general meetings other than annual general meetings shall be
          called extraordinary general meetings.

50.       The Directors may, whenever they think fit, convene an
          extraordinary general meeting, and extraordinary general meetings
          shall also be convened on such requisition, or in default may be
          convened by such requisitionists, as provided by section 113 of the
          Ordinance. If at any time there are not within Hong Kong sufficient
          Directors capable of acting to form a quorum, any Director or any 2
          Members who are entitled to attend and vote at a general meeting may
          convene an extraordinary general meeting in the same manner as nearly
          as possible as that in which a meeting may be convened by the
          Directors.

                           Notice of General Meetings

51.       An annual general meeting and a meeting called for the passing of
          a special resolution shall be called by 21 days' notice in writing at
          the least, and a meeting of the Company other than an annual general
          meeting or a meeting for the passing of a special resolution shall be
          called by 14 days' notice in writing at the least or such shorter
          notice as consented to by the Members in writing. The notice shall be
          exclusive of the day on which it is served or deemed to be served and
          of the day for which it is given, and shall specify the place, the day
          and the hour of meeting and, in case of special business, the general
          nature of that business. The notice convening an annual general
          meeting shall specify the meeting as such and the notice convening a
          meeting to pass a special resolution shall specify the intention to
          propose the relevant resolution as a special resolution.

52.       All business shall be deemed special that is transacted at an
          extraordinary general meeting and at an annual general meeting, with
          the exception of sanctioning a dividend, the reading, consideration
          and adoption of accounts, balance sheets, and the reports of the
          Directors and the auditors, the election of Directors in the place of
          those retiring at the meeting, the appointment of the auditors (where
          special notice of the resolution for such appointment is not required
          by the Ordinance) and the fixing, or the determination of the method
          of fixing, of the remuneration of the auditors.

53.       Subject to the foregoing Article, the notice of every general
          meeting shall be given in the manner hereinafter mentioned or in such
          other manner, if any, as may be prescribed by the Company in general
          meeting to such persons as are under the Articles entitled to receive
          such notices from the Company provided that subject to the provisions
          of the Ordinance a meeting of the Company shall, notwithstanding that
          it is called by shorter notice than that specified in this Article, be
          deemed to have been duly called if it is so agreed:

          (a)       in the case of a meeting called as the annual general
                    meeting, by all the Members entitled to attend and vote
                    thereat; and

          (b)       in the case of any other meeting, by a majority in
                    number of the Members having a right to attend and vote at
                    the meeting, being a majority together holding not less than
                    95 per cent in nominal value of the shares giving that
                    right.

                                       33
<PAGE>

54.       The accidental omission to give notice of a meeting to, or the
          non-receipt of notice of a meeting by, any person entitled to receive
          notice shall not invalidate the proceedings at any meeting.

55.       In cases where instruments of proxy are or are to be sent out with
          notices, the accidental omission to send such instruments of proxy to
          or the non-receipt of such instruments of proxy by any person entitled
          to receive notice shall not invalidate any resolution passed or any
          proceedings at any such meeting.

                         Proceedings at General Meetings

56.       For all purposes the quorum for a general meeting shall be at
          least one duly authorised representative of BRC and at least one duly
          authorised representative of Geron. If the Company has only one
          Member, the sole Member present in person or by proxy shall constitute
          a quorum. No business shall be transacted at any general meeting
          unless the requisite quorum shall be present at the commencement of
          the meeting provided that the absence of a quorum shall not preclude
          the appointment, choice or election of a chairman which shall not be
          treated as part of the business of the meeting.

57.       If within 15 minutes from the time appointed for the meeting a
          quorum is not present, the meeting shall stand adjourned to the same
          day in the next week and at such time and place as shall be decided by
          the Directors and if at the adjourned meeting a quorum is not present
          within 15 minutes from the time appointed for the meeting, a quorum at
          such adjourned meeting shall consist of the duly authorised
          representative(s) of any Member or Members present at such adjourned
          meeting and the business for which the meeting was called may be
          transacted.

58.       Each Director shall be entitled to attend and speak at any general
          meeting of the Company and at any separate meeting of the holders of
          any class of shares in the Company.

59.       The Chairman shall preside as chairman at every general meeting of
          the Company. If at any meeting the Chairman is not present within 15
          minutes after the time appointed for holding the meeting, the Member
          or Members present shall choose one of their number to be chairman.

60.       The chairman may, with the consent of any meeting at which a
          quorum is present and shall if so directed by the meeting, adjourn the
          meeting from time to time (or sine die) and from place to place, but
          no business shall be transacted at any adjourned meeting other than
          the business left unfinished at the meeting from which the adjournment
          took place. Where a meeting is adjourned sine die, the time and place
          for the adjourned meeting shall be fixed by the Directors. When a
          meeting is adjourned for 21 days or more, not less than 7 days' notice
          of the adjourned meeting shall be given in like manner as in the case
          of the original meeting. Save as aforesaid it shall not be necessary
          to give any notice of an adjournment or of the business to be
          transacted at an adjourned meeting.

61.       At any general meeting a resolution put to the vote of the meeting
          shall be decided on a show of hands, unless a poll is (before or on
          the declaration of the result of the show of hands) demanded by any
          Member entitled to vote present in person or by proxy or
          representative and, unless a poll is so demanded, a declaration by the

                                       34
<PAGE>

          chairman that a resolution has, on a show of hands, been carried, or
          carried unanimously, or by a particular majority, or lost, and an
          entry to that effect in the book of the proceedings of the Company,
          shall be conclusive evidence of the fact, without proof of the number
          or proportion of the votes recorded in favour of or against that
          resolution.

62.       If an amendment shall be proposed to any resolution under
          consideration but shall in good faith be ruled out of order by the
          Chairman of the meeting the proceedings on the substantive resolution
          shall not be invalidated by any error in such ruling. In the case of a
          resolution duly proposed as a special resolution no amendment thereto
          (other than a mere clerical amendment to correct a patent error) may
          in any event be considered or voted upon.

63.       All questions submitted to a meeting shall be decided by a
          majority of votes except where a greater majority is required by the
          Articles or by the Ordinance or by any agreement in writing between
          the Members. In the event of an equality of votes the Chairman shall
          not have a casting vote.

64.       A poll demanded on the election of a chairman or on a question of
          adjournment shall be taken forthwith at the meeting and without
          adjournment. A poll demanded on any other question shall be taken at
          such time (being not later than 30 days after the date of the demand)
          and place as the chairman of the meeting directs and the result of the
          poll shall be deemed to be the resolution of the meeting at which the
          poll was demanded. The demand for a poll may be withdrawn with the
          consent of the chairman at any time before the close of the meeting or
          the taking of the poll, whichever is the earlier.

65.       (A)       Subject to the provisions of the Ordinance, a resolution
                    in writing signed by all Members for the time being entitled
                    to receive notice of and attend and vote at general meetings
                    (or being corporations, by a Director thereof or by their
                    duly authorised representative) shall be treated as a
                    resolution duly passed at a general meeting of the Company
                    duly convened and held, and, where relevant, as a special
                    resolution so passed. Any such resolution may consist of
                    several documents in the like form, each signed by one or
                    more persons.

          (B)       Subject to the provisions of the Ordinance, all general
                    meetings may be held by means of video conference or by
                    other lawful electronic means and in such manner as may be
                    agreed by the Company in general meeting. All the provisions
                    in these Articles as to general meetings shall, mutatis
                    mutandis, be applicable.

          (C)       (1)    Where the Company has only one Member and that
                           Member takes any decision that may be taken by the
                           Company in general meeting and that has effect as if
                           agreed by the Company in general meeting, he shall
                           (unless that decision is taken by way of a written
                           resolution agreed in accordance with section 116B of
                           the Ordinance) provide the Company with a written
                           record of that decision within 7 days after the
                           decision is made.

                    (2)    Where the sole Member provides the Company with a
                           written record of a decision in accordance with
                           Article 65(C)(1), that record shall be sufficient
                           evidence of the decision having been taken by the
                           sole Member.

                                       35
<PAGE>

                    (3)    The Company shall cause a record of all written
                           records provided to the Company in accordance with
                           this Article to be entered into a book kept for that
                           purpose in the same way as minutes of proceedings of
                           a general meeting of the Company.

                                Votes of Members

66.       Subject to the rights or restrictions for the time being attached
          to any class or classes of shares, on a show of hands every Member
          present in person or by proxy or representative shall have one vote,
          and on a poll every Member present in person or by proxy or
          representative shall have one vote for each share of which he is the
          holder and which is paid up as to all amounts due on such share. A
          person entitled to cast more than one vote upon a poll need not use
          all his votes or cast all the votes he uses in the same way.

67.       Any person entitled under Article 40 to be registered as a Member
          may vote at any general meeting in respect thereof in the same manner
          as if he were the registered holder of such shares provided that at
          least 48 hours before the time of the holding of the meeting or
          adjourned meeting (as the case may be) at which he proposes to vote,
          he shall satisfy the Directors of his right to be registered as the
          holder of such shares or the Directors shall have previously admitted
          his right to vote at such meeting in respect thereof.

68.       In the case of joint holders the vote of the senior who tenders a
          vote, whether in person or by proxy or by representative, shall be
          accepted to the exclusion of the votes of the other joint holders; and
          for this purpose seniority shall be determined by the order in which
          the names stand in the Register. Several executors or administrators
          of a deceased Member in whose name any share stands shall for the
          purposes of this Article be deemed joint holders thereof.

69.       If (a) any objection shall be raised to the qualification of any
          voter or (b) any votes have been counted which ought not to have been
          counted or which might have been rejected or (c) any votes are not
          counted which ought to have been counted, the objection or error shall
          not vitiate the decision of the meeting or adjourned meeting on any
          resolution unless the same is raised or pointed out at the meeting or,
          as the case may be, the adjourned meeting at which the vote objected
          to is given or tendered or at which the error occurs. Any objection or
          error shall be referred to the chairman of the meeting and shall only
          vitiate the decision of the meeting on any resolution if the chairman
          decides that the same may have affected the decision of the meeting.
          The decision of the chairman on such matters shall be final and
          conclusive.

70.       Any Member entitled to attend and vote at a meeting of the Company
          shall be entitled to appoint another person as his proxy to attend and
          vote instead of him. On a poll votes may be given either personally or
          by proxy. A proxy need not be a Member of the Company. A Member may
          appoint more than one proxy to attend on the same occasion.

71.       The instrument appointing a proxy shall be in writing under the
          hand of the appointor or of his attorney duly authorised in writing,
          or, if the appointor is a corporation, either under seal, or under the

                                       36
<PAGE>

          hand of an officer or attorney duly authorised. The signature on such
          instrument need not be witnessed.

72.       The instrument appointing a proxy and the power of attorney or
          other authority, if any, under which it is signed or a notarially
          certified copy of that power or authority shall be deposited:

          (a)       not less than 48 hours before the meeting at the Office
                    or at the place or one of such places (if any) as maybe
                    specified for the purpose in or by way of note to the notice
                    convening the meeting or in any notice of any adjourned
                    meeting or, in either case, in any document sent therewith
                    or in the instrument of proxy issued by the Company; or

          (b)       immediately before the commencement of the meeting or
                    adjourned meeting or poll to which the proxy relates (as the
                    case may be) at which the person named in the instrument
                    proposes to vote at the place at which the meeting or
                    adjourned meeting is convened and in default the instrument
                    of proxy shall not be treated as valid. Delivery of an
                    instrument appointing a proxy shall not preclude a Member
                    from attending and voting in person at the meeting or poll
                    concerned.

73.       No instrument appointing a proxy shall be valid after the
          expiration of 12 months from the date of its execution unless it
          states that it is valid, for all meetings whatsoever until revoked
          with the exception that any instrument may be used at any adjournment
          of the meeting for which it was originally intended.

74.       The instrument appointing a proxy to vote at a general meeting
          shall be deemed to confer authority to demand or join in demanding a
          poll and to vote on any amendment of a resolution put to the meeting
          for which it is given as the proxy thinks fit.

75.       A vote given in accordance with the terms of an instrument of
          proxy shall be valid notwithstanding the previous death of the
          principal or the revocation of the proxy or transfer of the share in
          respect of which the proxy is given provided that no intimation in
          writing of the death, revocation or transfer has been received at the
          Office or such other place as was specified for the deposit of proxies
          or by the chairman of the meeting before the vote is given.

76.       An instrument appointing a proxy may be in any usual or common
          form or in any other form which the Directors may approve and may be
          expressed to be valid for a particular meeting or generally until
          revoked.

77.       Any corporation which is a Member may, by resolution of its
          directors or other governing body, authorise such person as it thinks
          fit to act as its representative at any meeting or of any class of
          Members, and the person so authorised shall be entitled to exercise
          the same powers on behalf of the corporation which he represents as
          that corporation could exercise if it were an individual Member.

                                    Directors

78.       Unless otherwise determined by the Company in general meeting, the
          number of Directors shall not be less than the minimum required by the
          Ordinance nor more than six.

                                       37
<PAGE>

          The first Directors shall be determined in writing by the subscriber
          to the Memorandum of Association. A Director shall not be required to
          hold any shares in the Company by way of qualification.

79.       (A)       A Member entitled to appoint a person as a Director may
                    at any time and from time to time by notice in writing
                    signed by such Member delivered to the Office appoint and/or
                    remove or substitute such person as a Director. Any such
                    notice may be signed on behalf of a corporate Member by a
                    director thereof or by its duly authorised representative.
                    Any such notice may consist of several documents in the like
                    form, each signed by one or more persons. At such times as a
                    Member owns (i) at least 10% but less than 20% of the total
                    issued shares, such Member shall be entitled to appoint and
                    at any time remove or substitute one Director; (ii) at least
                    20% but not more than 40% of the total issued shares, such
                    Member shall be entitled to appoint and at any time remove
                    or substitute two Directors; (iii) more than 40% but less
                    than 60% of the total issued shares, such Member shall be
                    entitled to appoint and at any time remove or substitute
                    three Directors; (iv) at least 60% but not more than 80% of
                    the total issued shares, such Member shall be entitled to
                    appoint and at any time remove or substitute four Directors;
                    (v) more than 80% but not more than 90% of the total issued
                    shares, such Member shall be entitled to appoint and at any
                    time remove or substitute five Directors; and (vi) more than
                    90% of the total issued shares, such Member shall be
                    entitled to appoint and at any time remove or substitute six
                    Directors.

          (B)       Subject to the provisions of paragraph (A) above, the
                    Company in general meeting may by ordinary resolution
                    appoint any person to be a Director for such term as may be
                    resolved or remove any existing Director. Special notice is
                    required of a resolution to remove a Director or to appoint
                    somebody in place of a Director so removed at the meeting at
                    which he is removed in accordance with the Ordinance.

          (C)       Subject to the provisions of paragraph (A) above, the
                    Directors may appoint any person to be a Director as an
                    additional Director or to fill a casual vacancy provided
                    that any person so appointed shall hold office only until
                    the conclusion of the next following annual general meeting
                    and shall then be eligible for re-election.

          (D)       Any appointment of a Director pursuant to this Article
                    shall be ineffective if such appointment would have the
                    result that the number of Directors exceeds the number fixed
                    in accordance with Article 78.

80.       The Directors shall be entitled to receive by way of remuneration
          for their services such sum as shall from time to time be determined
          by all the Members, such sum (unless otherwise unanimously directed by
          the Members) to be divided amongst the Directors in such proportions
          and in such manner as the Directors may agree or, failing agreement,
          equally, except that if any Director holding office for less than the
          whole of the relevant period in respect of which the remuneration is
          paid shall only rank in such division in proportion to the time during
          such period for which he has held office.

                                       38
<PAGE>

81.       Any Director who holds any executive office or who serves on any
          committee, or who otherwise performs services which in the opinion of
          the Directors are outside the scope of the ordinary duties of a
          Director, may be paid such extra remuneration by way of salary,
          commission or otherwise as the Directors may determine.

82.       The Directors may repay to any Director all such reasonable
          expenses as he may incur in attending and returning from meetings of
          the Directors or of any committee of the Directors or general meetings
          or otherwise in or about the business of the Company.

83.       The office of a Director shall be vacated if the Director:

          (a)       becomes bankrupt or has a receiving order made against
                    him or suspends payment or makes any arrangement or
                    composition with his creditors generally;

          (b)       becomes a lunatic or of unsound mind or a patient for
                    any purpose of any statute relating to mental health and the
                    Directors resolve that his office be vacated;

          (c)       (not being a Director appointed to an office in the
                    management or business of the Company under Article 88(A)
                    whose contract precludes resignation) resigns his office by
                    notice in writing to the Company;

          (d)       is convicted of an indictable offence;

          (e)       has his office vacated or becomes prohibited from being
                    a Director under any of the provisions of the Ordinance or
                    any order made under the Ordinance;

          (f)       absents himself from the meetings of the Directors
                    during a continuous period of 6 months, without special
                    leave for absence from the Directors and his alternate
                    Director (if any) shall not during such period have attended
                    in his stead and the Directors pass a resolution that his
                    office be vacated by reason of such absence; or

          (g)       shall be removed from office by a Member or the Members
                    in accordance with Article 79(A) or (B).

84.       The Company shall keep a register in which there shall be entered
          the particulars required by the Ordinance in respect of the Directors,
          the Secretary and reserve Director, and shall from time to time notify
          the Registrar of Companies of any change that takes place in such
          particulars as required by the Ordinance.

                         Powers and Duties of Directors

85.       The business of the Company shall be managed by the Directors who,
          without limiting the generality of the foregoing, may pay all expenses
          incurred in setting up and registering the Company and may exercise
          all such powers of the Company as are not required, by the Ordinance
          or by the Articles, to be exercised by the Company in general meeting
          subject, nevertheless, to such regulations as may be prescribed by the
          Company in general meeting being not inconsistent with any of the
          Articles or the provisions of the Ordinance; but no regulation made by
          the Company in general meeting shall invalidate any prior act of the
          Directors which would have been valid if that regulation had not been
          made.

                                       39
<PAGE>

          The general powers given by this Article shall not be limited or
          restricted by any special authority or power given to the Directors by
          any other Article. A meeting of the Directors at which a quorum is
          present may exercise all powers exercisable by the Directors.

86.       The Directors may establish and maintain or procure the
          establishment and maintenance of any contributory or non-contributory
          pension or superannuation funds or death or disability benefits for
          the benefit of, or give or procure the giving of donations,
          gratuities, pensions, allowances or emoluments to, any persons who are
          or were at any time in the employment or service of the Company or of
          any company which is a subsidiary of the Company or is allied or
          associated with the Company or with any such subsidiary company or who
          are or were at any time Directors or officers of the Company or of any
          such other company as aforesaid and holding or who have held any
          salaried employment or office in the Company or such other company and
          the wives, widows, families and dependants of any such persons. The
          Directors may also establish and subsidise or subscribe to any
          institutions, associations, clubs or funds calculated to be for the
          benefit of or to advance the interests and well-being of the Company
          or of any such other company as aforesaid or of any such persons as
          aforesaid and may make payments for or towards the insurance of any
          such persons as aforesaid and subscribe or guarantee money for
          charitable or benevolent objects or for any exhibition or for any
          public, general or useful object. The Directors may do all or any of
          the matters aforesaid, either alone or in conjunction with any such
          other company as aforesaid. Any Director holding any such employment
          or office shall be entitled to participate in and retain for his own
          benefit any such donation, gratuity, pension, allowance or emolument.

87.       The Directors may from time to time and at any time by power of
          attorney or otherwise appoint any company, firm or person or any
          fluctuating body of persons, whether nominated directly by the
          Directors, to be the attorney or attorneys of the Company for such
          purposes and with such powers, authorities and discretions (not
          exceeding those vested in or exercisable by the Directors under the
          Articles) and for such period and subject to such conditions as they
          may think fit, and any such power of attorney may contain such
          provisions for the protection and convenience of persons dealing with
          any such attorney as the Directors may think fit, and may also
          authorise any such attorney to sub-delegate all or any of the powers,
          authorities and discretions vested in him.

88.       (A)       The Directors may from time to time appoint one or more
                    of their body to the office of managing director or joint
                    managing director on such terms and for such period as they
                    may determine and, without prejudice to the terms of any
                    contract entered into in any particular case, may at any
                    time revoke any such appointment. Such appointment shall
                    automatically determine if the holder ceases to be a
                    Director but without prejudice to any claim for damages for
                    breach of any contract of service between him and the
                    Company.

          (B)       The Directors may entrust to and confer upon a managing
                    director or joint managing director any of the powers
                    exercisable by them as Directors upon such terms and
                    conditions and with such restrictions as they think fit, and
                    either collaterally with or to the exclusion of their own
                    powers and may from time to time revoke, withdraw, alter or
                    vary all or any of such powers.

                                       40
<PAGE>

                    The managing director or joint managing directors shall
                    receive such remuneration (either by way of salary,
                    commission, participation in profits, or otherwise
                    howsoever) as the Directors may determine.

89.       The Directors shall cause minutes to be duly entered in books
          provided for the purpose:

          (a)       of all appointments of officers made by the Directors;

          (b)       of the names of the Directors present at each meeting of
                    the Directors and of any committee of Directors;

          (c)       of all declarations made or notices given by any
                    Director (either generally or specially) of his interest in
                    any contract or proposed contract or of his holding of any
                    office or property whereby any conflict of duty or interest
                    may arise; and

          (d)       of all resolutions, written records and proceedings of
                    general meetings of the Company and of meetings of the
                    Directors and any committee of Directors;

          and any such minutes of any general meeting of the Company or any
          meeting of the Directors or of any committee of Directors shall be
          signed by the chairman of such meeting or by the chairman of the next
          succeeding meeting and if so signed shall be receivable as prima facie
          evidence of the matters stated therein.

                                Borrowing Powers
                                ----------------

90.       The Directors may exercise all powers of the Company to borrow
          money, to give guarantees and to mortgage or charge the undertaking,
          property and uncalled capital of the Company and to issue debentures
          and other securities, whether outright or as collateral security for
          any debt, liability or obligation of the Company or of any third
          party.

                              Directors' Interests
                              --------------------

91.       (A)       A Director may be or become a director or other officer
                    of, or otherwise interested in, any company promoted by the
                    Company or in which the Company may be interested as vendor,
                    shareholder or otherwise and, subject to the Ordinance, no
                    such Director shall be accountable to the Company for any
                    remuneration or benefits received by him as a director or
                    officer of, or from his interest in, such other company
                    unless the Company otherwise directs. The Directors may
                    exercise the voting powers conferred by the shares in any
                    other company held or owned by the Company or exercisable by
                    them as directors of such other company in such manner in
                    all respects as they think fit (including the exercise
                    thereof in favour of any resolution appointing themselves or
                    any of them as directors or other officers of such company)
                    and any Director may vote in favour of the exercise of such
                    voting rights in the manner aforesaid notwithstanding that
                    he may be, or about to be, appointed a director or other
                    officer of such a company and that as such he is or may
                    become interested in the exercise of such voting rights in
                    the manner aforesaid.

                                       41
<PAGE>

          (B)       A Director may hold other office or place of profit
                    under the Company (other than the office of auditor) in
                    conjunction with his office of Director for such period and
                    on such terms as to remuneration (whether by way of salary,
                    commission, participation in profits or otherwise) as the
                    Directors may determine and no Director or intending
                    Director shall be disqualified by his office from
                    contracting with the Company either with regard to his
                    tenure of any such office or place of profit or as vendor,
                    purchaser or otherwise nor shall any such contract or any
                    contract or arrangement entered into by or on behalf of the
                    Company in which any Director is in any way interested
                    (whether or not such contract or arrangement is with any
                    person, company or partnership of or in which any Director
                    shall be a member) be liable to be avoided on that account
                    nor shall any Director so contracting or being so interested
                    be liable to account to the Company for any profit realised
                    by any such contract or arrangement by reason of such
                    Director holding that office or of the fiduciary
                    relationship thereby established provided that such Director
                    shall forthwith disclose the nature of his interest in any
                    contract or arrangement in which he is interested as
                    required by and subject to the provisions of the Ordinance
                    and the Articles. A Director may vote in respect of any
                    resolution concerning his own appointment as the holder of
                    any office or place of profit with the Company (including
                    the arrangement or variation of the terms thereof or the
                    termination thereof).

          (C)       A Director who is in any way, whether directly or
                    indirectly, materially interested in a contract, arrangement
                    or transaction or proposed contract, arrangement or
                    transaction with the Company and which is of significance in
                    relation to the Company's business shall declare the nature
                    of his interest at the earliest meeting of the Directors at
                    which it is practicable for him to do so, in accordance with
                    the Ordinance. A general notice to the Directors by a
                    Director stating that, by reason of facts specified in the
                    notice, he is to be regarded as interested in contracts,
                    arrangements or transactions or proposed contracts,
                    arrangements or transactions of any description which may
                    subsequently be made or contemplated by the Company shall be
                    deemed for the purposes of this Article to be a sufficient
                    declaration of his interest, so far as attributable to those
                    facts, in relation to any contract, arrangement or
                    transaction or proposed contract, arrangement or transaction
                    of that description which may subsequently be made or
                    contemplated by the Company, but no such general notice
                    shall have effect in relation to any contract, arrangement
                    or transaction or proposed contract, arrangement or
                    transaction unless it is given before the date on which the
                    question of entering into the same is first taken into
                    consideration on behalf of the Company.

          (D)       Provided such disclosure is made as aforesaid, a
                    Director shall be entitled to vote in respect of any
                    contract or arrangement in which he is interested and to be
                    counted in the quorum present at the meeting at which such
                    contract or arrangement is considered.

          (E)       If any question shall arise at any meeting as to the
                    materiality of a Director's interest or the significance of
                    a contract, arrangement or transaction or proposed contract,
                    arrangement or transaction or as to the entitlement of any
                    Director to vote or form part of a quorum and such question
                    is not resolved by his voluntarily agreeing to abstain from
                    voting, such question shall be referred to the chairman of

                                       42
<PAGE>

                    the meeting and his ruling in relation to any Director
                    (other than himself) shall be final and conclusive except in
                    a case where the nature or extent of the interests of the
                    Director concerned as known to such Director have not been
                    fairly disclosed.

          (F)       The Company may by Ordinary Resolution suspend or relax
                    the provisions of this Article to any extent or ratify any
                    transaction not duly authorised by reason of a contravention
                    of this Article.

          (G)       Any Director may act by himself or his firm in a
                    professional capacity for the Company, and he or his firm
                    shall be entitled to remuneration for professional services
                    as if he were not a Director provided that nothing herein
                    contained shall authorise a Director or his firm to act as
                    auditor to the Company.

          (H)       (1)  Subject to the provisions of Article 91(H)(2), in
                         case the Company has only one Member and the Company
                         enters into a contract with that Member and that Member
                         is also a Director of the Company, unless the contract
                         is in writing, the terms of the contract shall be set
                         out in a written memorandum within 7 days after the
                         contract is made and the memorandum shall be kept at
                         the same place where the books containing the minutes
                         of the meetings of the Directors are kept.

                    (2)  Article 91(H)(1) does not apply to contracts entered
                         into in the ordinary course of the Company's business.

                            Proceedings of Directors

92.       The Directors may meet together for the dispatch of business,
          adjourn, and otherwise regulate their meetings as they think fit. At
          any time any Director may, and the Secretary on requisition of any
          Director shall, summon a meeting of Directors. Any Director may waive
          notice of any meeting and any such waiver may be given prospectively
          or retrospectively. Subject to Article 93(A) and Article 102,
          questions arising at any meeting shall be decided by resolution passed
          by a simple majority of votes and in the event, of an equality of
          votes the Chairman shall not have a second or casting vote.

93.       (A)       A resolution in writing signed by all the Directors for
                    the time being shall be as valid and effectual as if it had
                    been passed at a meeting of the Directors duly convened and
                    held. Any such resolution may consist of several documents
                    in like form each signed by one or more of the Directors.

          (B)       (1)  In case the Company has only one Director and that
                         Director takes any decision that may be taken in a
                         meeting of the Directors and that has effect as if
                         agreed in a meeting of the Directors, he shall (unless
                         that decision is taken by way of a resolution in
                         writing) provide the Company with a written record of
                         that decision within 7 days after the decision is made
                         in accordance with the Ordinance provided that failure
                         by the Director to provide the written record shall not
                         affect the validity of any decision concerned.

                                       43
<PAGE>

                    (2)  Where the Director provides the Company with a written
                         record of a decision, that record shall be sufficient
                         evidence of the decision having been taken by the
                         Director.

                    (3)  The Company shall cause a record of all written records
                         provided to the Company to be entered into a book kept
                         for that purpose in the same way as minutes of
                         proceedings of a meeting of the Directors.

94.       Meetings of the Directors may be held by means of conference
          telephone, video conference or by such lawful electronic means and in
          such manner as may be agreed by the Directors. All the provisions in
          these Articles as to Directors' meetings shall, mutatis mutandis, be
          applicable.

95.       No meeting of the Directors may proceed to business nor transact
          any business unless a quorum is present at the start and throughout
          such meeting. The quorum of a Directors' meeting shall be one Director
          appointed by BRC and two Directors appointed by Geron, present in
          person or represented by an alternate. In the event that a quorum of
          the Directors is not so present at the start of and throughout a duly
          convened meeting of Directors, that meeting shall be adjourned to the
          same time and place on the same day in the next week or as otherwise
          agreed by a simple majority of the Directors and a quorum at such
          adjourned meeting shall consist of any three Directors present in
          person or represented by an alternate. Any Director who ceases to be a
          Director at a Directors' meeting may continue to be present and to act
          as a Director and be counted in the quorum until the termination of
          the Directors' meeting if no other Director objects and if otherwise a
          quorum of Directors would not be present.

96.       The continuing Directors may act notwithstanding any vacancy in
          their body, but, if and so long as their number is reduced below the
          number fixed by or pursuant to the Articles as the necessary quorum of
          Directors, the continuing Directors may act for the purpose of
          increasing the number of Directors to that number, or of summoning a
          general meeting of the Company, but for no other purpose.

97.       The Chairman shall at all times be a Director appointed by the
          Member holding more than 50% of the total issued shares or if no
          Member holds more than 50% of the total issued Shares, then determined
          by ordinary resolution of the Members. In the case of an equality of
          votes at any meeting of the Board or of the Members, the Chairman
          shall not be entitled to a second or casting vote. If at any meeting
          the Chairman is not present within 10 minutes after the time appointed
          for holding the same, the Directors present may choose one of their
          number to be chairman of the meeting.

98.       The Directors may delegate any of their powers to committees
          consisting of such member or members of their body as they think fit;
          any committee so formed shall in the exercise of the powers so
          delegated conform to any regulations that may be imposed on it by the
          Directors.

99.       A committee may elect a chairman of its meetings; if no such
          chairman is elected, or if at any meeting the chairman is not present
          within 10 minutes after the time appointed for holding the same, the
          members present may choose one of their number to be chairman of the
          meeting.

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<PAGE>

100.      (A)       All acts done by any such committee in conformity with
                    such regulations and in fulfilment of the purposes for which
                    it is appointed, but not otherwise, shall have the like
                    force and effect as if done by the Directors and the
                    Directors shall have power, with the consent of the Company
                    in general meeting, to remunerate the members of any special
                    committee and charge such remuneration to the current
                    expenses of the Company.

          (B)       The meetings and proceedings of any such committee
                    consisting of two or more members shall be governed by the
                    provisions herein contained for regulating the meetings and
                    proceedings of the Directors including Articles 92 to 94 so
                    far as the same are applicable thereto and are not replaced
                    by any regulations imposed by the Directors pursuant to
                    Article 98.

101.      All acts bona fide done by any meeting of the Directors or of a
          committee of Directors or by any person acting as a Director shall,
          notwithstanding that it be afterwards discovered that there was some
          defect in the appointment of any such Director or person acting as
          aforesaid or that they or any of them were or was disqualified, be as
          valid as if every such person had been duly appointed and was
          qualified to be a Director or member of such committee.

      Prior Approval Required for Certain Actions of Directors and Members

102.      (A)       Subject to any agreement in writing between the Members,
                    the Company and/or the Directors shall not, without the
                    prior written approval of each of the Members:

                    (1)  repurchase any of its own shares or effect any
                         reduction of share capital or enter into any scheme of
                         arrangement in respect of its share capital;

                    (2)  permit the registration of any person as a shareholder
                         whether by way of subscription or transfer if such
                         subscription or transfer is restricted by or not in
                         compliance with any agreement in writing between the
                         Members;

                    (3)  vary any of the rights attaching to any Shares;

                    (4)  create or, where appropriate, issue any fixed or
                         floating charge, debenture, lien (other than a lien
                         arising by operation of law or in the ordinary course
                         of business) or other mortgage, encumbrance or security
                         over the whole or any part of the undertaking,
                         business, property or assets (tangible or intangible)
                         of the Company, except for the purpose of securing the
                         indebtedness of the Company for sums borrowed in the
                         ordinary and proper course of the business of the
                         Company;

                    (5)  give any guarantee, indemnity or security to secure the
                         liabilities or obligations of any person (other than
                         the Company);

                    (6)  make any material change in the nature of the business
                         of the Company as approved by the Members;

                                       45
<PAGE>

                    (7)  enter into, vary or terminate any of the agreements
                         between the Company and any of the Members or any of
                         the Associated Companies of any Member relating to the
                         licensing of intellectual property rights or the
                         provision to the Company of services (other than in
                         accordance with its terms); or

                    (8)  establish, cancel, or vary the terms of any share
                         option or share incentive scheme.

          (B)       The approval of a Member under Article 102(A) shall not
                    be required if that Member ceases to be the legal and
                    beneficial owner of at least 15% of the total issued share
                    capital from time to time.

          (C)       No provision of these Articles shall restrict any Member
                    from procuring (or require such Member to obtain the consent
                    of each of the other Members for) the winding up of the
                    Company in any manner permitted by law, provided that, for
                    the avoidance of doubt, the foregoing shall not restrict,
                    limit or reduce in any manner any of the obligations of any
                    Member that apply upon and following the winding up of the
                    Company under applicable law or any agreement between the
                    Members.

                               Alternate Directors

103.      (A)       A Director may at any time by notice in writing
                    delivered to the Office or at a meeting of the Directors
                    appoint any person (including another Director) to be an
                    alternate Director in his place. Any person so appointed
                    under this Article shall (except when absent from Hong Kong)
                    be entitled to receive notices of and to attend and vote at
                    meetings of the Directors and be counted towards a quorum
                    and generally at such meetings to perform all the functions
                    of his appointor as a Director and shall automatically
                    vacate his office on the expiration of the term for or the
                    happening of the event until which he is by the terms of his
                    appointment to hold office or which, were he a Director,
                    would cause him to vacate such office or if the appointor in
                    writing revokes the appointment or himself ceases for any
                    reason to hold office as a Director. An appointment of an
                    alternate Director under this Article shall not prejudice
                    the right of the appointor to receive notices of and to
                    attend and vote at meetings of the Directors and the powers
                    of the alternate Director shall automatically be suspended
                    during such time as the Director appointing him is himself
                    present in person at a meeting of the Directors.

          (B)       An alternate Director shall (subject to his giving to
                    the Company an address at which notices may be served on
                    him) be entitled (in addition to his appointor) to receive
                    and (in lieu of his appointor) to waive notices of meetings
                    of the Directors and of any committee of the Directors of
                    which his appointor is a member and shall be entitled to
                    attend and vote as a Director and be counted in the quorum
                    at any such meeting at which his appointor is not personally
                    present and generally at such meeting to perform all
                    functions of his appointor as a Director and for the
                    purposes of the proceedings at such meeting the provisions
                    of these Articles shall apply as if he (instead of his
                    appointor) were a Director.

                                       46
<PAGE>

                    If he shall be himself a Director and shall attend any such
                    meeting as an alternate for more than one Director, he shall
                    be counted in the quorum separately in respect of himself
                    (if a Director) and in respect of each Director for whom he
                    is an alternate (but so that nothing in this provision shall
                    enable a meeting to be constituted when only one person is
                    physically present) and his voting rights shall be
                    cumulative and he need not use all his votes or cast all the
                    votes he uses in the same way. His signature to any
                    resolution in writing of the Directors or of any such
                    committee and his attestation of the affixing of the Seal
                    shall be as effective as the signature and attestation of
                    his appointor. An alternate Director shall not (save as
                    aforesaid) have power to act as a Director nor shall he be
                    deemed to be a Director for the purposes of these Articles.

          (C)       An alternate Director shall be entitled to contract and
                    be interested in and benefit from contracts or arrangements
                    or transactions and to be repaid expenses and to be
                    indemnified to the same extent mutatis mutandis as if he
                    were a Director but he shall not be entitled to receive from
                    the Company in respect of his appointment as alternate
                    Director any remuneration except only such part (if any) of
                    the remuneration otherwise payable to his appointor as such
                    appointor may by notice in writing to the Company from time
                    to time direct.

          (D)       Section 153B(1) of the Ordinance shall not apply to an
                    alternate Director appointed pursuant to these Articles.

                                Reserve Director
                                ----------------

104.      (A)       In case the Company has only one Member and that Member
                    is the sole Director of the Company, subject to the
                    Ordinance, the Company may in general meeting,
                    notwithstanding anything in these Articles, nominate a
                    person (other than a body corporate) who has attained the
                    age of 18 years as a reserve Director of the Company to act
                    in the place of the sole Director in the event of his death.

          (B)       The nomination of a person as a reserve Director of the
                    Company ceases to be valid if:

                    (a)  before the death of the Director in respect of whom he
                         was nominated,

                         (i)  he resigns as reserve Director; or

                        (ii)  the Company in general meeting revokes the
                              nomination; or

                    (b)  the Director in respect of whom he was nominated ceases
                         to be the sole Member and sole Director of the Company
                         for any reason other than the death of that Director.

          (C)       Subject to compliance with the conditions set out in
                    Article 104(D), in the event of the death of the Director in
                    respect of whom the reserve Director is nominated, the
                    reserve Director shall be deemed to be a Director of the
                    Company for all purposes until such time as:

                    (a)  a person is appointed as a Director of the Company in
                         accordance with these Articles; or

                                       47
<PAGE>

                    (b)  he resigns from his office of Director,

                    whichever is the earlier.

          (D)       The conditions referred to in Article 104(C) are:

                    (a)  the nomination of the reserve Director has not ceased
                         to be valid under Article 104(B); and

                    (b)  the reserve Director is not prohibited by law from
                         acting as a Director of the Company.

          (E)       The provisions in these Articles relating to the
                    resignation of Directors apply to a reserve Director
                    appointed under this Article.

                                    Secretary
                                    ---------

105.      (A)       The Secretary shall be appointed by the Directors for
                    such term, at such remuneration and upon such conditions as
                    they may think fit and any Secretary so appointed may be
                    removed by them. Anything by the Ordinance or the Articles
                    required or authorised to be done by or to the Secretary,
                    may be done by or to any assistant or deputy secretary or if
                    there is no assistant or deputy secretary capable of acting,
                    by or to any officer of the Company authorised generally or
                    specially in that behalf by the Directors. In the event that
                    the Secretary appointed is a corporation, it may act and
                    sign by the hand of any one or more of its Directors or
                    officers duly authorised.

          (B)       The Secretary shall, if an individual, ordinarily reside
                    in Hong Kong and, if a body corporate, have its registered
                    office or a place of business in Hong Kong. In case the
                    Company has only one Director, the sole Director shall not
                    also be the Secretary of the Company and the Company shall
                    not have as its Secretary a body corporate the sole Director
                    of which is the sole Director of the Company.

          (C)       A provision of the Ordinance or the Articles requiring
                    or authorising a thing to be done by or to a Director and
                    the Secretary shall not be satisfied by its being done by or
                    to the same person acting both as Director and as, or in
                    place of, the Secretary.

                                     Cheques

106.      All cheques, promissory notes, drafts, bills of exchange, and
          other negotiable or transferable instruments, and all receipts for
          moneys paid to the Company, shall be signed, drawn, accepted, endorsed
          or otherwise executed, as the case may be, in such manner as the
          Directors shall from time to time by resolution determine.

                                    The Seal

107.      The Directors shall provide for safe custody of the Seal which
          shall only be used with the authority of the Directors or of a
          committee authorised by the Directors in that behalf; and every

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<PAGE>

          instrument to which the Seal shall be affixed shall be signed by one
          Director or the Secretary or by some other person appointed by the
          Directors for the purpose.

108.      The Company may exercise the powers conferred by the Ordinance
          with regard to having an official seal for use outside Hong Kong and
          such powers shall be vested in the Directors.

                             Dividends and Reserves

109.      The Company in general meeting may declare dividends, but no
          dividend shall exceed the amount recommended by the Directors.

110.      The Directors may from time to time pay to the Members such
          interim dividends as appear to the Directors to be justified by the
          profits of the Company.

111.      No dividend shall be paid otherwise than out of profits available
          for the purpose and in accordance with the Ordinance.

112.      The Company may upon the recommendation of the Directors by
          ordinary resolution direct payment of a dividend in whole or in part
          by the distribution of specific assets (and in particular of paid up
          shares or debentures of any other company) and the Directors shall
          give effect to such resolution, and where any difficulty arises in
          regard to such distribution, the Directors may settle the same as they
          think expedient and fix the value for distribution of such specific
          assets or any part thereof and may determine that cash payments shall
          be made to any Member upon the footing of the value so fixed in order
          to adjust the rights of all parties and may vest any such specific
          assets in trustees as may seem expedient to the Directors.

113.      Subject to the rights of persons, if any, entitled to shares with
          special rights as to dividends, all dividends shall be declared and
          paid according to the amounts paid or credited as paid on the shares
          in respect whereof the dividend is paid, but no amount paid on a share
          in advance of calls shall be treated for the purposes of this Article
          as paid on the share. All dividends shall be apportioned and paid
          proportionately to the amounts paid or credited as paid on the shares
          during any portion or portions of the period in respect of which the
          dividend is paid; but if any share is issued on terms providing that
          it shall rank for dividend as from a particular date such share shall
          rank for dividend accordingly. The Directors may deduct from any
          dividend payable to any Member all sums of money (if any) presently
          payable by him to the Company on account of calls or otherwise in
          relation to the shares of the Company.

114.      The Directors may, before recommending any dividend, set aside
          out of the profits of the Company such sums as they think proper as a
          reserve or reserves which shall, at the discretion of the Directors,
          be applicable for meeting contingencies, or for equalizing dividends,
          or for any other purpose to which the profits of the Company may be
          properly applied, and pending such application may, at the like
          discretion, either be employed in the business of the Company or be
          invested in such investments (other than shares of the Company) as the
          Directors may from time to time think fit and the Directors may also
          without placing the same to reserve carry forward any profits.

                                       49
<PAGE>

115.      If several persons are registered as joint holders of any share,
          any one of them may give an effectual receipt for any dividend or
          other moneys payable on or in respect of the share.

116.      Any dividend may be paid by cheque or warrant sent through the
          post to the registered address of the Member or person entitled
          thereto or in the case of joint holders to any one of such joint
          holders at his registered address or to such person at such address as
          the Member or person entitled or such joint holders (as the case may
          be) may direct. Every such cheque or warrant shall be made payable to
          the order of the person to whom it is sent or to the order of such
          other person as the Member or person entitled or such joint holders
          (as the case may be) may direct.

117.      No dividend shall bear interest against the Company.

118.      The Directors may, with the sanction of a resolution of the
          Company, capitalise any sum standing to the credit of any of the
          Company's reserve accounts (including share premium account and
          capital redemption reserve fund) or any sum standing to the credit of
          any profit and loss account or otherwise available for distribution by
          appropriating such sum to the holders of shares in the proportions in
          which such sum would have been divisible amongst them had the same
          been a distribution of profits by way of dividend and applying such
          sum on their behalf in or towards paying up any amount for the time
          being unpaid on any shares held by them respectively or in paying up
          in full unissued shares (or, subject to any special rights previously
          conferred on any shares or class of shares for the time being issued,
          unissued shares of any other class not being redeemable shares) for
          allotment and distribution credited as fully paid up to and amongst
          them in the proportion aforesaid, or partly in the one way and partly
          in the other. Notwithstanding the foregoing, the share premium account
          and a capital redemption reserve fund may, for the purposes of this
          Article, only be applied in the paying up of unissued shares to be
          allotted to Members as fully paid bonus shares. The Directors may do
          all acts and things considered necessary or expedient to give effect
          to any such capitalisation, with full power to the Directors to make
          such provisions as they think fit for the case of shares becoming
          distributable in fractions (including provisions whereby the benefit
          of fractional entitlements accrue to the Company rather than to the
          Members concerned). The Directors may authorise any person to enter on
          behalf of all the Members interested into an agreement with the
          Company providing for any such capitalisation and matters incidental
          thereto and any agreement made under such authority shall be effective
          and binding on all concerned.

119.      The payment by the Directors of any unclaimed dividend or other
          moneys payable on or in respect of a share into a separate account
          shall not constitute the Company a trustee in respect thereof and any
          dividend unclaimed after a period of 12 years from the date of
          declaration of such dividend shall be forfeited and shall revert to
          the Company.

                                  Record Dates

120.      Notwithstanding any other provision of these Articles the Company
          or the Directors may fix any date as the record date for any dividend,
          distribution, allotment or issue and such record date may be on or at
          any time before or after any date on which such dividend,
          distribution, allotment or issue is declared, paid or made.

                                       50
<PAGE>

                                    Accounts

121.      The Directors shall cause proper books of account to be kept with
          respect to:

          (a)       all sums of money received and expended by the Company
                    and the matters in respect of which the receipt and
                    expenditure takes place;

          (b)       all sales and purchases of goods by the Company; and

          (c)       the assets and liabilities of the Company.

          Proper books shall not be deemed to be kept if there are not kept such
          books of account as are necessary to give a true and fair view of the
          state of the Company's affairs and to explain its transactions.

122.      The books of account shall be kept at the Office or, subject to
          the Ordinance, at such other place or places as the Directors think
          fit, and shall always be open to the inspection of any Director.

123.      The Directors shall from time to time determine whether and to
          what extent and at what times and places and under what conditions or
          regulations the accounts and books of the Company or any of them shall
          be open to the inspection of Members not being Directors, and no
          Member (not being a Director) shall have any right of inspecting any
          account or book or document of the Company except as conferred by
          statute or authorised by the Directors or by the Company in general
          meeting.

124.      The Directors shall from time to time, in accordance with
          sections 122, 124 and 129D of the Ordinance, cause to be prepared and
          to be laid before the Company in general meeting such profit and loss
          accounts, balance sheets, group accounts (if any) and reports as are
          referred to in those sections.

125.      Subject to section 129G of the Ordinance, a copy of every balance
          sheet (including every document required by law to be annexed thereto)
          which is to be laid before the Company in general meeting, together
          with a copy of the Directors' report and a copy of the auditors'
          report, shall not less than 21 days before the date of the meeting be
          sent to every Member, and every holder of debentures of the Company
          and to all persons other than Members or holders of debentures of the
          Company, being persons entitled to receive notices of general meetings
          of the Company provided that this Article shall not require a copy of
          those documents to be sent to any person of whose address the Company
          is not aware or to more than one of the joint holders of any shares or
          debentures.

                                Branch Registers

126.      The Company may exercise the powers conferred by the Ordinance
          and may cause to be kept in any place outside Hong Kong a branch
          register of Members. The Board of Directors may, subject to the
          Ordinance, make or vary from time to time such provisions as it thinks
          fit respecting the keeping of any such branch register and the
          transfer of shares to, on or from any such branch register and shall
          comply with the requirements of any local law.

                                       51
<PAGE>

                                      Audit

127.      Auditors shall be appointed and their duties regulated in
          accordance with the Ordinance.

                                     Notices

128.      Any notice or other communication (except the appointment of a
          Secretary) between the Company, any Director or Member may be given
          personally or effected in writing or by any other means in the form of
          an electronic record at the recipient's postal or electronic address.
          A Member who (having no registered address in Hong Kong) has not
          supplied to the Company an address, cable, telex, or electronic
          address for the service of notices shall not be entitled to receive
          notices from the Company.

129.      Where a notice is sent:

          (a)       by post, service of the notice shall be deemed to be
                    effected by properly addressing, prepaying, and posting a
                    letter containing the notice, and to have been effected in
                    the case of a notice of a meeting sent to a Member at his
                    registered address in Hong Kong at the expiration of 48
                    hours after the letter containing the same is posted, and in
                    any other case at the time at which the letter would be
                    delivered in the ordinary course of post, provided always
                    that notices despatched to addresses outside Hong Kong shall
                    be sent by air mail; or

          (b)       by telex when despatched with confirmed answerback (in
                    the case of any notice made by telex); or

          (c)       by telegraph or cable, 24 hours after delivery to the
                    telegraph or cable company; or

          (d)       by facsimile or electronic means, on transmission
                    provided that the transmission records reveal that the
                    facsimile or electronic means has no error or break.

130.      A notice may be given by the Company to the joint holders of a
          share by giving the notice to the joint holder named first in the
          Register in respect of the share.

131.      A notice may be given by the Company to the persons entitled to a
          share in consequence of the death or bankruptcy of a Member by sending
          it to them, or by the title of representatives of the deceased, or
          trustee of the bankrupt, or by any like description, by the means set
          out in Articles 128 and 129, supplied for the purpose by the persons
          claiming to be so entitled, or by giving the notice in any manner in
          which the same might have been given if the death or bankruptcy had
          not occurred.

132.      Any person who, by operation of law, transfer or other means
          whatsoever, becomes entitled to any share shall be bound by every
          notice in respect of such share which, prior to his name and address
          being entered in the Register, shall have been duly given to the
          person from whom he derived his title to such share.

                                       52
<PAGE>

                            Destruction of Documents

133. The Company may destroy:

          (a)  any share certificate which has been cancelled at any time after
               the expiry of one year from the date of such cancellation;

          (b)  any dividend mandate or any variation or cancellation thereof or
               any notification of change of name or address at any time after
               the expiry of 2 years from the date of such mandate, variation,
               cancellation or notification was recorded by the Company;

          (c)  any instrument of transfer of shares which has been registered at
               any time after the expiry of six years from the date of
               registration; and

          (d)  any other document on the basis of which any entry in the
               Register is made at any time after the expiry of 6 years from the
               date an entry in the Register was first made in respect of it;
               and it shall conclusively be presumed in favour of the Company
               that every share certificate so destroyed was a valid certificate
               duly and properly cancelled and that every instrument of transfer
               so destroyed was a valid and effective instrument duly and
               properly registered and that every other document destroyed
               hereunder was a valid and effective document in accordance with
               the recorded particulars thereof in the books or records of the
               Company, provided always that:-

               (i)   the foregoing provisions of this Article shall apply only
                     to the destruction of a document in good faith and without
                     express notice to the Company that the preservation of such
                     document was relevant to a claim;

               (ii)  nothing contained in this Article shall be construed as
                     imposing upon the Company any liability in respect of the
                     destruction of any such document earlier than as aforesaid
                     or in any case where the conditions of proviso (a) above
                     are not fulfilled; and

               (iii) references in this Article to the destruction of any
                     document include references to its disposal in any manner.

                                   Winding Up

134. If the Company is wound up and the assets available for distribution
     amongst the Members as such are insufficient to repay the whole of the
     paid-up capital, such assets shall be distributed so that as nearly as may
     be the losses shall be borne by the Members in proportion to the capital
     paid up or which ought to have been paid up at the commencement of the
     winding up on the shares held by them respectively. If in a winding up the
     assets available for distribution among the Members are more than
     sufficient to repay the whole of the capital paid up at the commencement of
     the winding up, the excess shall be distributed amongst the Members in
     proportion to the nominal capital at the commencement of the winding up
     paid up by them respectively. This Article shall not add to or detract from
     the rights of the holders of shares issued upon special terms and
     conditions.

                                       53
<PAGE>

135. No fee or commission shall be paid by the Company to any Director or
     liquidator upon any sale or realisation of the Company's undertaking or
     assets or any part thereof except with the sanction of a general meeting
     convened by notice specifying the fee or commission proposed to be paid.

136. If the Company shall be wound up (whether voluntarily or otherwise) the
     liquidator may, with the sanction of a special resolution of the Company
     and any other sanction required by the Ordinance, divide amongst the
     Members in specie or kind the whole or any part of the assets of the
     Company (whether they shall consist of property of the same kind or not)
     and may, for such purpose, set such value as he deems fair upon any
     property to be divided as aforesaid and may determine how such division
     shall be carried out as between the Members or different classes of
     Members. The liquidator may, with the like sanction, vest the whole or any
     part of such assets in trustees upon such trusts for the benefit of the
     contributories as the liquidator, with the like sanction, shall think fit,
     but so that no Member shall be compelled to accept any shares or other
     securities whereon there is any liability.

                                    Indemnity

137. (A)  Subject to the provisions of and so far as may be permitted by the
          Ordinance, the Company may indemnify any officer of the Company
          against all costs, charges, losses, expenses and liabilities which he
          may sustain or incur in or about the execution and discharge of his
          duties or in relation thereto including any liability incurred by him:

          (a)  in defending any proceedings, whether civil or criminal, in which
               judgment is given in his favour or in which he is acquitted; or

          (b)  in connection with any application under section 358 of the
               Ordinance in which relief is granted to him by the court.

     (B)  The Company may purchase and maintain for any officer of the Company:

          (a)  insurance against any liability to the Company, a related company
               or any other party in respect of any negligence, default, breach
               of duty or breach of trust (save for fraud) of which he may be
               guilty in relation to the Company or a related company; and

          (b)  insurance against any liability incurred by him in defending any
               proceedings, whether civil or criminal, taken against him for any
               negligence, default, breach of duty or breach of trust (including
               fraud) of which he may be guilty in relation to the Company or a
               related company.

     (C)  Subject to section 165 of the Ordinance, if any Director and/or other
          person shall become personally liable for the payment of any sum
          primarily due from the Company, the Directors may execute or cause to
          be executed any mortgage, charge, or security over or affecting the
          whole or any part of the assets of the Company by way of indemnity to
          secure the Director and/or person so becoming liable as aforesaid from
          any loss in respect of such liability.

                                       54
<PAGE>

                                   Schedule 4
                                   ----------
                         Written Resolution of Directors
                         -------------------------------

                             TA THERAPEUTICS LIMITED
                             -----------------------

RESOLUTIONS IN WRITING OF ALL THE DIRECTORS OF THE COMPANY PURSUANT TO THE
ARTICLES OF ASSOCIATION OF THE COMPANY

--------------------------------------------------------------------------------

1.   Capital Structure
     -----------------

     Reference was made to the written resolution of all the members of the
     Company passed on 15th June 2007 relating to changes in the capital
     structure of the Company and the adoption of new Articles of Association of
     the Company ("Written Resolution of Members").

     Noted that immediately following the changes, the authorized share capital
     of the Company was US$* divided into * unclassified ordinary shares, all of
     US$1.00 each, and the issued share capital of the Company was US$* divided
     into * unclassified ordinary shares of US$1.00 each, of which:

     (a)  Biotechnology Research Corporation Limited was the holder of *
          unclassified ordinary shares of US$1.00 each of which:

          (i)  * ordinary shares numbered 1 to * were fully paid up; and

          (ii) 1 ordinary share numbered * (the "BRC Partly Paid Share") was
               paid up as to the nominal amount of US$1.00 and remained unpaid
               as to the premium payable on such share in the sum of US$*;

     (b)  Geron Corporation was the holder of * ordinary shares of US$1.00 each
          numbered * to * all of which were fully paid up.

2.   Register of Members
     -------------------

     RESOLVED that the changes in the capital structure of the Company specified
     in the Written Resolution of Members and the resulting re-designation of
     the shares registered in the names of each of the members and the amounts
     paid up and to be paid up on the Shares respectively held by each of the
     members be recorded in the register of members with immediate effect.

3.   Issue of Certificates
     ---------------------

     RESOLVED that upon delivery up by a member of the shares certificates in
     its name in respect of the shares held by it as previously designated as
     class A Shares or class B shares (as the case may be) or an indemnity under
     hand in respect thereof, the Company Secretary be and is authorised and
     directed to issue to such member the following replacement certificates,
     such certificates to be sealed under the common seal of the Company and
     signed by any one director of the Company:

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       55
<PAGE>

Certificate No.           Name of Shareholder                No. of Shares
---------------           -------------------                -------------
     10                   Biotechnology Research             * fully paid
                          Corporation Limited                ordinary shares

     11                   Biotechnology Research             * fully paid
                          Corporation Limited                ordinary shares

     12                   Biotechnology Research             1 partly paid
                          Corporation Limited                ordinary share
                                                             (paid up as
                                                             to US$1)

     13                   Geron Corporation                  * fully paid
                                                             ordinary shares

Dated as of : 15th June 2007

/s/ Chu Ching-wu                                /s/ David L. Greenwood
-------------------------------                 --------------------------
Chu Ching-wu                                    David L. Greenwood

/s/ William Yiu                                 /s/ Thomas B. Okarma
-------------------------------                 -----------------------
Yiu Yan Pui, William                            Thomas B. Okarma

/s/ Lester Huang                                /s/ David J. Earp
-------------------------------                 ---------------------
Lester Garson Huang                             David J. Earp

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       56
<PAGE>

                                   Schedule 5
                                   ----------
                    Second Written Resolution of Shareholders
                    -----------------------------------------

                             TA THERAPEUTICS LIMITED
                             -----------------------

RESOLUTION IN WRITING OF ALL THE SHAREHOLDERS OF THE COMPANY PURSUANT TO SECTION
116B OF THE COMPANIES ORDINANCE

--------------------------------------------------------------------------------

1. NOTED that:

         (a)      resolutions of members had previously been passed to
                  re-classify and re-designate all the existing shares in the
                  capital of the Company into unclassified ordinary shares of
                  US$1.00 each and to adopt new articles of association of the
                  Company; and

         (b)      a resolution of the directors of the Company had previously
                  been passed to approve amendments to the description of the
                  shares registered in the names of the members of the Company
                  in the register of members of the Company as unclassified
                  ordinary shares of US$1.00;

         (c)      pursuant to the resolutions of the directors of the Company
                  the amendments referred to in paragraph (b) above had been
                  made in the register of members and accordingly members
                  previously registered as the holders of class A shares of
                  US$1.00 each or class B shares of US$1.00 each were now
                  registered as the holders of unclassified ordinary shares of
                  US$1.00 each.

2. RESOLVED that the following resolution be passed as a Special Resolution:

         Special Resolution - Reduction of Capital
         -----------------------------------------

         "That the capital of the Company be reduced by reducing the liability
         in respect of the premium payable on the one partly paid share now
         registered in the name of Biotechnology Research Corporation Limited
         from US$* to US$*."

Dated as of                   2007.
            -----------------

------------------------------------            --------------------------------
For and on behalf of                            For and on behalf of
Biotechnology Research Corporation Limited      Geron Corporation

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       57
<PAGE>

                                   Schedule 6
                         Form of Resignation of Director

To:      The Directors
TA Therapeutics Limited
14th Floor, Hutchison House, 10 Chater Road, Central Hong Kong

Dear Sirs

I hereby resign as a director of TA Therapeutics Limited (the "Company") with
effect from the close of business on the date of this letter and hereby confirm
that I have no claim outstanding against the Company, whether for compensation
or otherwise.

Dated: 15th June 2007

SIGNED SEALED AND DELIVERED          )
by Chu Ching-wu                      )     /s/ Chu Ching-wu
in the presence of:  Tony Eastham    )

Witness signature:         /s/ Tony Eastham

Witness name and
Address:          8 UK Tau Village
                  Pau Tam Road
                  Sai Kung, N.T.

                                       58
<PAGE>

                                   Schedule 7
                                   ----------
                     Second Written Resolution of Directors
                     --------------------------------------

                             TA THERAPEUTICS LIMITED
                             -----------------------

RESOLUTIONS IN WRITING OF ALL THE DIRECTORS OF THE COMPANY PURSUANT TO THE
ARTICLES OF ASSOCIATION OF THE COMPANY

--------------------------------------------------------------------------------

1.       Share Capital
         -------------

         Noted that pursuant to written resolutions of all the members and all
         the directors, the register of members had been amended to record that
         Biotechnology Research Corporation Limited ("BRC") was the holder of *
         ordinary shares of US$1.00 each of which (i) * shares were fully paid
         up; and (ii) 1 share (the "BRC Partly Paid Share") was paid up as to
         the nominal amount of US$1.00 and remained unpaid as to the premium
         payable thereon.

2.       Transfer of Shares
         ------------------

         NOTED that the Company had received duly executed bought and sold notes
         and instruments of transfer in the form attached to this resolution in
         respect of the transfer of * fully paid up ordinary shares of US$1.00
         each by BRC to Geron Corporation ("Geron") (the "Sale Shares").

         RESOLVED that:

         (a)      subject to the bought and sold notes and instruments of
                  transfer being duly stamped, the transfer of the Sale Shares
                  be and is approved and Geron be entered in the register of
                  members of the Company as the transferee of the Sale Shares;
                  and

         (b)      share certificate no. 10 in the name of Biotechnology Research
                  Corporation Limited be cancelled and a new share certificate
                  no. 14 be issued to Geron in respect of the Sale Shares upon
                  completion of the transfer, such certificate to be sealed
                  under the common seal of the Company and signed by any one
                  director of the Company.

3.       Agreements
         ----------

         There are annexed to these Resolutions the following documents:

         (a)      an Amended BRC Services Agreement to be made between BRC and
                  the Company by which BRC agrees to provide certain services to
                  the Company on such terms and conditions specified therein,
                  such agreement superceding the existing services agreement
                  between BRC and the Company; and

         (b)      an Amended and Restated Joint Venture Agreement to be made
                  between BRC, Geron and the Company providing for the manner in
                  which the Company is to be regulated;

-------------
*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       59
<PAGE>

         (c)      a Side Letter from the Company to BRC confirming that the
                  Company has not made a call in respect of the premium of US$*
                  on its partly paid share (formerly designated as a B Share).

         RESOLVED that the above agreements and letter be approved and that any
         director be authorized to sign the above agreements and letter and if
         necessary to affix the common seal of the Company thereto.

4.       Resignation and Appointment of Director
         ---------------------------------------

         NOTED that Mr. Chu Ching-wu had submitted his resignation with effect
         from the close of business on the date of this resolution.

         After the above changes, the full slate of the Directors of the Company
would be as follows:

        Name                          Representing
        ----                          ------------

        Lester Garston Huang          Biotechnology Research Corporation Limited
        Yan Pui Yiu, William          Biotechnology Research Corporation Limited
        Thomas Bernard Okarma         Geron Corporation
        David L. Greenwood            Geron Corporation
        David John Earp               Geron Corporation

Dated as of : 15th June 2007

  /s/ Chu Ching-wu                      /s/ David L. Greenwood
----------------------------------     ----------------------------------
Chu Ching-wu                          David L. Greenwood

  /s/ William Yiu                      /s/ Thomas B. Okarma
-------------------------------       ----------------------------------
Yiu Yan Pui, William                  Thomas B. Okarma

  /s/ Lester Huang                     /s/ David J. Earp
--------------------------------      ----------------------------------
Lester Garson Huang                   David J. Earp

-------------

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                       60
<PAGE>

                                   Schedule 8
                                   ----------
                  Amended and Restated Joint Venture Agreement
                  --------------------------------------------

See Exhibit 10.2.

                                       61
<PAGE>

                                   Schedule 9
                                   ----------
                         Amended BRC Services Agreement
                         ------------------------------

This Services Agreement (the "Agreement"), effective 15th June, 2007, is between
Biotechnology Research Corporation Limited, a Hong Kong corporation having a
place of business at The Hong Kong University of Science and Technology, Clear
Water Bay, Kowloon, Hong Kong ("BRC"), TA Therapeutics Limited, a Hong Kong
private limited company whose registered office is at 14th Floor, Hutchison
House, 10 Chater Road, Central, Hong Kong ("TAT") and Geron Corporation, a
company incorporated under the laws of the state of Delaware whose registered
office is at 230 Constitution Drive, Menlo Park, California 94025, United States
of America ("Geron").

RECITALS

WHEREAS, BRC and Geron have formed TAT to develop telomerase activation for
human therapeutic applications, pursuant to a Joint Venture Agreement dated 1
March, 2005 (the "Original Joint Venture Agreement") and BRC and TAT entered
into a Services Agreement dated 21 March 2005 ("Effective Date") for the
performance of certain services by BRC for TAT ("Original BRC Services
Agreement");

WHEREAS, BRC, Geron and TAT have entered into an Amended and Restated Joint
Venture Agreement dated 15th June, 2007, amending, restating and superceding the
Original Joint Venture Agreement (the "JV Agreement");

WHEREAS, under the JV Agreement BRC agrees to enter into this Agreement to
perform certain services for TAT and this Agreement supercedes the Original BRC
Services Agreement.

NOW, THEREFORE, the parties agree as follows:

                                    AGREEMENT

1.       Definitions and Effect of this Agreement.

1.1.     Definitions. Capitalized terms not defined in this Agreement shall have
         the meanings set forth in the JV Agreement. In addition, in this
         Agreement:

         "Relevant Person" means any person engaged at any time in the provision
         of Services, whether so engaged directly by BRC or indirectly by any
         other person, and includes without limitation (i) BRC, HKUST and RDC,
         (ii) any person who has Control of, is under the Control of or is under
         common Control with BRC, HKUST and/or RDC and (iii) each of the
         directors, officers, employees, consultants, third party contractors
         and agents from time to time of any such person or persons referred to
         in (i) or (ii) above;

         "RDC" means HKUST R and D Corporation Limited, a private limited
          company incorporated in Hong Kong;

                                       62
<PAGE>

         "Past Services" means any Services (as defined in the Original BRC
         Services Agreement) that have already been performed by BRC at the date
         of this Agreement; and

         "person" includes any individual, any form of body corporate,
         unincorporated association, firm, partnership, joint venture,
         consortium, association, organization or trust (in each case whether or
         not having a separate legal personality).

         1.2.  Effect of this Agreement. This Agreement supercedes the Original
         BRC Services Agreement, which shall be deemed to have terminated with
         effect from the date of this Agreement, except that:

                  (a) the termination of the Original BRC Services Agreement
         shall not affect the accrued rights and obligations of the parties to
         that agreement;

                  (b) to the extent that any Addendum (as defined in the
         Original BRC Services Agreement) has been issued under the Original BRC
         Services Agreement for the provision of services which remain
         outstanding and which the parties intend should be performed after the
         date of this Agreement, that Addendum shall be deemed to be an Addendum
         issued under this Agreement, the services to be provided by BRC as
         referred to in that Addendum shall be deemed to be Services as defined
         in and for the purposes of this Agreement, the performance of the
         obligations of the parties (including payment) in respect of such
         services under the Original BRC Services Agreement shall be deemed to
         be performance of such obligations under this Agreement and, subject as
         provided above, the provisions of Section 2, 3, 4 and 5 of this
         Agreement shall be deemed to apply to that Addendum and to the
         provision of those services despite the termination of the Original BRC
         Services Agreement.

         1.3.  Enforcement by Geron. Geron shall have no right to enforce any
         of the provisions of this Agreement unless and until the commencement
         of a winding up of TAT, whereupon Geron shall be entitled to enforce
         all provisions of this Agreement as are expressed to survive the
         termination of this Agreement.

2.       Services.
         ---------

         2.1.  Business Services. From time to time TAT and BRC may agree on
         certain business, administrative, management or professional services
         ("Business Services") that BRC will perform or cause to be performed
         for TAT. The scope, period of performance, expected cost, and other
         terms and conditions for such Business Services, as agreed upon by TAT
         and BRC, will be set forth in a Business Services Addendum to this
         Agreement, signed by BRC and TAT. The parties contemplate that a
         separate Business Services Addendum will typically be executed for each
         distinct category of Business Services.

         2.2.  Scientific Services. From time to time TAT and BRC may agree on
         certain scientific research and development work ("Scientific
         Services") that BRC will perform or cause to be performed for TAT. The
         scope, period of performance, expected cost, and other terms and
         conditions for such Scientific Services, as agreed upon by TAT and BRC,
         will be set forth in a Scientific Services Addendum to this Agreement,
         signed by BRC and TAT. The parties contemplate that a separate
         Scientific Services Addendum will typically be executed for each
         distinct research and development project.

                                       63
<PAGE>

         2.3.  Performance of Services. BRC will perform all Business Services
         and Scientific Services (collectively, "Services") in accordance with
         this Agreement and each applicable Business Services Addendum or
         Scientific Services Addendum (each an "Addendum" and collectively
         "Addenda"). BRC warrants that the Services shall be provided with
         reasonable skill and care and the same degree of care and diligence
         that BRC uses for similar activities on its own behalf and shall
         conform to standards generally observed in the biotechnology industry
         for similar services and shall be provided with reasonable skill and
         care. BRC will use commercially reasonable efforts to provide the
         Services in a timely manner.

         2.4.  Personnel. BRC will use qualified and experienced personnel
         with the necessary skills and expertise to perform all Services to be
         performed under this Agreement.

         2.5.  Third Party Contractors. BRC may engage qualified third-party
         contractors, consultants or service providers (including but not
         limited to HKUST and Affiliated Companies Controlled by HKUST) to
         perform, or assist BRC in performing, the Services, but only if and to
         the extent specifically authorized by the applicable Addendum. BRC
         will remain responsible for the due performance of the Services.

3.       Payment for Services.
         ---------------------

         3.1.  Direct Cost Reimbursement. In consideration for the Services,
         TAT will pay BRC the Direct Cost (as defined in Section 3.2 below) of
         the Services provided, up to the monetary limit specified in the
         applicable Addendum. BRC shall not exceed, and TAT shall have no
         obligation to pay any amounts in excess of any monetary limit stated in
         the applicable Addendum unless approved in writing in advance by TAT.

         3.2.  Definition of Direct Costs. The "Direct Cost" of Services shall
         mean the sum of the following:

                      (a) Salaries and wages of BRC's employees employed in the
                  performance of the Services. Labor charges will be based on
                  time sheets approved by the respective employee's supervisor
                  or such other method as is appropriate for the type of service
                  provided and customarily used by BRC;

                       (b) BRC's actual cost of employee benefits for such
                  employees (calculated on a pro rata basis by reference to the
                  actual time they are employed in the performance of the
                  Services);

                      (c) BRC's actual cost for third-party contractors,
                  consultants and service providers authorized pursuant to
                  Section 2.5;

                      (d) BRC's actual cost for supplies purchased for use in
                  the performance of the Services;

                                       64
<PAGE>

                      (e) A percentage of BRC's actual cost for common supplies,
                  calculated based on the allocation method used by BRC for such
                  supplies for government grants;

                      (f) BRC's actual cost for equipment purchased which is
                  substantially dedicated for use in performance of the Services
                  and specifically authorized in the applicable Addendum, and
                  for maintenance of such equipment;

                      (g) BRC's reasonable travel and related expenses incurred
                  in connection with the performance of the Services by
                  employees whose salaries and wages are chargeable under
                  subsection (a) above who have been reimbursed under BRC's
                  usual practice and in accordance with BRC's travel policy,
                  provided that the travel has been approved in advance by TAT
                  in the applicable Addendum or otherwise in writing;

                      (e) Other reasonable out-of-pocket expenses incurred by
                  BRC that are necessary for the proper performance of the
                  Services and which have been approved in advance by TAT in the
                  applicable Addendum or otherwise in writing.

3.3.     Billing and Payment. BRC shall submit a monthly invoice to TAT for each
         calendar month on or before the fifteenth (15th) Business Day of the
         following calendar month. Each such invoice shall state separately for
         each Addendum the Direct Cost of Services provided in such month under
         such Addendum. TAT will pay BRC the amount due under each invoice
         within thirty (30) calendar days after receipt of the invoice.

4.       Limitations on Services.
         ------------------------

         4.1.  No  Representation  or Warranty.  The parties  acknowledge  that
         BRC is not in the  business of providing  the Services as set forth in
         this  Agreement,  and is  entering  into  this  Agreement  as an
         accommodation  to TAT in  connection  with  the JV Agreement. EXCEPT AS
         EXPRESSLY  PROVIDED  IN THIS  AGREEMENT  OR IN AN  ADDENDUM,  BRC does
         not make any  express or implied representations,  warranties  or
         guarantees  relating to the  Services to be provided  hereunder or the
         quality or results of such  services.  EXCEPT AS EXPRESSLY  PROVIDED IN
         THIS  AGREEMENT  OR IN AN ADDENDUM,  ALL  SERVICES  PROVIDED  HEREUNDER
         ARE PROVIDED TO NEWCO ON AN "AS IS" BASIS WITHOUT  WARRANTY OF ANY
         KIND. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN AN ADDENDUM,
         BRC HEREBY  DISCLAIMS  ANY EXPRESS OR IMPLIED  WARRANTIES OF ANY KIND,
         INCLUDING  WITHOUT  LIMITATION  THE IMPLIED WARRANTY OF MERCHANTABILITY
         OR FITNESS FOR A PARTICULAR PURPOSE.

         4.2.  Alternatives.  If BRC reasonably believes it is unable to
         provide  any of the  Services because of a failure  to obtain necessary
         consents,  licences,  sublicences or approvals or because of illegality
         or another cause beyond BRC's control,  BRC and TAT shall cooperate to
         determine the best alternative approach. Until such alternative
         approach is found or the problem is otherwise resolved to the
         satisfaction of BRC and TAT, BRC shall use commercially reasonable
         efforts  to  continue providing the Services. To the extent an
         agreed-upon  alternative  approach  requires  payment above and beyond
         that which is included in BRC's  charge for the Services in question,
         TAT shall be  responsible  for any such payment only if TAT agrees in
         advance in  writing,  provided  that if TAT does not agree to be
         responsible  for such  payment,  BRC will not be required to pursue
         such alternative approach.

                                       65
<PAGE>

5.       Term and Termination.

         5.1.  Term. This Agreement shall terminate on the eighth (8th)
         anniversary of the Effective Date, unless earlier terminated as
         provided below.

         5.2.  Termination of Agreement. This Agreement and all Addenda shall
         be terminated automatically, as provided in Clause 13.1.1 of the JV
         Agreement, if TAT is placed in winding up. In addition, this Agreement
         may be terminated as follows:

               5.2.1. By TAT, upon ten (10) days written notice, if BRC is in
               material breach of its obligations under this Agreement or any
               Addendum and such breach, if capable of remedy, has not been
               remedied to the reasonable satisfaction of TAT at the expiry of
               60 days following receipt by BRC of a notice in writing from TAT
               notifying BRC of such breach and reasonably indicating the steps
               required to be taken to remedy the failure;

               5.2.2. By TAT, upon ten (10) days written notice, if BRC ceases
               to be a Shareholder of TAT;

               5.2.3. By BRC, upon ten (10) days written notice, if TAT is in
               material breach of its obligations under this Agreement or any
               Addendum and such breach, if capable of remedy, has not been
               remedied to the reasonable satisfaction of BRC at the expiry of
               60 days following receipt by TAT of a notice in writing from BRC
               notifying TAT of such breach and Default Notice reasonably
               indicating the steps required to be taken to remedy the failure;

               5.2.4. By BRC, upon sixty (60) days written notice, if BRC ceases
               to be a Shareholder of TAT.

         5.3.  Termination of Addendum. Any Addendum may be terminated as
         follows, unless such Addendum provides otherwise:

               5.3.1. By TAT, upon thirty (30) days written notice, with or
               without cause.

               5.3.2. By TAT, upon ten (10) days written notice, if BRC is in
               material breach of its obligations under such Addendum and such
               breach, if capable of remedy, has not been remedied to the
               reasonable satisfaction of TAT at the expiry of 60 days following
               receipt by BRC of a notice in writing from TAT notifying BRC of
               such breach and reasonably indicating the steps required to be
               taken to remedy the failure;

               5.3.3. By BRC, upon ten (10) days written notice, if TAT is in
               material breach of its obligations under such Addendum and such
               breach, if capable of remedy, has not been remedied to the
               reasonable satisfaction of BRC at the expiry of 60 days following
               receipt by TAT of a notice in writing from BRC notifying TAT of
               such breach and reasonably indicating the steps required to be
               taken to remedy the failure.

                                       66
<PAGE>

               5.3.4. By BRC, upon sixty (60) days' written notice, if BRC
               ceases to have available the personnel or resources required to
               perform the Services under such Addendum, provided that this
               section 5.3.4 will not apply with respect to personnel or
               resources designated by BRC as being dedicated to the performance
               of the Services.

         5.4.  Termination of Performance. Upon any termination of an Addendum,
         BRC shall immediately cease performance of Services in respect of such
         Addendum and TAT shall be liable only for Direct Costs in respect of
         such Services up to the effective date of termination, and Direct Costs
         to be incurred after the effective date of termination to the extent
         that BRC is legally obligated to incur them and is unable to cancel the
         obligation despite reasonable efforts.

         5.5.  Effect of Termination. Despite any other provision of this
         Agreement (a) the termination of this Agreement shall not affect the
         accrued rights and obligations of the parties; and (b) Sections 6, 7, 8
         and 9 shall survive the termination of this Agreement and continue in
         full force and effect.

6.       Indemnification and Limitation of Liability.
         --------------------------------------------

         6.1.  Indemnification. BRC shall indemnify, defend, and hold harmless
         each of the other parties and their respective officers, directors,
         employees and agents (each person or entity, an "Indemnified Person"),
         from any liability, loss, claim, expense, proceeding, action and/or
         damage incurred by the Indemnified Person by reason of any act
         performed or omitted to be performed by BRC, its officers, directors,
         employees and/or agents and/or any other Relevant Person in connection
         with the Services and/or the Past Services, including reasonable
         attorneys' fees and costs and any amounts expended in the settlement of
         any such claims of liability, loss, or damage and which arises out of
         or in relation to or by reason of:

         (a)      the negligence, recklessness or intentional misconduct of BRC,
                  its officers, directors, employees and/or agents and/or any
                  other Relevant Person in the provisions of the Services and/or
                  the Past Services; or

         (b)      any act or omission of BRC, its officers, directors, employees
                  and/or agents and/or any other Relevant Person outside the
                  prescribed or authorized scope of the Services and/or Past
                  Services as defined by the applicable Addendum (whether issued
                  under this Agreement or the Original BRC Services Agreement).

         6.2.  Limitation of Liability. IN NO EVENT WILL BRC BE LIABLE TO ANY
         OTHER PARTY FOR INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT
         LIMITATION, LOSS OF PROFITS.

7.       Intellectual Property.
         ----------------------

         7.1.  Subject to the rights of Third Parties (other than Relevant
         Persons) in Intellectual Property, TAT (or following the commencement
         of a winding up of TAT, Geron) shall be vested with all right title
         and interest in and shall own all Collaboration Inventions generated
         by BRC and/or its employees and/or any Relevant Person in the course
         of carrying out the Services and/or which has been generated by such
         persons in the course of carrying out the Past Services.

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         7.2.  In the case of Collaboration Inventions made by employees or
         agents of BRC or any other Relevant Persons (alone or in collaboration
         with others), BRC shall assign to TAT (or in respect of any assignment
         made following the commencement of a winding up of TAT, to Geron) all
         its right, title and interest in such Collaboration Inventions.

         7.3.  BRC shall ensure that its employees and agents and all Relevant
         Persons shall, where necessary in order to vest all right, title and
         interest in any Collaboration Inventions in TAT (or following the
         commencement of a winding up of TAT, in Geron), agree to assign to TAT
         (or following the commencement of a winding up of TAT, to Geron) (or
         assign to BRC for assignment to TAT or Geron (as the case may be) under
         Section 7.2) their entire interest in any Collaboration Inventions
         generated by them in the course of carrying out the Services and/or the
         Past Services.

         7.4.  BRC shall use all reasonable endeavours to procure its employees
         and agents and all Relevant Persons to fully disclose and record all
         Collaboration Inventions to enable TAT (or following the commencement
         of a winding up of TAT, Geron) to fully collect, protect, exploit and
         commercialise the Collaboration Inventions.

         7.5.  BRC shall procure that, where necessary, written and irrevocable
         waivers of any such moral or other non-transferable rights in respect
         of the Collaboration Inventions have been given by its employees and
         agents and all Relevant Persons in favour of TAT (or if such waivers
         are given following the commencement of a winding up of TAT, in favour
         of Geron).

         7.6.  BRC shall do all things reasonably necessary, co-operate in good
         faith and provide such assistance as may be necessary and do all things
         as may be required to disclose, protect, maintain, enforce and/or
         transfer or assign the Collaboration Inventions, and shall procure that
         its employees and agents and all Relevant Persons shall co-operate in
         the provision of such assistance including preparing and signing all
         forms, applications, documents, agreements and deeds to give effect to
         and complete the transactions, assignments, and licences contemplated
         by this Section 7.

         7.7.  BRC shall, and shall procure that all its officers, directors,
         employees and agents and each other Relevant Person shall, provide all
         assistance reasonably required by TAT and/or Geron to contest any claim
         by any person to any right, title or interest to or in any intellectual
         property rights intended by the parties to the JV Agreement to be owned
         by TAT (or following the commencement of a winding up of TAT, by
         Geron).

         7.8.  The provisions of this Section 7 shall survive any termination of
         this Agreement.

8.       Confidentiality.
         ----------------

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         8.1.  Confidential Information. "Confidential Information" means all
         non-public and/or proprietary information owned or possessed by the
         disclosing party and specifically  designated as such and includes any
         and all  Confidential  Information  disclosed by BRC or TAT to the
         other of them at any time from the Effective Date. Confidential
         Information includes,  without limitation, any methods, techniques  and
         processes,  and technical and  scientific  data,  unpublished findings,
         biological  material, know-how,  specifications,  patent applications,
         algorithms,  programs,  designs,  drawings,  and formulae,  and
         engineering, manufacturing,  marketing,  development,  sales, research,
         operations,  financial and business plans and data disclosed by a party
         to the other party hereunder.  BRC and TAT shall ensure that written
         confidential  information is marked  "confidential" or with a
         comparable  marking and that  confidential  information not disclosed
         in writing is reduced to writing and marked as "confidential" or with a
         comparable  marking within thirty (30) days of  disclosure,  provided
         that  information  (other than scientific  know-how and scientific
         techniques) exchanged by BRC and TAT hereunder or otherwise that
         relates to the business or operations of TAT shall be treated as
         confidential whether or not so marked.

         8.2.  Confidentiality Obligations. Except as expressly set forth in
         this Agreement, during the term of this Agreement or a period of four
         (4) years from receipt  thereof,  whichever  is  longer,  each
         recipient  of  Confidential  Information  agrees and undertakes  to the
         other parties that it will use such  information  only for purposes of
         performing  its  obligations  and/or exercising its rights under this
         Agreement,  and will not disclose such  information  except to its
         employees and consultants and to other  Relevant  Persons  to whom
         disclosure  is  required  in order for them to  participate  in the
         performance  of Services.  Each of BRC and TAT will  ensure that its
         employees  or  consultants  and any other  Relevant  Persons who
         receive access  to the other  party's  Confidential Information are and
         remain  at all times  legally  obligated  to  maintain  the
         confidentiality of such Confidential Information,  and such party shall
         be responsible for the compliance of its employees or consultants  and,
         in the case of BRC, all other Relevant  Persons.  Each party
         represents to the other that the terms of this Section 8 do not
         conflict with any of the representing party's obligations to any other
         person or entity.

         8.3.  Exceptions to Confidentiality. The restrictions on use and
         disclosure of Confidential Information shall not apply to information
         to the extent any of the following is true:

                  (a)      the information is now, or hereafter becomes, through
                           no act or failure to act on the part of the recipient
                           (or any Relevant Person to whom the information is
                           disclosed), generally known or available to the
                           public;

                  (b)      the information is known by the recipient or is
                           already in the possession of the recipient before it
                           receives the information from the disclosing party;

                  (c)      the information is furnished to the recipient by a
                           third party who did not acquire the information
                           directly or indirectly from the disclosing party
                           under an obligation of confidentiality to the
                           disclosing party or otherwise under circumstances in
                           which such third party did not have the legal right
                           to acquire and furnish to the recipient the
                           information in question;

                  (d)      the information is independently developed by the
                           recipient without use or knowledge of the
                           Confidential Information;

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<PAGE>

                  (e)      the information is required by law or by order of any
                           court or governmental authority to be disclosed by
                           the recipient. In the event of such compulsory
                           disclosure, however, the recipient shall use
                           reasonable efforts to give the disclosing party
                           sufficient advance written notice to enable it to
                           seek a protective order or other remedy to protect
                           such Confidential Information. The recipient shall
                           use reasonable efforts to disclose only the minimum
                           Confidential Information required to be disclosed,
                           whether or not a protective order or other remedy is
                           in place;

                  (f)      the information is made available by the disclosing
                           party to a third party (not being a shareholder of
                           TAT or any of such shareholder's employees) without
                           similar restrictions; or

                  (g)      the information (i) does not relate to the business
                           or operations of TAT or is scientific know-how or
                           scientific techniques and (ii) is not disclosed in
                           writing or reduced to writing and marked as
                           "confidential" or with other comparable marking
                           within thirty (30) days of disclosure.

8.4. Survival. The provisions of this Section 8 shall survive any termination of
this Agreement.

9.       Publication.
         ------------

         9.1.  Publication.  Except as otherwise specified in the applicable
         Addendum, publication of results, records, or other information arising
         out of or relating to Services  and/or Past  Services will be permitted
         only with the prior written  consent of TAT's Board (or TAT's Discovery
         Research  Committee) or following  the  commencement of a winding up of
         TAT, of Geron.  The party whose consent is required  under this Clause
         9.1 (the  "Consenting  Party") may withhold that consent if it believes
         that such publication  or disclosure  may compromise or adversely
         impact its product  development  efforts,  competitive  position,  or
         business.  If BRC wishes to make such a  publication or disclosure,  it
         will submit a draft  manuscript  or  disclosure  for review by the
         Consenting  Party at least  forty-five  (45) days prior to the date of
         submission  for  publication  or public disclosure.  The  Consenting
         Party will,  within thirty (30) days after it has received (or in the
         case of TAT all members of its Board or the Joint Discovery Research
         Committee have received) the draft, communicate to BRC in writing its
         decision to:

         (i) consent to the publication or disclosure as submitted without
         changes; or

         (ii) consent to the publication or disclosure provided that specified
         information is deleted, or that publication or disclosure is delayed
         for a period, not to exceed sixty (60) days, or such longer period as
         the Consenting Party may notify BRC before the end of such sixty (60)
         day period as is reasonably necessary to permit the Consenting Party to
         file any desired patent applications, or both; or

   (iii) withhold consent to the publication or disclosure.

         Any publication arising out of or relating to this Agreement shall
         recognise intellectual contributions by co-authorship and/or
         acknowledgement, in accordance with applicable academic norms.

                                       70
<PAGE>

         9.2.  Survival. The provisions of this Section 9 shall survive any
         termination of this Agreement.

10.      Miscellaneous.
         --------------

         10.1.  Independent Contractor. BRC and TAT agree that, in performing
         its obligations under this Agreement, BRC shall be an independent
         contractor, and that neither BRC nor any of its employees or agents or
         any other Relevant Persons shall be deemed for any purpose to be an
         employee or agent of TAT and BRC shall not hold itself out as such.
         Nothing in this Agreement shall be deemed to give BRC or any other
         person any right or power to bind TAT to any obligation.

         10.2.  Governing Law; Dispute Resolution. The validity, construction
         and enforceability of this Agreement shall be governed by and construed
         in accordance with the laws of Hong Kong without regard to choice of
         law provisions. Any dispute arising out of this Agreement shall be
         resolved as provided in Clause 33.2 of the JV Agreement.

         10.3.  Notice. Any notice required to be given by a party to any other
         party may be made (i) by hand delivery by Federal Express or comparable
         private courier service to the other party's address given herein or
         such other address as may from time to time be notified for this
         purpose or (ii) by facsimile transmission to a facsimile number as is
         specified for such other party in the JV Agreement or otherwise as is
         notified in writing by such other party for this purpose. Any properly
         addressed notice served by hand shall be deemed to have been served on
         delivery and any notice served by facsimile transmission shall be
         deemed to have been served when received, as shown by a confirmed
         transmission report.

         10.4.  Severability. If any provision in this Agreement shall be found
         or be held to be invalid or unenforceable then the meaning of said
         provision shall be construed, to the extent feasible, so as to render
         the provision enforceable, and if no feasible interpretation would save
         such provision, it shall be severed from the remainder of this
         Agreement which shall remain in full force and effect unless the
         severed provision is essential and material to the rights or benefits
         received by any party. In such event, the parties shall use best
         efforts to negotiate, in good faith, a substitute, valid and
         enforceable provision or agreement which most nearly effects the
         parties' intent in entering into this Agreement.

         10.5.  No Waiver. No waiver of any term or condition of this Agreement
         shall be valid or binding on a party unless the same shall have been
         set forth in a written document, specifically referring to this
         Agreement and duly signed by the waiving party. The failure of a party
         to enforce at any time any of the provisions of this Agreement, or the
         failure to require at any time performance by the other party of any of
         the provisions of this Agreement, shall in no way be construed to be a
         present or future waiver of such provisions, nor in any way affect the
         ability of a party to enforce each and every such provision thereafter.

         10.6.  Assignment. This Agreement may not be assigned without the
         written consent of each of the parties to this Agreement. Any
         assignment not in conformance with this Section 10.6 shall be null,
         void and of no legal effect. This Agreement shall inure to the benefit
         of, and shall be binding upon, the parties and their respective
         permitted successors and assigns.

                                       72
<PAGE>

         10.7.  Counterparts. This Agreement may be executed in any number of
         counterparts, and each counterpart shall constitute an original
         instrument, but all such separate counterparts shall constitute only
         one and the same instrument.

         10.8.  Force  Majeure.  No party shall be liable for any delay in
         performing  any of its  obligations  under this Agreement to the extent
         that such delay is directly caused by any occurrence  which is beyond
         the reasonable  control of the party so delaying, including, without
         limitation, delays arising out of acts of God, acts or orders of any
         government agency or instrumentality thereof, acts of public enemy,
         riots, embargoes,  strikes,  casualties or accidents,  deliveries of
         materials,  transportation or shortage of cars, trucks, fuel, power,
         labor or materials,  interruption of or delay in transportation,
         unavailability of, interruption of or delay in  telecommunications,  or
         any other causes,  circumstances or contingencies within or without the
         United States of America which are beyond the  reasonable  control of
         such party and such party shall be entitled  (subject to giving the
         other party full  particulars  of the  circumstances in question and to
         using its best  endeavours to resume full performance without avoidable
         delay)  to  a  reasonable  extension  of  time  for  the performance of
         such obligations. Notwithstanding  the occurrence of any force majeure
         event, this Agreement shall continue in full force for the remainder of
         its term and any renewals thereof.

         10.9.  Variation. No variation or amendment to this Agreement shall be
         effective unless in writing signed by authorized representatives of
         each of the parties.

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

                                       72
<PAGE>

TA THERAPEUTICS LIMITED                    BIOTECHNOLOGY RESEARCH
                                           CORPORATION LIMITED
By: /s/ David J. Earp
Name:  David Earp                          By:      /s/ Yuk Shan Wong
Title:  Director                           Name:    Yuk Shan Wong
                                           Title:       Director

GERON CORPORATION

By: /s/ David J. Earp
Name:  David Earp
Title:  SVP Business Development, Chief
Patent Counsel

                                       73
<PAGE>

IN WITNESS whereof this Agreement has been executed by the Parties and is
intended to be and is hereby delivered on the date appearing at the head hereof.

SIGNED by Yuk Shan Wong             )
for and on behalf of                )
BIOTECHNOLOGY                       )        /s/ Yuk Shan Wong
RESEARCH CORPORATION                )
LIMITED                             )
in the presence of: Tony R. Eastham )

                  /s/ Tony R. Eastham

SIGNED by David Earp                )
for and on behalf of                )        /s/ David J. Earp
GERON CORPORATION                   )
in the presence of: James Griffiths )

         /s/ James Griffiths
         Solicitor, Hong Kong SAR
         Cheng Wong Lam & Partners

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