Document:

Exhibit 10.4 - Option Agreement (Stephen Parks)

    
      

    

    OPTION
      AGREEMENT 

     

    

    THIS
      AGREEMENT
      is made
      effective as of the 4th day of October, 2005

    

    B
      E T W E E N:

    

    OCCULOGIX,
      INC., a
      corporation incorporated under the laws of the State of Delaware

    

    (hereinafter
      referred to as the “Corporation”)

    

    

    -
      and
      -

    

    

    STEPHEN
      PARKS of
      the
      City of Senatobia in the State of Mississippi

     

    (hereinafter
      referred to as the “Optionee”)

    

    

    WHEREAS,
      as
      of the
      Effective Date (defined below), the Optionee was appointed the Vice President,
      Sales of the Corporation;

    

    AND
      WHEREAS, as
      of the
      Effective Date, the Corporation entered into an executive employment agreement
      with the Optionee pursuant to which he was granted an aggregate of 300,000
      options entitling him to purchase an aggregate of 300,000 shares of common
      stock
      of the Corporation (the “Executive
      Employment Agreement”);

    

    AND
      WHEREAS
      the
      Executive Employment Agreement contemplated that the Corporation and the
      Optionee would enter into a definitive option agreement which would set out,
      in
      detail, the terms and conditions of the options granted to the Optionee, which
      terms and conditions would be substantially similar to those of options granted
      prior to the Effective Date under the Corporation’s 2002 Stock Option Plan (the
“Plan”);

    

    AND
      WHEREAS
      this
      Agreement is such definitive option agreement;

    

    NOW,
      THEREFORE, in
      consideration of the promises and mutual covenants set out in this Agreement
      (the receipt and sufficiency of which are hereby acknowledged by the parties),
      the parties hereto hereby agree as follows:

     

    1.     INTERPRETATION

     

    1.1    Definitions.
      In this
      Agreement, the following terms shall have the meanings set forth
      below:

     

    
      	(a)  	
              “Acquiring
                Corporation”
                has the meaning attributed to such term in Section
                8.2;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(b)  	
              “Agreement”
                means this agreement and the schedule attached to this agreement,
                in each
                case, as they may be amended or supplemented from time to time, and
                the
                expressions “hereof”,
                “herein”,
                “hereto”,
                “hereunder”,
                “hereby”
                and similar expressions refer to this Agreement, and, unless otherwise
                indicated, references to sections are references to sections in this
                Agreement; 

            

    

     

    
      	(c)  	
              “Board”
                means
                the board of directors of the Corporation or any committee appointed
                by
                the Board to administer the Plan or this
                Agreement;

            

    

     

    
      	(d)  	
              “Cashless
                Exercise”
                has the meaning attributed to such term in Section
                4.2;

            

    

     

    
      	(e)  	
              “Change
                in Control”
                has the meaning attributed to such term in Section
                8.1(b);

            

    

     

    
      	(f)  	
              “Code”
                means the Internal Revenue Code of 1986, as amended, and any applicable
                regulations promulgated thereunder;

            

    

     

    
      	(g)  	
              “Disability”
                means the inability of the Optionee, in the opinion of a qualified
                physician acceptable to the Corporation, to perform the major duties
                of
                the Optionee’s position with the Participating Company Group because of
                the sickness or injury of the
                Optionee;

            

    

     

    
      	(h)  	
              “Effective
                Date”
                means October 4, 2005;

            

    

     

    
      	(i)  	
              “Exchange
                Act”
                means the Securities Exchange Act of 1934, as
                amended;

            

    

     

    
      	(j)  	
              “Executive
                Employment Agreement”
                has the meaning attributed to such term in the second recital
                above;

            

    

     

    
      	(k)  	
              “Fair
                Market Value” means
                the fair market value of the shares of common stock of the Corporation
                or
                other property, as determined by the Board, in its discretion, applying
                the principles required to be applied by it in its determination
                of Fair
                Market Value under the Plan;

            

    

     

    
      	(l)  	
              “New
                Shares”
                has the meaning attributed to such term in Section
                7.3;

            

    

     

    
      	(m)  	
              “Options”
                means, collectively, the Time-based Options and the Performance-based
                Options;

            

    

     

    
      	(n)  	
              “Ownership
                Change Event”
                has the meaning attributed to such term in Section
                8.1(a);

            

    

     

    
      	(o)  	
              “Parent
                Corporation”
                means any present or future “parent corporation” of the Corporation, as
                such term is defined in Section 424(e) of the
                Code;

            

    

     

    
      	(p)  	
              “Participating
                Company”
                means the Corporation or any Parent Corporation or Subsidiary
                Corporation;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(q)  	
              “Participating
                Company Group” means,
                at any point in time, all corporations collectively which are then
                Participating Companies;

            

    

     

    
      	(r)  	
              “Performance-based
                Options”
                has the meaning attributed to such term in Section
                3.1;

            

    

     

    
      	(s)  	
              “Performance-based
                Vesting Condition”
                has the meaning attributed to such term in Section
                3.2;

            

    

     

    
      	(t)  	
              “Plan”
                has the meaning attributed to such term in the third recital
                above;

            

    

     

    
      	(u)  	
              “Securities
                Act” means
                the Securities Act of 1933, as
                amended;

            

    

     

    
      	(v)  	
              “Service”
                means the Optionee’s employment or service with the Participating Company
                Group, whether in the capacity of an employee or a
                consultant;

            

    

     

    
      	(w)  	
              “Stock”
                means the common stock of the Corporation, as adjusted from time
                to time
                in accordance with Section 7.3;

            

    

     

    
      	(x)  	
              “Stock
                Option Exercise Notice”
                has the meaning attributed to such term in Section
                4.1;

            

    

     

    
      	(y)  	
              “Subsidiary
                Corporation”
                means any present or future “subsidiary corporation” of the Corporation,
                as such term is defined in Section 424(f) of the
                Code;

            

    

     

    
      	(z)  	
              “Time-based
                Options”
                has the meaning attributed to such term in Section
                2.1;

            

    

     

    
      	(aa)  	
              “Transaction”
                has the meaning attributed to such term in Section 8.1(b);
                and

            

    

     

    
      	(bb)  	
              “Transferee”
                has the meaning attributed to such term in Section
                8.1(b).

            

    

     

    1.2    Headings.
      The
      headings in this Agreement are solely for convenience of reference and shall
      not
      affect the construction or interpretation hereof.

     

    1.3    Number
      and Gender.
      In this
      Agreement, words importing the singular include the plural and vice versa.
      Words
      importing the masculine gender include the feminine and neuter
      genders.

     

    1.4    Invalidity
      of Provisions.
      Each of
      the provisions contained in this Agreement is distinct and severable, and a
      declaration of invalidity or unenforceability of any provision or part thereof
      by a court of competent jurisdiction shall not affect the validity or
      enforceability of any other provision hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.5    Entire
      Agreement and Waiver.
      Together with the Executive Employment Agreement, this Agreement constitutes
      the
      entire agreement between the Corporation and the Optionee with respect to the
      subject matter hereof and supersedes all prior agreements, undertakings,
      negotiations and discussions, whether written or oral, that may have taken
      place
      between the parties hereto with respect to the subject matter hereof. No
      supplement or amendment to, or waiver of, this Agreement shall be binding unless
      it is executed in writing by the party hereto to be bound thereby. No waiver
      of
      any provision of this Agreement shall constitute, or be deemed to be, a waiver
      of any other provision of this Agreement, whether or not similar to the
      provision being waived, nor shall any waiver constitute a continuing waiver,
      unless otherwise expressly provided.

     

    1.6    Paramountcy.
      In the
      case of any conflict or inconsistency between any of the provisions of this
      Agreement and any of the provisions of any employment agreement then in effect
      between the Corporation and the Optionee (including, for greater certainty,
      the
      Executive Employment Agreement), the latter agreement shall
      prevail.

     

    1.7    Governing
      Law.
      This
Agreement
      shall be governed by the laws of the State of Delaware as such laws are
      applied to agreements between Delaware residents entered into and to be
      performed entirely within the State of Delaware.

     

    
      
      

      2.    GRANT
        OF TIME-BASED
        OPTIONS

       

      2.1    Time-based
        Options. The Corporation hereby grants to the Optionee an aggregate of
        200,000 options entitling him to purchase an aggregate of 200,000 shares
        of
        Stock (the “Time-based Options”) at the exercise price per share of U.S.$6.28,
        being the NASDAQ closing price of the Corporation’s common stock on the
        Effective Date.

    

     

    2.2    Right
      to Exercise.
      Except
      as may be otherwise provided herein, the Time-based Options shall be
      exercisable:

     

    
      	(a)  	
              as
                to 331⁄3%, on and after the first anniversary of the Effective
                Date;

            

    

     

    
      	(b)  	
              as
                to an additional 331⁄3%, on and after the second anniversary of the
                Effective Date; and

            

    

     

    
      	(c) 	
              as
                to the balance, on and after the third anniversary of the Effective
                Date;

            

    

     

    
      subject
        to earlier termination of the Time-based Options as provided in this Section
        2.2
        and Section 5, in an amount not to exceed the number of vested shares of
        Stock
        less the number of shares of Stock previously acquired upon any previous
        exercise of Time-based Options. All of the Time-based Options shall expire
        on
        the tenth anniversary of the Effective Date.

    

     

    2.3    Non-statutory
      Stock Options.
      The
      Time-based Options are intended to be “Non-statutory Stock Options” and shall
      not be treated as “Incentive Stock Options” within the meaning of Section 422 of
      the Code.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.    GRANT
      OF
      PERFORMANCE-BASED OPTIONS

     

    3.1    Performance-based
      Options.
      The
      Corporation hereby grants to the Optionee an aggregate of 100,000 options
      entitling him to purchase an aggregate of 100,000 shares of Stock (the
“Performance-based
      Options”)
      at the
      exercise price per share of U.S.$6.28, being the NASDAQ closing price of the
      Corporation’s common stock on the Effective Date.

     

    3.2    Right
      to Exercise.
      Subject
      to earlier termination as provided in this Section 3.2 and Section 5, and except
      as may be otherwise provided herein, the Performance-based Options shall become
      exercisable if the Corporation achieves a minimum of U.S.$250,000,000 of
      aggregate net sales over four consecutive fiscal quarters occurring prior to
      January 1, 2011, net of marketing discounts, volume discounts, sales discounts
      and other like discounts (the “Performance-based
      Vesting Condition”).
      If the
      Performance-based Vesting Condition is fulfilled, the Performance-based Options
      shall be exercisable on and after the date on which the Board approves the
      unaudited or audited financial statements of the Corporation covering the last
      of the aforementioned four consecutive fiscal quarters and in an amount not
      to
      exceed the number of vested shares of Stock less the number of shares of Stock
      previously acquired upon any previous exercise of Performance-based Options.
      The
      Performance-based Options shall be deemed to have expired on January 1, 2011
      if
      the Performance-based Vesting Condition is not fulfilled by the end of the
      fiscal quarter ending December 31, 2010. Otherwise, they shall expire on the
      tenth anniversary date of the Effective Date.

     

    3.3    Non-statutory
      Stock Options.
      The
      Performance-based Options are intended to be “Non-statutory Stock Options” and
      shall not be treated as “Incentive Stock Options” within the meaning of Section
      422 of the Code.

     

    4.    METHOD
      AND
      PAYMENT

     

    4.1    Method
      of Exercise.
      Exercise of Options shall be by written notice to the Corporation in the form
      of
      the exercise notice attached hereto as Schedule “A” or such other form that may
      be approved by the Corporation from time to time (the “Stock
      Option Exercise Notice”).
      The
      Stock Option Exercise Notice must be completed and signed by the Optionee and
      delivered to the Chief Financial Officer of the Corporation, or other authorized
      representative of the Participating Company Group, prior to the termination
      of
      the Options, accompanied by full payment of the aggregate exercise price, in
      accordance with Section 4.2, for the number of shares of Stock being purchased.
      Options shall be deemed to be exercised upon receipt by the Corporation of
      the
      completed and signed Stock Option Exercise Notice and the aggregate exercise
      price.

     

    4.2    Payment
      of Exercise Price.
      Payment
      of the aggregate exercise price for the shares of Stock underlying Options
      being
      exercised shall be made (i) in cash or by certified or bank cashier’s check
      payable to the Corporation, (ii) by tender to the Corporation, or attestation
      to
      the ownership, of whole shares of the Corporation owned by the Optionee for
      at
      least six months and having a Fair Market Value of not less than the aggregate
      exercise price, (iii) by means of a Cashless Exercise or (iv) by any combination
      of the foregoing. Notwithstanding the foregoing, Options may not be exercised
      by
      tender to the Corporation, or attestation to the ownership, of shares of the
      Corporation unless such shares either have been owned by the Optionee for more
      than six months (and not used for another exercise of Options by attestation
      during such period) or were not acquired, directly or indirectly, from the
      Corporation. “Cashless
      Exercise”
      means
      the delivery of a properly completed and signed Stock Option Exercise Notice
      together with irrevocable instructions to a broker, in a form acceptable to
      the
      Corporation, providing for the assignment to the Corporation of the proceeds
      of
      a sale or loan with respect to some or all of the shares of Stock to be acquired
      upon the exercise of Options pursuant to a program or procedure approved by
      the
      Corporation (including, without limitation, through an exercise complying with
      the provisions of Regulation T, as promulgated from time to time by the Board
      of
      Governors of the Federal Reserve System). The Corporation reserves the right,
      in
      its sole and absolute discretion, at any and at all times, to decline to approve
      or terminate any such program or procedure.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.3    Tax
      Withholding.
      It
      shall be a condition to the Corporation’s obligation to issue shares of Stock
      upon exercise of Options that the Optionee (or any beneficiary or person
      entitled to act hereunder) pay to the Corporation, upon demand, such amount
      as
      may be requested by the Corporation for the purpose of satisfying any liability
      to withhold federal, state, provincial or local income or other
      taxes.

     

    4.4    Restrictions
      on Grant and Issuance.
      The
      grant of the Options and the issuance of shares of Stock upon the exercise
      of
      Options shall be subject to compliance with all applicable requirements of
      federal, state, provincial, local or foreign law with respect to such securities
      and the regulations or the requirements of any stock exchange or market system
      upon which the stock of the Corporation may then be listed.

     

    5.    TERMINATION
      OF OPTIONS

      

    5.1    Termination
      of Time-based Options.
      The
      Time-based Options shall terminate and may no longer be exercised after the
      first to occur of (i) the tenth anniversary of the Effective Date, (ii) the
      last
      date for exercising Options following termination of the Optionee’s Service as
      provided in Section 6 and (iii) a Change in Control.

     

    5.2    Termination
      of Performance-based Options.
      The
      Performance-based Options shall be deemed to have terminated on January 1,
      2011,
      and may not be exercised thereafter, if the Performance-based Vesting Condition
      is not fulfilled on or before December 31, 2010 and otherwise shall terminate
      and may no longer be exercised after the first to occur of (i) the tenth
      anniversary of the Effective Date, (ii) the last date for exercising Options
      following termination of the Optionee’s Service as provided in Section 6 and
      (iii) a Change in Control.

     

    6.    EFFECT
      OF
      TERMINATION OF SERVICE          

     

    6.1    Disability.
      If the
      Optionee’s Service terminates because of the Disability of the Optionee, the
      Options, to the extent unexercised and exercisable on the date on which the
      Optionee’s Service terminates, may be exercised by the Optionee (or the
      Optionee’s guardian or legal representative) at any time prior to the expiration
      of the twelve-month period following the date on which the Optionee’s Service
      terminates but, in any event, no later than the tenth anniversary of the
      Effective Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.2    Death.
      If the
      Optionee’s Service terminates because of the death of the Optionee, the Options,
      to the extent unexercised and exercisable on the date on which the Optionee’s
      Service terminates, may be exercised by the Optionee’s legal representative, or
      other person who acquires the right to exercise the Options by reason of the
      Optionee’s death, at any time prior to the expiration of the twelve-month period
      following the date on which the Optionee’s Service terminates but, in any event,
      no later than the tenth anniversary of the Effective Date. The Optionee’s
      Service shall be deemed to have terminated on account of death if the Optionee
      dies within three months of the termination of the Optionee’s
      Service.

     

    6.3    Termination
      without Cause.
      If the
      Optionee’s Service is terminated without cause, the Options, to the extent
      unexercised and exercisable on the date on which the Optionee’s Service
      terminates, may be exercised by the Optionee (or the Optionee’s guardian or
      legal representative) at any time prior to the expiration of the three-month
      period following the date on which the Optionee’s Service terminates but, in any
      event, no later than the tenth anniversary date of the Effective Date. The
      date
      on which the Optionee’s Service terminates shall be his or her last day of
      active employment and shall not include any period of statutory or reasonable
      notice or any period of deemed employment.

     

    6.4    Other
      Termination of Service.
      If the
      Optionee’s Service terminates for any reason, except Disability, death or
      termination without cause, the Options, to the extent unexercised and
      exercisable by the Optionee on the date on which the Optionee’s Service
      terminates, may be exercised by the Optionee at any time prior to the expiration
      of the one-month period following the date on which the Optionee’s Service
      terminates but, in any event, no later than the tenth anniversary of the
      Effective Date.

     

    6.5    Extension
      in Consideration of Section 16(b) of Exchange Act.
      Notwithstanding Sections 6.1 to 6.4 inclusive, if a sale, within the applicable
      time periods set forth in such sections, of shares of Stock acquired upon the
      exercise of Options would subject the Optionee to suit under Section 16(b)
      of
      the Exchange Act, then the unexercised and exercisable Options shall remain
      exercisable until the earliest to occur of (i) the tenth day following the
      date
      on which a sale of such shares of Stock would not longer subject the Optionee
      to
      such a suit, (ii) the 190th
      day
      after the Optionee’s termination of Service or (iii) the tenth anniversary of
      the Effective Date.

     

    6.6    Extension
      if Exercise is Prohibited by Law.
      Notwithstanding Sections 6.1 to 6.4 inclusive, if the exercise of Options within
      the applicable time periods set forth in such sections is prevented by the
      requirement to comply with applicable securities laws pursuant to Section 9,
      then the unexercised and exercisable Options shall remain exercisable until
      the
      end of the three-month period following the date on which the Optionee is
      notified by the Corporation that Options are not exercisable or such longer
      period of time as determined by the Board in its discretion, provided, however,
      that the Options shall, in no event, remain exercisable beyond the tenth
      anniversary of the Effective Date. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.7    Determination
      of Termination of Service.
      The
      Optionee’s Service shall not be deemed to have terminated merely because of a
      change of capacity in which the Optionee renders Service to the Participating
      Company Group or a change in the Participating Company for which the Optionee
      renders Service, provided that there is no interruption or termination of the
      Optionee’s Service. Furthermore, an Optionee’s Service with the Participating
      Company Group shall not be deemed to have terminated if the Optionee takes
      any
      military leave, sick leave or other bona
      fide leave
      of
      absence approved by the Corporation; provided, however, that if any such leave
      exceeds 90 days, on the 91st
      day of
      such leave, the Optionee’s Service shall be deemed to have terminated, unless
      the Optionee’s right to return to Service with the Participating Company Group
      is guaranteed by statute or contract. Notwithstanding the foregoing, unless
      otherwise designated by the Corporation or determined by law, a leave of absence
      shall not be treated as Service for purposes of determining the vesting of
      the
      Time-based Options. The Optionee’s Service shall be deemed to have terminated
      either upon an actual termination of Service or upon the corporation for which
      the Optionee performs Service ceasing to be a Participating Company. Subject
      to
      the foregoing, the Corporation, in its discretion, shall determine whether
      the
      Optionee’s Service has terminated and the effective date of such
      termination.

     

    7.    ADMINISTRATION

     

    7.1    Administration
      by Board.
      This
      Agreement and the Options shall be administered by the Board. All questions
      of
      interpretation of this Agreement and the Options shall be determined by the
      Board, and such determination shall be final and binding upon the Optionee
      and
      all other persons having an interest in this Agreement and the
      Options.

     

    7.2    Powers
      of Board.
      Without
      derogating from the generality of Section 7.1, the Board shall have the full
      and
      final power and authority, in its discretion, to correct any defect, supply
      any
      omission or reconcile any inconsistency in this Agreement and to make all other
      determinations and take such other actions with respect to this Agreement and
      the Options as the Board may deem advisable.

     

    7.3    Adjustment
      for Changes in Capital Structure.
      In the
      event of any stock dividend, stock split, reverse stock split, recapitalization,
      combination, reclassification or other similar change in the capital structure
      of the Corporation, appropriate adjustments shall be made in the number and
      class of shares of the Corporation subject to the then outstanding Options
      and
      in the exercise price per share of the outstanding Options. If a majority of
      the
      shares of the Corporation subject to the outstanding Options are exchanged
      for,
      converted into or otherwise become shares of another corporation (“New
      Shares”)
      (whether or not pursuant to an Ownership Change Event), the Board unilaterally
      may amend the outstanding Options to provide that they shall be exercisable
      into
      New Shares. In the event of such an amendment, the number of New Shares subject
      to, and the exercise price per share of, the outstanding Options shall be
      adjusted in a fair and equitable manner, as determined by the Board in its
      discretion. Notwithstanding the foregoing, any fractional shares resulting
      from
      an adjustment pursuant to this Section 7.3 shall be rounded down to the nearest
      whole number, and, in no event, may the exercise price per share of any
      outstanding Option be decreased to an amount less than the par value, if any,
      of
      a New Share. The adjustments determined by the Board to be made pursuant to
      this
      Section 7.3 shall be final, binding and conclusive.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.    CHANGE
      IN
      CONTROL  

     

    8.1    Definitions.
      

     

    
      	(a)  	
              An
                “Ownership
                Change Event”
                shall be deemed to have occurred if any of the following events occurs
                with respect to the Corporation: (i) the direct or indirect sale
                or
                exchange, in a single transaction or a series of related transactions,
                by
                the stockholders of the Corporation of more than 50% of the voting
                stock
                of the Corporation; (ii) a merger or consolidation in which the
                Corporation is a party; (iii) the sale, exchange or transfer of all
                or
                substantially all of the assets of the Corporation; or (iv) a liquidation
                or dissolution of the Corporation.

            

    

     

    
      	(b)  	
              A
                “Change
                in Control”
                shall mean an Ownership Change Event or a series of related Ownership
                Change Events (either, a “Transaction”)
                wherein the stockholders of the Corporation immediately before the
                Transaction do not retain immediately after the Transaction, in
                substantially the same proportions as their ownership of shares of
                the
                Corporation’s voting stock immediately before the Transaction, direct or
                indirect beneficial ownership of more than 50% of the total combined
                voting power of the outstanding voting securities of the Corporation
                or,
                in the case of a Transaction described in Section 8.1(a)(iii), the
                corporation or other business entity to which the assets of the
                Corporation were transferred (the “Transferee”),
                as the case may be. For purposes of the preceding sentence, indirect
                beneficial ownership shall include, without limitation, an interest
                resulting from ownership of the voting securities of one or more
                corporations or other business entities which own the Corporation
                or the
                Transferee, as the case may be, either directly or through one or
                more
                subsidiary corporations or other business entities. The Board shall
                have
                the right to determine whether multiple sales or exchanges of the
                voting
                securities of the Corporation or multiple Ownership Change Events
                are
                related, and its determination shall be final, binding and conclusive.
                

            

    

     

    8.2    Effect
      of Change in Control on Options.
      In the
      event of a Change in Control, the surviving, continuing, successor or purchasing
      corporation or other business entity or parent thereof (the “Acquiring
      Corporation”),
      as the
      case may be, without the consent of the Optionee, may either assume the
      Corporation’s rights and obligations under this Agreement and the then
      outstanding Options or substitute for such Options options to acquire the
      Acquiring Corporation’s stock. Any such Options which are not assumed or
      substituted by the Acquiring Corporation in connection with the Change in
      Control or which are not exercised as of the date of the Change in Control
      shall
      terminate and cease to be outstanding effective as of the date of the Change
      in
      Control. Notwithstanding the foregoing, shares of Stock acquired upon exercise
      of Options prior to the Change in Control and any consideration received
      pursuant to the Change in Control with respect to such shares of Stock shall
      continue to be subject to all applicable provisions of this Agreement, except
      as
      otherwise provided in this Agreement. Furthermore, notwithstanding the
      foregoing, if the corporation, the stock of which is subject to the outstanding
      Options immediately prior to the Ownership Change Event described in Section
      8.1(a)(i) constituting a Change in Control is the surviving or continuing
      corporation and immediately after such Ownership Change Event less than 50%
      of
      the total combined voting power of its voting stock is held by another
      corporation or by other corporations that are members of an affiliated group
      within the meaning of Section 1504(a) of the Code without regard to the
      provisions of Section 1504(b) of the Code, the outstanding Options shall not
      terminate, unless the Board otherwise provides in its discretion. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.    COMPLIANCE
      WITH SECURITIES LAWS  

     

    9.1    The
      grant
      of the Options and the issuance of shares of Stock upon exercise of Options
      shall be subject to compliance with all applicable requirements of federal,
      state, provincial and foreign law with respect to such securities. Options
      may
      not be exercised if the issuance of shares of Stock upon exercise would
      constitute a violation of any applicable federal, state, provincial or foreign
      securities laws or other applicable law, rule or regulation or the requirements
      of any stock exchange or market system upon which the stock of the Corporation
      may then be listed. In addition, no Options may be exercised unless (i) a
      registration statement under the Securities Act shall, at the time of exercise
      of Options, be in effect with respect to the shares of Stock issuable upon
      exercise of such Options or (ii) in the opinion of legal counsel to the
      Corporation, the shares of Stock issuable upon exercise of such Options may
      be
      issued in accordance with the terms of an applicable exemption from the
      registration requirements of the Securities Act. The inability of the
      Corporation to obtain from any regulatory body having jurisdiction the authority
      deemed necessary, if any, by the Corporation’s legal counsel to the lawful
      issuance and sale of any shares of Stock hereunder shall relieve the Corporation
      of any liability in respect of any failure to issue or sell such shares of
      Stock
      as to which such requisite authority shall not have been obtained. As a
      condition to the exercise of Options, the Corporation may require the Optionee
      to satisfy any qualifications that may be necessary or appropriate to evidence
      compliance with any applicable law or regulation and to make any representation
      or warranty with respect thereto as may be requested by or of the
      Corporation.

     

    10.    MISCELLANEOUS  

     

    10.1    Binding
      Effect.
      Subject
      to restrictions on transfer set forth herein, this Agreement shall inure to
      the
      benefit of, and be binding upon, the parties hereto and their respective heirs,
      executors, administrators, successors and assigns.

     

    10.2    Termination
      or Amendment.
      The
      Board may terminate or amend this Agreement at any time, provided, however,
      that
      no such termination or amendment may adversely affect any unexercised Options
      without the consent of the Optionee, unless such termination or amendment is
      necessary to comply with any applicable law or regulation. 

     

    10.3    No
      Right to Employment.
      Nothing
      in this Agreement shall confer upon the Optionee any right to continue in the
      Service of the Corporation or a Participating Company or to interfere, in any
      way, with any right of the Participating Company Group to terminate the
      Optionee’s Service as an employee or a consultant, as the case may be, at any
      time. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.4    Facsimile
      and Counterparts.
      This
      Agreement may be signed by facsimile and in counterparts, and each of such
      counterparts shall constitute an original document, and such counterparts,
      taken
      together, shall constitute one and the same instrument.

     

    IN
      WITNESS WHEREOF
      the
      parties hereto have executed this Agreement.

    
      	 	 	 
	 	OCCULOGIX,
              INC.
	 
 	 
 	 
 
	: 	By:  	/s/ Thomas
              P. Reeves
	 	
              

            
	 	President
              and Chief Operating Officer

    

     

     

    
      	 	 	 
	
              Signature
                of Witness

            	 	
              Stephen
                Parks

               

            
	 	 	 
	
              Name
                of Witness (please
                print)

            	 	 

    

    

    

    
      
        
          

          
            

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
           

           

        

      

    

    SCHEDULE
      “A”

    

    STOCK
      OPTION EXERCISE NOTICE

    

    

    OccuLogix,
      Inc. (the “Corporation")

    Attention:
      Chief Financial Officer

    

    1.     Options.
      Effective October 4, 2005, I was granted 200,000 time-based options (the
“Time-based
      Options”)
      and
      100,000 performance-based options (the “Performance-based
      Options”)
      (collectively, the "Options”)
      to
      purchase shares of common stock of the Corporation (“Shares”)
      at an
      exercise price per share of U.S.$6.28 pursuant to the Option Agreement,
      effective as of October 4, 2005, between the Corporation and me (the
“Option
      Agreement”).

    

    2.     Exercise
      of Time-based Options.
      I
      hereby elect to exercise Time-based Options to purchase the following number
      of
      Shares, all of which are vested Shares in accordance with the Option
      Agreement:

    

    Total
      Number of Shares Purchased:

    

    Total
      Exercise Price (Total Shares x Exercise Price per Share) $ 

    

    3.     Exercise
      of Performance-based Options.
      I
      hereby elect to exercise Performance-based Options to purchase the following
      number of Shares, all of which are vested Shares in accordance with the Option
      Agreement:

    

    Total
      Number of Shares Purchased:

    

    Total
      Exercise Price (Total Shares x Exercise Price per Share) $ 

    

    4.    Payment.
      I
      enclose payment in full of the total exercise price for the Shares in the
      following form(s), as authorized by the Option Agreement:

    

    Cash:                                        $    _______________________________________________________

    

    Check:                                       $    ______________________________________________________ 

    

    Tender
      of
      Stock:                                Contact
      Plan Administrator

    

    Cashless
      Exercise:                              Attach
      broker’s instructions

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.     Tax
      Withholding. I
      authorize payroll withholding or otherwise hereby make adequate provision for
      the federal, state, provincial, local and foreign tax withholding obligations
      of
      the Corporation in connection with the Options by enclosing payment in full
      of
      the applicable withholding taxes, if any, as follows:

    

    Cash:                                     $    ______________________________________________________ 

    

    Check:                                    $    _____________________________________________________ 

     

         6.     Optionee
      Information.

    

        My
      address
      is:______________________________

    

        __________________________________________

    

        __________________________________________

    

        My
      SSN or SIN
      (circle
      one)
      is:
      ___________________________

    

    7.     Certificate
      Registration.
      The
      stock certificate of the Corporation to be issued upon exercise of the Options,
      representing the Shares being purchased, shall be registered in the name(s)
      of
      ______________________.

    

    8.     Binding
      Effect.
      I agree
      that the Shares are being acquired in accordance with, and subject to, the
      terms, provisions and conditions of the Option Agreement, and I hereby expressly
      assent to all of such terms, provisions and conditions. This agreement shall
      inure to the benefit of, and be binding upon, my heirs, executors,
      administrators, successors and assigns.

    

    9.     Acknowledgement.
      I
      understand that I am purchasing the Shares underlying the Options hereby being
      exercised pursuant to the terms of the Option Agreement and this exercise
      notice, copies of which I have received and carefully read and
      understand.

     

    Very
      truly yours,

    

    

    

    

    (Signature)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

         

        

      

    

    Receipt
      of the above is hereby acknowledged. 

    

    OCCULOGIX,
      INC.

     

    
 

    By: 

    Title:

     

    Dated:___________________________EX-4.1

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

CLEARANT, INC.

WARRANT

	 	 	 
	Warrant No. [     ]

	 	Original Issue Date: [     ], 2005

CLEARANT, INC., a Delaware corporation (the “Company”), hereby certifies that, for value
received, [     ] or its permitted registered assigns (the “Holder”), is entitled to
purchase from the Company up to a total of [     ] shares of common stock, $0.0001 par value (the
“Common Stock”), of the Company (each such share, a “Warrant Share” and all such
shares, the “Warrant Shares”) at an exercise price equal to $4.96 per share (as adjusted
from time to time as provided herein, the “Exercise Price”), at any time and from time to
time from and after the Original Issue Date and through and including the fifth anniversary of the
Closing Date (the “Expiration Date”), and subject to the following terms and conditions:

This Warrant is one of a series of warrants issued pursuant to that certain Securities
Purchase Agreement, dated November 7, 2005, by and among the Company and the Purchasers identified
therein (the “Purchase Agreement”), incorporated herein by reference. All such warrants
are referred to herein, collectively, as the “Warrants.”

1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Purchase
Agreement.

2. List of Warrant Holders. The Company shall register this Warrant upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Holder (which shall include the initial Holder or, as the case may be, any registered
assignee to which this Warrant is permissibly assigned hereunder from time to time). The Company
may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the
purpose of any exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual notice to the contrary.

3. List of Transfers.

(a) In addition to the restrictions noted in the legend set forth on the first page of this
Warrant, this Warrant and the Warrant Shares are subject to the restrictions on transfer set forth
in the Purchase Agreement.

(b) The Company shall register any such transfer of all or any portion of this Warrant in the
Warrant Register, upon (i) surrender of this Warrant, with the Form of Assignment attached hereto
duly completed and signed, to the Company at its address specified herein and (ii) if the
Registration Statement is not effective, (x) delivery of an opinion of counsel reasonably
satisfactory to the Company, to the effect that the transfer of such portion of this Warrant may be
made pursuant to an available exemption from the registration requirements of the Securities Act
and all applicable state securities or blue sky laws and (y) delivery by the transferee of a
written statement to the Company certifying that the transferee is an “accredited investor” as
defined in Rule 501(a) under the Securities Act and making the representations and certifications
set forth in Section 3.2(b), (c) and (d) of the Purchase Agreement, to the Company at its address
specified in the Purchase Agreement. Upon any such registration or transfer, a new Warrant to
purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New
Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the
transferee thereof shall be deemed the acceptance by such transferee of all of the rights and
obligations in respect of the New Warrant that the Holder has in respect of this Warrant.

4. Exercise and Duration of Warrants.

(a) All or any part of this Warrant shall be exercisable by the registered Holder at any time
and from time to time from on or after the Original Issue Date and through and including the
Expiration Date. Subject to Section 11 hereof, at 5:00 p.m., Pacific time, on the Expiration Date,
the portion of this Warrant not exercised prior thereto shall be and become void and of no value
and this Warrant shall be terminated and no longer outstanding.

(b) The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice,
in the form attached hereto (the “Exercise Notice”), completed and duly signed, and (ii)
payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being
exercised, and the date such items are delivered to the Company (as determined in accordance with
the notice provisions hereof) is an “Exercise Date.” The delivery by (or on behalf of) the
Holder of the Exercise Notice and the applicable Exercise Price as provided above shall constitute
the Holder’s certification to the Company that its representations contained in Section 3.2(b), (c)
and (d) of the Purchase Agreement are true and correct as of the Exercise Date as if remade in
their entirety (or, in the case of any transferee Holder that is not a party to the Purchase
Agreement, such transferee Holder’s certification to the Company that such representations are true
and correct as to such assignee Holder as of the Exercise Date). The Holder shall not be required
to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery
of the Exercise Notice shall have the same effect as cancellation of the original Warrant and
issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

5. Delivery of Warrant Shares.

(a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than
three Trading Days after the Exercise Date) issue or cause to be issued and cause to be delivered
to or upon the written order of the Holder and in such name or names as the Holder may designate
(provided that, if the Registration Statement is not effective and the Holder directs the Company
to deliver a certificate for the Warrant Shares in a name other than that of the Holder or an
Affiliate of the Holder, it shall deliver to the Company on the Exercise Date an opinion of counsel
reasonably satisfactory to the Company to the effect that the issuance of such Warrant Shares in
such other name may be made pursuant to an available exemption from the registration requirements
of the Securities Act and all applicable state securities or blue sky laws), a certificate for the
Warrant Shares issuable upon such exercise, free of restrictive legends unless a registration
statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder
thereunder is not then effective or the Warrant Shares are not freely transferable without volume
restrictions pursuant to Rule 144(k) under the Securities Act. The Holder, or any Person
permissibly so designated by the Holder to receive Warrant Shares, shall be deemed to have become
the holder of record of such Warrant Shares as of the Exercise Date. If the Warrant Shares can be
issued without restrictive legends, the Company shall, upon the written request of the Holder, use
its best efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically
through the Depository Trust and Clearing Corporation or another established clearing corporation
performing similar functions, if available; provided, that, the Company will not be required to
change its transfer agent.

(b) If by the close of the third Trading Day after delivery of an Exercise Notice, the Company
fails to deliver to the Holder a certificate representing the required number of Warrant Shares in
the manner required pursuant to Section 5(a), and if after such third Trading Day and prior to the
receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall, within three Trading Days after the Holder’s request and in the Holder’s sole discretion,
either (1) pay in cash to the Holder an amount equal to the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and
to issue such Warrant Shares) shall terminate or (ii) promptly honor its obligation to deliver to
the Holder a certificate or certificates representing such Warrant Shares and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such
number of Warrant Shares, times (B) the closing bid price on the date of the event giving rise to
the Company’s obligation to deliver such certificate.

(d) To the extent permitted by law, the Company’s obligations to issue and deliver Warrant
Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any
action or inaction by the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any Person or any action to enforce the
same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any violation or
alleged violation of law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of
the issuance of such certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the registration of any certificates for Warrant Shares or
Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary
and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a
New Warrant under such circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New
Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver
such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue
the New Warrant.

8. Reservation of Warrant Shares. The Company covenants that it will at all times reserve
and keep available out of the aggregate of its authorized but unissued and otherwise unreserved
Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this
Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any other contingent
purchase rights of persons other than the Holder (taking into account the adjustments and
restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and
deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance
with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable.

9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon
exercise of this Warrant are subject to adjustment from time to time as set forth in this
Section 9.

(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is
outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any
class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of
Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such event and of which the denominator shall be the number of
shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution, and any adjustment
pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the
effective date of such subdivision or combination.

(b) Pro Rata Distributions. If the Company, at any time while this Warrant is
outstanding, distributes to all holders of Common Stock (i) evidences of its indebtedness, (ii) any
security (other than a distribution of Common Stock covered by the preceding paragraph), (iii)
rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each
case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after
the record date fixed for determination of stockholders entitled to receive such distribution, the
Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such
exercise (if applicable), the Distributed Property that such Holder would have been entitled to
receive in respect of such number of Warrant Shares had the Holder been the record holder of such
Warrant Shares immediately prior to such record date.

(c) Fundamental Transactions. If, at any time while this Warrant is outstanding (i)
the Company effects any merger or consolidation of the Company with or into another Person, in
which the Company is not the survivor, (ii) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (iii) any tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities, cash or property, or
(iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property (each, a “Fundamental Transaction”), then the Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash
or property as it would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the
number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate
Consideration”). The Company shall not effect any such Fundamental Transaction unless prior to
or simultaneously with the consummation thereof, any successor to the Company, surviving entity or
the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or
entity shall assume the obligation to deliver to the Holder, such Alternate Consideration as, in
accordance with the foregoing provisions, the Holder may be entitled to purchase, and the other
obligations under this Warrant. The provisions of this paragraph (c) shall similarly apply to
subsequent transactions analogous to a Fundamental Transaction.

(d) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price
pursuant to paragraph (a) of this Section 9, the number of Warrant Shares that may be
purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that
after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of
Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to
such adjustment.

(e) Subsequent Equity Sales.

(i) Except as provided in subsection (e)(iii) hereof, if and whenever the Company shall
issue or sell, or is, in accordance with any of subsections (e)(ii)(l) through (e)(ii)(4) hereof,
deemed to have issued or sold, any shares of Common Stock for no consideration or for a
consideration per share less than the Exercise Price in effect immediately prior to the time of
such issue or sale, then and in each such case (a “Trigger Issuance”) the then-existing
Exercise Price, shall be reduced, as of the close of business on the effective date of the Trigger
Issuance, to a price determined as follows:

Adjusted Exercise Price = (A x B) + D

A+C

where

“A” equals the number of shares of Common Stock outstanding, including Additional Shares of
Common Stock (as defined below) deemed to be issued hereunder, immediately preceding such Trigger
Issuance;

“B” equals the Exercise Price in effect immediately preceding such Trigger Issuance;

“C” equals the number of Additional Shares of Common Stock issued or deemed issued hereunder
as a result of the Trigger Issuance; and

“D” equals the aggregate consideration, if any, received or deemed to be received by the
Company upon such Trigger Issuance;

provided, however, that in no event shall the Exercise Price after giving effect to such Trigger
Issuance be greater than the original Exercise Price.

For purposes of this subsection (e), “Additional Shares of Common Stock” shall mean all shares
of Common Stock issued by the Company or deemed to be issued pursuant to this subsection (e), other
than Excluded Issuances (as defined in subsection (e)(iii) hereof).

(ii) For purposes of this subsection 9(e), the following subsections (e)(ii)(l) to
(e)(ii)(4) shall also be applicable:

(1) Issuance of Rights or Options. In case at any time the Company shall in any
manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights
to subscribe for or to purchase, or any options for the purchase of, Common Stock or any stock or
security convertible into or exchangeable for Common Stock (such warrants, rights or options being
called “Options” and such convertible or exchangeable stock or securities being called
“Convertible Securities”) whether or not such Options or the right to convert or exchange
any such Convertible Securities are immediately exercisable, and the price per share for which
Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of
such Convertible Securities (determined by dividing (i) the sum (which sum shall constitute the
applicable consideration) of (x) the total amount, if any, received or receivable by the Company as
consideration for the granting of such Options, plus (y) the aggregate amount of additional
consideration payable to the Company upon the exercise of all such Options, plus (z), in the case
of such Options which relate to Convertible Securities, the aggregate amount of additional
consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the
conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable
upon the exercise of such Options or upon the conversion or exchange of all such Convertible
Securities issuable upon the exercise of such Options) shall be less than the Exercise Price in
effect immediately prior to the time of the granting of such Options, then the total number of
shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of
the total amount of such Convertible Securities issuable upon the exercise of such Options shall be
deemed to have been issued for such price per share as of the date of granting of such Options or
the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for
purposes of adjusting the Exercise Price. Except as otherwise provided in subsection 9(e)(ii)(3),
no adjustment of the Exercise Price shall be made upon the actual issue of such Common Stock or of
such Convertible Securities upon exercise of such Options or upon the actual issue of such Common
Stock upon conversion or exchange of such Convertible Securities.

(2) Issuance of Convertible Securities. In case the Company shall in any manner
issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities,
whether or not the rights to exchange or convert any such Convertible Securities are immediately
exercisable, and the price per share for which Common Stock is issuable upon such conversion or
exchange (determined by dividing (i) the sum (which sum shall constitute the applicable
consideration) of (x) the total amount received or receivable by the Company as consideration for
the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the
total number of shares of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities) shall be less than the Exercise Price in effect immediately prior to the
time of such issue or sale, then the total maximum number of shares of Common Stock issuable upon
conversion or exchange of all such Convertible Securities shall be deemed to have been issued for
such price per share as of the date of the issue or sale of such Convertible Securities and
thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price, provided
that (a) except as otherwise provided in subsection 9(e)(ii)(3), no adjustment of the Exercise
Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of
such Convertible Securities and (b) no further adjustment of the Exercise Price shall be made by
reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any
such Convertible Securities for which adjustments of the Exercise Price have been made pursuant to
the other provisions of subsection 9(e).

(3) Change in Option Price or Conversion Rate. Upon the happening of any of the
following events, namely, if the purchase price provided for in any Option referred to in
subsection 9(e)(ii)(l) hereof, the additional consideration, if any, payable upon the conversion or
exchange of any Convertible Securities referred to in subsections 9(e)(ii)(l) or 9(e)(ii)(2), or
the rate at which Convertible Securities referred to in subsections 9(e)(ii)(l) or 9(e)(ii)(2) are
convertible into or exchangeable for Common Stock shall change at any time (including, but not
limited to, changes under or by reason of provisions designed to protect against dilution), the
Exercise Price in effect at the time of such event shall forthwith be readjusted to the Exercise
Price which would have been in effect at such time had such Options or Convertible Securities still
outstanding provided for such changed purchase price, additional consideration or conversion rate,
as the case may be, at the time initially granted, issued or sold. On the termination of any Option
for which any adjustment was made pursuant to this subsection 9(e) or any right to convert or
exchange Convertible Securities for which any adjustment was made pursuant to this subsection 9(ed)
(including without limitation upon the redemption or purchase for consideration of such Convertible
Securities by the Company), the Exercise Price then in effect hereunder shall forthwith be changed
to the Exercise Price which would have been in effect at the time of such termination had such
Option or Convertible Securities, to the extent outstanding immediately prior to such termination,
never been issued.

(4) Consideration for Stock. In case any shares of Common Stock, Options or
Convertible Securities shall be issued or sold for cash, the consideration received therefor shall
be deemed to be the gross amount received by the Company therefor. In case any shares of Common
Stock, Options or Convertible Securities shall be issued or sold for a consideration other than
cash, the amount of the consideration other than cash received by the Company shall be deemed to be
the fair value of such consideration as determined in good faith by the Board of Directors of the
Company. In case any Options shall be issued in connection with the issue and sale of other
securities of the Company, together comprising one integral transaction in which no specific
consideration is allocated to such Options by the parties thereto, such Options shall be deemed to
have been issued for such consideration as determined in good faith by the Board of Directors of
the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the
Company and, in connection therewith, other Options or Convertible Securities (the “Additional
Rights”) are issued, then the consideration received or deemed to be received by the Company
shall be reduced by the fair market value of the Additional Rights (as determined using the
Black-Scholes option pricing model or another method mutually agreed to by the Company and the
Holder). The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by
the Holders as to the fair market value of the Additional Rights. In the event that the Board of
Directors of the Company and the Holder are unable to agree upon the fair market value of the
Additional Rights, the Company and the Holder shall jointly select an appraiser, who is experienced
in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such
appraiser shall be borne evenly by the Company and the Holder.

(iii) Notwithstanding the foregoing, no adjustment will be made under this paragraph (e) in
respect of: (i) the issuance of securities upon the exercise or conversion of any Common Stock or
Common Stock Equivalents issued by the Company prior to the date hereof, (ii) the grant of options,
warrants or other Common Stock Equivalents under any duly authorized Company stock option,
restricted stock plan or stock purchase plan whether now existing or hereafter approved by the
Company and its stockholders in the future and the issuance of Common Stock in respect thereof,
(iii) the issuance of securities in connection with a Strategic Transaction, (iv) the issuance of
securities to vendors, or (v) the issuance of securities in a transaction described in Section 9(a)
or 9(b). For purposes of this paragraph, a “Strategic Transaction” means a transaction or
relationship in which (1) the Company issues shares of Common Stock to a Person which the Board of
Directors of the Company determined in good faith is, itself or through its Subsidiaries, an
operating company in a business synergistic with the business of the Company (or a shareholder
thereof) and (2) the Company expects to receive benefits in addition to the investment of funds,
but shall not include (x) a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to a Person whose primary business is investing in securities or
(y) issuances to lenders.

(f) Calculations. All calculations under this Section 9 shall be made to the
nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of
Common Stock outstanding at any given time shall not include shares owned or held by or for the
account of the Company, and the disposition of any such shares shall be considered an issue or sale
of Common Stock.

(g) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this
Section 9, the Company at its expense will, at the written request of the Holder, promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate
setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted
number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and showing in detail the
facts upon which such adjustment is based. Upon written request, the Company will promptly deliver
a copy of each such certificate to the Holder and to the Company’s Transfer Agent.

(h) Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i)
declares a dividend or any other distribution of cash, securities or other property in respect of
its Common Stock, (ii) authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution,
liquidation or winding up of the affairs of the Company, then, except if such notice and the
contents thereof shall be deemed to constitute material non-public information, the Company shall
deliver to the Holder a notice describing the material terms and conditions of such transaction at
least 10 Trading Days prior to the applicable record or effective date with respect to such
transaction, and the Company will take all reasonable steps to give Holder the practical
opportunity to exercise this Warrant prior to such time; provided, however, that the failure to
deliver such notice or any defect therein shall not affect the validity of the corporate action
required to be described in such notice.

10. Payment of Exercise Price. The Holder may pay the Exercise Price in one of the
following manners:

(a) Cash Exercise. The Holder may deliver immediately available funds; or

(b) Cashless Exercise. If an Exercise Notice is delivered at a time when a
registration statement permitting the Holder to resell the Warrant Shares is required to be
effective and is not then effective, then the Holder may notify the Company in an Exercise Notice
of its election to utilize cashless exercise, in which event the Company shall issue to the Holder
the number of Warrant Shares determined as follows:

X = Y (A-B)/A

where:

X = the number of Warrant Shares to be issued to the Holder.

Y = the number of Warrant Shares with respect to which this Warrant is being
exercised.

A = the average of the Closing Prices for the five Trading Days immediately prior
to (but not including) the Exercise Date.

B = the Exercise Price.

11. Limitations on Exercise. Notwithstanding anything to the contrary contained herein, the
number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or
otherwise in respect hereof) shall be limited to the extent necessary to insure that, following
such exercise (or other issuance), the total number of shares of Common Stock then beneficially
owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common
Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, does
not exceed 9.999% (the “Maximum Percentage”) of the total number of issued and outstanding
shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such
exercise). For such purposes, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice hereunder will constitute a representation by the Holder that it has evaluated the
limitation set forth in this Section and determined that issuance of the full number of Warrant
Shares requested in such Exercise Notice is permitted under this Section. The Company’s obligation
to issue shares of Common Stock in excess of the limitation referred to in this Section shall be
suspended (and, except as provided below, shall not terminate or expire notwithstanding any
contrary provisions hereof) until such time, if any, as such shares of Common Stock may be issued
in compliance with such limitation; provided, that, if, as of 5:00 p.m., Pacific time, on the
Expiration Date, the Company has not received written notice that the shares of Common Stock may be
issued in compliance with such limitation, the Company’s obligation to issue such shares shall
terminate. This provision shall not restrict the number of shares of Common Stock which a Holder
may receive or beneficially own in order to determine the amount of securities or other
consideration that such Holder may receive in the event of a Fundamental Transaction as
contemplated in Section 9 of this Warrant. This restriction may be waived upon 61 days written
notice to the Company.

12. No Fractional Shares. No fractional Warrant Shares will be issued in connection with
any exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable,
the number of Warrant Shares to be issued will be rounded to the nearest whole share.

13. Notices. Any and all notices or other communications or deliveries hereunder
(including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given
and effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section prior to 5:00 p.m.
(Pacific time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified in this
Section on a day that is not a Trading Day or later than 5:00 p.m. (Pacific time) on any Trading
Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The addresses for such notices or communications shall be: if to the Company, to
Clearant, Inc., 11111 Santa Monica Boulevard, Suite 650, Los Angeles, California 90025, Attn: Chief
Financial Officer or to facsimile number (310) 479-2959 (or such other address as the Company shall
indicate in writing in accordance with this Section) or (ii) if to the Holder, to the address or
facsimile number appearing on the Warrant Register (or such other address as the Company shall
indicate in writing in accordance with this Section).

14. Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 30
days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which
the Company or any new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or any corporation to
which the Company or any new warrant agent transfers substantially all of its corporate trust or
shareholders services business shall be a successor warrant agent under this Warrant without any
further act. Any such successor warrant agent shall promptly cause notice of its succession as
warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s
last address as shown on the Warrant Register.

15. Miscellaneous.

(a) This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall
be construed to give to any Person other than the Company and the Holder any legal or equitable
right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing
signed by the Company and the Holder, or their successors and assigns.

(b) All questions concerning the construction, validity, enforcement and interpretation of
this Warrant shall be governed by and construed and enforced in accordance with the internal laws
of the State of California, without regard to the principles of conflicts of law 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 hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this Warrant or the transactions contemplated hereby. If either party shall commence a
Proceeding to enforce any provisions of this Warrant, then the prevailing party in such Proceeding
shall be reimbursed by the other party for its attorney’s fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such Proceeding.

(c) The headings herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.

(d) In case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision which shall be a commercially
reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision
in this Warrant.

(e) Prior to exercise of this Warrant, the Holder hereof shall not, by reason of by being a
Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officer as of the date first indicated above.

   CLEARANT, INC.

	 
	By: ________________________
Name:

	Title:

1

EXERCISE NOTICE

Ladies and Gentlemen:

The undersigned hereby elects to exercise the warrant issued to it by Clearant, Inc. (the
“Company”) and dated      , 2005 Warrant No. W-     (the “Warrant”) and to purchase thereunder
     shares of the Company’s common stock (the “Shares”) at a purchase price of      
Dollars ($     ) per share or an aggregate purchase price of      Dollars ($     )
(the “Purchase Price”).

The undersigned hereby elects to utilize cashless exercise option and convert      percent
(     %) of the value of the Warrant pursuant to the provisions of Section 10(b) of the Warrant.

or

Pursuant to the terms of the Warrant the undersigned has delivered, if applicable, the Purchase
Price herewith in full in cash or by certified check or wire transfer.

By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company
that (a) the representations and warranties made by the Purchaser in Section 3(c) of the Purchase
Agreement are true as if made by the undersigned on the date hereof, and (b) in giving effect to
the exercise evidenced hereby the Holder will not beneficially own in excess of the number of
shares of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange Act
of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates.

The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of      

	 	 	 	 	 
	Dated: ,	 	 
	 	 	(Print )
	   By:________________________________

	   Name:

	   Title:

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
 the right represented by the within Warrant to purchase  
shares of Common Stock to which the within Warrant relates and appoints 
 attorney to transfer said right on the books of the Company with full power of
substitution in the premises.

	 	 	 	 	 
	Dated: ,
	 	 	 	 
	 
	 	 	 	 
	   (Signature must conform in all respects to name

	   of holder as specified on the face of the

	   Warrant)

	   Address of Transferee

	 
	 

	In the presence of:

	 

2

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