Document:

ex10_2.htm

EXHIBIT 10.2

Agreement

This Agreement (“Agreement”) is made effective as of September 24, 2009 (“Effective Date”) between Cyberonics, Inc., a Delaware corporation (the “Company”) and [NAME] (“Director”), a member of the Company’s Board of Directors (“Board”).

For a good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows.

1.           Non-Competition Covenant.  The Director shall not engage in, or otherwise directly or indirectly be employed by or act as a consultant or lender to, or be a director, officer, employee, principal,
agent,  member, owner, or partner of, or permit his name to be used in connection with the activities of any other business, organization, or entity which engages, directly or indirectly, with any Competitive Business during the two-year period commencing on the Effective Date; provided, that it shall not be a violation of this Section for the Director to become the registered or beneficial owner of up to one percent (1%) of any class of the capital stock of a corporation registered under the Securities
Exchange Act of 1934, as amended.  For purposes of this Section, the term “Competitive Business” means any business enterprise (whether a corporation, partnership, sole proprietorship or other business entity) that competes in any material way with the products of the Company marketed and sold or under substantial development by the Company during the Director’s term of service on the Board.

2.           Non-Solicitation Covenant.  The Director shall not, directly or indirectly, for his benefit or for the benefit of any other person, firm, entity, or business solicit, recruit, advise, attempt to influence
or otherwise induce or persuade, directly or indirectly (including encouraging another person to influence, induce, or persuade), any person employed by the Company to leave the employ of the Company during the two-year period commencing on the Effective Date.  Nothing herein shall prohibit the Director from general advertising for personnel not specifically targeting any employee of the Company.

3.           Confidential Information Covenant.  During the Director’s term of service on the Board, the Company provided the Director with trade secrets and confidential information, knowledge, and data
related to the business of the Company or to the business of other entities with which the Company has a confidential relationship (including trade secrets, being collectively referred to as “Confidential Information”).  The Director shall hold in a fiduciary capacity for the benefit of the Company all Confidential Information obtained by the Director during the Director’s term of service on the Board and which shall not have been or hereafter become public knowledge (other than by
acts by the Director in violation of this Agreement).  The Director agrees to return all Confidential Information, including all photocopies, extracts, and summaries thereof, and any such information stored electronically on tapes, computer disks, or in any other manner to the Company at any time upon request by the Company.  The Director shall not, without the prior written consent of the Company, or as may otherwise by required by law, or as is necessary in connection with any adversarial
proceeding against the Company (in which case the Director shall use his reasonable best efforts in cooperating with the Company in obtaining a protective order against disclosure by a court of competent jurisdiction), communicate or divulge any such Confidential Information to anyone other than the Company and those designated by the Company or on behalf of the Company.

4.           Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas without regard to its conflicts of law principles.

5.           Counterparts.  This Agreement my be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

In witness whereof, the parties have executed this Agreement to be effective on the Effective Date.

	
CYBERONICS, INC.
	
DIRECTOR

	  	  
	  	  
	
By:/s/ Daniel J. Moore                                                      
	 /s/             
	
Daniel J. Moore, President & CEOex10_3.htm

EXHIBIT 10.3

Amendment to Stock Option Agreement

This Amendment to Stock Option Agreement (“Amendment”) is made effective as of September 24, 2009 between Cyberonics, Inc., a Delaware corporation (the “Company”) and [NAME] (“Optionee”).

Whereas, effective as of [DATE], the Company and Director entered into a Stock Option Agreement, Grant Control No. [      ] (the
“Agreement”); and

Whereas, the Company and Director now desire to amend the Agreement;

Now, Therefore, for a good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Director agree as follows:

	
1.
	
Section I, Notice of Stock Option Grant of the Agreement is amended to delete the stated Termination Period and substitute therefor the following:

This Option may be exercised for one (1) year after Optionee ceases for any reason to be a Service Provider.  In no event shall this Option be exercised later than the Term / Expiration Date as provided above.

	
2.
	
Except as expressly amended herein, the terms of the Agreement remain unchanged.

	
3.
	
This Amendment may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Signatures by facsimile shall bind the parties hereto.

	
CYBERONICS, INC.
	
DIRECTOR

	  	  
	  	  
	
By:/s/ Daniel J. Moore                                                      
	 /s/             
	
Daniel J. Moore, President & CEOex10_4.htm

EXHIBIT 10.4

Amendment of Director Restricted Stock Agreement

This Amendment to Director Restricted Stock Agreement (“Amendment”) is made effective as of September 24, 2009 between Cyberonics, Inc., a Delaware corporation (the “Company”) and [NAME] (“Director”), a member of the Company’s Board
of Directors.

WHEREAS, effective as of [DATE], the Company and Director entered into a Director Restricted Stock Agreement, Grant Control No. [____] (the “Agreement”);
and

WHEREAS, the Company and Director now desire to amend the Agreement;

Now, Therefore, for a good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Director agree as follows:

	
1.
	
Section 2(a) of the Agreement is hereby deleted and the following is inserted therefor:

Restrictions.  The Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent then subject to the Restrictions.  The prohibition against transfer of
the Restricted Shares is herein referred to as the “Restrictions.”  The Restrictions shall be binding upon and enforceable against any transferee of the Restricted Shares.

	
2.
	
Section 2(b) of the Agreement is hereby deleted and the following is inserted therefor:

Vesting/Lapse of Restrictions.  Until the Restricted Shares are fully vested or forfeited, on each anniversary of the Grant Date, subject to the satisfaction of the tax liability under Section 3 on such anniversary date, [____]% of the Restricted
Shares shall vest and the Restrictions shall lapse on such vested shares.  The number of shares that vest as of each anniversary date will be rounded down to the nearest whole share, with any remaining shares vesting on the final installment.  Notwithstanding the foregoing vesting schedule, the Restrictions shall lapse in full as to all the Restricted Shares on the earlier of (i) a Change of Control (as defined in the Plan) or (ii) the Director’s death.

	
3.
	
In Sections 2(c), 2(d), 3, and 4, all references to “Forfeiture Restrictions” are replaced by “Restrictions.”

  

  

  

	
4.
	
Except as expressly amended herein, the terms of the Agreement remain unchanged.

	
5.
	
This Amendment may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Signatures by facsimile shall bind the parties hereto.

	
CYBERONICS, INC.
	
DIRECTOR

	  	  
	  	  
	
By:/s/ Daniel J. Moore                                                      
	/s/               
	
Daniel J. Moore, President & CEOWarrant Agreement

Exhibit
4.4

WARRANT AGREEMENT

IRIDIUM COMMUNICATIONS INC.

and

AMERICAN STOCK TRANSFER & TRUST COMPANY, as Warrant Agent

_______________________________

WARRANT AGREEMENT

Dated as of September 29, 2009

WARRANT AGREEMENT
TABLE OF CONTENTS

Page

SECTION
1.  Appointment of Warrant Agent

1

SECTION
2.  Warrant Certificates

1

SECTION
3.  Execution of Warrant Certificates

1

SECTION
4.  Registration and Countersignature

2

SECTION
5.  Registration of Transfers and Exchanges; Transfer Restrictions

2

SECTION
6.  Terms of Warrants

2

SECTION
7.  Payment of Taxes

6

SECTION
8.  Mutilated or Missing Warrant Certificates

6

SECTION
9.  Reservation of Warrant Shares

6

SECTION
10.  Obtaining Stock Exchange Listings; State Registration

7

SECTION
11.  Adjustment of Number of Warrant Shares

7

SECTION
12.  Fractional Interests

17

SECTION
13.  Notices to Warrant Holders

17

SECTION
14.  Merger, Consolidation or Change of Name of Warrant Agent

18

SECTION
15.  Warrant Agent

19

SECTION
16.  Change of Warrant Agent

22

SECTION
17.  Notices to Company and Warrant Agent

22

SECTION
18.  Supplements and Amendments

23

SECTION
19.  Successors

24

SECTION
20.  Termination

24

SECTION
21.  Governing Law

24

SECTION
22.  Benefits of This Agreement

24

i

SECTION
23.  Counterparts

24

SECTION
24.  Force Majeure

24

Exhibit
A

Form
of Warrant Certificate

ii

This
Warrant Agreement (this “Agreement”) is made as of September 29, 2009, by
and between Iridium Communications Inc., a Delaware corporation (the
“Company”) and American Stock Transfer & Trust Company, a New York
corporation (the “Warrant Agent”). 

WHEREAS,
the Company and the Warrant Agent entered into that certain Amended and Restated
Warrant Agreement dated as of February 20, 2008 pursuant to which the Company
issued warrants (the “Current Warrants”) to purchase one share of its
common stock, par value $0.001 per share (the “Common Stock”); and

WHEREAS,
the Company entered into warrant purchase and exchange agreements with certain
holders of Current Warrants, pursuant to which the Company agreed to purchase
Current Warrants from certain holders thereof in consideration for, inter
alia, new warrants to purchase one share of Common Stock at an exercise
price of $11.50 per share (the “Warrants”).  The shares of Common
Stock issuable upon exercise of the Warrants are referred to as the “Warrant
Shares”; and

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, transfer,
exchange and exercise of Warrants and other matters as provided herein.

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
set forth, the parties hereto agree as follows:

SECTION
1.  Appointment of Warrant Agent.  The Company hereby
appoints the Warrant Agent to act as agent for the Company in accordance with
the instructions set forth hereinafter in this Agreement, and the Warrant Agent
hereby accepts such appointment.

SECTION
2.  Warrant Certificates.  The certificates evidencing the
Warrants (the “Warrant Certificates”) to be delivered pursuant to this
Agreement shall be in registered form only and shall be substantially in the
form set forth in Exhibit A attached hereto.

SECTION
3.  Execution of Warrant Certificates.  Warrant
Certificates shall be signed on behalf of the Company by its Chairman of the
Board or its Chief Executive Officer or a Senior Vice President or its Treasurer
and by its Secretary or an Assistant Secretary.  Each such signature upon
the Warrant Certificates may be in the form of a facsimile signature of the
present or any future Chairman of the Board, President, Chief Executive Officer,
Vice President, Secretary or Assistant Secretary and may be imprinted or
otherwise reproduced on the Warrant Certificates and for that purpose the
Company may adopt and use the facsimile signature of any person who shall have
been Chairman of the Board, President, Chief Executive Officer, Vice President,
Secretary or Assistant Secretary, notwithstanding the fact that at the time the
Warrant Certificates shall be countersigned and delivered or disposed of he or
she shall have ceased to hold such office.

In
case any officer of the Company who shall have signed any of the Warrant
Certificates shall cease to be such officer before the Warrant Certificates so
signed shall have been countersigned by the Warrant Agent, or disposed of by the
Company, such Warrant Certificates nevertheless may be countersigned and
delivered or disposed of as though such person had not ceased to be such officer
of the Company; and any Warrant Certificate may be signed on behalf 

 

of
the Company by any person who, at the actual date of the execution of such
Warrant Certificate, shall be a proper officer of the Company to sign such
Warrant Certificate, although at the date of the execution of this Agreement any
such person was not such officer.

Warrant
Certificates shall be dated the date of countersignature by the Warrant
Agent.

SECTION
4.  Registration and Countersignature.  Warrant
Certificates shall be countersigned by the Warrant Agent and shall not be valid
for any purpose unless so countersigned.  The Warrant Agent shall, upon
written instructions of the Chairman of the Board, the President or Chief
Executive Officer, a Vice President, the Treasurer or the Chief Financial
Officer of the Company, countersign, issue and deliver Warrants as provided in
this Agreement.

The
Company and the Warrant Agent may deem and treat the registered holder(s) of the
Warrant Certificates as the absolute owner(s) thereof (notwithstanding any
notation of ownership or other writing thereon made by anyone), for all
purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice to the contrary.

SECTION
5.  Registration of Transfers and Exchanges; Transfer
Restrictions.  The Warrant Agent shall from time to time, subject to
the limitations of this Section 5, register the transfer of any outstanding
Warrant Certificates upon the records to be maintained by it for that purpose,
upon surrender thereof duly endorsed or accompanied (if so required by the
Warrant Agent) by a written instrument or instruments of transfer in form
satisfactory to the Warrant Agent, duly executed by the registered holder or
holders thereof or by the duly appointed legal representative thereof or by a
duly authorized attorney.  Upon any such registration of transfer, a new
Warrant Certificate shall be issued to the transferee(s) and the surrendered
Warrant Certificate shall be cancelled by the Warrant Agent. Cancelled Warrant
Certificates shall thereafter be disposed of by the Warrant Agent in its
customary manner.

Subject
to the terms of this Agreement, Warrant Certificates may be exchanged at the
option of the holder(s) thereof, when surrendered to the Warrant Agent at its
principal corporate trust office, which is currently located at the address
listed in Section 17 hereof, for another Warrant Certificate or other Warrant
Certificates of like tenor and representing in the aggregate a like number of
Warrants.  Any holder desiring to exchange a Warrant Certificate shall
deliver a written request to the Warrant Agent, and shall surrender, duly
endorsed or accompanied (if so required by the Warrant Agent) by a written
instrument or instruments of transfer in form satisfactory to the Warrant Agent,
the Warrant Certificate or Certificates to be so exchanged. Warrant Certificates
surrendered for exchange shall be cancelled by the Warrant Agent.  Such
cancelled Warrant Certificates shall then be disposed of by such Warrant Agent
in its customary manner.

The
Warrant Agent is hereby authorized to countersign, in accordance with the
provisions of this Section 5 and of Section 4 hereof, the new Warrant
Certificates required pursuant to the provisions of this Section 5.

SECTION
6.  Terms of Warrants.

(a)

Exercise
Price and Exercise Period.

2

 

The
initial exercise price  per share that Warrant Shares shall be purchasable
upon the exercise of Warrants (the “Exercise Price”) shall be $11.50 per
share, and each Warrant shall be initially exercisable to purchase one share of
Common Stock. 

Subject
to the terms of this Agreement (including without limitation Section 6(e)
below), each Warrant holder shall have the right, which may be exercised
commencing at the opening of business on the first day of the applicable Warrant
Exercise Period set forth below and until 5:00 p.m., New York time, on the last
day of such Warrant Exercise Period, to receive from the Company the number of
fully paid and nonassessable Warrant Shares which the holder may at the time be
entitled to receive on exercise of such Warrants and payment of the Exercise
Price then in effect for such Warrant Shares or on a cashless basis pursuant to
Section 6(d), if applicable.  No adjustments as to dividends will be made
upon exercise of the Warrants.

The “Warrant Exercise Period” shall (x) commence (subject
to Section 6(e) below) on the date hereof, and (y) shall end on the earlier of:
(i) February 14, 2015, or (ii) the Business Day preceding the date on which such
Warrants are redeemed pursuant to Section 6(b) below or expire pursuant to
Section 6(f) below.

The
“Last Reported Sale Price” of the Common Stock on any date of
determination means:

(i)

the
last reported sale price for the regular trading session (without considering
after hours or other trading outside regular trading session hours) of the
Common Stock (regular way) on the NASDAQ Stock Market (“Nasdaq”) on that
date,

(ii)

if
the Common Stock is not listed for trading on Nasdaq on that date, last reported
sale price as reported in the composite transactions for the principal United
States securities exchange on which the Common Stock is so listed,

(iii)

if
the Common Stock is not so reported, the last quoted bid price for the Common
Stock in the over-the-counter market as reported by the OTC Bulletin Board, the
National Quotation Bureau or similar organization, or

(iv)

if
the Common Stock is not so quoted, the average of the mid-point of the last bid
and ask prices for the Common Stock from at least three nationally recognized
investment-banking firms that the Company selects for this purpose.

Each
Warrant not exercised or redeemed prior to 5:00 p.m., New York time, on the last
day of the Warrant Exercise Period shall become void and all rights thereunder
and all rights in respect thereof under this Agreement shall cease as of such
time.

(b)

Redemption
of Warrants.

3

 

The
Company may call the Warrants for redemption, in whole and not in part, at a
price of $.01 per Warrant, upon not less than 30 days’ prior written notice of
redemption to each Warrant holder, at any time after such Warrants have become
exercisable pursuant to Section 6(a), if, and only if, (i) the Last
Reported Sale Price has equaled or exceeded $18.00 per share for any 20 trading
days within a 30-trading day period ending on the third Business Day prior to
the notice of redemption to Warrant holders and (ii) at all times between the
date of such notice of redemption and the redemption date a registration
statement is in effect covering the Warrant Shares issuable upon exercise of the
Warrants and a current prospectus relating to those Warrant Shares is
available.

Upon
a call for redemption of Warrants by the Company, the Company shall have the
right to require all holders of Warrants subject to redemption who exercise such
Warrants after the Company’s call for redemption to do so on a cashless basis in
accordance with the procedures set forth in Section 6(d).

(c)

Exercise
Procedure.

A
Warrant may be exercised upon surrender to the Company at the principal stock
transfer office of the Warrant Agent, which is currently located at the address
listed in Section 17 hereof, of the certificate or certificates evidencing the
Warrants to be exercised with the form of election to purchase on the reverse
thereof duly filled in and signed and such other documentation as the Warrant
Agent may reasonably request, and upon payment to the Warrant Agent for the
account of the Company of the Exercise Price (adjusted as herein provided if
applicable) or on a cashless basis pursuant to Section 6(d), if applicable,
for the number of Warrant Shares in respect of which such Warrants are then
exercised. Payment of the aggregate Exercise Price (unless on a cashless basis
pursuant to Section 6(d)) shall be made by certified or official bank check
payable to the order of the Company in New York Clearing House Funds, or the
equivalent thereof.  In no event will any Warrants be settled on a net cash
basis.

Subject
to the provisions of Section 7 hereof, upon such surrender of Warrants and
payment of the Exercise Price or on a cashless basis pursuant to Section 6(d),
if applicable, the Company shall issue and cause to be delivered with all
reasonable dispatch to and in such name or names as the Warrant holder may
designate, a certificate or certificates for the number of full Warrant Shares
issuable upon the exercise of such Warrants.  Such certificate or
certificates shall be deemed to have been issued and any person so designated to
be named therein shall be deemed to have become a holder of record of such
Warrant Shares as of the date of the surrender of such Warrants and payment of
the Exercise Price or on a cashless basis pursuant to Section 6(d), if
applicable.

The
Warrants shall be exercisable, at the election of the holders thereof, either in
full or from time to time in part and, in the event that a certificate
evidencing Warrants is exercised in respect of fewer than all of the Warrant
Shares issuable on such exercise at any time prior to the date of expiration of
the Warrants, a new certificate evidencing the remaining Warrant or Warrants
will be issued, and the Warrant Agent is hereby irrevocably authorized to
countersign and to deliver the required new Warrant Certificate or Certificates
pursuant to the provisions of this Section 6 and of Section 4 hereof, and the
Company, whenever required by the Warrant Agent, shall supply the Warrant Agent
with Warrant Certificates duly executed on behalf of the 

4

 

Company
for such purpose.  The Warrant Agent may assume that any Warrant presented
for exercise is permitted to be so exercised under applicable law and shall have
no liability for acting in reliance on such assumption.

All
Warrant Certificates surrendered upon exercise of Warrants shall be canceled by
the Warrant Agent.  Such canceled Warrant Certificates shall then be
disposed of by the Warrant Agent in its customary manner.  The Warrant
Agent shall account promptly to the Company with respect to Warrants exercised
and concurrently pay to the Company all monies received by the Warrant Agent for
the purchase of the Warrant Shares through the exercise of such Warrants.

The
Warrant Agent shall keep copies of this Agreement and any notices given or
received hereunder available for inspection by the holders with reasonable prior
written notice during normal business hours at its office.  The Company
shall supply the Warrant Agent from time to time with such numbers of copies of
this Agreement as the Warrant Agent may request.

(d)

Cashless
Exercise.  

(i)

Upon
a call for redemption of Warrants on a cashless basis by the Company pursuant to
Section 6(b) (the “Cashless Exercise Demand”), all holders of Warrants
subject to redemption who exercise such Warrants shall do so on a cashless
basis. 

(ii)

If
the Company makes a Cashless Exercise Demand with respect to the Warrants
subject to redemption that the holders thereof have elected to exercise after
the Company’s call for redemption, then upon surrender of such Warrants in
accordance with Section 6(c), the Company shall issue and cause to be delivered
with all reasonable dispatch to and in such name or names as such Warrant holder
may designate, a certificate or certificates for the number of full Warrant
Shares to be issued upon such cashless exercise, computed by using the following
formula:

		
	
X =
 
	
(A)(Y)

	
   (B)

X =

The Warrant Shares to be issued in connection with such cashless
exercise to the holder of the Warrants being exercised.

Y =

The number of Warrant Shares underlying the Warrants being
exercised.

A =

The value of one Warrant as of the date of the exercise, which
shall be determined by using the following formula:

A
= B - the Exercise Price

B
=

The
Fair Market Value of a share of Common Stock.

For
purposes of this Section 6(d), the “Fair Market Value” of a share of
Common Stock shall mean the average of the Last Reported Sale Prices for the ten
trading days ending on the third 

5

 

trading
day prior to the date on which the notice of redemption is sent to the holders
of the Warrants.  

(iii)

If
the Company makes a Cashless Exercise Demand, the notice of redemption shall
contain the information necessary to calculate the number of Warrant Shares to
be received by Warrant holders upon exercise of the Warrants, including the Fair
Market Value in such case.

(e)

Registration
Requirement.  Notwithstanding anything else in this Section 6, no
Warrants may be exercised unless at the time of exercise (i) a registration
statement covering the Warrant Shares to be issued upon exercise is effective
under the Act and (ii) a prospectus thereunder relating to the Warrant Shares is
current. The Company shall use its best efforts to have a registration statement
in effect covering Warrant Shares issuable upon exercise of the Warrants from
the date the Warrants become exercisable but in no event later than 30 Business
Days from the date hereof and to maintain a current prospectus relating to those
Warrant Shares until the Warrants expire or are redeemed.  In the event
that, at the end of the Warrant Exercise Period, a registration statement
covering the Warrant Shares to be issued upon exercise is not effective under
the Act, all the rights of holders hereunder shall terminate and all of the
Warrants shall expire unexercised and worthless.  In no event shall the
Warrants be settled on a net cash basis nor shall the Company be required to
issue unregistered shares upon the exercise of any Warrant.  

SECTION
7.  Payment of Taxes.  The Company will pay all documentary
stamp taxes attributable to the initial issuance of Warrant Shares upon the
exercise of Warrants; provided, however, that the Company shall
not be required to pay any tax or taxes which may be payable in respect of any
transfer involved in the issue of any Warrant Certificates or any certificates
for Warrant Shares in a name other than that of the registered holder of a
Warrant Certificate surrendered upon the exercise of a Warrant, and the Company
shall not be required to issue or deliver such Warrant Certificates unless or
until the person or persons requesting the issuance thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

SECTION
8.  Mutilated or Missing Warrant Certificates.  In case any
of the Warrant Certificates shall be mutilated, lost, stolen or destroyed, the
Company shall issue and the Warrant Agent shall countersign, in exchange and
substitution for and upon cancellation of the mutilated Warrant Certificate, or
in lieu of and substitution for the Warrant Certificate lost, stolen or
destroyed, a new Warrant Certificate of like tenor and representing an
equivalent number of Warrants, but only upon receipt of evidence satisfactory to
the Company and the Warrant Agent of such loss, theft or destruction of such
Warrant Certificate and indemnity, also satisfactory to the Company and the
Warrant Agent.  Applicants for such new Warrant Certificates must pay such
reasonable charges as the Company may prescribe.

SECTION
9.  Reservation of Warrant Shares.  The Company will at all
times reserve and keep available, free from preemptive rights, out of the
aggregate of its authorized but unissued Common Stock or its authorized and
issued Common Stock held in its treasury, for the purpose of enabling it to
satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the
maximum number of shares of Common Stock which may then be deliverable 

6

 

upon
the exercise of all outstanding Warrants.  The Warrant Agent shall have no
duty to verify availability of such shares set aside by the Company.

The
Company or, if appointed, the transfer agent for the Common Stock (the “Transfer
Agent”) and every subsequent transfer agent for any shares of the Common Stock
issuable upon the exercise of any of the Warrants will be irrevocably authorized
and directed at all times to reserve such number of authorized shares as shall
be required for such purpose.  The Company will keep a copy of this
Agreement on file with the Transfer Agent and with every subsequent transfer
agent for any shares of the Common Stock issuable upon the exercise of the
Warrants. The Warrant Agent is hereby irrevocably authorized to requisition from
time to time from such Transfer Agent the stock certificates required to honor
outstanding Warrants upon exercise thereof in accordance with the terms of this
Agreement.  The Company will supply such Transfer Agent with duly executed
certificates for such purposes.  The Company will furnish such Transfer
Agent a copy of all notices of adjustments and certificates related thereto,
transmitted to each holder pursuant to Section 13 hereof.

Before
taking any action which would cause an adjustment pursuant to Section 11 hereof
to reduce the Exercise Price below the then par value (if any) of the Warrant
Shares, the Company will take any commercially reasonable corporate action which
may, in the opinion of its counsel (which may be counsel employed by the
Company), be necessary in order that the Company may validly and legally issue
fully paid and nonassessable Warrant Shares at the Exercise Price as so
adjusted.

The
Company covenants that all Warrant Shares which may be issued upon exercise of
Warrants will, upon payment of the Exercise Price therefor or on a cashless
basis pursuant to Section 6(d), if applicable, and issue, be fully paid,
nonassessable, free of preemptive rights and free from all taxes, liens, charges
and security interests with respect to the issue thereof.

SECTION
10.  Obtaining Stock Exchange Listings; State Registration.
 The Company will from time to time take all commercially reasonable
actions which may be necessary so that the Warrant Shares, immediately upon
their issuance upon the exercise of Warrants, will be listed on the principal
securities exchanges and markets within the United States of America, if any, on
which other shares of Common Stock are then listed.  To the extent that the
Common Stock is not listed on a national securities exchange or there is no
exemption from state “blue sky” securities laws for the issuance of the Warrant
Shares, the Company will take all commercially reasonable actions which may be
necessary so that the Warrant Shares are registered in all states in which the
holders of the Warrants reside. 

SECTION
11.  Adjustment of Number of Warrant Shares.  The number of
Warrant Shares issuable upon the exercise of each Warrant is subject to
adjustment from time to time upon the occurrence of the events enumerated in
this Section 11.  For purposes of this Section 11, “Common Stock” means
shares now or hereafter authorized of any class of common stock of the Company
and any other stock of the Company, however designated, that has the right
(subject to any prior rights of any class or series of preferred stock) to
participate in any distribution of the assets or earnings of the Company without
limit as to per share amount.

7

 

(a)

Adjustment
for Change in Capital Stock.

If
the Company: 

(1)

pays
a dividend or makes a distribution on its Common Stock in either case in shares
of its Common Stock;

(2)

subdivides
its outstanding shares of Common Stock into a greater number of shares;

(3)

combines
its outstanding shares of Common Stock into a smaller number of shares;

(4)

makes
a distribution on its Common Stock in shares of its capital stock other than
Common Stock; or

(5)

issues
by reclassification of its Common Stock any shares of its capital stock,

then
the number of shares of Common Stock issuable upon exercise of each Warrant
immediately prior to such action shall be proportionately adjusted so that the
holder of any Warrant thereafter exercised shall receive the aggregate number
and kind of shares of capital stock of the Company which he would have owned
immediately following such action if such Warrant had been exercised immediately
prior to such action.

The
adjustment shall become effective immediately after the record date in the case
of a dividend or distribution and immediately after the effective date in the
case of a subdivision, combination or reclassification.

Such
adjustment shall be made successively whenever any event listed above shall
occur.

(b)

Adjustment
for Rights Issue.

If
the Company distributes any rights, options or warrants to all holders of its
Common Stock entitling them to purchase shares of Common Stock at a price per
share less than the Last Reported Sale Price per share on the Business Day
immediately preceding the ex-dividend date for such distribution of rights,
options or warrants, the number of shares of Common Stock issuable upon exercise
of each Warrant shall be adjusted in accordance with the formula:

where:

N’
=

the
adjusted number of shares of Common Stock issuable upon exercise of each
Warrant.

8

 

N
=

the
current number of shares of Common Stock issuable upon exercise of each
Warrant.

O
=

the
number of shares of Common Stock outstanding on the record date for such
distribution.

A
=

the
number of additional shares of Common Stock issuable pursuant to such rights,
options or warrants.

P
=

the
purchase price per share of the additional shares.

M
=

the
Last Reported Sale Price per share of Common Stock on the record date.

The
adjustment shall be made successively whenever any such rights, options or
warrants are issued and shall become effective immediately after the record date
for the determination of stockholders entitled to receive the rights, options or
warrants.  If at the end of the period during which such rights, options or
warrants are exercisable, not all rights, options or warrants shall have been
exercised, the number of shares of Common Stock issuable upon exercise of each
Warrant shall be immediately readjusted to what it would have been if “N” in the
above formula had been the number of shares actually issued.

(c)

Adjustment
for Other Distributions.

If
the Company distributes to all holders of its Common Stock any of its assets
(including cash) or debt securities or any rights, options or warrants to
purchase debt securities, assets or other securities of the Company (other than
Common Stock), the number of shares of Common Stock issuable upon exercise of
each Warrant shall be adjusted in accordance with the formula:

where:

N’
=

the
adjusted number of shares of Common Stock issuable upon exercise of each
Warrant.

N
=

the
current number of shares of Common Stock issuable upon exercise of each
Warrant.

M
=

the
Last Reported Sale Price per share of Common Stock on the Business Day
immediately preceding the ex-dividend date for such distribution.

F
=

the
fair market value on the ex-dividend date for such distribution of the assets,
securities, rights, options or warrants distributable to one share of Common
Stock after taking into account, in the case of any rights, options or warrants,
the consideration required to be paid upon exercise thereof.  The Board of
Directors shall reasonably determine the fair market value in good faith.

9

 

The
adjustment shall be made successively whenever any such distribution is made and
shall become effective immediately after the record date for the determination
of stockholders entitled to receive such distribution.

This
subsection (c) does not apply to regular quarterly cash dividends including
increases thereof or rights, options or warrants referred to in subsection (b)
of this Section 11.  If any adjustment is made pursuant to this subsection
(c) as a result of the issuance of rights, options or warrants and at the end of
the period during which any such rights, options or warrants are exercisable,
not all such rights, options or warrants shall have been exercised, the Warrant
shall be immediately readjusted as if “F” in the above formula was the fair
market value on the ex-dividend date for such distribution of the indebtedness
or assets actually distributed upon exercise of such rights, options or warrants
divided by the number of shares of Common Stock outstanding on the ex-dividend
date for such distribution.  Notwithstanding anything to the contrary
contained in this subsection (c), if “M-F” in the above formula is less than
$1.00, the Company may elect to, and if “M-F” or is a negative number, the
Company shall, in lieu of the adjustment otherwise required by this subsection
(c), distribute to the holders of the Warrants, upon exercise thereof, the
evidences of indebtedness, assets, rights, options or warrants (or the proceeds
thereof) which would have been distributed to such holders had such Warrants
been exercised immediately prior to the record date for such distribution.

(d)

Adjustment
for Common Stock Issue.

If
the Company issues shares of Common Stock for a consideration per share less
than the Last Reported Sale Price per share on the date the Company fixes the
offering price of such additional shares, the number of shares of Common Stock
issuable upon exercise of each Warrant shall be adjusted in accordance with the
formula:

where:

N’
=

the
adjusted number of shares of Common Stock issuable upon exercise of each
Warrant.

N
=

the
current number of shares of Common Stock issuable upon exercise of each
Warrant.

O
=

the
number of shares outstanding immediately prior to the issuance of such
additional shares.

P
=

the
aggregate consideration received for the issuance of such additional shares.

M
=

the
Last Reported Sale Price per share on the date of issuance of such additional
shares.

10

 

A
=

the
number of shares outstanding immediately after the issuance of such additional
shares.

The
adjustment shall be made successively whenever any such issuance is made, and
shall become effective immediately after such issuance.

This
subsection (d) does not apply to:

(1)

any
of the transactions described in subsections (b) and (c) of this Section 11,

(2)

the
exercise of Warrants, or the conversion or exchange of other securities
convertible or exchangeable for Common Stock, or the issuance of Common Stock
upon the exercise of rights or warrants issued to the holders of Common
Stock,

(3)

Common
Stock (and options exercisable therefor) issued to the Company’s employees,
officers, directors, consultants or advisors (whether or not still in such
capacity on the date of exercise) under bona fide employee benefit plans or
stock option plans adopted by the Board of Directors of the Company and approved
by the holders of Common Stock when required by law, if such Common Stock would
otherwise be covered by this subsection (d),

(4)

Common
Stock issued in a bona fide public offering for cash,

(5)

Common
Stock issued in a bona fide private placement to non-affiliates of the Company,
including without limitation the issuance of equity as consideration or partial
consideration for acquisitions from persons that are not affiliates of the
Company.

(e)

Adjustment
for Convertible Securities Issue.

If
the Company issues any securities convertible into or exchangeable for Common
Stock (other than securities issued in transactions described in subsections (b)
and (c) of this Section 11) for a consideration per share of Common Stock
initially deliverable upon conversion or exchange of such securities less than
the Last Reported Sale Price per share on the date of issuance of such
securities, the number of shares of Common Stock issuable upon exercise of each
Warrant shall be adjusted in accordance with this formula:

where:

N’
=

the
adjusted number of shares of Common Stock issuable upon exercise of each
Warrant.

N
=

the
current number of shares of Common Stock issuable upon exercise of each
Warrant.

11

 

O
=

the
number of shares outstanding immediately prior to the issuance of such
securities.

P
=

the
aggregate consideration received for the issuance of such securities.

M
=

the
Last Reported Sale Price per share on the date of issuance of such
securities.

D
=

the
maximum number of shares deliverable upon conversion or in exchange for such
securities at the initial conversion or exchange rate.

The
adjustment shall be made successively whenever any such issuance is made, and
shall become effective immediately after such issuance.

If
all of the Common Stock deliverable upon conversion or exchange of such
securities have not been issued when such securities are no longer outstanding,
then the number of shares of Common Stock issuable upon exercise of each Warrant
shall promptly be readjusted to what it would have been had the adjustment upon
the issuance of such securities been made on the basis of the actual number of
shares of Common Stock issued upon conversion or exchange of such
securities.

This
subsection (e) does not apply to:

(1)

convertible
securities issued in a bona fide public offering for cash; or

(2)

convertible
securities issued in a bona fide private placement to non-affiliates of the
Company, including the issuance of convertible securities as consideration or
partial consideration for acquisitions from persons that are not affiliates of
the Company.

(f)

Adjustment
for Tender or Exchange Offer.  If the Company or any of its
subsidiaries makes a payment in respect of a tender offer or exchange offer for
the Common Stock, if the cash and value of any other consideration included in
the payment per share of the Common Stock exceeds the Last Reported Sale Price
of the Common Stock on the trading day next succeeding the last date on which
tenders or exchanges may be made pursuant to such tender or exchange offer, the
number of shares of Common Stock issuable upon exercise of each Warrant will be
increased based on the following formula:

where,

N’
= 

the
adjusted number of shares of Common Stock issuable upon exercise of each
Warrant;

No
=

the
current number of shares of Common Stock issuable upon exercise of each
warrant;

12

 

AC
=

the
aggregate value of all cash and any other consideration (as determined by the
Board of Directors of the Company) paid or payable for shares purchased in such
tender or exchange offer;

OSo
=

the
number of shares of Common Stock outstanding immediately prior to the date such
tender or exchange offer expires;

OS’
=

the
number of shares of Common Stock outstanding immediately after the date such
tender or exchange offer expires; and

SP’
=

the
Last Reported Sale Price of the Common Stock on the trading day next succeeding
the date such tender or exchange offer expires.

The
adjustment shall be made successively and shall become effective immediately
following the date such tender or exchange offer expires.

(g)

Consideration
Received.

For
purposes of any computation respecting consideration received pursuant to
subsections (d), (e) and (f) of this Section 11, the following shall apply:

(1)

in
the case of the issuance of shares of Common Stock for cash, the consideration
shall be the amount of such cash, provided that in no case shall any
deduction be made for any commissions, discounts or other expenses incurred by
the Company for any underwriting or other sale or disposition of the issue or
otherwise in connection therewith;

(2)

in
the case of the issuance of shares of Common Stock for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed to
be the fair market value thereof as reasonably determined by the Board of
Directors of the Company (irrespective of the accounting treatment thereof) and
described in a Board resolution which shall be filed with the Warrant Agent;
and

(3)

in
the case of the issuance of securities convertible into or exchangeable for
shares, the aggregate consideration received therefor shall be deemed to be the
consideration received by the Company for the issuance of such securities plus
the additional minimum consideration, if any, to be received by the Company upon
the conversion or exchange thereof for the maximum number of shares used to
calculate the adjustment  (the consideration in each case to be determined
in the same manner as provided in clauses (1) and (2) of this subsection).

(h)

Defined
Terms; When De Minimis Adjustment May Be Deferred.

As
used in this section 11:

(1)

“ex-dividend
date” means the first date on which the shares of Common Stock trade on the
applicable exchange or in the applicable market, regular way, without the right
to receive the issuance or distribution in question;

13

 

(2)

“trading
day” means, with respect to the Common Stock or any other security, a day during
which (i) trading in the Common Stock or such other security generally occurs,
(ii) there is no market disruption event (as defined below) and (iii) a Last
Reported Sale Price for the Common Stock or such other security (other than a
Last Reported Sale Price referred to in the next to last clause of such
definition) is available for such day; provided that if the Common Stock
or such other security is not admitted for trading or quotation on or by any
exchange, bureau or other organization, “trading day” will mean any Business
Day;

(3)

“market
disruption event” means, with respect to the Common Stock or any other security,
the occurrence or existence of more than one-half hour period in the aggregate
or any scheduled trading day for the Common Stock or such other security of any
suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in the Common
Stock or such other security or in any options, contract, or future contracts
relating to the Common Stock or such other security, and such suspension or
limitation occurs or exists at any time before 1:00 p.m. (New York time) on such
day; and

(4)

“Business
Day” means, any day on which Nasdaq is open for trading and which is not a
Saturday, a Sunday or any other day on which banks in the City of New York, New
York, are authorized or required by law to close.

No
adjustment in the number of shares of Common Stock issuable upon exercise of
each Warrant need be made unless the adjustment would require an increase or
decrease of at least 1% in such number.  Any adjustments that are not made
shall be carried forward and taken into account in any subsequent
adjustment.

All
calculations under this Section 11 shall be made to the nearest cent or to the
nearest 1/100th of a share, as the case may be.

(i)

When
No Adjustment Required.

No
adjustment need be made for a transaction referred to in subsections (b), (c),
(d), (e) or (f) of this Section 11 if Warrant holders are to participate,
without requiring the Warrants to be exercised, in the transaction on a basis
and with notice that the Board of Directors of the Company reasonably determines
to be fair and appropriate in light of the basis and notice on which holders of
Common Stock participate in the transaction.

No
adjustment need be made for a change in the par value or no par value of the
Common Stock.

To
the extent the Warrants become convertible into cash, no adjustment need be made
thereafter as to the amount of cash into which such Warrants are exercisable.
 Interest will not accrue on the cash.

(j)

Notice
of Adjustment.

14

 

Whenever
the number of shares of Common Stock issuable upon exercise of each Warrant is
adjusted, the Company shall provide the notices required by Section 13
hereof.

(k)

Notice
of Certain Transactions.

If:

(1)

the
Company takes any action that would require an adjustment in the Exercise Price
pursuant to subsections (a), (b), (c), (d), (e) or (f) of this Section 11 and if
the Company does not arrange for Warrant holders to participate pursuant to
subsection (i) of this Section 11;

(2)

the
Company takes any action that would require a supplemental Warrant Agreement
pursuant to subsection (l) of this Section 11; or

(3)

there
is a liquidation or dissolution of the Company,

the Company shall mail to Warrant holders a notice stating the
proposed record date for a dividend or distribution or the proposed effective
date of a subdivision, combination, reclassification, consolidation, merger,
transfer, lease, liquidation or dissolution.  The Company shall mail the
notice at least 15 days before such date.  Failure to mail the notice or
any defect in it shall not affect the validity of the transaction.

(l)

Reorganization
of Company.

If
the Company consolidates or merges with or into, or transfers or leases all or
substantially all its assets to, any person, upon consummation of such
transaction the Warrants shall automatically become exercisable for the kind and
amount of securities, cash or other assets which the holder of a Warrant would
have owned immediately after the consolidation, merger, transfer or lease if
such holder had exercised the Warrant immediately before the effective date of
the transaction; provided that (i) if the holders of Common Stock were
entitled to exercise a right of election as to the kind or amount of securities,
cash or other assets receivable upon such consolidation or merger, then the kind
and amount of securities, cash or other assets for which each Warrant shall
become exercisable shall be deemed to be the weighted average of the kind and
amount received per share by the holders of Common Stock in such consolidation
or merger that affirmatively make such election or (ii) if a tender or exchange
offer shall have been made to and accepted by the holders of Common Stock under
circumstances in which, upon completion of such tender or exchange offer, the
maker thereof, together with members of any group (within the meaning of Rule
13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of which such maker is a part, and together with any
affiliate or associate of such maker (within the meaning of Rule 12b-2 under the
Exchange Act) and any members of any such group of which any such affiliate or
associate is a part, own beneficially (within the meaning of Rule 13d-3 under
the Exchange Act) more than 50% of the outstanding shares of Common Stock, the
holder of a Warrant shall be entitled to receive the highest amount of cash,
securities or other property to which such holder would actually have been
entitled as a shareholder if such Warrant holder had exercised the Warrant prior
to the expiration of such tender or exchange offer, accepted such offer and all
of the Common Stock held by such holder had been purchased pursuant to such
tender or exchange offer, subject to adjustments (from and 

15

 

after
the consummation of such tender or exchange offer) as nearly equivalent as
possible to the adjustments provided for in this Section 11.  Concurrently
with the consummation of any such transaction, the corporation or other entity
formed by or surviving any such consolidation or merger if other than the
Company, or the person to which such sale or conveyance shall have been made,
shall enter into a supplemental Warrant Agreement so providing and further
providing for adjustments which shall be as nearly equivalent as may be
practical to the adjustments provided for in this Section.  The successor
Company shall mail to Warrant holders a notice describing the supplemental
Warrant Agreement.

If
the issuer of securities deliverable upon exercise of Warrants under the
supplemental Warrant Agreement is an affiliate of the formed, surviving,
transferee or lessee corporation, that issuer shall join in the supplemental
Warrant Agreement.

If
this subsection (l) applies, subsections (a), (b), (c), (d), (e) and (f) of this
Section 11 do not apply.

(m)

Warrant
Agent’s Disclaimer.

The
Warrant Agent has no duty to determine when an adjustment under this Section 11
should be made, how it should be made or what it should be.  The Warrant
Agent has no duty to determine whether any provisions of a supplemental Warrant
Agreement under subsection (l) of this Section 11 are correct.  The Warrant
Agent makes no representation as to the validity or value of any securities or
assets issued upon exercise of Warrants.  The Warrant Agent shall not be
responsible for the Company’s failure to comply with this Section.

(n)

When
Issuance May Be Deferred.

In
any case in which this Section 11 shall require that an adjustment in the number
of shares of Common Stock issuable upon exercise of each Warrant be made
effective as of a record date for a specified event, the Company may elect to
defer until the occurrence of such event issuing to the holder of any Warrant
exercised after such record date the Warrant Shares and other capital stock of
the Company, if any, issuable upon such exercise over and above the Warrant
Shares and other capital stock of the Company, if any, issuable upon such
exercise on the basis of the number of shares of Common Stock issuable upon
exercise of each Warrant; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional Warrant Shares and
other capital stock upon the occurrence of the event requiring such
adjustment.

(o)

Adjustment
in Exercise Price.

Upon
each event that provides for an adjustment of the number of shares of Common
Stock issuable upon exercise of each Warrant pursuant to this Section 11, each
Warrant outstanding prior to the making of the adjustment shall thereafter have
an adjusted Exercise Price (calculated to the nearest ten millionth) obtained
from the following formula:

16

 

where:

E’
=

the
adjusted Exercise Price.

E
=

the
Exercise Price prior to adjustment.

N’
=

the
adjusted number of Warrant Shares issuable upon exercise of a Warrant by payment
of the adjusted Exercise Price.

N
=

the
number of Warrant Shares previously issuable upon exercise of a Warrant by
payment of the Exercise Price prior to adjustment.

Following
any adjustment to the Exercise Price pursuant to this Section 11, the amount
payable, when adjusted and together with any consideration allocated to the
issuance of the Warrants, shall never be less than the par value per Warrant
Share at the time of such adjustment.  Such adjustment shall be made
successively whenever any event listed above shall occur.

(p)

Form
of Warrants.

Irrespective
of any adjustments in the number or kind of shares issuable upon the exercise of
the Warrants or the Exercise Price, Warrants theretofore or thereafter issued
may continue to express the same number and kind of shares and Exercise Price as
are stated in the Warrants initially issuable pursuant to this Agreement.

SECTION
12.  Fractional Interests.  The Company shall not be
required to issue fractional Warrant Shares on the exercise of Warrants.
 If more than one Warrant shall be presented for exercise in full at the
same time by the same holder, the number of full Warrant Shares which shall be
issuable upon the exercise thereof shall be computed on the basis of the
aggregate number of Warrant Shares purchasable on exercise of the Warrants so
presented.  If any fraction of a Warrant Share would, except for the
provisions of this Section 12, be issuable on the exercise of any Warrants (or
specified portion thereof), the Company shall, upon such exercise, round up to
the nearest whole number of number of Warrant Shares to be issued to the Warrant
holder.

SECTION
13.  Notices to Warrant Holders.  Upon any adjustment of
the Exercise Price pursuant to Section 11, the Company shall promptly
thereafter, and in any event within five days, (i) cause to be filed with the
Warrant Agent a certificate executed by the Chief Financial Officer or principal
financial officer of the Company setting forth the number of Warrant Shares
issuable upon exercise of each Warrant after such adjustment and setting forth
in reasonable detail the method of calculation and the facts upon which such
calculations are based, and (ii) cause to be given to each of the registered
holders of the Warrant Certificates at his address appearing on the Warrant
register written notice of such adjustments by first-class mail, postage
prepaid.  Where appropriate, such notice may be given in advance and
included as a part of the notice required to be mailed under the other
provisions of this Section 13.  The Warrant Agent shall be fully protected
in relying on any such certificate and on any adjustment therein contained and
shall not be deemed to have knowledge of such adjustment unless and until it
shall have received such certificate.

17

 

In
case:

(a)

the
Company shall authorize the issuance to all holders of shares of Common Stock of
rights, options or warrants to subscribe for or purchase shares of Common Stock
or of any other subscription rights or warrants; or

(b)

the
Company shall authorize the distribution to all holders of shares of Common
Stock of evidences of its indebtedness or assets (other than regular cash
dividends or dividends payable in shares of Common Stock or distributions
referred to in subsection (b) of Section 11 hereof); or

(c)

of
any consolidation or merger to which the Company is a party and for which
approval of any shareholders of the Company is required, or of the conveyance or
transfer of the properties and assets of the Company substantially as an
entirety, or of any reclassification or change of Common Stock issuable upon
exercise of the Warrants (other than a change in par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision
or combination), or a tender offer or exchange offer for shares of Common Stock;
or

(d)

of
the voluntary or involuntary dissolution, liquidation or winding up of the
Company; or

(e)

the
Company proposes to take any action not specified above which would require an
adjustment of the Exercise Price pursuant to Section 11 hereof;

then
the Company shall cause to be filed with the Warrant Agent and shall cause to be
given to each of the registered holders of the Warrant Certificates at his
address appearing on the Warrant register, at least 10 calendar days prior to
the applicable record date hereinafter specified, or as promptly as practicable
under the circumstances in the case of events for which there is no record date,
by first-class mail, postage prepaid, a written notice stating (i) the date as
of which the holders of record of shares of Common Stock to be entitled to
receive any such rights, options, warrants or distribution are to be determined,
or (ii) the initial expiration date set forth in any tender offer or exchange
offer for shares of Common Stock, or (iii) the date on which any such
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding
up is expected to become effective or consummated, and the date as of which it
is expected that holders of record of shares of Common Stock shall be entitled
to exchange such shares for securities or other property, if any, deliverable
upon such reclassification, consolidation, merger, conveyance, transfer,
dissolution, liquidation or winding up.  The failure to give the notice
required by this Section 13 or any defect therein shall not affect the legality
or validity of any distribution, right, option, warrant, consolidation, merger,
conveyance, transfer, dissolution, liquidation or winding up, or the vote upon
any action.

Nothing
contained in this Agreement or in any of the Warrant Certificates shall be
construed as conferring upon the holders thereof the right to vote or to consent
or to receive notice as shareholders in respect of the meetings of shareholders
or the election of Directors of the Company or any other matter, or any rights
whatsoever as shareholders of the Company.

SECTION
14.  Merger, Consolidation or Change of Name of Warrant Agent.
 Any corporation into which the Warrant Agent may be merged or with which
it may be consolidated, 

18

 

or
any corporation resulting from any merger or consolidation to which the Warrant
Agent shall be a party, or any corporation succeeding to all or substantially
all the corporate trust or agency business of the Warrant Agent, shall be the
successor to the Warrant Agent hereunder without the execution or filing of any
paper or any further act on the part of any of the parties hereto,
provided that such corporation would be eligible for appointment as a
successor warrant agent under the provisions of Section 16.  In case at the
time such successor to the Warrant Agent shall succeed to the agency created by
this Agreement, and in case at that time any of the Warrant Certificates shall
have been countersigned but not delivered, any such successor to the Warrant
Agent may adopt the countersignature of the original Warrant Agent; and in case
at that time any of the Warrant Certificates shall not have been countersigned,
any successor to the Warrant Agent may countersign such Warrant Certificates
either in the name of the predecessor Warrant Agent or in the name of the
successor to the Warrant Agent; and in all such cases such Warrant Certificates
shall have the full force and effect provided in the Warrant Certificates and in
this Agreement.

In
case at any time the name of the Warrant Agent shall be changed and at such time
any of the Warrant Certificates shall have been countersigned but not delivered,
the Warrant Agent whose name has been changed may adopt the countersignature
under its prior name, and in case at that time any of the Warrant Certificates
shall not have been countersigned, the Warrant Agent may countersign such
Warrant Certificates either in its prior name or in its changed name, and in all
such cases such Warrant Certificates shall have the full force and effect
provided in the Warrant Certificates and in this Agreement.

SECTION
15.  Warrant Agent.  The Warrant Agent undertakes the
duties and obligations imposed by this Agreement (and no implied duties or
obligations shall be read into this Agreement against the Warrant Agent) upon
the following terms and conditions, by all of which the Company and the holders
of Warrants, by their acceptance thereof, shall be bound:

(a)

The
statements contained herein and in the Warrant Certificates shall be taken as
statements of the Company and the Warrant Agent assumes no responsibility for
the correctness of any of the same except such as describe the Warrant Agent or
action taken or to be taken by it.  The Warrant Agent assumes no
responsibility with respect to the distribution of the Warrant Certificates
except as herein otherwise provided.

(b)

The
Warrant Agent shall not be responsible for any failure of the Company to comply
with any of the covenants contained in this Agreement or in the Warrant
Certificates to be complied with by the Company.

(c)

The
Warrant Agent may consult at any time with counsel of its own selection (who may
be counsel for the Company) and the Warrant Agent shall incur no liability or
responsibility to the Company or to any holder of any Warrant Certificate in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with the opinion or the advice of such counsel.  The
Warrant Agent may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or through agents or attorneys and the Warrant
Agent shall not be responsible for any misconduct or negligence on the part of
any agent or attorney appointed with due care by it hereunder.

19

 

(d)

The
Warrant Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Warrant Agent and conforming to the requirements of this
Agreement.  The Warrant Agent shall incur no liability or responsibility to
the Company or to any holder of any Warrant Certificate for any action taken in
reliance on any Warrant Certificate, certificate of shares, notice, resolution,
waiver, consent, order, certificate, or other paper, document or instrument
(whether in its original or facsimile form) believed by it to be genuine and to
have been signed, sent or presented by the proper party or parties.

(e)

The
Company agrees to pay to the Warrant Agent such compensation for all services
rendered by the Warrant Agent in the administration and execution of this
Agreement as the Company and the Warrant Agent shall agree in writing and to
reimburse the Warrant Agent for all expenses, taxes and governmental charges and
other charges of any kind and nature incurred by the Warrant Agent in the
execution of this Agreement (including reasonable fees and expenses of its
outside counsel) and to indemnify the Warrant Agent (and any predecessor Warrant
Agent) and save it harmless against any and all claims (whether asserted by the
Company, a holder or any other person), damages, losses, expenses (including
taxes other than taxes based on the income of the Warrant Agent), liabilities,
including judgments, costs and reasonable outside counsel fees and expenses, for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of its negligence or willful misconduct.  The provisions
of this Section 15(e) shall survive the expiration of the Warrants and the
termination of this Agreement.

(f)

The
Warrant Agent shall be under no obligation to institute any action, suit or
legal proceeding or to take any other action likely to involve expense unless
the Company or one or more registered holders of Warrant Certificates shall
furnish the Warrant Agent with security and indemnity satisfactory to it for any
costs and expenses which may be incurred, but this provision shall not affect
the power of the Warrant Agent to take such action as it may consider proper,
whether with or without any such security or indemnity.  All rights of
action under this Agreement or under any of the Warrants may be enforced by the
Warrant Agent without the possession of any of the Warrant Certificates or the
production thereof at any trial or other proceeding relative thereto, and any
such action, suit or proceeding instituted by the Warrant Agent shall be brought
in its name as Warrant Agent and any recovery of judgment shall be for the
ratable benefit of the registered holders of the Warrants, as their respective
rights or interests may appear.

(g)

The
Warrant Agent, and any stockholder, director, officer or employee of it, may
buy, sell or deal in any of the Warrants or other securities of the Company or
become pecuniarily interested in any transaction in which the Company may be
interested, or contract with or lend money to the Company or otherwise act as
fully and freely as though it were not Warrant Agent under this Agreement,
subject to compliance with applicable laws.  Nothing herein shall preclude
the Warrant Agent from acting in any other capacity for the Company or for any
other legal entity.

(h)

The
Warrant Agent shall act hereunder solely as agent for the Company, and its
duties shall be determined solely by the provisions hereof.  The Warrant
Agent shall not be liable for anything that it may do or refrain from doing in
connection with this Agreement 

20

 

except
for its own negligence or willful misconduct.  Notwithstanding anything in
this Agreement to the contrary, in no event shall the Warrant Agent be liable
for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Warrant
Agent has been advised of the likelihood of the loss or damage and regardless of
the form of the action.

(i)

The
Warrant Agent shall not at any time be under any duty or responsibility to any
holder of any Warrant Certificate to make or cause to be made any adjustment of
the Exercise Price or number of the Warrant Shares or other securities or
property deliverable as provided in this Agreement, or to determine whether any
facts exist which may require any of such adjustments, or with respect to the
nature or extent of any such adjustments, when made, or with respect to the
method employed in making the same.  The Warrant Agent shall not be
accountable with respect to the validity or value or the kind or amount of any
Warrant Shares or of any securities or property which may at any time be issued
or delivered upon the exercise of any Warrant or with respect to whether any
such Warrant Shares or other securities will when issued be validly issued and
fully paid and nonassessable, and makes no representation with respect
thereto.

(j)

Notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Warrant
Agent shall have any liability to any holder of a Warrant Certificate or other
Person as a result of its inability to perform any of its obligations under this
Agreement by reason of any preliminary or permanent injunction or other order,
decree or ruling issued by a court of competent jurisdiction or by a
governmental, regulatory or administrative agency or commission, or any statute,
rule, regulation or executive order promulgated or enacted by any governmental
authority prohibiting or otherwise restraining performance of such obligation;
provided that (i) the Company must use its reasonable best efforts to
have any such order, decree or ruling lifted or otherwise overturned as soon as
possible and (ii) nothing in this Section 15(j) shall affect the Company’s
obligation under Section 6(e) to use its best efforts to have a registration
statement in effect covering the Warrant Shares issuable upon exercise of the
Warrants and to maintain a current prospectus relating to those Warrant
Shares.

(k)

Any
application by the Warrant Agent for written instructions from the Company may,
at the option of the Warrant Agent, set forth in writing any action proposed to
be taken or omitted by the Warrant Agent under this Agreement and the date on
and/or after which such action shall be taken or such omission shall be
effective.  The Warrant Agent shall not be liable for any action taken by,
or omission of, the Warrant Agent in accordance with a proposal included in such
application on or after the date specified in such application (which date shall
not be less than three Business Days after the date any officer of the Company
actually receives such application, unless any such officer shall have consented
in writing to any earlier date) unless prior to taking any such action (or the
effective date in the case of an omission), the Warrant Agent shall have
received written instructions in response to such application specifying the
action to be taken or omitted.

(l)

No
provision of this Agreement shall require the Warrant Agent to expend or risk
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder or in the exercise of its rights.

21

 

(m)

In
addition to the foregoing, the Warrant Agent shall be protected and shall incur
no liability for, or in respect of, any action taken or omitted by it in
connection with its administration of this Agreement if such acts or omissions
are not the result of the Warrant Agent’s reckless disregard of its duty, gross
negligence or willful misconduct and are in reliance upon (i) the proper
execution of the certification concerning beneficial ownership appended to the
form of assignment and the form of the election attached hereto unless the
Warrant Agent shall have actual knowledge that, as executed, such certification
is untrue, or (ii) the non-execution of such certification including, without
limitation, any refusal to honor any otherwise permissible assignment or
election by reason of such non-execution.

SECTION
16.  Change of Warrant Agent.  The Warrant Agent may at any
time resign as Warrant Agent upon written notice to the Company.  If the
Warrant Agent shall become incapable of acting as Warrant Agent, the Company
shall appoint a successor to such Warrant Agent.  If the Company shall fail
to make such appointment within a period of 30 days after it has been notified
in writing of such resignation or of such incapacity by the Warrant Agent or by
the registered holder of a Warrant Certificate, then the registered holder of
any Warrant Certificate or the Warrant Agent may apply, at the expense of the
Company, to any court of competent jurisdiction for the appointment of a
successor to the Warrant Agent.  Pending appointment of a successor to such
Warrant Agent, either by the Company or by such a court, the duties of the
Warrant Agent shall be carried out by the Company.  The holders of a
majority of the unexercised Warrants shall be entitled at any time to remove the
Warrant Agent and appoint a successor to such Warrant Agent.  If a
Successor Warrant Agent shall not have been appointed within 30 days of such
removal, the Warrant Agent may apply, at the expense of the Company, to any
court of competent jurisdiction for the appointment of a successor to the
Warrant Agent.  Such successor to the Warrant Agent need not be approved by
the Company or the former Warrant Agent.  After appointment the successor
to the Warrant Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Warrant Agent without
further act or deed; but the former Warrant Agent upon payment of all fees and
expenses due it and its agents and counsel shall deliver and transfer to the
successor to the Warrant Agent any property at the time held by it hereunder and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose.  Failure to give any notice provided for in this Section 16,
however, or any defect therein, shall not affect the legality or validity of the
appointment of a successor to the Warrant Agent.

SECTION
17.  Notices to Company and Warrant Agent.  Any notice or
demand authorized by this Agreement to be given or made by the Warrant Agent or
by the registered holder of any Warrant Certificate to or on the Company shall
be sufficiently given or made when and if deposited in the mail, first class or
registered, postage prepaid, addressed (until another address is filed in
writing by the Company with the Warrant Agent), as follows:

Iridium
Communications Inc.
6707 Democracy Boulevard, Suite 300
Bethesda, Maryland
20817
Fax No.: (301) 571-6250
Attention: General Counsel

22

 

In
case the Company shall fail to maintain such office or agency or shall fail to
give such notice of the location or of any change in the location thereof,
presentations may be made and notices and demands may be served at the principal
corporate trust office of the Warrant Agent.

Any
notice pursuant to this Agreement to be given by the Company or by the
registered holder(s) of any Warrant Certificate to the Warrant Agent shall be
sufficiently given when and if deposited in the mail, first-class or registered,
postage prepaid, addressed (until another address is filed in writing by the
Warrant Agent with the Company) to the Warrant Agent as follows:

American
Stock Transfer & Trust Company 
59 Maiden Lane, Plaza Level
New York,
New York 10038
Attention: Compliance Department

SECTION
18.  Supplements and Amendments.  The Company and the
Warrant Agent may from time to time supplement or amend this Agreement without
the approval of any holders of Warrant Certificates in order to cure any
ambiguity or to correct or supplement any provision contained herein which may
be defective or inconsistent with any other provision herein, or to make any
other provisions in regard to matters or questions arising hereunder which the
Company and the Warrant Agent may deem necessary or desirable and which shall
not in any way adversely affect the interests of the holders of Warrant
Certificates theretofore issued.  Upon the delivery of a certificate from
an appropriate officer of the Company that states that the proposed supplement
or amendment is in compliance with the terms of this Section 18, the Warrant
Agent shall execute such supplement or amendment.  Notwithstanding anything
in this Agreement to the contrary, the prior written consent of the Warrant
Agent must be obtained in connection with any supplement or amendment that
alters the rights or duties of the Warrant Agent.  Subject to the following
sentence, the Company and the Warrant Agent may amend any provision herein with
the consent of the holders of Warrants exercisable for a majority of the Warrant
Shares issuable on exercise of all outstanding Warrants that would be affected
by such amendment. However, without the written consent of each holder of
Warrants affected, an amendment or supplement may not:

(a)

increase
the Exercise Price except as contemplated herein or reduce the Warrant Exercise
Period;

(b)

modify
the Company’s right to call the Warrants for redemption, in whole, as
contemplated by Section 6(b), including the provisions related to cashless
exercise;

(c)

modify
the Company’s obligation to use its best efforts to have a registration
statement in effect covering Warrant Shares issuable upon exercise of the
Warrants from the date the Warrants become exercisable and to maintain a current
prospectus relating to those Warrant Shares until the Warrants expire or are
redeemed;

(d)

reduce
the number of Warrant Shares issuable upon the exercise of a Warrant except as
contemplated by Section 11; 

(e)

change
the currency of the Exercise Price in respect of any Warrant; or 

23

 

(f)

make
any change in the supplement and amendment provisions of this Section 18 which
require each holder’s consent.

SECTION
19.  Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns
hereunder.

SECTION
20.  Termination.  This Agreement will terminate on
February 14, 2015, or on any earlier date if all Warrants have been exercised or
expired without exercise.  The provisions of Section 15 hereof shall
survive such termination.

SECTION
21.  Governing Law.  This Agreement and each Warrant
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of New York and for all purposes shall be construed in
accordance with the internal laws of said State.  The parties agree that,
all actions and proceedings arising out of this Agreement or any of the
transactions contemplated hereby, shall be brought in the United States District
Court for the Southern District of New York or in a New York State Court in the
County of New York and that, in connection with any such action or proceeding,
submit to the jurisdiction of, and venue in, such court.  Each of the
parties hereto also irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim arising out of this Agreement or the transactions
contemplated hereby.

SECTION
22.  Benefits of This Agreement.  Nothing in this Agreement
shall be construed to give to any person or corporation other than the Company,
the Warrant Agent and the registered holders of the Warrant Certificates any
legal or equitable right, remedy or claim under this Agreement, and this
Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent and the registered holders of the Warrant Certificates.

SECTION
23.  Counterparts.  This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

SECTION
24.  Force Majeure.  In no event shall the Warrant Agent be
responsible or liable for any failure or delay in the performance of its
obligations under this Agreement arising out of or caused by, directly or
indirectly, forces beyond its reasonable control, including without limitation
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, communications or computer (software or
hardware) services.

[Remainder of Page Intentionally Left Blank]

24

 

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

					
	
 
	
IRIDIUM
COMMUNICATIONS INC.

	
 
	

	
 
	
By:
	
 /s/
 John
Brunette                                   

	
 
	
 
	
Name:
	
John
Brunette

	
 
	
 
	
Title:
	
Chief Legal and
Administrative Officer

					
	
 
	
AMERICAN STOCK
TRANSFER & TRUST COMPANY, as Warrant Agent

	
 
	

	
 
	
By:
	
 /s/
 Felix
Orihuela                                  

	
 
	
 
	
Name:
	
Felix
Orihuela

	
 
	
 
	
Title:
	
Vice
President

(Signature page of Warrant Agreement)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]