Document:

EX-4.3

 

EXHIBIT 4.3

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER SUCH ACT OR THE ISSUER
RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE
ISSUER, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACTS.

BTHC VI, INC.

FORM OF WARRANT

	 	 	 
	Warrant No. [___]

	 	Dated: [______], 2007

     BTHC VI, Inc., a Delaware corporation (the “Company”), hereby certifies that, for value
received, ___[Name of Holder] or its registered assigns (the “Holder”), is entitled to
purchase from the Company up to a total of [___]1 shares of common stock, $0.001 par
value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all
such shares issuable under the warrants, the “Warrant Shares”) at an exercise price equal to $6.00
per share (as adjusted from time to time as provided in Section 9, the “Exercise Price”), at any
time and from the date hereof and through and including the date that is five (5) years from the
date of issuance hereof (the “Expiration Date”), and subject to the following terms and conditions.
This Warrant (“Warrant”) is one of a series of similar warrants issued pursuant to that certain
Placement Agency Agreement, dated as of April 19, 2007, by and among the Company, Athersys, Inc.,
and Cowen and Company, LLC and National Securities Corporation, as placement agents (the “Placement
Agency Agreement”). All such warrants are referred to herein, collectively, as the “Warrants” and
the holders thereof along with the Holder named herein, the “Holders.”

     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 Placement Agency Agreement.

     2. Registration of Warrant. 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 hereof 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. Registration of Transfers. The Company shall register the transfer of any portion
of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of

 

			
	1	 	8.5% warrant coverage

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Assignment attached hereto duly completed and signed, to the Transfer Agent or to the Company
at its address specified herein. 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 of a holder
of a Warrant.

     4. Exercise and Duration of Warrants.

          (a) This Warrant shall be exercisable by the registered Holder at any time and from time to
time on or after the date hereof to and including the Expiration Date. At 6:30 P.M., New York City
time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and
become void and of no value; provided that, if the average of the Closing Prices for the five
Trading Days immediately prior to (but not including) the Expiration Date exceeds the Exercise
Price on the Expiration Date, provided further that, if on the Expiration Date, there is no
effective Registration Statement covering the resale of the Warrant Shares, or no current
prospectus under such Registration Statement is available, then this Warrant shall be deemed to
have been exercised in full (to the extent not previously exercised) on a “cashless exercise” basis
at 6:30 P.M. New York City time on the Expiration Date. A “cashless exercise” means that in lieu
of paying the aggregate purchase price for the shares being purchased upon exercise of the Warrants
in cash, the Holder will forfeit a number of shares underlying the Warrants pursuant to Section
10 below.

          (b) A Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in
the form attached hereto (the “Exercise Notice”), appropriately 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 (which may take the form of a “cashless exercise” if so indicated in the Exercise Notice
pursuant to Section 10 below), and the date such items are delivered to the Company (as determined
in accordance with the notice provisions hereof) is an “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.

          (c) Exercise Disputes. In the case of any dispute with respect to the number of
shares to be issued upon exercise of this Warrant, the Company shall promptly issue such number of
shares of Common Stock that is not disputed and shall submit the disputed determinations or
arithmetic calculations to the Holder via facsimile within two (2) Business Days of receipt of the
Holder’s election to purchase Warrant Shares. If the Holder and the Company are unable to agree as
to the determination of the Purchase Price within two (2) Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall in
accordance with this Section, submit via facsimile the disputed determination to an independent
reputable accounting firm of national standing, selected jointly by the Company and the Holder.
The Company shall cause such accounting firm to perform the determinations or calculations and
notify the Company and the Holder of the

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results within forty-eight (48) hours from the time it receives the disputed determinations of
calculations. Such accounting firm’s determination shall be binding upon all parties absent
manifest error. The Company shall then on the next Business Day issue certificate(s) representing
the appropriate number of Warrant Shares of Common Stock in accordance with such accounting firm’s
determination and this Section. The prevailing party shall be entitled to reimbursement of all
fees and expenses of such determination and calculation.

     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, 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 and the Warrant Shares are not freely
transferable without volume restrictions pursuant to Rule 144 under the Securities Act of 1933, as
amended. The Holder, or any Person so designated by the Holder to receive Warrant Shares, shall be
deemed to have become holder of record of such Warrant Shares as of the Exercise Date. The Company
shall, upon request of the Holder, use its best efforts to deliver Warrant Shares hereunder
electronically through the Depository Trust Corporation or another established clearing corporation
performing similar functions.

          (b) This Warrant is exercisable, either in its entirety or, from time to time, for a portion
of the number of Warrant Shares. Upon surrender of this Warrant following one or more partial
exercises, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing
the right to purchase the remaining number of Warrant Shares.

          (c) In addition to any other rights available to a Holder, if the Company fails to deliver to
the Holder a certificate representing Warrant Shares by the third Trading Day after the date on
which delivery of such certificate is required by this Warrant, and if after such third Trading Day
the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Shares that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s
request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such
certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation
to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash
to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock, times (B) the Closing Price on the date of the event giving
rise to the Company’s obligation to deliver such certificate.

          (d) 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

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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 bond or indemnity, 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.

     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, 100% of 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 (after giving effect to the
adjustments and restrictions of Section 9, if any). 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. The Company will take all such action as may be necessary to assure that such
shares of Common Stock may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any securities exchange or automated quotation system upon
which the Common Stock may be listed.

     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.

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          (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) Distributions Made Prior to Exercise. If the Company, at any time while this
Warrant is outstanding, distributes to holders of Common Stock (i) evidences of its indebtedness,
(ii) any security (other than a distribution of Common Stock covered by Section 9(a)), (iii) rights
or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case, a
“Distribution”), then in each such case any Exercise Price in effect immediately prior to the close
of business on the record date fixed for the determination of holders of Common Stock entitled to
receive the Distribution shall be reduced, effective as of the close of business on such record
date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the
numerator shall be the Weighted Average Price2 of the Common Stock on the Trading Day
immediately preceding such record date minus the value of the Distribution (as determined in good
faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the
denominator shall be the Weighted Average Price of the Common Stock on the Trading Day immediately
preceding such record date.

          (c) Notwithstanding the provisions set forth in Section 9(b) above, if the Company, at
any time while this Warrant is outstanding, makes a Distribution to the holders of Common Stock,
then in each such case the Holder shall have the option to receive such Distribution which would
have been made to the Holder had such Holder been the holder of such Warrant Shares on the record
date for the determination of stockholders entitled to such Distribution; provided, however, if the
Holder elects to receive such Distribution, it will not be entitled to receive the adjustment to
the Exercise Price specified in clause (b) above.

 

			
	2	 	“ Weighted Average Price”
means, for any security as of any date, the dollar volume-weighted average
price for such security on NASDAQ during the period beginning at 9:30:01 a.m.,
New York Time (or such other time as NASDAQ publicly announces is the official
open of trading), and ending at 4:00:00 p.m., New York Time (or such other time
as NASDAQ publicly announces is the official close of trading) as reported by
Bloomberg (means Bloomberg Financial Markets) through its “Volume at
Price” functions, or, if the foregoing does not apply, the dollar
volume-weighted average price of such security in the over-the-counter market
on the electronic bulletin board for such security during the period beginning
at 9:30:01 a.m., New York Time (or such other time as such Principal Market
publicly announces is the official open of trading), and ending at 4:00:00
p.m., New York Time (or such other time as such market publicly announces is
the official close of trading) as reported by Bloomberg, if no dollar
volume-weighted average price is reported for such security by Bloomberg for
such hours, the average of the highest closing bid price and the lowest closing
ask price of any of the market makers for such security as reported in the
“pink sheets” by Pink Sheets LLC (formerly the National Quotation
Bureau, Inc.). If the Weighted Average Price cannot be calculated for a
security on a particular date on any of the foregoing bases, the Weighted
Average Price of such security on such date shall be the fair market value as
mutually determined by the Company in good faith. All such determinations
shall be appropriately adjusted for any share dividend, share split, share
combination or other similar transaction during the applicable calculation
period.

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          (d) 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 (whether or not the
Company is the surviving corporation) another Person, (ii) the Company effects any sale,
assignment, transfer, conveyance or other disposition of all or substantially all of its assets in
one or a series of related transactions; provided, however, that for avoidance of doubt, the
granting of a lien on all or substantially all of the Company’s assets as collateral shall not be
deemed a Fundamental Transaction hereunder, (iii) the Company allows another Person to make a
purchase, tender or exchange offer that is accepted by the holders of more than the 50% of either
the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person
or Persons making or party to, or associated or affiliated with the Persons making or party to,
such purchase, tender or exchange offer), (iv) the Company consummates a stock purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than
the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by
the other Person or other Persons making or party to, or associated or affiliated with the other
Persons making or party to, such stock purchase agreement or other business combination), or (v)
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 (other than as a result of a subdivision or combination of shares of Common Stock
covered by Section 9(a) above) (in any such case, a “Fundamental Transaction”), then the
Company shall use its reasonable best efforts to ensure that lawful and adequate provision shall be
made whereby each Holder shall thereafter continue to have the right to purchase and receive upon
the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares
issuable upon exercise of the Warrants held by such Holder, shares of capital stock or similar
equity interests (“Acquirer Shares”) in the surviving or acquiring entity (“Acquirer”), as the case
may be, such that the aggregate value of the Holder’s warrants to purchase such number of Acquirer
Shares, where the value of each new warrant to purchase one Acquirer Share is determined in
accordance with the Black-Scholes Option Pricing formula set forth in Exhibit A hereto, is
equivalent to the aggregate value of the Warrants held by such Holder, where the value of each
Warrant to purchase one share in the Company is determined in accordance with the Black-Scholes
Option Pricing formula set forth Exhibit B hereto. Furthermore, the new warrants to purchase
Acquirer Shares referred to herein shall have the same expiration date as the Warrants, and shall
have a strike price, KAcq, that is calculated in accordance with Exhibit A hereto. Moreover,
appropriate provision shall be made with respect to the rights and interests of each Holder to the
end that the provisions hereof (including, without limitation, provision for adjustment of the
Exercise Price) shall thereafter be applicable, as nearly equivalent as may be practicable in
relation to any Acquirer Shares thereafter deliverable upon the exercise thereof. The provisions
of this Section 9(d) shall similarly apply to successive Fundamental Transactions. If the
Company, in spite of using its reasonable best efforts, is unable to cause these Warrants to
continue in full force and effect until the Expiration Date in connection with any Fundamental
Transaction, then the Company shall pay the Holders in cash an amount per Warrant to purchase one
share of Common Stock in the Company that is calculated in accordance with the Black-Scholes Option
Pricing formula set forth in Exhibit B hereto.

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

          (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 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 the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common Stock, including
without limitation any granting of rights or warrants to subscribe for or purchase any capital
stock of the Company or any Subsidiary, (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 the
Company shall deliver to the Holder a notice describing the material terms and conditions of such
transaction, at least ten calendar days prior to the applicable record or effective date on which a
Person would need to hold Common Stock in order to participate in or vote with respect to such
transaction, and the Company will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to exercise this Warrant prior to such time so as to
participate in or vote with respect to such transaction; 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 shall either (i) pay the Exercise Price in
immediately available funds (a “cash exercise”), or (ii) satisfy its obligation to pay the Exercise
Price through a “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

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	 	Warrant is being exercised (prior to cashless exercise).
	 
	 	 
	 

	 	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.

          For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the Purchase Agreement.

     11. Fractional Shares. The Company shall not be required to issue or cause to be
issued fractional Warrant Shares on the exercise of this Warrant. If any fraction of a Warrant
Share would, except for the provisions of this Section, be issuable upon exercise of this Warrant,
the number of Warrant Shares to be issued will be rounded up to the nearest whole share.

     12. 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 the Purchase Agreement prior to 6:30
p.m. (New York City 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 the Purchase Agreement on a day that is not a Trading Day or later than 6:30 p.m. (New
York City 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 address for such notices or communications shall be as
set forth in the Placement Agency Agreement.

     13. 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
stockholders 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.

     14. Registration of Warrant Shares. The Warrant Shares shall be entitled to
registration rights pursuant to that certain Securities Purchase Agreement, dated as of June [_],
2007, by and among the Company, Athersys, Inc. and the investors listed on the Schedule of
Investors attached thereto.

     15. Miscellaneous.

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          (a) Subject to the restrictions on transfer set forth on the first page hereof, this Warrant
may be assigned by the Holder. This Warrant may not be assigned by the Company, except to a
successor in the event of a Fundamental Transaction. 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.

          (b) The Company will not, by amendment of its governing documents or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, seek to call or redeem this Warrant or avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Holder against dilution or other
impairment. Without limiting the generality of the foregoing, the Company (i) will not increase
the par value of any Warrant Shares above the amount payable therefor on such exercise, (ii) will
take all such action as may be reasonably necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares, free from all taxes, liens,
security interests, encumbrances, preemptive or similar rights and charges of stockholders (other
than those imposed by the Investors), on the exercise of the Warrant, and (iii) will not close its
stockholder books or records in any manner which interferes with the timely exercise of this
Warrant.

          (c) Remedies; Specific Performance. The Company acknowledges and agrees that there
would be no adequate remedy at law to the Holder of this Warrant in the event of any default or
threatened default by the Company in the performance of or compliance with any of the terms of this
Warrant and accordingly, the Company agrees that, in addition to any other remedy to which the
Holder may be entitled at law or in equity, the Holder shall be entitled to seek to compel specific
performance of the obligations of the Company under this Warrant, without the posting of any bond,
in accordance with the terms and conditions of this Warrant in any court of the United States or
any State thereof having jurisdiction, and if any action should be brought in equity to enforce any
of the provisions of this Warrant, the Company shall not raise the defense that there is an
adequate remedy at law. Except as otherwise provided by law, a delay or omission by the Holder
hereof in exercising any right or remedy accruing upon any such breach shall not impair the right
or remedy or constitute a waiver of or acquiescence in any such breach. No remedy shall be
exclusive of any other remedy. All available remedies shall be cumulative.

          (d) Amendments and Waivers. The Company may, without the consent of the Holders, by
supplemental agreement or otherwise, (i) make any changes or corrections in this Agreement that are
required to cure any ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein or (ii) add to the covenants and
agreements of the Company for the benefit of the Holders (including, without limitation, reduce the
Exercise Price or extend the Expiration Date), or surrender any rights or power reserved to or
conferred upon the Company in this Agreement; provided that, in the case of (i) or (ii), such
changes or corrections shall not adversely affect the interests of Holders of then outstanding
Warrants in any material respect. This Warrant may also be amended or

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waived with the consent of the Company and the Holder. Further, the Company may, with the
consent, in writing or at a meeting, of the Holders (the “Required Holders”) of the then
outstanding Warrants exercisable for two-thirds (2/3) or greater of the Common Stock eligible under
such Warrants, amend in any way, by supplemental agreement or otherwise, this Warrant and/or all of
the outstanding Warrants; provided, however, that (i) no such amendment by its express terms shall
adversely affect any Holder differently than it affects all other Holders, unless such Holder
consents thereto, and (ii) no such amendment concerning the number of Warrant Shares or Exercise
Price shall be made unless any Holder who will be affected by such amendment consents thereto. If
a new warrant agent is appointed by the Company, it shall at the request of the Company, and
without need of independent inquiry as to whether such supplemental agreement is permitted by the
terms of this Section 15(d), join with the Company in the execution and delivery of any
such supplemental agreements, but shall not be required to join in such execution and delivery for
such supplemental agreement to become effective.

          (e) GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL. THE CORPORATE LAWS OF THE STATE OF
NEW YORK SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS
STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK. THE COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN
FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION
HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN, AND HEREBY IRREVOCABLY
WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY
INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR
THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL
SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF
DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES
THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.
NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY
MANNER PERMITTED BY LAW. THE COMPANY AND INVESTORS HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

          (f) 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.

          (g) 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

10

 

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.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

11

 

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

	 	 	 	 	 
	 	BTHC VI, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to purchase shares of Common Stock under the
foregoing Warrant)

To: BTHC VI, INC.

The undersigned is the Holder of Warrant No. _________ (the “Warrant”) issued by BTHC VI, Inc., a
Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined have
the respective meanings set forth in the Warrant.

	 	(a)	 	The Warrant is currently exercisable to purchase a total of                                         
Warrant Shares.
	 
	 	(b)	 	The undersigned Holder hereby exercises its right to purchase                                         
Warrant Shares pursuant to the Warrant.
	 
	 	(c)	 	The Holder shall make Payment of the Exercise Price as follows (check one):
	 
	 	 	 	     o “Cash Exercise” under Section 10

     o “Cashless Exercise” under Section 10
	 
	 	(d)	 	If the holder is making a Cash Exercise, the holder shall pay the sum of
$                                         to the Company in accordance with the terms of the Warrant.
	 
	 	(e)	 	Pursuant to this exercise, the Company shall deliver to the holder
                                         Warrant Shares in accordance with the terms of the Warrant.
	 
	 	(f)	 	Following this exercise, the Warrant shall be exercisable to purchase a total
of                                          Warrant Shares.
	 
	 	(g)	 	Notwithstanding anything to the contrary contained herein, this Exercise Notice
shall constitute a representation by the Holder that, after giving effect to the
exercise provided for in this Exercise Notice, the Holder (together with its
affiliates) will not have beneficial ownership (together with the beneficial ownership
of such Person’s affiliates) of a number of shares of Common Stock which exceeds the
Maximum Percentage of the total outstanding shares of Common Stock as determined
pursuant to the provisions of Section 11(a) of the Warrant.

	 	 	 	 	 
	Dated:             ,        	Name of Holder: 	 
	 
	 	(Print) 	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	(Signature must conform in all respects to name of holder as
specified on the face of the Warrant) 	 

 

 

	 	 	 	 	 

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 of BTHC VI, Inc. to which the within Warrant relates and appoints                                         
attorney to transfer said right on the books of BTHC VI, Inc. 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:

	 	 	 	 
	 	 

	 	 	 

 

 

Exhibit A

Black Scholes Option Pricing formula to be used when calculating the value of each new warrant
to purchase one Acquirer Share shall be:

CAcq =
SAcqe-λ(TAcq-tAcq)N(d1) —
KAcqe-r(TAcq-tAcq)N(d2), where

CAcq = value of each warrant to purchase one Acquirer Share

SAcq = price of one Acquirer Share as determined by reference to the average of the closing prices
on the securities exchange over the 20-day period ending three trading days prior to the closing of
the Fundamental Transaction described in Section 9(d) if the Acquirer Shares are then traded on
such exchange, or the average of the closing bid or sale prices (whichever is applicable) in the
over-the-counter market over the 20-day period ending three trading days prior to the closing of
the Fundamental Transaction if the Acquirer Shares are then actively traded in the over-the-counter
market, or the then most recently completed financing if the Acquirer Shares are not then traded on
a securities exchange or in the over-the-counter market

TAcq
= expiration date of new warrants to purchase Acquirer Shares =
TCorp

tAcq = date of issue of new warrants to purchase Acquirer Shares

TAcq-tAcq = time until warrant expiration, expressed in years

s = volatility = annualized standard deviation of daily log-returns (using a 262-day annualization
factor) of the price of Acquirer Shares on the securities exchange over a 20-day trading period,
determined by the Holders, that is within the 100-day trading period ending on the trading day
immediately after the public announcement of the Fundamental Transaction described in Section 9(d)
if the Acquirer Shares are then traded on such exchange, or the annualized standard deviation of
daily-log returns (using a 262-day annualization factor) of the closing bid or sale prices
(whichever is applicable) in the over-the-counter market over a 20-day trading period, determined
by the Holders, that is within the 100-day trading period ending on the trading day immediately
after the public announcement of the Fundamental Transaction if the Acquirer Shares are then
actively traded in the over-the-counter market, or 0.6 (or 60%) if the Acquirer Shares are not then
traded on a securities exchange or in the over-the-counter market.

N = cumulative normal distribution function

d1
= (ln(SAcq/KAcq) +
(r-λ+s2/2)(TAcq-tAcq)) ÷
(sv(TAcq-tAcq))

ln = natural logarithm

λ = dividend rate on the Acquirer Shares for the most recent 12-month period at the time of closing
of the Fundamental Transaction.

KAcq
= strike price of new warrants to purchase Acquirer Shares =
KCorp * (SAcq / SCorp)

r =
annual yield, as reported by Bloomberg at time tAcq, of the United States Treasury security
measuring the nearest time TAcq

d2
= d1- sv(TAcq-tAcq)

 

 

Exhibit B

Black Scholes Option Pricing formula to be used when calculating the value of each Warrant to
purchase one share of Common Stock shall be:

CCorp
= SCorpe-λ(TCorp-tCorp)N(d1) —
KCorpe-r(TCorp-tCorp)N(d2), where

CCorp = value of each Warrant to purchase one share of Common Stock

SCorp = price of Common Stock as determined by reference to the average of the closing prices on
the securities exchange over the 20-day period ending three trading days prior to the closing of
the Fundamental Transaction described in Section 9(d) if the Common Stock is then traded on such
exchange, or the average of the closing bid or sale prices (whichever is applicable) in the
over-the-counter market over the 20-day period ending three trading days prior to the closing of
the Fundamental transaction if the Common Stock is then actively traded in the over-the-counter
market, or the then most recently completed financing if the Common Stock is not then traded on a
securities exchange or in the over-the-counter market

TCorp = expiration date of Warrants to purchase shares of Common Stock

tCorp = date of public announcement of Fundamental Transaction

TCorp-tCorp = time until Warrant expiration, expressed in years

s = volatility = the annualized standard deviation of daily log-returns (using a 262-day
annualization factor) of the price of Common Stock on the securities exchange over a 20-day trading
period, determined by the Holders, that is within the 100-day trading period ending on the trading
day immediately after the public announcement of the Fundamental Transaction described in Section
9(d) if the Common Stock is then traded on such exchange, or the annualized standard deviation of
daily-log returns (using a 262-day annualization factor) of the closing bid or sale prices
(whichever is applicable) in the over-the-counter market over a 20-day trading period, determined
by the Holders, that is within the 100-day trading period ending on the trading day immediately
after the public announcement of the Fundamental Transaction if the Common Stock is then actively
traded in the over-the-counter market, or 0.6 (or 60%) if the Common Stock is not then traded on a
securities exchange or in the over-the-counter market.

N = cumulative normal distribution function

d1
= (ln(SCorp/KCorp) +
(r-λ+s2/2)(TCorp-tCorp))
÷ (sv(TCorp-tCorp))

ln = natural logarithm

λ = dividend rate on the Common Stock for the most recent 12-month period at the time of closing of
the Fundamental Transaction.

KCorp = strike price of warrant

r =
annual yield, as reported by Bloomberg at time tCorp, of the United States Treasury security
measuring the nearest time TCorp

d2
= d1- sv(TCorp-tCorp)EX-4.4

 

Exhibit
4.4

EXHIBIT “D-2”

To

Supplement

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN OR WILL BE ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
SALE AND DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED DUE TO AN
EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON THE
EXERCISE HEREOF ARE ALSO SUBJECT TO THE RESTRICTIONS CONTAINED IN THAT CERTAIN AMENDED AND RESTATED
STOCKHOLDERS’ AGREEMENT, DATED AS OF APRIL 28, 2000, AS AMENDED, BY AND AMONG ATHERSYS, INC. AND
THE STOCKHOLDERS OF ATHERSYS, INC. (THE “STOCKHOLDERS’ AGREEMENT”).

Warrant No. _______

WARRANT TO PURCHASE

                     SHARES OF COMMON STOCK OF

ATHERSYS, INC.

 

(Void after [7thanniversary of date of issuance])

     This certifies that [VENTURE LENDING & LEASING IV, LLC., a Delaware limited liability company]
[COSTELLA KIRSCH IV, L.P., a                     ], or its permitted assigns (the “Holder”), for value
received, is entitled to purchase up to an aggregate of                                                              (         
           )
fully paid and nonassessable shares of common stock, $.01 par value per share (“Common Stock”), of
ATHERSYS, INC., a Delaware corporation (the “Company”), at a price of                                          Dollars
($                    ) per share (the “Stock Purchase Price”) at any time or from time to time up to and
including 5:00 p.m. (Eastern time) on [7th anniversary of date of issuance] (the
“Expiration Date”), upon surrender to the Company at its principal office at
                                                             (or at such other location as the Company may advise Holder in writing) of
this Warrant properly endorsed with the Form of Subscription attached hereto duly filled in and
signed and upon payment in cash or by check of the aggregate Stock Purchase Price for the number of
shares for which this Warrant is being exercised determined in accordance with the provisions
hereof. The Stock Purchase Price and the number of shares purchasable hereunder are subject to
adjustment as provided in Section 4 of this Warrant.

     This Warrant is subject to the following terms and conditions:

     1. Exercise; Issuance of Certificates; Payment for Shares.

          (a) Unless an election is made pursuant to clause (b) of this Section 1, this
Warrant shall be exercisable at the option of the Holder, at any time or from time to time, on or
before the Expiration Date for all or any portion of the shares of Common Stock (but not for a
fraction of a share) which may be purchased hereunder for the Stock Purchase Price multiplied by
the number of shares to be purchased. The Company agrees that the shares of Common Stock purchased
under this Warrant shall be and are deemed to be issued to the Holder
hereof as the

 

 

record owner of such shares as of the close of business on the date on which this Warrant
shall have been surrendered and payment made for such shares. Subject to the provisions of Section
2, certificates for the shares of Common Stock so purchased, together with any other securities or
property to which the Holder hereof is entitled upon such exercise, shall be delivered to the
Holder hereof by the Company at the Company’s expense within a reasonable time after the rights
represented by this Warrant have been so exercised. Except as provided in clause (b) of this
Section 1, in case of a purchase of less than all the shares which may be purchased under this
Warrant, the Company shall cancel this Warrant and execute and deliver to the Holder hereof within
a reasonable time a new Warrant or Warrants of like tenor for the balance of the shares purchasable
under this Warrant surrendered upon such purchase. Each stock certificate so delivered shall be in
such denominations of Common Stock as may be requested by the Holder hereof and shall be registered
in the name of such Holder or such other name as shall be designated by such Holder, subject to the
limitations contained in Section 2.

          (b) The Holder, in lieu of exercising this Warrant by the payment of the Stock
Purchase Price pursuant to clause (a) of this Section 1, may elect, at any time on or before the
Expiration Date, to receive, through conversion of this Warrant or any portion hereof into that
number of shares of Common Stock equal to the quotient of: (i) the difference between (A) the Per
Share Price (as hereinafter defined) of the Common Stock, less (B) the Stock Purchase Price then in
effect, multiplied by the number of shares of Common Stock the Holder would otherwise have been
entitled to purchase hereunder pursuant to clause (a) of this Section 1 (or such lesser number of
shares as the Holder may designate in the case of a partial exercise of this Warrant); over (ii)
the Per Share Price.

          (c) For purposes of clause (b) of this Section 1, “Per Share Price” means: (i) (A)
if the Common Stock is then listed or admitted to trading on any national securities exchange or
traded on any national market system, the average of the last reported sale price of the Common
Stock on such exchange or market system or (B) if the Common Stock is not listed or admitted to
trading on any national securities exchange or traded on any national market system but is traded
in the domestic over-the-counter market, the average of the closing bid and asked prices on the OTC
Bulletin Board or in the domestic over-the-counter market as reported by Pink Sheets, LLC, as
applicable, in either case for the ten (10) consecutive trading days prior to the date of the
Holder’s election to convert hereunder; (ii) if this Warrant is being converted in conjunction with
a firmly underwritten initial public offering of the Common Stock, the price to the public per
share pursuant to such offering; or (iii) if neither subclauses (i) or (ii) of this clause (c) of
this Section 1 are applicable, the price per share as determined in good faith by the Board of
Directors by the Company.

     2. Limitation on Transfer.

          (a) This Warrant and the Common Stock shall not be transferable except upon the
conditions specified in this Section 2, which conditions are, among other things, intended to
insure compliance with the provisions of the Securities Act. Each holder of this Warrant or the
Common Stock issuable hereunder will cause any proposed transferee of the Warrant or Common Stock
to agree to take and hold such securities subject to the provisions and upon the conditions
specified in this Section 2 and the restrictions contained in the Stockholders’ Agreement.
Notwithstanding the foregoing and any other provision of this Section 2, subject to compliance with
Sections 2 and 3 of the Stockholders’ Agreement, the initial Holder hereof may freely transfer all
or part of this Warrant or the shares issuable upon exercise of this Warrant at any time to any
affiliate of such initial Holder by giving the Company notice of the portion of the Warrant being
transferred setting forth the name, address and taxpayer identification number of the transferee
and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder, if
applicable).

          (b) Each certificate representing this Warrant or the Common Stock shall (unless
otherwise permitted by the provisions of this Section 2 or unless such securities have been
registered under the Securities Act) be stamped or otherwise imprinted with a legend substantially
in the form set forth on the face of this Warrant.

          (c) The Holder of this Warrant and each person to whom this Warrant is subsequently
transferred represents and warrants to the Company (by acceptance of such transfer) that it will
not transfer this Warrant (or securities issuable upon exercise hereof) except pursuant to (i) an
effective registration statement under the Securities Act, (ii) Rule 144 under the Securities Act
(or any similar rule under the Securities Act relating to the

2

 

disposition of restricted securities), or (iii) an opinion of counsel, reasonably satisfactory
to counsel for the Company, that an exemption from such registration is available.

     3. Shares to be Fully Paid; Reservation of Shares. The Company covenants
and agrees that all shares of Common Stock which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable and free from all preemptive rights of any stockholder and free of all taxes, liens
and charges with respect to the issue thereof. The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be exercised, the Company
will at all times have authorized and reserved, for the purpose of issue or transfer upon exercise
of the subscription rights evidenced by this Warrant, a sufficient number of shares of authorized
but unissued Common Stock, when and as required to provide for the exercise of the rights
represented by this Warrant. The Company will take all such action as may be reasonably necessary
to ensure that such shares of Common Stock may be issued as provided herein without violation of
any applicable law or regulation, or of any requirements of any domestic securities exchange upon
which the Common Stock may be listed.

     4. Adjustment of Stock Purchase Price and Number of Shares. The Stock
Purchase Price and the number of shares purchasable upon the exercise of this Warrant shall be
subject to adjustment from time to time upon the occurrence of certain events described in this
Section 4. Upon each adjustment of the Stock Purchase Price, the Holder of this Warrant shall
thereafter be entitled to purchase, at the Stock Purchase Price resulting from such adjustment, the
number of shares obtained by multiplying the Stock Purchase Price in effect immediately prior to
such adjustment by the number of shares purchasable pursuant hereto immediately prior to such
adjustment, and dividing the product thereof by the Stock Purchase Price resulting from such
adjustment.

          4.1 Subdivision or Combination of Stock. In case the Company shall at any
time subdivide its outstanding shares of Common Stock into a greater number of shares, the Stock
Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced,
and conversely, in case the outstanding shares of Common Stock of the Company shall be combined
into a smaller number of shares, the Stock Purchase Price in effect immediately prior to such
combination shall be proportionately increased.

          4.2 Dividends in Preferred Stock, Other Stock, Property, Reclassification.
If at any time or from time to time the holders of Common Stock (or any shares of stock or other
securities at the time receivable upon the exercise of this Warrant) shall have received or become
entitled to receive, without payment therefor,

               (a) by way of dividend or other distribution, any shares of stock or other
securities, whether or not such securities are at any time directly or indirectly convertible into
or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise
acquire any of the foregoing (other than shares of Common Stock issued as a stock split,
adjustments in respect of which shall be covered by the terms of Section 4.1 above),

               (b) any cash paid or payable otherwise than as a cash dividend, or

               (c) additional stock or other securities or property (including cash) by way of
spin-off, split-up, reclassification, combination of shares or similar corporate rearrangement,
(other than shares of Common Stock issued as a stock split, adjustments in respect of which shall
be covered by the terms of Section 4.1 above),

then and in each such case, the Holder hereof shall, upon the exercise of this Warrant, be entitled
to receive, in addition to the number of shares of Common Stock receivable thereupon, and without
payment of any additional consideration therefore, the amount of stock and other securities and
property (including cash in the cases referred to in clauses (b) and (c) above) which such Holder
would hold or be entitled to receive, as the case may be, on the date of such exercise had he been
the holder of record of such Common Stock as of the date on which holders of Common Stock received
or became entitled to receive such shares and/or all other additional stock and other securities
and property.

3

 

          4.3 Reorganization, Reclassification, Consolidation, Merger or Sale. If any
capital reorganization of the capital stock of the Company, or any consolidation or merger of the
Company with another entity, or other reorganization, or the sale of all or substantially all of
its assets to another entity shall be effected in such a way that holders of Common Stock shall be
entitled to receive stock, securities or assets with respect to or in exchange for Common Stock,
then, as a condition of such reorganization, reclassification, consolidation, merger or sale,
lawful and adequate provisions shall be made whereby the holder hereof shall thereafter have the
right to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately
theretofore purchasable and receivable upon the exercise of the rights represented hereby) such
shares of stock, securities or assets as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of shares of such stock
immediately theretofore purchasable and receivable upon the exercise of the rights represented
hereby. In any such case, appropriate provision shall be made with respect to the rights and
interests of the holder of this Warrant to the end that the provisions hereof (including, without
limitation, provisions for adjustments of the Stock Purchase Price and of the number of shares
purchasable and receivable upon the exercise of this Warrant) shall thereafter be applicable, as
nearly as may be possible, in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise hereof. Within twenty (20) days following the closing of any such
consolidation, merger or sale, the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall deliver to the
registered Holder hereof at the last address of such Holder appearing on the books of the Company,
notice of such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase.

          4.4 Notice of Adjustment. Upon any adjustment of the Stock Purchase Price,
and/or any increase or decrease in the number of shares purchasable upon the exercise of this
Warrant the Company shall give written notice thereof, by first class mail, postage prepaid,
addressed to the registered holder of this Warrant at the address of such holder as shown on the
books of the Company. The notice shall be signed by the Company’s chief financial officer and
shall state the Stock Purchase Price resulting from such adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of this Warrant,
setting forth in reasonable detail the method of calculation and the facts upon which such
calculation is based.

          4.5 Other Notices. If at any time:

               (a) the Company shall declare any cash dividend upon its Common Stock;

               (b) the Company shall declare any dividend upon its Common Stock payable in capital
stock, or make any special dividend or other distribution to the holders of its Common Stock;

               (c) the Company shall issue to all holders of outstanding shares of its Common Stock
rights entitling such holders to subscribe for or purchase any additional shares of Common Stock;

               (d) there shall be any capital reorganization or reclassification of the capital
stock of the Company, or consolidation or merger of the Company with, or sale of all or
substantially all of its assets to, another entity; or

               (e) there shall be a voluntary or involuntary dissolution, liquidation or winding-up
of the Company;

then, in any one or more of said cases, the Company shall give, by first class mail, postage
prepaid, addressed to the Holder at the address of Holder as shown on the books of the Company, (i)
at least twenty (20) day’s prior written notice of the date on which the books of the Company shall
close or a record shall be taken for establishing the right to receive such dividend, distribution
or subscription rights, and (ii) with respect to any other action, notice of which is given to
holders of the Common Stock, at the same time such notice as is actually provided to such holders.
Any notice given in accordance with the foregoing clause (i) shall also specify, in the case of any
such dividend, distribution or subscription rights, the date on which the holders of stock shall be
entitled thereto. Any notice given in accordance with the foregoing clause (ii) shall, if
applicable, also specify the date on which the holders of

4

 

Common Stock shall be entitled to exchange their Common Stock for securities or other property
deliverable upon any reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up.

     5. Issue Tax. The issuance of certificates for shares of Preferred Stock
upon the exercise of this Warrant shall be made without charge to the Holder of this Warrant for
any issue tax in respect thereof; 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 issuance and delivery of
any certificate in a name other than that of the then Holder of this Warrant being exercised.

     6. Closing of Books. The Company will at no time close its transfer books
against the transfer of this Warrant or of any shares of Common Stock issued or issuable upon the
exercise of any warrant in any manner which interferes with the timely exercise of this Warrant.

     7. No Voting or Dividend Rights; Limitation of Liability. Nothing contained
in this Warrant shall be construed as conferring upon the Holder hereof the right to vote or to
consent as a stockholder in respect of meetings of stockholders for the election of directors of
the Company or any other matters or any rights whatsoever as a stockholder of the Company. No
dividends or interest shall be payable or accrued in respect of this Warrant or the interest
represented hereby or the shares purchasable hereunder until, and only to the extent that, this
Warrant shall have been exercised. No provisions hereof, in the absence of affirmative action by
the Holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or
privileges of the Holder hereof, shall give rise to any liability of such Holder for the Stock
Purchase Price or as a stockholder of the Company, whether such liability is asserted by the
Company or by its creditors.

     8. Rights and Obligations Survive Exercise of Warrant. The rights and
obligations of the Company, of the Holder of this Warrant and of the holder of shares of Common
Stock issued upon exercise of this Warrant, contained in Section 6 shall survive the exercise of
this Warrant.

     9. Modification and Waiver. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing signed by the party
against which enforcement of the same is sought.

     10. Notices. Any notice, request or other document required or permitted to
be given or delivered to the Holder or the Company shall be deemed to have been given (i) upon
receipt if delivered personally or by courier, (ii) upon confirmation of receipt if by telecopy, or
(iii) three business days after deposit in the U.S. mail, with postage prepaid and certified or
registered, to each such Holder at its address as shown on the books of the Company or to the
Company at the address indicated therefor in the first paragraph of this Warrant.

     11. Binding Effect on Successors. This Warrant shall be binding upon any
entity succeeding the Company by merger, consolidation or acquisition of all or substantially all
of the Company’s assets. All of the obligations of the Company relating to the Common Stock
issuable upon the exercise of this Warrant shall survive the exercise and termination of this
Warrant. All of the covenants and agreements of the Company shall inure to the benefit of the
successors and assign of the holder hereof. The Company will, at the time of the exercise of this
Warrant, in whole or in part, upon request of the Holder hereof but at the Company’s expense,
acknowledge in writing its continuing obligation to the Holder hereof in respect of any rights
(including, without limitation, any right to registration of the shares of Common Stock) to which
the Holder hereof shall continue to be entitled after such exercise in accordance with this
Warrant; provided, that the failure of the Holder hereof to make any such request shall not affect
the continuing obligation of the Company to the Holder hereof in respect of such rights.

     12. Descriptive Headings and Governing Law. The descriptive headings of the
several sections and paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the laws of the State of California.

5

 

     13. Lost Warrants or Stock Certificates. The Company represents and
warrants to the Holder hereof that upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction, or mutilation of any Warrant or stock certificate and, in the case
of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the
Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant or
stock certificate, the Company at its expense will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock
certificate.

     14. Fractional Shares. No fractional shares shall be issued upon exercise
of this Warrant. The Company shall, in lieu of issuing any fractional share, pay the holder
entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective
Stock Purchase Price.

     15. Representations of Holder. With respect to this Warrant, Holder
represents and warrants to the Company as follows:

          15.1 Experience. It is experienced in evaluating and investing in companies
engaged in businesses similar to that of the Company; it understands that investment in this
Warrant involves substantial risks; it has made detailed inquiries concerning the Company, its
business and services, its officers and its personnel; the officers of the Company have made
available to Holder any and all written information it has requested; the officers of the Company
have answered to Holder’s satisfaction all inquiries made by it; in making this investment it has
relied upon information made available to it by the Company; and it has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks
of investment in the Company and it is able to bear the economic risk of that investment.

          15.2 Investment. It is acquiring this Warrant for investment for its own
account and not with a view to, or for resale in connection with, any distribution thereof. It
understands that the Warrant, the shares of Common Stock issuable upon exercise thereof, have not
been registered under the Securities Act nor qualified under applicable state securities laws.

          15.3 Rule 144. It acknowledges that this Warrant and the Common Stock must
be held indefinitely unless they are subsequently registered under the Securities Act or an
exemption from such registration is available. It has been advised or is aware of the provisions
of Rule 144 promulgated under the Securities Act.

          15.4 Access to Data. It has had an opportunity to discuss the Company’s
business, management and financial affairs with the Company’s management and has had the
opportunity to inspect the Company’s facilities.

     16. Additional Representations and Covenants of the Company. The Company
hereby represents, warrants and agrees as follows:

          16.1 Corporate Power. The Company has all requisite corporate power and
authority to execute and deliver this Warrant and to perform its obligations hereunder.

          16.2 Authorization. This Warrant has been duly authorized, executed and
delivered by the Company and, assuming due authorization, execution and delivery by the Holder,
constitutes a valid and binding obligation of the Company, enforceable in accordance with its
terms, except that the enforcement thereof may be subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally and general equitable principles, whether such principles are considered in a
proceeding at law or in equity.

          16.3 Offering. Assuming the truth and accuracy of Holder’s representations
set forth in Section 16 hereof, the offer, issuance and sale of this Warrant by the Company to the
Holder is, and the issuance of Common Stock upon exercise of this Warrant by the Holder will be,
exempt from the registration requirements of the Securities Act.

6

 

          16.4 Stock Issuance. Upon exercise of this Warrant, the Company will use
its reasonable best efforts to cause stock certificates representing the shares of Common Stock
purchased pursuant to the exercise to be issued in the name of Holder, its nominees or permitted
assignees, as applicable, at the time of such exercise.

          16.5 Certificate and By-Laws. The Company has provided Holder with true and
complete copies of the Company’s Certificate of Incorporation, By-Laws, and each Certificate of
Determination or other charter document setting, forth any rights, preferences and privileges of
Company’s capital stock, each as amended and in effect on the date of issuance of this Warrant.

          16.6 Financial and Other Reports. From time to time up to the earlier of
the Expiration Date or the complete exercise of this Warrant, the Company shall furnish to Holder
(i) within 120 days after the close of each fiscal year of the Company, an audited balance sheet
and statement of changes in financial position at and as of the end of such fiscal year, together
with an audited statement of income for such fiscal year; (ii) within 45 days after the close of
each fiscal quarter of the Company, an unaudited balance sheet and statement of cash flows at and
as of the end of such quarter, together with an unaudited statement of income for such quarter; and
(iii) promptly after sending, making available, or filing, copies of all reports, proxy statements,
and financial statements that the Company sends or makes available to its stockholders and all
registration statements and reports that the Company files with the Securities and Exchange
Commission (the “SEC”); provided, however, that after the closing of a firmly underwritten public
offering of the Company’s Common Stock, so long as the Company files all annual, quarterly and
current reports with the SEC within the time periods specified in the SEC’s rules and regulations,
the Company shall be deemed to have satisfied the obligations in this Section 16.6.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers,
thereunto duly authorized this ___ day of                                         , 200___.

	 	 	 	 	 
	ATHERSYS, INC.

 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

7

 

FORM OF SUBSCRIPTION

(To be signed only upon exercise of Warrant)

To:                                         

	�
	 	The undersigned, the holder of the within Warrant, hereby
irrevocably elects to exercise the purchase right represented by
such Warrant for, and to purchase thereunder,
                                         (                    )(1) shares of Common
Stock of Athersys, Inc., and herewith makes payment of
                                         Dollars ($                    ) therefor, and
requests that the certificates for such shares be issued in the
name of, and delivered to,                                         , whose address
is                                                                                 .
	 
	�
	 	The undersigned hereby elects to convert                      percent (___%) of
the value of the Warrant pursuant to the provisions of Section
1(b) of the Warrant.

     The undersigned represents that it is acquiring such Common Stock for its own account for
investment and not with a view to or for sale in connection with any distribution thereof (subject,
however, to any requirement of law that the disposition thereof shall at all times be within its
control.

     DATED:                                         

	 	 	 
	 

	 	 
(Signature must conform in all respects to name of holder as
specified on the face of the Warrant)

	 

	 	 

	 

	 	 
(Address)

 

			
	(1)	 	Insert here the number of shares called for
on the face of the Warrant (or, in the case of a partial exercise, the portion
thereof as to which the Warrant is being exercised), in either case without
making any adjustment for additional Common Stock or any other stock or other
securities or property or cash which, pursuant to the adjustment provisions of
the Warrant, may be deliverable upon exercise.

8

 

ASSIGNMENT

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

	 	 	 
	Name of Assignee	 	Address	 	 	No. of Shares

Dated: ___________________________

	 	 	 
	 

	 	 
(Signature must conform in all respects to name of holder as specified on the face of the
Warrant

9

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