Document:

FITZSIMONS
      REDEVELOPMENT AUTHORITY

    

    AMENDMENT
      TWO TO SPACE LEASE

    

    

    THIS
      AMENDMENT TWO TO SPACE LEASE (this “Amendment”) is entered into as of the
      _____________ day
      of
      ________________,
      2007,
      by and between Fitzsimons
      Redevelopment Authority
      (“Landlord”) a governmental entity created by the City of Aurora, Colorado and
      the Regents of the University of Colorado, whose address or principal place
      of
      business is 12635 East Montview Blvd., Suite 100, Aurora, Colorado, 80045,
      and
BioNovo,
      Inc.
      (“Tenant”). 

    

    

    RECITALS:

    

    A.  On
      or
      about November 16, 2006, Landlord and Tenant entered into a Space Lease (the
      “Lease”) pertaining to Premises located at 12635 E. Montview Blvd., Suite 155,
      Aurora, CO 80045.

    B.  The
      Lease
      has heretofore been amended by Amendment One dated January 25,
      2007.

    

    C.  Landlord
      and Tenant now desire to revise the Lease in the manner and form hereinafter
      set
      forth.

    

    NOW,
      THEREFORE,
      for good
      and valuable consideration, Landlord and Tenant hereby agree as
      follows:

    

    
      	
            	1.	
              Premises
                will
                be revised to add Suite 137 located in the Bioscience Park Center,
                12635
                E. Montview Blvd., Aurora, CO 80045 (“Office
                Space”).

            

    

    

    
      	
            	2.	
              Basic
                Rent. Exhibit
                E of the Lease is hereby revised to increase Basic Rent to include
                an
                additional $473 per month; which amount will escalate at a rate of
                three
                percent per year on December 1 of each year (e.g. rent for Office
                Space
                will increase to $487 per month December 1, 2007 and $502 per month
                December 1, 2008). This is a flat rate and includes janitorial services,
                Operating Expenses, and utilities (excluding phone and
                data).

            

    

    

    
      	
            	3.	
              Commencement
                Date for
                Office Space shall be May 1, 2007.

            

    

    

    
      	
            	4.	
              Stated
                Expiration Date shall
                be November 30, 2009.

            

    

    

    
      	
            	5.	
              Security
                Deposit shall
                increase by $473 for a total of security deposit of
                $6,507.

            

    

    

    
      	
            	6.	
              Ratification
                of Lease.
                This Amendment modifies only the terms and conditions of the Lease
                as
                provided herein and no others. This Amendment will prevail over any
                other
                provisions of the Lease, which are inconsistent with this Amendment
                or the
                state of facts contemplated by this Amendment.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Executed
      as a sealed instrument as of the date first above written.

    

    FITZSIMONS
      REDEVELOPMENT AUTHORITY BIONOVO,
      INC.

     

     

    
      	 	 	 	 
	By:   
              __________________________________	 	 	By:
              ___________________________________
	
               
Edward
                J. Tauer, 

            	 	 	
               

            
	
              Title: Chairman
                of the Board  Title:  

            	 	 	
              Title:__________________________________NEITHER
      THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE
“COMMISSION”) OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
      EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT
      BE OFFERED OR SOLD EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE SECURITIES ACT OR (II) AN AVAILABLE EXEMPTION FROM, OR IN A
      TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT
      AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

     

    
      	
              Warrant
                No. ____

            	
                

            	
              Original
                Issue Date: May 2, 2007

            

    

     

    NOVELOS
      THERAPEUTICS, INC.

    

    WARRANT
      TO PURCHASE [_____________] SHARES OF

    COMMON
      STOCK, PAR VALUE $0.00001 PER SHARE

    

    FOR
      VALUE
      RECEIVED, [_________________]
      (“Warrantholder”),
      is
      entitled to purchase, subject to the provisions of this Warrant, from NOVELOS
      THERAPEUTICS, INC. a Delaware corporation (“Corporation”),
      at
      any time not later than 5:00 P.M., Eastern time, on [___________], 2012 (the
      “Expiration
      Date”),
      at an
      exercise price per share equal to $1.25 (the exercise price in effect being
      herein called the “Warrant
      Price”),
      [______________]
      shares
      (“Warrant
      Shares”)
      of the
      Corporation’s Common Stock, par value $0.00001 per
      share
      (“Common
      Stock”).
      The
      number of Warrant Shares purchasable upon exercise of this Warrant and the
      Warrant Price shall be subject to adjustment from time to time as described
      herein. This Warrant has been issued pursuant to a certain Securities Purchase
      Agreement, dated as of April 12, 2007, by and among the Corporation and the
      Investors signatory thereto (as amended on May 2, 2007, the “Purchase
      Agreement”).
      All
      capitalized terms used but not defined herein shall have the meanings ascribed
      thereto in the Purchase Agreement.

    

    Section
      1. Registration.
      The
      Corporation shall maintain books for the transfer and registration of the
      Warrant. Upon the initial issuance of this Warrant, the Corporation shall issue
      and register the Warrant in the name of the Warrantholder.

    

    Section
      2. Transfers.
      As
      provided herein, this Warrant may be transferred only pursuant to a registration
      statement filed under the Securities Act, or an exemption from such
      registration. Subject to such restrictions, the Corporation shall transfer
      this
      Warrant from time to time upon the books to be maintained by the Corporation
      for
      that purpose, upon surrender thereof for transfer properly endorsed or
      accompanied by appropriate instructions for transfer and such other documents
      as
      may be reasonably required by the Corporation, including, if required by the
      Corporation, an opinion of its counsel to the effect that such transfer is
      exempt from the registration requirements of the Securities Act, to establish
      that such transfer is being made in accordance with the terms hereof, and a
      new
      Warrant shall be issued to the transferee and the surrendered Warrant shall
      be
      canceled by the Corporation.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section
      3. Exercise
      of Warrant.
      

    

    (a) Subject
      to the provisions hereof, the Warrantholder may exercise this Warrant in whole
      or in part at any time prior to its expiration upon surrender of the Warrant,
      together with delivery of the duly executed Warrant exercise form attached
      hereto as Appendix
      A
      (the
“Exercise
      Agreement”)
      and
      payment by cash, certified check or wire transfer of funds for the aggregate
      Warrant Price for that number of Warrant Shares then being purchased, to the
      Corporation during normal business hours on any Business Day at the
      Corporation’s principal executive offices (or such other office or agency of the
      Corporation as it may designate by notice to the holder hereof). The Warrant
      Shares so purchased shall be deemed to be issued to the holder hereof or such
      holder’s designee, as the record owner of such shares, as of the close of
      business on the date on which this Warrant shall have been surrendered (or
      evidence of loss, theft or destruction thereof and security or indemnity
      satisfactory to the Corporation), the Warrant Price shall have been paid and
      the
      completed Exercise Agreement shall have been delivered. Certificates for the
      Warrant Shares so purchased, representing the aggregate number of shares
      specified in the Exercise Agreement, shall be delivered to the holder hereof
      within a reasonable time, not exceeding three (3) Business Day, after this
      Warrant shall have been so exercised. When the Corporation is required to
      deliver certificates upon exercise, if certificates are not delivered to the
      Warrantholder within such three (3) Business Days, the Corporation shall be
      liable to the Warrantholder for liquidated damages equal to 1.5% of the
      aggregate Warrant Price for each 30-day period (or portion thereof) beyond
      such
      three (3) Business Day-period that the certificates have not been so delivered.
      The certificates so delivered shall be in such denominations 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. If this Warrant shall have
      been exercised only in part, then, unless this Warrant has expired, the
      Corporation shall, at its expense, at the time of delivery of such certificates,
      deliver to the holder a new Warrant representing the number of shares with
      respect to which this Warrant shall not then have been exercised. 

    

    (b) (I)
      Notwithstanding
      anything herein to the contrary, in no event shall a Warrantholder be entitled
      to exercise any portion of this Warrant so held by such Warrantholder in excess
      of that portion upon exercise of which the sum of (1) the number of shares
      of
      Common Stock beneficially owned by such Warrantholder and its Affiliates (other
      than shares of Common Stock which may be deemed beneficially owned through
      ownership of the unexercised shares of Common Stock underlying the Warrant
      or
      the unexercised or unconverted portion of any other security of the holder
      subject to a limitation on conversion analogous to the limitations contained
      herein) and (2) the number of shares of Common Stock issuable upon the exercise
      of that portion of the Warrant with respect to which the determination of this
      proviso is being made, would result in beneficial ownership by such
      Warrantholder and its Affiliates of any amount greater than 4.99% of the then
      outstanding shares of Common Stock (whether or not, at the time of such
      conversion, the Warrantholder and its Affiliates beneficially own more than
      4.99% of the then outstanding shares of Common Stock). The waiver by a
      Warrantholder of any limitation contained in a warrant or convertible security
      now or hereafter held by such holder that is similar or analogous to the
      limitations set forth in this Section 3(b)(I) shall not be deemed a waiver
      or
      otherwise effect the limitation set forth in this Section 3(b)(I), unless such
      waiver expressly states it is a waiver of the provisions of this Section
      3(b)(I). For purposes of this Section 3(b)(I), beneficial ownership shall be
      determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
      in clause (1) of such proviso. Any Warrantholder may waive the limitations
      set
      forth herein by sixty-one (61) days written notice to the Corporation. The
      foregoing shall not affect the Company’s right to redeem the Warrant pursuant to
      Section 19.

     

    
      
        
        

      

      
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    (II)
      Notwithstanding
      anything herein to the contrary, in no event shall a Warrantholder be entitled
      to exercise any portion of this Warrant so held by such Warrantholder in excess
      of that portion upon exercise of which the sum of (1) the number of shares
      of
      Common Stock beneficially owned by such Warrantholder and its Affiliates (other
      than shares of Common Stock which may be deemed beneficially owned through
      ownership of the unexercised shares of Common Stock or the unexercised or
      unconverted portion of any other security of the holder subject to a limitation
      on exercise analogous to the limitations contained herein) and (2) the number
      of
      shares of Common Stock issuable upon the exercise of that portion of the Warrant
      with respect to which the determination of this proviso is being made, would
      result in beneficial ownership by such Warrantholder and its Affiliates of
      any
      amount greater than 9.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such conversion, the Warrantholder and its
      Affiliates beneficially own more than 9.99% of the then outstanding shares
      of
      Common Stock). The waiver by a Warrantholder of any limitation contained in
      a
      warrant or convertible security now or hereafter held by such holder that is
      similar or analogous to the limitations set forth in this Section 3(b)(II)
      shall
      not be deemed a waiver or otherwise effect the limitation set forth in this
      Section 3(b)(II), unless such waiver expressly states it is a waiver of the
      provisions of this Section 3(b)(II). For purposes of this Section 3(b)(II),
      beneficial ownership shall be determined in accordance with Section 13(d) of
      the
      Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder,
      except as otherwise provided in clause (1) of such proviso. Any Warrantholder
      may waive the limitations set forth herein by sixty-one (61) days written notice
      to the Corporation. The foregoing shall not affect the Company’s right to redeem
      the Warrant pursuant to Section 19.

    

    Section
      4. Compliance
      with the Securities Act of 1933.
      The
      Corporation may cause the legend set forth on the first page of this Warrant
      to
      be set forth on each Warrant or similar legend on any security issued or
      issuable upon exercise of this Warrant, unless counsel for the Corporation
      is of
      the opinion as to any such security that such legend is
      unnecessary.

    

    Section
      5. Payment
      of Taxes.
      The
      Corporation will pay any documentary stamp taxes attributable to the initial
      issuance of Warrant Shares issuable upon the exercise of the Warrant;
provided,
      however,
      that
      the Corporation shall not be required to pay any tax or taxes which may be
      payable in respect of any transfer involved in the issuance or delivery of
      any
      certificates for Warrant Shares in a name other than that of the registered
      holder of this Warrant in respect of which such shares are issued, and in such
      case, the Corporation shall not be required to issue or deliver any certificate
      for Warrant Shares or any Warrant until the person requesting the same has
      paid
      to the Corporation the amount of such tax or has established to the
      Corporation’s reasonable satisfaction that such tax has been paid. The holder
      shall be responsible for income taxes due under federal, state or other law,
      if
      any such tax is due.

     

    
      
        
        

      

      
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    Section
      6. Mutilated
      or Missing Warrants.
      In case
      this Warrant shall be mutilated, lost, stolen, or destroyed, the Corporation
      shall issue in exchange and substitution of and upon cancellation of the
      mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen
      or destroyed, a new Warrant of like tenor and for the purchase of a like number
      of Warrant Shares, but only upon receipt of evidence reasonably satisfactory
      to
      the Corporation of such loss, theft or destruction of the Warrant, and with
      respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond
      with respect thereto, if requested by the Corporation.

    

    Section
      7. Reservation
      of Common Stock.
      The
      Corporation hereby represents and warrants that there have been reserved, and
      the Corporation shall at all applicable times keep reserved until issued (if
      necessary) as contemplated by this Section 7, out of the authorized and unissued
      shares of Common Stock, 125% (which percentage shall be decreased to 100% in
      the
      event the Company’s shareholders do no approve an amendment to the Company’s
      certificate of incorporation to increase the number of authorized shares of
      Common Stock to 150,000,000) of the number of shares issuable upon exercise
      of
      the rights of purchase represented by this Warrant. The Corporation agrees
      that
      all Warrant Shares issued upon due exercise of the Warrant shall be, at the
      time
      of delivery of the certificates for such Warrant Shares, duly authorized,
      validly issued, fully paid and non-assessable shares of Common Stock of the
      Corporation.

    

    Section
      8. Adjustments.
      Subject
      and pursuant to the provisions of this Section 8, the Warrant Price and number
      of Warrant Shares subject to this Warrant shall be subject to adjustment from
      time to time as set forth hereinafter.

    

    (a) If
      the
      Corporation shall, at any time or from time to time while this Warrant is
      outstanding, pay a dividend or make a distribution on its Common Stock in shares
      of Common Stock, subdivide its outstanding shares of Common Stock into a greater
      number of shares or combine its outstanding shares of Common Stock into a
      smaller number of shares or issue by reclassification of its outstanding shares
      of Common Stock any shares of its capital stock (including any such
      reclassification in connection with a consolidation or merger in which the
      Corporation is the continuing corporation), then the number of Warrant Shares
      purchasable upon exercise of the Warrant and the Warrant Price in effect
      immediately prior to the date upon which such change shall become effective,
      shall be adjusted by the Corporation so that the Warrantholder thereafter
      exercising the Warrant shall be entitled to receive the number of shares of
      Common Stock or other capital stock which the Warrantholder would have received
      if the Warrant had been fully exercised immediately prior to such event upon
      payment of a Warrant Price that has been adjusted to reflect a fair allocation
      of the economics of such event to the Warrantholder. Such adjustments shall
      be
      made successively whenever any event listed above shall occur.

    

    (b) If
      any
      capital reorganization, reclassification of the capital stock of the
      Corporation, consolidation or merger of the Corporation with another corporation
      in which the Corporation is not the survivor, or sale, transfer or other
      disposition of all or substantially all of the Corporation’s assets to another
      corporation shall be effected, then, the Corporation shall use its best efforts
      to ensure that lawful and adequate provision shall be made whereby each
      Warrantholder shall thereafter 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 immediately theretofore issuable upon exercise of the Warrant,
      such shares of stock, securities or assets as would have been issuable or
      payable with respect to or in exchange for a number of Warrant Shares equal
      to
      the number of Warrant Shares immediately theretofore issuable upon exercise
      of
      the Warrant, had such reorganization, reclassification, consolidation, merger,
      sale, transfer or other disposition not taken place, and in any such case
      appropriate provision shall be made with respect to the rights and interests
      of
      each Warrantholder to the end that the provisions hereof (including, without
      limitation, provision for adjustment of the Warrant Price) shall thereafter
      be
      applicable, as nearly equivalent as may be practicable in relation to any shares
      of stock, securities or assets thereafter deliverable upon the exercise thereof.
      The Corporation shall not effect any such consolidation, merger, sale, transfer
      or other disposition unless prior to or simultaneously with the consummation
      thereof the successor corporation (if other than the Corporation) resulting
      from
      such consolidation or merger, or the corporation purchasing or otherwise
      acquiring such assets or other appropriate corporation or entity shall assume
      the obligation to deliver to the holder of the Warrant, at the last address
      of
      such holder appearing on the books of the Corporation, such shares of stock,
      securities or assets as, in accordance with the foregoing provisions, such
      holder may be entitled to purchase, and the other obligations under this
      Warrant. The provisions of this Section 8(b) shall similarly apply to successive
      reorganizations, reclassifications, consolidations, mergers, sales, transfers
      or
      other dispositions.

     

    
      
        
        

      

      
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    (c) In
      case
      the Corporation shall fix a payment date for the making of a distribution to
      all
      holders of Common Stock (including any such distribution made in connection
      with
      a consolidation or merger in which the Corporation is the continuing
      corporation) of evidences of indebtedness or assets (other than cash dividends
      or cash distributions payable out of consolidated earnings or earned surplus
      or
      dividends or distributions referred to in Section 8(a)), or subscription rights
      or warrants, the Company shall provide notice to the Warrantholder at least
      10
      days in advance of the fixing of such payment date and the Warrantholder may
      elect to exercise this Warrant in whole or in part prior to such payment date
      in
      accordance with Section 3 hereof. 

    

    (d) For
      the
      term of this Warrant, in addition to the provisions contained above, the Warrant
      Price shall be subject to adjustment as provided below. An adjustment to the
      Warrant Price shall become effective immediately after the payment date in
      the
      case of each dividend or distribution and immediately after the effective date
      of each other event which requires an adjustment.

    

    (e) In
      the
      event that, as a result of an adjustment made pursuant to this Section 8, the
      holder of this Warrant shall become entitled to receive any shares of capital
      stock of the Corporation other than shares of Common Stock, the number of such
      other shares so receivable upon exercise of this Warrant shall be subject
      thereafter to adjustment from time to time in a manner and on terms as nearly
      equivalent as practicable to the provisions with respect to the Warrant Shares
      contained in this Warrant.

     

    
      
        
        

      

      
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    Section
      9. Fractional
      Interest.
      The
      Corporation shall not be required to issue fractions of Warrant Shares upon
      the
      exercise of this Warrant. If any fractional share of Common Stock would, except
      for the provisions of the first sentence of this Section 9, be deliverable
      upon
      such exercise, the Corporation, in lieu of delivering such fractional share,
      shall pay to the exercising holder of this Warrant an amount in cash equal
      to
      the Market Price of such fractional share of Common Stock on the date of
      exercise.

    

    Section
      10. [Reserved].
      

    

    Section
      11. Benefits.
      Nothing
      in this Warrant shall be construed to give any person, firm or corporation
      (other than the Corporation and the Warrantholder) any legal or equitable right,
      remedy or claim, it being agreed that this Warrant shall be for the sole and
      exclusive benefit of the Corporation and the Warrantholder.

    

    Section
      12. Notices
      to Warrantholder.
      Upon
      the happening of any event requiring an adjustment of the Warrant Price, the
      Corporation shall promptly give written notice thereof to the Warrantholder
      at
      the address appearing in the records of the Corporation, stating the adjusted
      Warrant Price and the adjusted number of Warrant Shares resulting from such
      event and setting forth in reasonable detail the method of calculation and
      the
      facts upon which such calculation is based. Failure to give such notice to
      the
      Warrantholder or any defect therein shall not affect the legality or validity
      of
      the subject adjustment.

    

    Section
      13. Identity
      of Transfer Agent.
      The
      Transfer Agent for the Common Stock is American Stock Transfer & Trust
      Company. Upon the appointment of any subsequent transfer agent for the Common
      Stock or other shares of the Corporation’s capital stock issuable upon the
      exercise of the rights of purchase represented by the Warrant, the Corporation
      will mail to the Warrantholder a statement setting forth the name and address
      of
      such transfer agent.

    

    Section
      14. Notices.
      Unless
      otherwise provided, any notice required or permitted under this Warrant shall
      be
      given in writing and shall be deemed effectively given as hereinafter described
      (i) if given by personal delivery, then such notice shall be deemed given upon
      such delivery, (ii) if given by telex or facsimile, then such notice shall
      be
      deemed given upon receipt of confirmation of complete transmittal, (iii) if
      given by mail, then such notice shall be deemed given upon the earlier of (A)
      receipt of such notice by the recipient or (B) three days after such notice
      is
      deposited in first class mail, postage prepaid, and (iv) if given by an
      internationally recognized overnight air courier, then such notice shall be
      deemed given one day after delivery to such carrier. All notices shall be
      addressed as follows: if to the Warrantholder, at its address as set forth
      in
      the Corporation’s books and records and, if to the Corporation, at the address
      as follows, or at such other address as the Warrantholder or the Corporation
      may
      designate by ten days’ advance written notice to the other:

    

    If
      to the
      Corporation:

    

    Novelos
      Therapeutics, Inc.

    One
      Gateway Center, Suite 504

    Newton,
      MA 02458

    Attention:
      Chief Executive Officer

    Fax:
      (617) 964-6331

    

     

    
      
        
        

      

      
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    With
      a
      copy to:

    

    Foley
      Hoag LLP

    Seaport
      World Trade Center West

    155
      Seaport Boulevard

    Boston,
      MA 02210 

    Attn:
      Paul Bork

    Fax:
      (617) 832-7000

    

    Section
      15. Registration
      Rights.
      The
      initial holder of this Warrant is entitled to the benefit of certain
      registration rights with respect to the shares of Common Stock issuable upon
      the
      exercise of this Warrant as provided in the Registration Rights Agreement dated
      May 2, 2007, by and between the Warrantholders and the Corporation, and any
      subsequent holder hereof shall be entitled to such rights to the extent provided
      in the Registration Rights Agreement.

    

    Section
      16. Successors.
      All the
      covenants and provisions hereof by or for the benefit of the Warrantholder
      shall
      bind and inure to the benefit of its respective successors and assigns
      hereunder. 

    

    Section
      17. Governing
      Law.
      This
      Warrant shall be governed by, and construed in accordance with, the internal
      laws of the State of New York, without reference to the choice of law provisions
      thereof. The Corporation and, by accepting this Warrant, the Warrantholder,
      each
      irrevocably submits to the exclusive jurisdiction of the courts of the State
      of
      New York located in New York County and the United States District Court for
      the
      Southern District of New York for the purpose of any suit, action, proceeding
      or
      judgment relating to or arising out of this Warrant and the transactions
      contemplated hereby. Service of process in connection with any such suit, action
      or proceeding may be served on each party hereto anywhere in the world by the
      same methods as are specified for the giving of notices under this Warrant.
      The
      Corporation and, by accepting this Warrant, the Warrantholder, each irrevocably
      consents to the jurisdiction of any such court in any such suit, action or
      proceeding and to the laying of venue in such court. The Corporation and, by
      accepting this Warrant, the Warrantholder, each irrevocably waives any objection
      to the laying of venue of any such suit, action or proceeding brought in such
      courts and irrevocably waives any claim that any such suit, action or proceeding
      brought in any such court has been brought in an inconvenient forum.
      THE CORPORATION AND THE WARRANTHOLDER HEREBY IRREVOCABLY WAIVES ANY AND ALL
      RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATING TO OR ARISING OUT OF
      THIS WARRANT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    
      
        
        

      

      
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    Section
      18. No
      Rights as Shareholder.
      Prior
      to the exercise of this Warrant, the Warrantholder shall not have or exercise
      any rights as a shareholder of the Corporation by virtue of its ownership of
      this Warrant.

    

    Section
      19. Cashless
      Exercise.
      If, at
      any time after the one year anniversary of the Original Issue Date, there is
      no
      effective registration statement covering the Warrant Shares filed under the
      Securities Act as a result of a breach of the Corporation’s obligations under
      the Registration Right Agreement, the Warrantholder may elect to receive,
      without the payment by the Warrantholder of the aggregate Warrant Price in
      respect of the shares of Common Stock to be acquired upon exercise hereof,
      shares of Common Stock equal to the value of this Warrant or any portion hereof
      being exercised pursuant to this Section 19 by the surrender of this Warrant
      (or
      such portion of this Warrant being so exercised) together with the Net Issue
      Election Notice annexed hereto as Appendix
      B
      duly
      executed, at the office of the Corporation. Thereupon, and in no event later
      than three (3) Business Days after the Corporation’s receipt of the Net Issue
      Election Notice, the Corporation shall issue to the Warrantholder certificate(s)
      for such number of fully paid, validly issued and nonassessable shares of Common
      Stock as is computed using the formula immediately below. The certificates
      so
      delivered shall be in such denominations 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. If this Warrant shall have been exercised
      only in part, then, unless this Warrant has expired, the Corporation shall,
      at
      its expense, at the time of delivery of such certificates, deliver to the holder
      a new Warrant representing the number of shares with respect to which this
      Warrant shall not then have been exercised. 

    

    X
      =
Y
      (A -
      B)

        
      A

    where 

    

    X
      = the
      number of shares of Common Stock to be issued to the Warrantholder upon exercise
      of this Warrant pursuant to this Section 19;

    

    Y
      = the
      total
      number of shares of Common Stock covered by this Warrant which the Warrantholder
      has surrendered at such time for cashless exercise (including both shares to
      be
      issued to the Warrantholder and shares to be canceled as payment
      therefor);

    

    A
      = the
      Market Price of one share of Common Stock as at the time the net issue election
      is made; and

    

    B
      = the
      Warrant Price in effect under this Warrant at the time the net issue election
      is
      made.

    

    The
      Warrant Shares issued pursuant to this Section 19 shall be deemed to be issued
      to the exercising holder or such holder’s designee, as the record owner of such
      shares, as of the close of business on the date on which the Net Issue Election
      Notice shall have been surrendered (or evidence of loss, theft or destruction
      thereof and security or indemnity satisfactory to the Corporation) to the
      Corporation. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    “Market
      Price”
as
      of a
      particular date (the “Valuation
      Date”)
      shall
      mean the following: (a)
      if
      the Common Stock is then listed on a national stock exchange, the Market Price
      shall be the closing sale price of one share of Common Stock on such exchange
      on
      the last trading day prior to the Valuation Date, provided that if such stock
      has not traded in the prior ten (10) trading sessions, the Market Price shall
      be
      the average closing price of one share of Common Stock in the most recent ten
      (10) trading sessions during which the Common Stock has traded; (b) if the
      Common Stock is then included in the OTC Bulletin Board (the “OTCBB”),
      the
      Market Price shall be the closing sale price of one share of Common Stock on
      the
      OTCBB on the last trading day prior to the Valuation Date or, if no such closing
      sale price is available, the average of the high bid and the low ask price
      quoted on the OTCBB as of the end of the last trading day prior to the Valuation
      Date, provided that if such stock has not traded in the prior ten (10) trading
      sessions, the Market Price shall be the average closing price of one share
      of
      Common Stock in the most recent ten (10) trading sessions during which the
      Common Stock has traded, (c) if the Common Stock is then included in the “pink
      sheets,” the Market Price shall be the closing sale price of one share of Common
      Stock on the “pink sheets” on the last trading day prior to the Valuation Date
      or, if no such closing sale price is available, the average of the high bid
      and
      the low ask price quoted on the “pink sheets” as of the end of the last trading
      day prior to the Valuation Date, provided that if such stock has not traded
      in
      the prior ten (10) trading sessions, the Market Price shall be the average
      closing price of one share of Common Stock in the most recent ten (10) trading
      sessions during which the Common Stock has traded. The
      Board
      of Directors of the Corporation shall respond promptly, in writing, to an
      inquiry by the Warrantholder prior to the exercise hereunder as to the Market
      Price of a share of Common Stock as determined by the Board of Directors of
      the
      Corporation. 

    

    Section
      20. Redemption.
      If
      the
      Registration Statement covering the resale of the Warrant Shares underlying
      all
      of the Warrants is declared effective by the SEC, and is then effective,
      and
      the
      daily VWAP of the Common Stock for twenty (20) consecutive trading days exceeds
      $2.25 per share, Warrantholders shall have up to thirty (30) days to exercise
      this Warrant in accordance with Section 3 at an exercise price $1.25 per Warrant
      Share. On and after the thirty-first day, any remaining Warrants shall no longer
      be exercisable and shall be converted into a right to receive $.01 per share
      for
      the number of shares for which the Warrant had been exercisable at the end
      of
      the thirtieth day.

    

    Section
      21. Amendments.
      This
      Warrant shall not be amended without the prior written consent of the
      Corporation and the Requisite Holders; provided,
      that
      (x) any such amendment or waiver must apply to all Warrants; and (y) the number
      of Warrant Shares subject to this Warrant, the Warrant Price and the Expiration
      Date may not be amended, and the right to exercise this Warrant may not be
      altered or waived, without the prior written consent of the
      Warrantholder.

    

    Section
      22. Section
      Headings.
      The
      section headings in this Warrant are for the convenience of the Corporation
      and
      the Warrantholder and in no way alter, modify, amend, limit or restrict the
      provisions hereof.

    

    Section
      23.  Certain
      Definitions. 
      When used herein, the following terms shall have the respective meanings
      indicated: 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    “Principal
      Market”
means,
      as of the Original Issuance Date the OTCBB.

    

    “Trading
      Day”
means
      any day on which the Common Stock is purchased and sold on the Principal
      Market.

    

    “VWAP”
on
      a
      Trading Day means the volume weighted average price of the Common Stock for
      such
      Trading Day on the Principal Market as reported by Bloomberg Financial Markets
      or, if Bloomberg Financial Markets is not then reporting such prices, by a
      comparable reporting service of national reputation selected by the
      Warrantholders and reasonably satisfactory to the Corporation.  If VWAP
      cannot be calculated for the Common Stock on such Trading Day on any of the
      foregoing bases, then the Corporation shall submit such calculation to an
      independent investment banking firm of national reputation reasonably acceptable
      to the Warrantholders, and shall cause such investment banking firm to perform
      such determination and notify the Corporation and the Warrantholders of the
      results of determination no later than two (2) Business Days from the time
      such
      calculation was submitted to it by the Corporation.  All such
      determinations shall be appropriately adjusted for any stock dividend, stock
      split or other similar transaction during such period.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Corporation has caused this Warrant to be duly executed,
      as
      of the 2nd day of May, 2007.

    
      	 	 	 
	 	NOVELOS
              THERAPEUTICS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Name: 

              
                

              

              Title:  

              
                

              

            
	 	 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    NOVELOS
      THERAPEUTICS, INC.

    WARRANT
      EXERCISE FORM

    

    To:
      NOVELOS THERAPEUTICS, INC.

    

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the within Warrant (“Warrant”) for, and to purchase thereunder by
      the payment of the Warrant Price and surrender of the Warrant, _______________
      shares of Common Stock (“Warrant Shares”) provided for therein, and requests
      that certificates for the Warrant Shares be issued as follows: 

    

    _______________________________

    Name

    ________________________________

    Address

    ________________________________

    ________________________________

    Federal
      Tax ID or Social Security No.

    

    and
      delivered by

    

    q certified
      mail to the above address, or 

    q electronically
      (provide DWAC Instructions:___________________), 

    or

    q other
      (specify: __________________________________________).

     

    and,
      if
      the number of Warrant Shares shall not be all the Warrant Shares purchasable
      upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
      Shares purchasable upon exercise of this Warrant be registered in the name
      of
      the undersigned Warrantholder or the undersigned’s Assignee as below indicated
      and delivered to the address stated below.

      

      
        	
                Dated:
                  ___________________, ____

                 

                Note:
                  The signature must correspond with     

                the
                  name of the registered holder as written

                on
                  the first page of the Warrant in every

                particular,
                  without alteration or enlargement  

                or
                  any change whatever, unless the Warrant 

                has
                  been assigned.

              	
                 

                 

                 

                Signature:______________________ 

                _____________________________

                Name
                  (please print)

                 

                ______________________________
                  

                ______________________________

                Address

                ______________________________

                Federal
                  Identification or

                Social
                  Security No.

                 

                Assignee:
                  

                _______________________________

                _______________________________

                _______________________________

              

      
                             

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

    NOVELOS
      THERAPEUTICS, INC.

    NET
      ISSUE
      ELECTION NOTICE

     

    To:
      NOVELOS THERAPEUTICS, INC.

    

    Date:      
      _________________________

    

    The
      undersigned hereby elects under Section 19 of the Warrant to surrender the
      right
      to purchase ____________ shares of Common Stock pursuant to this Warrant and
      hereby requests the issuance of _____________ shares of Common Stock. The
      certificate(s) for the shares issuable upon such net issue election shall be
      issued in the name of the undersigned or as otherwise indicated
      below.

    

    _________________________________________

    Signature

    

    _________________________________________

    Name
      for
      Registration

    

    _________________________________________

    Mailing
      Address

    

    

    
      
        
        

      

      
        2

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