Document:

Exhibit
10.35

THIS CONVERTIBLE PROMISSORY NOTE (THIS “NOTE”)
AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  THIS NOTE AND SUCH OTHER SECURITIES MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF A REGISTRATION STATEMENT AND LISTING APPLICATION IN EFFECT WITH
RESPECT TO THIS NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT AND ANY
OTHER APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION AND LISTING ARE NOT REQUIRED PURSUANT TO A VALID
EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LAW
OF ANY STATE OR OTHER JURISDICTION.

FORM
OF CONVERTIBLE PROMISSORY NOTE

June 10, 2008

US $                                                                                                                                                                       June
  , 2005

FOR VALUE RECEIVED, Osiris
Therapeutics, Inc., a Delaware corporation (the “Company”), having
an address of 2001 Aliceanna Street, Baltimore, MD 21231, U.S.A., hereby
promises to pay to the order of             (the
“Holder”), at the offices of Holder at            
or such other place as may be designated by Holder to the Company in writing,
the aggregate principal amount of            
U.S. Dollars ($           )
(the “Principal”) together with accrued and unpaid interest, upon the terms and
conditions hereinafter set forth.

1.             Payment Terms. 
The Company promises to pay to Holder the Final Payment Amount (as hereinafter
defined) on June 10, 2008 (the “Maturity
Date”), unless this Note is earlier redeemed by the Company or converted into
Common Stock (as hereinafter defined) of the Company, pursuant to Section 3
or Section 5 hereof, as applicable. 
All accrued and unpaid interest shall be due and payable in accordance
with Section 2 hereof.  All
payments hereunder shall be made in lawful money of the United States of
America.  Payment shall be credited first
to the accrued and unpaid interest then due and payable and the remainder to
Principal.  “Final Payment Amount” means
an amount equal to the sum of the total unpaid Principal plus any accrued and
unpaid interest.

2.             Interest. 
Interest on the outstanding portion of Principal of this Note shall
accrue at a rate of six percent (6%) per
annum.  All computations of
interest shall be made on the basis of a 360-day year for actual days
elapsed.  All accrued interest shall be
due and payable on each Payment Date (as hereinafter defined), the Maturity
Date, the IPO Redemption Date (as hereinafter defined), the Company Redemption
Date (as hereinafter defined) or the IPO Conversion Date (as hereinafter
defined), as the case may be, in each case in accordance with the terms and
conditions of this Note.  “Payment Date”
means each of June 10, 2006 and June 10, 2007. 
If a Payment Date, the Maturity Date, the IPO Redemption Date, the
Company Redemption Date or the IPO Conversion Date is on a day that is not a
business day, payment of any amounts due and payable on such date shall be
effected on the immediately following business day.

 

 

 

3.             Conversion or Redemption of this Note.

(a)           Conversion or Redemption at Option
of Holder.  Upon the initial closing
by the Company of its first firm commitment underwritten public offering of not
less than USD 25 million (such closing an “IPO”), this Note may, at the sole
option of Holder, be, in whole or in part, (i) converted into shares of the
Company’s common stock, par value $0.001 per share (or as amended from time to
time as envisaged by Section 6 below) (“Common Stock”), in accordance with Section
3(a)(i) hereof, or (ii) redeemed by the Company for cash in accordance with
Section 3(a)(ii) hereof.  The date
of conversion is referred to as the “IPO Conversion Date” and the date of such
redemption is referred to as the “IPO Redemption Date”.

(i)            Conversion.  In the event of an IPO and Holder’s election
to convert this Note, in whole or in part, into Common Stock, the number of
shares of Common Stock to which Holder shall be entitled upon such conversion
(the “IPO Conversion Shares”) shall be equal to the product of:  the Final Payment Amount, divided by the IPO
Price times the IPO Adjustment Factor (as hereinafter defined) (the “Note
Conversion Rate”), such product to be multiplied with the percentage of the
Principal in relation to which the Holder elects to convert this Note into
Common Stock.  The “IPO Adjustment Factor”
amounts to

•                                          109% for the
time period until June 10, 2006;

•                                          115% for the
time period beginning June 11, 2006 and ending December 10, 2006;

•                                          118% for the
time period beginning December 11, 2006 and ending June 10, 2007;

•                                          124% for the
time period beginning June 11, 2007 and ending December 10, 2007;

•                                          127% for the
time period beginning December 11, 2007 and ending June 10, 2008.

“IPO Price” shall mean the
price per share at which shares of Common Stock are sold to the public in the
IPO.  Upon the election by Holder to
convert this Note, in whole or in part, pursuant to this Section 3(a)(i),
the Company shall use its best efforts to immediately complete the registration
under the Securities Act of the IPO Conversion Shares (as hereinafter defined).
 Holder agrees to cooperate with all
reasonable requests by the Company necessary to effectuate such registration,
including by timely providing the Company with all information necessary in
connection with such registration and agreeing to such undertakings and
restrictions as are typical for selling stockholders in similar circumstances.  The registration of the IPO Conversion Shares
pursuant to this Section 3(a)(i) shall be subject to the provisions of Section
14 hereof and to reasonable restrictions imposed by the underwriters.

 

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(ii)           Redemption.  In the event of an IPO and Holder’s election
to have this Note redeemed by the Company, the Company may, at its sole option,
effect such redemption by either: (1) paying, in immediately available funds,
an amount to Holder equal to the product of the Principal outstanding under
this Notes times the IPO Adjustment Factor, such product to be multiplied with
the percentage of the Principal in relation to which the Holder elects to have
this Note redeemed (the “IPO Redemption Price”).

(b)           Conversion or Redemption.  Following the initial filing by the Company
of a registration statement in connection with the IPO and at least 30 days
prior to the anticipated effective date of such registration statement, the
Company shall provide written notice (the “Company Notice”) to Holder of the
filing of such registration statement.  Holder
shall elect, by delivery of a written notice, substantially in the form attached
as Annex 1, to Company within 15 days of Holder’s receipt of the Company
Notice, to convert this Note upon the IPO, 
in whole or in part, pursuant to Section 3(a)(i) above or to have
this Note then redeemed, in whole or in part, pursuant to Section 3(a)(ii)
above.  If the Holder elects to convert
this Note in part into Common Stock pursuant to Section 3(a)(i) above
and to have this Note in part redeemed pursuant to Section 3(a)(ii)
above, the Holder shall specify the portion of Principal that shall be
converted into Common Stock and the portion of Principal that shall be
redeemed.  The Holder’s right to elect
partial conversion or redemption of this Note may be exercised in increments of
$100,000.  In the event Holder fails to respond
to the Company Notice in a timely manner, the Company shall understand such
failure to mean that Holder has elected to redeem this Note in accordance with Section
3(a)(ii) above.  Notwithstanding the
foregoing, the Company shall not be obligated to deliver the IPO Conversion
Shares issued upon conversion of this Note by the Holder or pay the IPO
Redemption Price unless the original of this Note is delivered to the Company
or Holder notifies the Company in writing that such original of this Note has
been lost, stolen or destroyed, and Holder executes an agreement satisfactory
to the Company to, among other things, 
indemnify the Company from any loss incurred by the Company in
connection with such original of this Note. 
Upon surrender by Holder to the Company of the original of this Note at the
office of the Holder to an authorized representative of the Company, such representative
shall issue and deliver to Holder promptly at such office and in Holder’s name
as shown on the original of this Note, the IPO Conversion Shares or the IPO
Redemption Price

(c)           No Fractional Shares.  The number of IPO Conversion Shares resulting
from a conversion of this Note pursuant to Section 3(a)(i) above shall
be rounded up to the next higher integral share of Common Stock, and no
fractional shares shall be issuable by the Company upon conversion of this
Note.  Conversion of this Note shall be deemed
payment in full of this Note and this Note shall thereupon be cancelled.

4.             Subordination. 
The indebtedness evidenced hereby ranks pari passu in right of payment
to all existing and future bank and indebtedness and Boston Scientific Loans, including
lease 

 

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and equipment finance
obligations of the Company.  The
indebtedness evidenced hereby ranks senior in right of payment to all other
convertible debt securities issued by the Company and to all classes and series
of the Company’s capital stock.

5.             Redemption.  This Note may be redeemed by the Company at
any time by payment to Holder in immediately available funds of the sum of the
(i) Final Payment Amount plus (ii) Company Redemption Premium (as hereinafter
defined).  “Company Redemption Premium” means
(i) 9% of the Principal if the redemption takes place before June 10, 2006;
(ii) 18% of the Principal if the redemption takes place on or after June 10,
2006 but before June 10, 2007; or (iii) 27% of the Principal if the redemption
takes place on or after June 10, 2007. 
The Company must provide written notice to Holder not less than 30 days
prior to the effective date of such redemption (the “Company Redemption Date”).

6.             Representations and Warranties of the Company.  The Company represents and warrants to Holder
as follows:

(a)           The execution and delivery by the
Company of this Note (i) are within the Company’s corporate power and
authority, and (ii) have been duly authorized by all necessary corporate
action.

(b)           This Note is a legally binding
obligation of the Company, enforceable against the Company in accordance with
the terms hereof, except to the extent that (i) such enforceability is limited
by bankruptcy, insolvency, reorganization, moratorium or other laws relating to
or affecting generally the enforcement of creditors’ rights, and (ii) the
availability of the remedy of specific performance or in injunctive or other equitable
relief is subject to the discretion of the court before which any proceeding therefore
may be brought.

7.             Use of Proceeds. 
The proceeds received by the Company from the sale of this Note shall be
used by the Company for working capital or other general corporate purposes.

8.             No Waiver in Certain Circumstances.  Except as set out in Section 3(b) sentence
3 above, no course of dealing of Holder nor any failure or delay by Holder
to exercise any right, power or privilege under this Note shall operate as a
waiver hereunder and any single or partial exercise of any such right, power or
privilege shall not preclude any later exercise thereof or any exercise of any
other right, power or privilege hereunder.

9.             Certain Waivers by the Company.  Except as expressly provided otherwise in
this Note, the Company and every endorser or guarantor, if any, of this Note
waive presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement
of this Note, and assent to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of
collateral available to Holder, if any, and to the addition or release of any
other party or person primarily or secondarily liable.

10.           No Unlawful Interest.  Notwithstanding anything herein to the
contrary, payment of any interest or other amount hereunder shall not be
required if such payment would be unlawful. 
In any such event, this Note shall automatically be deemed amended so
that interest charges and all 

 

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other payments required
hereunder, individually and in the aggregate, shall be equal to but not greater
than the maximum permitted by law.

11.           Security Interest. 
The Company’s obligations under this Note are secured by a grant of a
security interest to Holder in all tangible and intangible assets of Company,
excluding assets previously pledged in the Boston Scientific loan agreement,
for which Company retains sole title as of the date of this Note (the “Collateral”).
 The security interest is subject and subordinate
to each of the collaboration agreements between Boston Scientific Corporation
and the Company.  The Collateral includes
all equipment, fixtures, intellectual property (including patents), cash and
cash equivalents, software, personal property and receivables of the
Company.  Notwithstanding anything to the
contrary herein all (a) leases and other contracts, (b) licenses (including to
software and intellectual property), (c) rights of the Company under such
leases, other contracts and licenses and (d) any property that is the subject
of such leases, other contracts and licenses, shall not constitute “Collateral”
under this Note.  In the event Company
fails to perform any of its repayment obligations under this Note, and such
default is continuing for a period of 10 business days after written notice
from Holder to the Company (“Default”), Holder may accelerate repayment of the
Principal plus any accrued interest and exercise, without further notice, all
rights and remedies under this Note or enforce any rights otherwise available.  In the case of such Default, Holder shall give
the Company not less than 60 business days prior written notice of its intended
disposition of the Collateral; provided, however, if Company cures such
Default prior to expiration of such notice period, Default will be not deemed
to have occurred and Holder shall have no rights to accelerate repayment or
enforce the Collateral.  For the purpose
of enforcing any and all rights and remedies under this Agreement, Holder may
(i) require the Company to, upon Holder’s reasonable request, assemble all or
any part of the Collateral as directed by the Holder and make it available to
Holder during normal business hours at the Company’s headquarters, (ii) to the
extent permitted by applicable law, enter, without breach of the peace, any
premises where any such Collateral is or may be located and, reasonably seize
and remove such Collateral from such premises, (iii) direct the Company to
reasonably provide relevant information from the Company’s books and records
relating to the Collateral, and (iv) prior to the disposition of any of the
Collateral, store or transfer the Collateral, process, repair or recondition
such Collateral or otherwise prepare it for disposition in any manner and to
the extent Holder deems reasonably appropriate.  Notwithstanding anything to the contrary
herein, the security interest granted hereby is expressly limited to the Final
Payment Amount outstanding under this Note and Holder shall exercise the
foregoing rights in such a fashion so as to minimize disruption to Company and
its business operations and only to the extent necessary to recover such unpaid
Final Payment Amount.  Holder and the
Company shall work in good faith to effectuate the intent of the previous sentence.
 The security interest provided hereby
shall expire upon the payment in full of the Final Payment Amount or the
occurrence of the IPO Conversion Date.  Holder
will execute any documents or instruments the Company may reasonably request to
evidence such expiration.  By acceptance
of this Note (i) Holder and any subsequent holder of this Note acknowledges and
agrees that the Company may issue other convertible debt securities, and in
connection therewith, grant security interests in the Collateral which may be
subordinate to or pari passu with the security interest granted hereby, (ii)
Holder hereby consents to the grant by the Company of such security interests,
and (iii) Holder shall perform, from time to time, such acts, and shall
execute, acknowledge and/or deliver such other instruments, documents and
agreements as the Company reasonably may request in order to consummate the
transactions provided for in this Note.

 

5

 

12.           Lock-up.  In
the event of an IPO, Holder shall sign any lock up agreements which may be
requested by the underwriters of such an IPO and all the shares of Common Stock
received upon conversion specified in Section 3 above shall be subject to such
lock-up agreements.  The time period of
any lock-up shall be determined by the Company and the representative(s) of any
underwriters but shall in no event exceed 180 days from the date of the final
prospectus with respect to the IPO.

13.           Miscellaneous. 
No modification, rescission, waiver, forbearance, release or amendment
of any provision of this Note shall be made, except by a written agreement duly
executed by each of the Company and Holder.  This Note may not be conveyed, assigned or transferred
by Holder without the prior written consent of the Company.  All notices hereunder shall be in writing and
be deemed given if personally delivered, sent by overnight courier (provided
proof of delivery is received) or sent by telecopy (provided a confirmation of
transmission is received) at the addresses of the respective parties set forth
in the initial paragraph of this Note or such other address as either party
shall notify the other of from time to time. 
The Company hereby submits to personal jurisdiction in the State of
Maryland, consent to the jurisdiction of any competent state or federal
district court sitting in the County of Montgomery County, Maryland, and waives
any and all rights to raise lack of personal jurisdiction as a defense in any
action, suit or proceeding in connection with this Note or any related matter.  This Note shall be governed by, and construed
and interpreted in accordance with, the laws of the State of Maryland, without
reference to conflicts of law provisions of such state.

IN WITNESS WHEREOF, the undersigned have
caused this Note to be executed and delivered by a duly authorized officer as
of the date first above written.

Osiris
Therapeutics, Inc.

By:                                                                                      

Name:

Title:

 

6Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 4d

	606896 B.C. Ltd. 
	21910 – 61st Avenue 
	Langley, BC 
	V2Y 2P2 
	 

September 5, 2005

SUTCLIFFE RESOURCES LTD.
#420 – 625 Howe Street

Vancouver, BC
V6C 2T6

Attention: Laurence Stephenson

RE: MINERAL PROPERTY PURCHASE AGREEMENT

This agreement between 606986 B.C. Ltd. (hereinafter referred
to as 606) and Sutcliffe Resources Ltd. (hereinafter referred to as SUT)
establishes the final terms and conditions for the 100% purchase, subject to a
2.0% Net Smelter Royalty, of the Bloom 1-10 mineral claims, located west of and
adjoining the Harrison Lake Massive Sulphide Project on NTS 92H/06I, 62.

The purchase price is:

	cash payment of $40,000
  
	share payment of 500,000 shares
  
	a 2.0% N.S.R. of which 1 of the 2.0 (or 50% of the total) may be purchased
  at any time for $500,000. 

If you are in agreement, please sign below and forward the cash
and share payments.

Agreed to this 5th day of September 2005.

	per 606896 B.C. Ltd. 	per Sutcliffe Resources Ltd. 
	  	  
	/s/ Tom Brady	/s/ Laurence Stephenson
	Tom Brady 	Laurence Stephenson, P.Eng. 
	President 	President 

Page 2

	606896 B.C. Ltd. 
	21910 – 61st Avenue 
	Langley, BC 
	V2Y 2P2 
	 

Appendix A

The particulars for the Bloom claims are:

	 Claim Name 	Old Tenure # 	NTS 	New Tenure # 	Expiry Date 
	Bloom 1 	401407 	92H061, 62 	All claims now
      
covered by 
converted cell 
numbers 
512380 and 
512382
	12/12/05 
	Bloom 2 	401408 	92H061, 62 	12/12/05 
	Bloom 3 	401409 	92H061, 62 	12/12/05 
	Bloom 4 	401410 	92H061, 62 	12/12/05 
	Bloom 5 	401411 	92H061, 62 	12/12/05 
	Bloom 6 	401412 	92H061, 62 	12/12/05 
	Bloom 7 	401413 	92H061, 62 	12/12/05 
	Bloom 8 	401414 	92H061, 62 	12/12/05 
	Bloom 9 	401415 	92H061, 62 	12/12/05 
	Bloom 10 	401416 	92H061, 62 	12/12/05 

All claims are in the New Westminster Mining Division.

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