Document:

Exhibit 10.1

 

ELLIOTT BAY OFFICE PARK

OFFICE LEASE

 

THIS LEASE, effective as of the last signature date hereof, by and
between SELIG HOLDINGS COMPANY, a Washington limited liability company, whose
address is 1000 Second Avenue, Suite 1800, Seattle, Washington,
98104-1046, hereinafter referred to as “Lessor” and PONIARD PHARMACEUTICALS, INC.,
hereinafter referred to as “Lessee”.

 

1.                                       DESCRIPTION,  Lessor in consideration of the agreements
contained in this lease, does hereby lease to Lessee, upon the terms and
conditions hereinafter set forth, that certain space consisting of the agreed
upon square footage* of 3,810 (hereinafter referred to as “Premises”) situated
on the 5th floor level of the Elliott Bay Office Park, 300 Elliott Avenue West,
City of Seattle, State of Washington 98119, the legal description of which is:

 

Parcel A:  All of
Block 9, D.T. Denny’s Waterfront Addition to the City of Seattle, according to
the plat recorded in Volume 2 of Plats, Page 61, in King County,
Washington.

 

Parcel B:  Block 161,
Seattle Tidelands.

 

Suite 530

 

*Rentable square footage stated above is an estimate of the rentable
square footage and is based on the Building Owners and Managers Association
Standard Method for Measuring Area in Office Buildings (ANSI/BOMA Z65.1-1996).

 

2.                                       TERM,  The term of this lease shall be for a period
of twelve (12) months, commencing the Date of Occupancy (hereinafter defined)
which is approximately the 24th day of November, 2010, and ending twelve (12)  months thereafter.  “Date of Occupancy” shall be defined as (1) when
the Lessee has removed all its personal property and furnishings from its
former Selig leased location, hereinafter “Suite 500”, AND (2) Lessee
personnel have fully moved into and are conducting business in the
Premises.  Notwithstanding the foregoing,
Lessor shall allow Lessee to continue to occupy the Server Room in Suite 500
until December 6, 2010, or such earlier date that Lessee is able to move
its servers and personal property from such Server Room to the Premises;
and Lessor guarantees and will ensure that such Server Room will remain “secure”
and will not be accessible to its contractors, representatives or other third
parties, and that only Lessee shall have access to such Server Room.

 

In the event the Date of Occupancy is adjusted from the estimated date
set forth above, the lease term shall be extended in such a manner as to
reflect the delay occasioned by the Date of Occupancy.  In no event shall Lessor or Lessee be liable
for any damages due to adjustment of the Date of Occupancy.

 

3.                                       RENT,  Lessee covenants and agrees to pay Lessor
rent each month in advance on the first day of each calendar month.  Rent shall be computed at the annual base
rental rate of $23.00 per square foot. 
Rent for any fractional calendar month, at the beginning or end of the
term, shall be the pro rated portion of the rent computed on an annual basis.

 

4.                                       CONSIDERATION,  Lessee has previously paid to Lessor the sum
of $44,998.67 as lease consideration for its existing lease at Suite 500,
receipt of which is hereby acknowledged. 
The above amount, less $7,302.50, i.e. the equivalent of one (1) month’s
rent for the Premises, shall be given to Lessee as a rent credit to be used
during the initial months of this lease term. 
In the event Lessee fully complies with all the terms and conditions of
this lease, but not otherwise, the then remaining amount of $7,302.50 shall be
credited to the last month’s rental on the term of this lease.

 

5.                                       USES,  Lessee agrees that Lessee will use and occupy
said Premises for general offices and related purposes and for no other
purposes.

 

6.                                       RULES AND
REGULATIONS,  Lessee and
their agents, employees, servants or those claiming under Lessee will at all
times observe, perform and abide by all of the Rules and Regulations
printed on this instrument, or which may be hereafter promulgated by Lessor,
all of which it is covenanted and agreed by the parties hereto shall be and are
hereby made a part of this lease.

 

7.                                       CARE AND
SURRENDER OF PREMISES, 
Lessee shall take good care of the Premises and shall promptly make all
necessary repairs except those required herein to be made by Lessor.  At the expiration or sooner termination of
this lease, Lessee, without notice, will immediately and peacefully quit and
surrender the Premises in good order, condition and repair (damage by
reasonable wear, the elements, or fire excepted).  Lessee shall be responsible for removal of
all personal property from the Premises, 

 

 

(excepting fixtures being that which is attached to the Premises, and
property of the Lessor) including, but not limited to, the removal of Lessee’s
communication cabling, telephone equipment and signage.  Lessee shall be responsible for repairing any
damage to the Premises caused by such removal. 
If Lessee fails to remove and restore the Premises at lease expiration,
then Lessor shall have the right to remove said property and restore the
Premises and Lessee shall be responsible for all costs associated
therewith.  Lessee shall also be
responsible for those costs incurred by Lessor for removing debris Lessee may
discard in the process of preparing to vacate the Premises and for a final
cleaning of the Premises, including, but not limited to, the cleaning, or
replacement of carpets if damage is not caused by reasonable wear, and removal
and disposal of Lessee’s personal property remaining in the Premises.

 

8.                                       ALTERATIONS,  Lessee shall not make any alterations or
improvements in, or additions to said Premises without first obtaining the
written consent of Lessor, whose consent shall not be unreasonably withheld,
conditioned or delayed.  All such
alterations, additions and improvements shall be at the sole cost and expense
of Lessee and shall become the property of Lessor and shall remain in and be
surrendered with the Premises as a part thereof at the termination of this
lease, without disturbance, molestation or injury.

 

9.                                       RESTRICTIONS,  Lessee will not use or permit to be used in
said Premises anything that will increase the rate of insurance on said
Building or any part thereof, nor anything that may be dangerous to life or
limb; nor in any manner deface or injure said Building or any part thereof; nor
overload any floor or part thereof; nor permit any objectionable noise or odor
to escape or to be emitted from said Premises, or do anything or permit
anything to be done upon said Premises in any way tending to create a nuisance
or to disturb any other tenant or occupant of any part of said Building.  Lessee, at Lessee’s expense, will comply with
all health, fire and police regulations respecting said Premises.  The Premises shall not be used for lodging or
sleeping, and no animals or birds will be allowed in the Building.

 

10.                                 WEIGHT
RESTRICTIONS,  Safes,
furniture or bulky articles may be moved in or out of said Premises only at
such hours and in such manner as will least inconvenience other tenants, which
hours and manner shall be at the discretion of Lessor.  No safe or other article of over 2,000 pounds
shall be moved into said Premises without the consent of Lessor, whose consent
shall not be unreasonably withheld, conditioned or delayed, and Lessor shall
have the right to locate the position of any article of weight in said Premises
if Lessor so desires.

 

11.                                 SIGN
RESTRICTION,  No sign,
picture, advertisement or notice shall be displayed, inscribed, painted or
affixed to any of the glass or woodwork of the Building without the prior
approval of Lessor.  Such approval shall
not be unreasonably withheld, conditioned or delayed.

 

12.                                 LOCKS,  No additional locks shall be placed upon any
doors of the Premises.  Keys will be
furnished to each door lock.  At the
termination of the lease, Lessee shall surrender all keys to the Premises
whether paid for or not.

 

13.                                 KEY,  Lessor, his janitor, engineer or other agents
may retain a pass key to said Premises to enable him to examine the Premises
from time to time with reference to any emergency or to the general maintenance
of said Premises.

 

14.                                 TELEPHONE
SERVICE,  If Lessee desires telephonic
or any other electric connection, Lessor will direct the electricians as to
where and how the wires are to be introduced, and without such directions no
boring or cutting for wires in installation thereof will be permitted.

 

15.                                 SERVICES,  Lessor shall maintain Premises and the public
and common area of Building, such as lobbies, stairs, corridor and restrooms,
in reasonably good order and condition except for damage occasioned by the act
of Lessee.

 

Lessor shall furnish Premises with electricity for lighting and
operation of low power usage office machines and personal computers, heat,
normal office air-conditioning, and elevator services, 24 hours per day, 7 days
per week.  Lessor will ensure, at its
cost, that the Server Room on the Premises is cooled to a temperature
required by Lessee to accommodate its approximately 23,500 BTU/hr load.  Lessor shall also provide lighting
replacement for Lessor furnished lighting, toilet room supplies, window washing
with reasonable frequency, and janitor service to the Premises and the common
areas of the Building, customary for Class A office buildings.

 

Lessor shall not be liable to Lessee for any loss or damage caused by
or resulting from any variation, interruption or any failure of said services
due to any cause whatsoever.  No
temporary interruption or failure of such services incident to the making of
repairs, alterations, or improvements, or due to accident or strike or
conditions or events not under Lessor’s control shall be deemed as an eviction
of Lessee or relieve Lessee from any of Lessee’s obligations hereunder.

 

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In the event of any lack of attention on the part of Lessor and any
dissatisfaction with the service of the Building, or any unreasonable annoyance
of any kind, Lessee is requested to make complaints at Lessor’s Building office
and not to Lessor’s employees or agents seen within the Building.  Lessee is further requested to remember that
Lessor is as anxious as Lessee that a high grade service be maintained, and
that the Premises be kept in a state to enable Lessee to transact business with
the greatest possible ease and comfort. 
The rules and regulations are not made to unnecessarily restrict
Lessee, but to enable Lessor to operate the Building to the best advantage of
both parties hereto.  To this end Lessor
shall have the right to waive from time to time such part or parts of these rules and
regulations as in his judgment may not be necessary for the proper maintenance
or operation of the Building or consistent with good service, and may from time
to time make such further reasonable rules and regulations as in his
judgment may be needed for the safety, care and cleanliness of the Premises and
the Building and for the preservation of order therein.

 

16.                                 SOLICITORS,  Lessor will make an effort to keep solicitors
out of the Building, and Lessee will not oppose Lessor in his attempt to
accomplish this end.

 

17.                                 FLOOR PLAN,  The floor plan and specifications for Lessee’s
occupancy shall be attached hereto and marked Exhibit “A” which shall be
approved by both Lessor and Lessee, both of whose approval shall not be
unreasonably withheld, conditioned or delayed.

 

18.                                 ASSIGNMENT/SUBLETTING,  Lessee shall be entitled to assign all or a
portion of the premises to any related entity, subsidiary or affiliate of
Lessee, or any successor entity related to Lessee by merger, consolidation or
reorganization, or a purchaser of all or substantially all of Lessee’s assets
without the consent of Lessor.  Further
assignment or subletting shall be with Lessor’s consent, which shall not be
unreasonably withheld.  Lessor and Lessee
shall split equally any sublease profits after deducting the reasonable costs
of subleasing.  Lessor shall have the
first right to recapture any such sublease space in order to accommodate the
expansion needs of other building tenants, should Lessee wish to sublease space
for the remainder of the lease term.

 

19.                                 OPERATING
SERVICES AND REAL ESTATE TAXES,  The annual base rental rate per rentable
square foot in Paragraph 3 includes Lessee’s proportionate share of Operating
Services and Real Estate Taxes for the first twelve months of the lease term, “Base
Year Costs”.  Only actual increases from
these Base Year Costs, if any, will be passed on to Lessee on a proportionate
basis.

 

DEFINITIONS

 

Base Year

 

For computing the Base Year Costs, the base year shall be the calendar
year stated herein or if a specific calendar year is not stated herein then the
base year shall be the calendar year in which the lease term commences.  The base year shall be the calendar year
2010.

 

Comparison Year

 

The Comparison Year(s) shall be the calendar year(s) subsequent
to the base year.

 

Operating Services

 

“Operating
Services” include, but are not limited to, the charges incurred by Lessor
for:  Building operation salaries,
benefits, management fee (currently 5%) of gross income for the Building,
insurance, electricity, janitorial, supplies, telephone, HVAC, repair and
maintenance, window washing, water and sewer, security, landscaping, disposal,
elevator, and any other service or supplies reasonably necessary to the use and
operation of the premises.  Operating
Services shall also include the amortization cost of capital investment items
and of the installation thereof, which are primarily for the purpose of safety,
saving energy or reducing operating costs, or which may be required by
governmental authority, (all such costs shall be amortized over the reasonable
life of the capital investment item, with the reasonable life and amortization
schedule being determined in accordance with generally accepted accounting
principles).  Notwithstanding anything to
the contrary contained herein, Operating Services shall not include any of the
following:

 

(i)                                     real estate
taxes

 

(ii)                                  legal fees,
auditing fees, brokerage commissions, advertising costs, or other related
expenses incurred by Lessor in an effort to generate rental income;

 

(iii)                               repairs,
alterations, additions, improvements, or replacements made to rectify or
correct any defect in the original design, materials or workmanship of the
Building or common areas (but

 

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not including repairs, alterations, additions, improvements or
replacements made as a result of ordinary wear and tear);

 

(iv)                              damage and
repairs attributable to fire or other casualty;

 

(v)                                 damage and
repairs necessitated by the negligence or willful misconduct of Lessor, Lessor’s
employees, contractors or agents;

 

(vi)                              executive
salaries to the extent that such services are not in connection with the management,
operation, repair or maintenance of the Building;

 

(vii)                           Lessor’s
general overhead expenses not related to the Building;

 

(viii)                        legal fees,
accountant’s fees and other expenses incurred in connection with disputes with
tenants or other occupants of the Building or associated with the enforcement
of the terms of any leases with tenants or the defense of Lessor’s title to or
interest in the Building or any part thereof unless the outcome is to the
financial benefit of all tenants;

 

(ix)                                costs (including
permit, license and inspection fees) incurred in renovating or otherwise
improving, decorating, painting or altering (1) vacant space (excluding
common areas) in the Building or (2) space for tenants or other occupants
in the Building and costs incurred in supplying any item or service to less
than all of the tenants in the Building;

 

(x)                                   costs incurred
due to a violation by Lessor or any other tenant of the Building of the terms
and conditions of a lease;

 

(xi)                                cost of any
specific service provided to Lessee or other occupants of the Building for
which Lessor is reimbursed (but not including Operating Services and Real
Estate Tax increases above Base Year Costs to the extent reimbursed Lessor) or
any other expense for which Lessor is or will be reimbursed by another source
(i.e., expenses covered by insurance or warranties);

 

(xii)                             costs and
expenses which would be capitalized under generally accepted accounting
principles, with the exception of the capital investment items specified
hereinabove;

 

(xiii)                          Building
management fees in excess of the management fees specified hereinabove;

 

(xiv)                         cost incurred
with owning and/or operating the parking lot(s) serving the Building by
independent parking operator(s).

 

(xv)                            fees paid to
Lessor or any affiliate of Lessor for goods or services in excess of the fees
that would typically be charged by unrelated, independent persons or entities
for similar goods and services;

 

(xvi)                         rent called for
under any ground lease or master lease;

 

(xvii)                      principal
and/or interest payments called for under any debt secured by a mortgage or
deed of trust on the Building; and

 

Operating Services shall be adjusted for the Base Year and all
Comparison Year(s) to reflect the greater of actual occupancy or 95%
occupancy.

 

Real Estate Taxes

 

Real Estate Taxes shall be the taxes paid by Lessor in the base year
and each respective Comparison Year. 
Real Estate Taxes shall be a separate category and shall be treated as
such.

 

Proportionate Basis

 

Lessee’s share of Base Year and Comparison Year(s) Costs shall be
a fraction, the numerator of which shall be the number of rentable square feet
contained in the leased Premises (see Paragraph 1) and the denominator of which
shall be the number of rentable square feet in the Building in which the leased
Premises are located (225,616/RSF).

 

Computation of Adjustments to Base Year Costs

 

Any adjustment to Base Year Costs will commence to occur in Month 13 of
the lease term with subsequent adjustments commencing every twelve months of
the lease term or in Months 25, 37, 49, etc. as 

 

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appropriate under the lease term. 
Lessee shall be responsible for any increase between Lessee’s
proportionate share of Base Year Costs and Lessee’s proportionate share of each
respective Comparison Year(s) Costs. 
The increase shall be the increase to each expense individually.  These costs shall be initially calculated
based on estimated (projected) costs with reconciliation to actual costs when
annual audited numbers are completed. 
For the purpose of calculating projected increases to Base Year Costs,
Lessor shall review historical data to predict if any estimated increases would
be anticipated in a Comparison Year(s). 
If they are, then commencing in Month 13 and/or every twelve month
period thereafter, Lessor will assess a monthly charge to be paid together with
monthly base rent.  Once actual cost data
for Comparison Year(s) Real Estate Taxes and Operating Services for the
entire Building is formulated in accordance with generally accepted accounting
principles and adjusted to the greater of actual occupancy or 95% occupancy,
then Lessee’s estimated pass-through costs shall be corrected with Lessee or
Lessor, as appropriate, reimbursing the other for the difference between the
estimated and actual costs, at that time in a lump sum payment.

 

Upon termination of this lease, the amount of any corrected amount
between estimated and actual costs with respect to the final Comparison Year
shall survive the termination of the lease and shall be paid to Lessee or
Lessor as appropriate within thirty (30) days after final reconciliation.

 

Computation of or adjustment to Operating Services and/or Real Estate
Taxes pursuant to this paragraph or to rent pursuant to Paragraph 3 shall be computed
based on a three hundred sixty-five (365) day year.

 

For an example, see Exhibit B attached hereto.

 

20.                                 ADDITIONAL
TAXES OR ASSESSMENTS,  Should
there presently be in effect or should there be enacted during the term of this
Lease, any law, statute or ordinance levying any assessments or any tax upon
the leased premises other than federal or state income taxes, Lessee shall
reimburse Lessor for Lessee’s proportionate share of said expenses at the same
time as rental payments.

 

21.                                 LATE PAYMENTS,  Any payment, required to be made pursuant to
this Lease, not made on the date the same is due shall bear interest at a rate
equal to three percent (3%) above the prime rate of interest charged from time
to time by Bank of America, or its successor.

 

In addition to any interest charged herein, a late charge of five
percent (5%) of the payment amount shall be incurred for payments received more
than five (5) days late.

 

22.                                 RISK,  All personal property of any kind or
description whatsoever in the demised Premises shall be at Lessee’s sole
risk.  Lessor shall not be liable for any
damage done to or loss of such personal property or damage or loss suffered by
the business or occupation of the Lessee arising from any acts or neglect of
co-tenants or other occupants of the Building, or of Lessor or the employees of
Lessor, or of any other persons, or from bursting, overflowing or leaking of
water, sewer or steam pipes, or from the heating or plumbing or sprinklering
fixtures, or from electric wires, or from gas, or odors, or caused in any other
manner whatsoever except in the case of negligence on the part of Lessor.  Lessee shall keep in force throughout the
term of this lease such casualty, general liability and business interruption
insurance as a prudent tenant occupying and using the Premises would keep in
force.

 

23.                                 INDEMNIFICATION,  Each party will defend, indemnify and hold
harmless the other party from any claim, liability or suit including reasonable
attorney’s fees on behalf of any person, persons, corporations and/or firm for
any injuries or damages occurring in or about the said Premises or on or about
the sidewalk, stairs, or thoroughfares adjacent thereto or any common areas of
the Building where said damages or injury was caused by the negligence or intentional
act of the indemnifying party, its agents, employees, servants, customers or
clients.

 

24.                                 WAIVER OF
SUBROGATION,  Lessee and
Lessor do hereby release and relieve the other, and waive their entire claim of
recovery for loss, damage, injury, and all liability of every kind and nature
which may arise out of, or be incident to, fire and extended coverage perils,
in, on, or about the Premises herein described, whether due to negligence of
either of said parties, their agents, or employees, or otherwise.

 

25.                                 SUBORDINATION,  This lease and all interest and estate of
Lessee hereunder is subject to and is hereby subordinated to all present and
future mortgages and deeds of trust affecting the Premises or the property of
which said Premises are a part.  Lessee
agrees to execute at no expense to the Lessor, any instrument which may be
deemed necessary or desirable by the Lessor to further effect the subordination
of this lease to any such mortgage or deed of trust.  In the event of a sale or assignment of Lessor’s
interest in the Premises, or in the event of any proceedings brought for the
foreclosure of, or in the event of exercise of the power of sale under any
mortgage or deed of trust made by Lessor covering the Premises, Lessee shall
attorn to the purchaser and recognize such purchaser as Lessor.  Lessee agrees to execute, at no expense to
Lessor, any estoppel certificate deemed necessary or desirable by Lessor to
further effect the provisions of this paragraph.

 

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26.                                 CASUALTY,  In the event the leased Premises or the said
Building is destroyed or injured by fire, earthquake or other casualty to the
extent that they are untenantable in whole or in part, then Lessor may, at
Lessor’s option, proceed with reasonable diligence to rebuild and restore the
said Premises or such part thereof as may be injured as aforesaid, provided
that within sixty (60) days after such destruction or injury Lessor will notify
Lessee of Lessor’s intention to do so, and during the period of such rebuilding
and restoration the rent shall be abated on the portion of the Premises that is
unfit for occupancy.  During any period
of abatement of rent due to casualty or destruction of the Premises, Lessor
shall use its best efforts to locate comparable space for Lessee at the fair
market rate not to exceed Lessee’s rental rate hereunder.  Lessor shall not be liable for any
consequential damages by reason of inability, after use of its best efforts, to
locate alternative space comparable to the premises leased hereunder.

 

27.                                 INSOLVENCY,  If Lessee becomes insolvent, or makes an
assignment for the benefit of creditors, or a receiver is appointed for the
business or property of Lessee, or a petition is filed in a court of competent
jurisdiction to have Lessee adjudged bankrupt, then Lessor may at Lessor’s
option terminate this lease.  Said
termination shall reserve unto Lessor all of the rights and remedies available
under Paragraph 28 (“Default”) hereof, and Lessor may accept rents from such assignee
or receiver without waiving or forfeiting said right of termination.  As an alternative to exercising his right to
terminate this lease, Lessor may require Lessee to provide adequate assurances,
including the posting of a cash bond, of Lessee’s ability to perform its
obligations under this lease.

 

28.                                 DEFAULT,  If this lease is terminated in accordance
with any of the terms herein (with the exception of Paragraph 27), or if Lessee
vacates or abandons the Premises (while in monetary default), or if Lessee
shall fail at any time to keep or perform any of the covenants or conditions of
this lease, i.e. specifically the covenant for the payment of monthly rent, and
if such default continues for more than five (5) days following written
notice from Lessor with respect to failure to pay rent, or more than thirty
(30) days following Lessor’s written notice with respect to any non-monetary
default,  then, and in any of such events
Lessor may with or without notice or demand, at Lessor’s option, and without
being deemed guilty of trespass and/or without prejudicing any remedy or
remedies which might otherwise be used by Lessor for arrearages or preceding
breach of covenant or condition of this lease, enter into and repossess said
Premises and expel the Lessee and all those claiming under Lessee.  In such event Lessor may eject and remove
from said Premises all goods and effects (forcibly if necessary).  This lease if not otherwise terminated may
immediately be declared by Lessor as terminated.  The termination of this lease pursuant to
this Article shall not relieve Lessee of its obligations to make the
payments required herein.  In the event
this lease is terminated pursuant to this Article, or if Lessor enters the
Premises without terminating this lease and Lessor relets all or a portion of
the Premises, Lessee shall be liable to Lessor for all the costs of reletting,
including necessary renovation and alteration of the leased Premises.  Lessee shall remain liable for all unpaid
rental which has been earned plus late payment charges pursuant to Paragraph 21
and for the remainder of the term of this lease for any deficiency between the
net amounts received following reletting and the gross amounts due from Lessee,
or if Lessor elects, Lessee shall be immediately liable for all rent and
additional rent (Paragraph 19) that would be owing to the end of the term, less
any rental loss Lessee proves could be reasonably avoided, which amount shall
be discounted by the discount rate of the Federal Reserve Bank, situated nearest
to the Premises, plus one percent (1%). 
Waiver by the Lessor of any default, monetary or non-monetary, under
this Lease shall not be deemed a waiver of any future default under the Lease.  Acceptance of rent by Lessor after a default
shall not be deemed a waiver of any defaults (except the default pertaining to
the particular payment accepted) and shall not act as a waiver of the right of
Lessor to terminate this Lease as a result of such defaults by an unlawful
detainer action or otherwise.

 

29.                                 BINDING EFFECT,  The parties hereto further agree with each
other that each of the provisions of this lease shall extend to and shall, as
the case may require, bind and inure to the benefit, not only of Lessor and
Lessee, but also of their respective heirs, legal representatives, successors
and assigns, subject, however, to the provisions of Paragraph 18 of this lease.

 

It is also understood and agreed that the terms “Lessor” and “Lessee”
and verbs and pronouns in the singular number are uniformly used throughout
this lease regardless of gender, number or fact of incorporation of the parties
hereto.  The typewritten riders or
supplemental provisions, if any, attached or added hereto are made a part of
this lease by reference.  It is further
mutually agreed that no waiver by Lessor of a breach by Lessee of any covenant
or condition of this lease shall be construed to be a waiver of any subsequent
breach of the same or any other covenant or condition.

 

30.                                 HOLDING OVER,  If Lessee holds possession of the Premises after
term of this lease, Lessee shall be deemed to be a month-to-month tenant upon
the same terms and conditions as contained herein, except rent which shall be
revised to reflect the then current market rate.  During month-to-month tenancy, Lessee acknowledges
Lessor will be attempting to relet the Premises.  Lessee agrees to cooperate with Lessor and
Lessee further acknowledges Lessor’s statutory right to terminate the lease
with proper notice.

 

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31.                                 ATTORNEY’S FEES,  If any legal action is commenced to enforce
any provision of this lease, the prevailing party shall be entitled to an award
of reasonable attorney’s fees and disbursements.

 

32.                                 NO
REPRESENTATIONS,  The Lessor
has made no representations or promises except as contained herein or in some
future writings signed by Lessor.

 

33.                                 QUIET ENJOYMENT,  So long as Lessee pays the rent and performs
the covenants contained in this lease, Lessee shall hold and enjoy the Premises
peaceably and quietly, subject to the provisions of this lease.

 

34.                                 RECORDATION,  Lessee shall not record this lease without
the prior written consent of Lessor, whose consent shall not be unreasonably
withheld, conditioned or delayed. 
However, at the request of Lessor, both parties shall execute a
memorandum or “short form” of this lease for the purpose of recordation in a
form customarily used for such purpose. 
Said memorandum or short form of this lease shall describe the parties,
the Premises and the lease term, and shall incorporate this lease by reference.

 

35.                                 MUTUAL
PREPARATION OF LEASE,  It is
acknowledged and agreed that this lease was prepared mutually by both
parties.  In the event of ambiguity, it
is agreed by both parties that it shall not be construed against either party
as the drafter of this lease.

 

36.                                 GOVERNING LAW,  This lease shall be governed by, construed
and enforced in accordance with the laws of the State of Washington.

 

37.                                 FINISH WORK,  The space is leased in its existing as-is
condition.  Any tenant improvements or
modifications to the space shall be with Lessor’s prior approval of drawings
and Lessee’s contractor.

 

38.                                 PARKING,  Lessee shall have the right, but not the
obligation, to two (2) parking stalls inside the building and two (2) outside
at market rate.  Further, for the month
of December, 2010, Lessee shall have the right, but not the obligation, to four
additional parking stalls inside the building, at market rent.  In the event additional inside parking is
available in 2011, Lessor will notify Lessee, and Lessee will have the right,
but not the obligation, to any additional inside parking stalls that Lessor
advises are available (at market rate) and on a month-to-month basis.

 

39.                                 RENEWAL OPTION,  Provided that Lessee is not in default under
any of the terms and conditions of its lease Lessee shall have the option to
renew this lease, for an additional period of three (3) years, on the same
terms and conditions, except rent.

 

Base rent for the renewal term shall be at the then reasonable market
rate for comparable office space in Seattle. 
Lessee agrees to give Lessor notice of its intent to renew ninety (90)
days prior to the expiration of the initial lease term.

 

40.                                 CANCELLATION
OPTION,  Lessee shall have the option,
at any time during the lease term to cancel and terminate this lease by giving
Lessor thirty (30) days prior written notice of its intention to do so.  The effective date of cancellation will be
the last day of the month following Lessor’s receipt of Lessee’s thirty (30)
day notice.  Due to the fact that Lessee
has prepaid several months rent in advance (as noted in Paragraph 4 hereof), in
the event Lessee exercises this cancellation option, and Lessee has rent credit
still remaining, then Lessor agrees that it shall refund such remaining credit
to Lessee within thirty (30) days after the effective date of such cancellation
hereunder.

 

41.                                 EXISTING LEASE,  Upon the Date of Occupancy of the Premises
herein at Suite 530, Lessee’s existing lease with Lessor at Suite 500
dated February 15, 2002 and as amended by Amendment dated November 21,
2008, for 20,764 square feet on the 5th floor of the
building, will be cancelled, and Lessor hereby releases Lessee from such
existing Lease at Suite 500 in all respects, and Lessor further
acknowledges that Lessee has fulfilled all its obligations under such Suite 500
lease.  In addition, Lessor acknowledges
that Lessee has paid the entire month’s rent for the month of November 2010
on Suite 500, and Lessor will refund to Lessee, such prorata portion of such
November rent, based on the Date of Occupancy, such sum to be paid to
Lessee within fifteen (15) days of such Date of Occupancy.  Notwithstanding the foregoing, Lessor agrees
that Lessee shall remain in sole possession of the Server Room at Suite 500
until December 6, 2010, or such earlier date that Lessee shall remove its
personal property from such Server Room (and give written notice to Lessor that
Lessee has vacated such Server Room). 
Lessee shall not be charged any rent or other charges for its continued
possession of such Server Room until December 6, 2010.

 

7

 

IN WITNESS WHEREOF, the parties hereto have executed this lease
effective as of the last signature date below.

 

	
  SELIG
  HOLDINGS COMPANY,

  	
   

  	
   

  	
  PONIARD
  PHARMACEUTICALS, INC.

  
	
  a
  Washington limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  November 22,
  2010

  	
   

  	
   

  	
  Dated:

  	
  November 24,
  2010

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  MARTIN SELIG

  	
   

  	
   

  	
  /s/
  MICHAEL K. JACKSON

  
	
  By:

  	
  Martin
  Selig

  	
   

  	
  By:

  	
  Michael
  K. Jackson

  
	
  Its:

  	
  Managing
  Member

  	
   

  	
  Its:

  	
  Interim
  CFO

  
	
   

  	
   

  	
   

  
	
  “Lessor”

  	
   

  	
  “Lessee”

  

 

 

ATTACHMENT

 

8

 

	
  STATE
  OF WASHINGTON

  	
  )

  
	
   

  	
  )      ss.

  
	
  COUNTY
  OF KING

  	
  )

  

 

On
this 22nd day of November, 2010, before me, a Notary Public in and for the
State of Washington, personally appeared MARTIN SELIG, to me known to be the
Managing Member respectively, of SELIG HOLDINGS COMPANY, L.L.C. the entity that
executed the foregoing instrument, and acknowledged said instrument to be the
free and voluntary act and deed of said entity, for the uses and purposes
therein mentioned, and on oath stated that he is authorized to execute said
instrument on behalf of the entity.

 

	
   

  	
  /s/
  Judith Brandt

  	
   

  
	
   

  	
  Notary
  Public in and for the State of Washington

  	
   

  
	
   

  	
  Residing
  at:

  	
  Sammamish

  	
   

  
	
   

  	
  My
  commission expires:

  	
  11-8-12

  	
   

  
	
  (Individual)

  	
   

  
	
   

  	
   

  
	
  STATE
  OF

  	
  )

  
	
   

  	
  )      ss.

  
	
  COUNTY
  OF

  	
  )

  
					

 

On
this          day of
                        ,
20      , before me, a Notary Public in and for
the State of
                            ,
personally appeared                                       ,
the individual(s) who executed the within and foregoing instrument, and
acknowledged said instrument to be his/her/their free and voluntary act and
deed for the uses and purposes therein mentioned.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public in and for the State of 

  	
   

  	
   

  
	
   

  	
  Residing
  at:

  	
   

  	
   

  
	
   

  	
  My
  commission expires:

  	
   

  	
   

  
	
  (Partnership)

  	
   

  
	
   

  	
   

  
	
  STATE
  OF

  	
  )

  
	
   

  	
  )      ss.

  
	
  COUNTY
  OF

  	
  )

  
						

 

On
this          day of
                        ,
20      , before me, a Notary Public in and for
the State of
                            ,
personally appeared
                                      ,
to me known to be partner(s) of
                                                            ,
the partnership that executed the foregoing instrument, and acknowledged said
instrument to be the free and voluntary act and deed of said partnership, for
the uses and purposes therein mentioned, and on oath stated that he/she/they
is/are authorized to execute said instrument on behalf of the partnership.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public in and for the State of 

  	
   

  	
   

  
	
   

  	
  Residing
  at:

  	
   

  	
   

  
	
   

  	
  My
  commission expires:

  	
   

  	
   

  
	
  (Corporation)

  	
   

  
	
   

  	
   

  
	
  STATE
  OF WASHINGTON

  	
                               )

  
	
   

  	
  )      ss.

  
	
  COUNTY
  OF KING

  	
               )

  
						

 

On
this 24th day of November, 2010, before me, a Notary Public in and for the
State of Washington, personally appeared Michael K. Jackson, to me known to be
the Interim CFO, respectively, of Poniard Pharmaceuticals, Inc., the
corporation that executed the within and foregoing instrument, and acknowledged
said instrument to be the free and voluntary act and deed of said corporation,
for the uses and purposes therein mentioned, and on oath stated that
he/she/they is/are authorized to execute said instrument and that the seal
affixed is the corporate seal of said corporation.

 

	
  /s/ Julia Cross

  	
   

  
	
  Notary
  Public in and for the State of

  	
  Washington

  	
   

  
	
  Residing
  at: 

  	
  Redmond,
  WA

  	
   

  
	
   

  	
  My
  commission expires:

  	
  9-8-12

  	
   

  

 

 

EXHIBIT A

 

[FLOOR PLAN]

 

 

EXHIBIT B

 

EXAMPLE

 

The intent is to include Lessee’s proportionate share of all Base Year
Costs in Lessee’s Annual Base Rental Rate. 
It is further the intent to limit adjustments to Lessee’s Base Year
Costs to actual increases in cost.  The
Operating Services are adjusted to the greater of actual occupancy or 95%
occupancy for the base year to fairly establish the Base Year Costs at an
equitable standard for comparison purposes. 
Comparison Years are similarly adjusted for purposes of fairness and
equality.  To prevent any confusion
regarding computation of Base Year Costs, Comparison Year Costs and the
adjustment of those costs to 95% occupancy, if necessary, we have set forth the
following example.  It is important to
note that if adjustment to 95% occupancy is necessary, not all Operating
Services are adjusted.

 

Expenses requiring adjustment are those which are 100% dependent upon
the change in footage and adjust with the change in occupied footage.  This category includes electricity,
water/sewer, superintendent, disposal, management, janitorial supplies, window
washing, repair and maintenance, HVAC maintenance, and janitorial labor.

 

Other expenses do not require adjustment nor are they dependent upon
occupied footage change.  These
categories are the same whether the Building is empty or full.  They are, insurance, security, elevator,
landscaping and telephone.

 

Real Estate Taxes are dependent upon independent assessment.  Real Estate Taxes are not adjusted to 95%,
but are established for each respective year based on the actual tax paid
whether for the respective Base Year or each subsequent Comparison Year(s).

 

Please note the expenses noted below which are and are not adjusted and
the adjustment to each expense to achieve 95% occupancy, if necessary.  The method of adjusting expenses depicted in
the example will be followed when adjusting actual Operating Service Expenses
for both the Base Year and Comparison Year(s).

 

HYPOTHETICAL FACTS

 

	
  Building
  Occupancy:

  	
   

  	
  80%

  
	
  Actual
  Base Year Costs:

  	
   

  	
  $375,000

  
	
  Grossed
  Base Year Costs to 95%:

  	
   

  	
  $440,000

  
	
  Actual
  Comparison Year Costs: (see below)

  	
   

  	
  $405,440

  
	
  Grossed
  Comparison Year Costs to 95%: (see below)

  	
   

  	
  $463,080

  
	
  Tenant
  Premises:

  	
   

  	
  10,000
  RSF

  
	
  Building
  RSF:

  	
   

  	
  125,000
  RSF

  
	
  Tenant
  Proportionate Basis:

  	
   

  	
  10,000
   ̧ 125,000 = 8%

  

 

EXAMPLE

 

	
   

  	
   

  	
  Actual

  	
   

  	
  Grossed

  	
   

  	
   

  
	
  Description

  	
   

  	
  Expenses

  	
   

  	
  Expenses

  	
   

  	
  Methodology

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Percent
  Occupied

  	
   

  	
  80.00

  	
  %

  	
  95.00

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real
  Estate Taxes

  	
   

  	
  $

  	
  54,854

  	
   

  	
  $

  	
  54,854

  	
   

  	
  Actual
  Cost

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Insurance

  	
   

  	
  $

  	
  26,595

  	
   

  	
  $

  	
  26,595

  	
   

  	
  Actual
  Cost

  
	
  Electricity

  	
   

  	
  $

  	
  69,358

  	
   

  	
  $

  	
  82,363

  	
   

  	
  Adjusts
  with occupancy

  
	
  Water &
  Sewer

  	
   

  	
  $

  	
  4,945

  	
   

  	
  $

  	
  5,872

  	
   

  	
  Adjusts
  with occupancy

  
	
  Security

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  5,000

  	
   

  	
  Actual
  Cost

  
	
  Elevator

  	
   

  	
  $

  	
  7,526

  	
   

  	
  $

  	
  7,526

  	
   

  	
  Actual
  Cost

  
	
  Superintendent

  	
   

  	
  $

  	
  82,869

  	
   

  	
  $

  	
  98,407

  	
   

  	
  Adjusts
  with occupancy

  
	
  Landscaping

  	
   

  	
  $

  	
  2,912

  	
   

  	
  $

  	
  2,912

  	
   

  	
  Actual
  Cost

  
	
  Disposal

  	
   

  	
  $

  	
  15,502

  	
   

  	
  $

  	
  18,409

  	
   

  	
  Adjusts
  with occupancy

  
	
  Management

  	
   

  	
  $

  	
  41,680

  	
   

  	
  $

  	
  49,495

  	
   

  	
  Adjusts
  with occupancy

  
	
  Supplies

  	
   

  	
  $

  	
  4,339

  	
   

  	
  $

  	
  5,153

  	
   

  	
  Adjusts
  with occupancy

  
	
  Window
  Washing

  	
   

  	
  $

  	
  1,527

  	
   

  	
  $

  	
  1,813

  	
   

  	
  Adjusts
  with occupancy

  
	
  Repairs &
  Maintenance

  	
   

  	
  $

  	
  24,333

  	
   

  	
  $

  	
  28,895

  	
   

  	
  Adjusts
  with occupancy

  
	
  Telephone

  	
   

  	
  $

  	
  1,144

  	
   

  	
  $

  	
  1,144

  	
   

  	
  Actual
  Cost

  
	
  HVAC
  Maintenance

  	
   

  	
  $

  	
  6,208

  	
   

  	
  $

  	
  7,372

  	
   

  	
  Adjusts
  with occupancy

  
	
  Janitorial

  	
   

  	
  $

  	
  56,648

  	
   

  	
  $

  	
  67,270

  	
   

  	
  Adjusts
  with occupancy

  
	
  TOTALS:

  	
   

  	
  $

  	
  405,440

  	
   

  	
  $

  	
  463,080Exhibit
10.30

 

THIS WARRANT AND
THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT
COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE
SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

IN ADDITION, THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY
HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN
THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY ANY PERSON FOR A
PERIOD OF SIX (6) MONTHS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS
OF THE PUBLIC OFFERING OF THE COMPANY’S SECURITIES PURSUANT TO REGISTRATION
STATEMENT NO.: 333-169279 AS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION, EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

 

UNI-PIXEL, INC.

 

UNDERWRITER
WARRANT

 

[               ]
shares of Common Stock

 

[             ],
2010

 

This UNDERWRITER WARRANT (this
“Warrant”) of Uni-Pixel, Inc.,
a corporation duly organized and validly existing under the laws of the State
of Delaware (the “Company”), is
being issued pursuant to that certain Underwriting Agreement, dated as of [                   ],
2010 (the “Underwriting Agreement”),
between the Company and MDB Capital Group, LLC (the “Underwriter”) relating to a firm commitment public offering
(the “Offering”) of [                   ] shares
of common stock, $0.001 par value per share, of the Company (the “Common Stock”) underwritten by the
Underwriter.

 

FOR VALUE RECEIVED, the Company hereby grants to MDB Capital Group, LLC and
its permitted successors and assigns (collectively, the “Holder”) the right to purchase from the
Company up to [                   ] ([                   ])
shares of Common Stock (such shares underlying this Warrant, the “Warrant Shares”), at a per share purchase
price equal to $[                   ] (the
“Exercise Price”), subject to the
terms, conditions and adjustments set forth below in this Warrant.

 

1.           Date
of Warrant Exercise.  This Warrant shall become exercisable on the
date that is one (1) year from the Base Date (the “Exercise Date”).  As used in this
Warrant, the term “Base Date”
shall mean [                   ],
2011.  Except as otherwise provided for herein or as permitted by
applicable rules of the Financial Industry Regulatory Authority, Inc.,
(“FINRA”) this Warrant and the underlying
Warrant Shares shall not be sold, transferred, assigned, pledged or
hypothecated prior to the date that is 180 days following the Base Date
pursuant to FINRA Rule 5110(g)(1).

 

2.           Expiration
of Warrant.  This Warrant shall expire on the five (5) year
anniversary of the Base Date (the “Expiration
Date”).

 

3.           Exercise
of Warrant.  This Warrant shall be exercisable pursuant to the terms
of this Section 3.

 

3.1          Manner
of Exercise.

 

(a)           This
Warrant may only be exercised by the Holder hereof on or after the Exercise
Date and on or prior to the Expiration Date, in accordance with the terms and
conditions hereof, in whole or in part (but not as to fractional shares) with
respect to any portion of this Warrant, during the Company’s normal business
hours on any day other than a Saturday or a Sunday or a day on which commercial
banking institutions in Los Angeles, 

 

1

 

California or The Woodlands, Texas
are authorized by law to be closed (a “Business
Day”), by surrender of this Warrant to the Company at its office
maintained pursuant to Section 10.2(a) hereof, accompanied by a
written exercise notice in the form attached as Exhibit A to
this Warrant (or a reasonable facsimile thereof) duly executed by the Holder,
together with the payment of the aggregate Exercise Price for the number of
Warrant Shares purchased upon exercise of this Warrant.  Upon surrender of
this Warrant, the Company shall cancel this Warrant document and shall, in the
event of partial exercise, replace it with a new Warrant document in accordance
with Section 3.3.

 

(b)           Except
as provided for in Section 3.1(c) below, each exercise of this
Warrant must be accompanied by payment in full of the aggregate Exercise Price
in cash by check or wire transfer in immediately available funds for the number
of Warrant Shares being purchased by the Holder upon such exercise.

 

(c)           The
aggregate Exercise Price for the number of Warrant Shares being purchased may
also, in the sole discretion of the Holder, be paid in full or in part on a “cashless
basis” at the election of the Holder:

 

(i)                                         in the form of Common Stock owned by the Holder (based on
the Fair Market Value (as defined below) of such Common Stock on the date of
exercise);

 

(ii)                                      in the form of Warrant Shares surrendered by the Holder from
the Warrant Shares otherwise to be received upon exercise of this Warrant
having an aggregate Fair Market Value on the date of exercise equal to the
aggregate Exercise Price of the Warrant Shares being purchased by the Holder;
or

 

(iii)                                   by a combination of the foregoing, provided that the
combined value of all cash and the Fair Market Value of any shares surrendered
to the Company is at least equal to the aggregate Exercise Price for the number
of Warrant Shares being purchased by the Holder.

 

For purposes of this Warrant, the
term “Fair Market Value” means
with respect to a particular date, the average closing price of the Common
Stock for the five (5) trading days immediately preceding the applicable
exercise herein as officially reported by the principal securities exchange on
which the Common Stock is then listed or admitted to trading, or, if the Common
Stock is not listed or admitted to trading on any securities exchange as
determined in good faith by resolution of the Board of Directors of the
Company, based on the best information available to it.

 

For purposes of illustration of a
cashless exercise of this Warrant under Section 3.1(c)(ii) (or for a
portion thereof for which cashless exercise treatment is requested as
contemplated by Section 3.1(c)(iii) hereof), the calculation of such
exercise shall be as follows:

 

X = Y (A-B)/A

 

where:

 

X
=                             the
number of Warrant Shares to be issued to the Holder (rounded to the nearest
whole share).

 

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

 

A
=                             the
Fair Market Value of the Common Stock.

 

B
=                             the
Exercise Price.

 

(d)      
    For purposes of Rule 144 and sub-section (d)(3)(ii) thereof,
it is intended, understood, and acknowledged that the Common Stock issuable
upon exercise of this Warrant in a cashless exercise transaction as described
in Section 3.1(c) above shall be deemed to have been acquired at the
time this Warrant was issued.  Moreover, it is intended, understood, and
acknowledged that the holding period for the Common Stock issuable 

 

2

 

upon exercise of this Warrant in a
cashless exercise transaction as described in Section 3.1(c) above
shall be deemed to have commenced on the date this Warrant was issued.

 

3.2          When
Exercise Effective.  Each exercise of this Warrant shall be deemed to
have been effected immediately prior to the close of business on the Business
Day on which this Warrant shall have been duly surrendered to the Company as
provided in Sections 3.1 and 12 hereof, and, at such time, the Holder in whose
name any certificate or certificates for Warrant Shares shall be issuable upon
exercise as provided in Section 3.3 hereof shall be deemed to have become
the holder or holders of record thereof of the number of Warrant Shares
purchased upon exercise of this Warrant.

 

3.3          Delivery
of Common Stock Certificates and New Warrant.  As soon as reasonably
practicable after each exercise of this Warrant, in whole or in part, and in
any event within five (5) Business Days thereafter, the Company, at its
expense (including the payment by it of any applicable issue taxes), will cause
to be issued in the name of and delivered to the Holder hereof or, subject to
Sections 9 and 10 hereof, as the Holder (upon payment by the Holder of any
applicable transfer taxes) may direct:

 

(a)           a
certificate or certificates (with appropriate restrictive legends, as
applicable) for the number of duly authorized, validly issued, fully paid and
nonassessable Warrant Shares to which the Holder shall be entitled upon
exercise; and

 

(b)           in
case exercise is in part only, a new Warrant document of like tenor, dated the
date hereof, for the remaining number of Warrant Shares issuable upon exercise
of this Warrant after giving effect to the partial exercise of this Warrant
(including the surrender of any Warrant Shares as payment of the Exercise Price
for such partial exercise of this Warrant).

 

4.           Certain
Adjustments.  For so long as this Warrant is outstanding:

 

4.1           Mergers
or Consolidations.  If at any time after the date hereof there shall
be a capital reorganization (other than a combination or subdivision of Common
Stock otherwise provided for herein) resulting in a reclassification to or
change in the terms of securities issuable upon exercise of this Warrant (a “Reorganization”), or a merger or
consolidation of the Company with another corporation, association,
partnership, organization, business, individual, government or political
subdivision thereof or a governmental agency (a “Person” or the “Persons”)
(other than a merger with another Person in which the Company is a continuing
corporation and which does not result in any reclassification or change in the
terms of securities issuable upon exercise of this Warrant or a merger effected
exclusively for the purpose of changing the domicile of the Company) (a “Merger”), then, as a part of such
Reorganization or Merger, lawful provision and adjustment shall be made so that
the Holder shall thereafter be entitled to receive, upon exercise of this
Warrant, the number of shares of stock or any other equity or debt securities
or property receivable upon such Reorganization or Merger by a holder of the
number of shares of Common Stock which might have been purchased
upon exercise of this Warrant immediately prior to such Reorganization or
Merger.  In any such case, appropriate adjustment shall be made in the
application of the provisions of this Warrant with respect to the rights and
interests of the Holder after the Reorganization or Merger to the end that the
provisions of this Warrant (including adjustment of the Exercise Price then in
effect and the number of Warrant Shares) shall be applicable after that event,
as near as reasonably may be, in relation to any shares of stock, securities,
property or other assets thereafter deliverable upon exercise of this
Warrant.  The provisions of this Section 4.1 shall similarly apply to
successive Reorganizations and/or Mergers.

 

4.2           Splits
and Subdivisions; Dividends.  In the event the Company should at any
time or from time to time effectuate a split or subdivision of the outstanding
shares of Common Stock or pay a dividend in or make a distribution payable in
additional shares of Common Stock or other securities or rights convertible
into, or entitling the holder thereof to receive, directly or indirectly,
additional shares of Common Stock (hereinafter referred to as “Common Stock
Equivalents”) without payment of any consideration by such holder for the
additional shares of Common Stock or Common Stock Equivalents (including the
additional shares of Common Stock issuable upon conversion or exercise
thereof), then, as of the applicable record date (or the date of such
distribution, split or subdivision if no record date is fixed), the per share
Exercise Price shall be appropriately decreased and the number of Warrant
Shares shall be appropriately increased in proportion to such increase (or
potential increase) of 

 

3

 

outstanding shares; provided,
however, that no adjustment shall be made in the event the split, subdivision,
dividend or distribution is not effectuated.

 

4.3           Combination
of Shares.  If the number of shares of Common Stock outstanding at any
time after the date hereof is decreased by a combination of the outstanding
shares of Common Stock, the per share Exercise Price shall be appropriately
increased and the number of shares of Warrant Shares shall be appropriately
decreased in proportion to such decrease in outstanding shares.

 

4.4           Adjustments
for Other Distributions.  In the event the Company shall declare a
distribution payable in securities of other Persons, evidences of indebtedness
issued by the Company or other Persons, assets (excluding cash dividends or
distributions to the holders of Common Stock paid out of current or retained
earnings and declared by the Company’s board of directors) or options or rights
not referred to in Sections 4.2 or 4.3 then, in each such case for the purpose
of this Section 4.4, upon exercise of this Warrant, the Holder shall be
entitled to a proportionate share of any such distribution as though the Holder
was the actual record holder of the number of Warrant Shares as of the record
date fixed for the determination of the holders of Common Stock of the Company
entitled to receive such distribution.

 

5.           No
Impairment.  The Company will not, by amendment of its certificate of
incorporation or by-laws or through any consolidation, merger, reorganization,
transfer of assets, dissolution, issue or sale of securities or any other
voluntary action, 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 of the terms and in the taking of all actions necessary or
appropriate in order to protect the rights of the Holder against impairment.

 

6.           Notice
as to Adjustments.  With respect to each adjustment pursuant to Section 4
of this Warrant, the Company, at its expense, will promptly compute the
adjustment or re-adjustment in accordance with the terms of this Warrant and
furnish the Holder with a certificate setting forth, in reasonable detail, the
event requiring the adjustment or re-adjustment and the amount of such
adjustment or re-adjustment, the method of calculation thereof and the facts
upon which the adjustment or re-adjustment is based, and the Exercise Price and
the number of Warrant Shares or other securities purchasable hereunder after giving
effect to such adjustment or re-adjustment,  which report shall be
mailed by first class mail, postage prepaid to the Holder.  The Company
will also keep copies of all reports at its office maintained pursuant to Section 10.2(a) hereof
and will cause them to be available for inspection at the office during normal
business hours upon reasonable advance notice by the Holder or any prospective
purchaser of the Warrant designated by the Holder thereof.

 

7.           Reservation
of Shares.  The Company shall, solely for the purpose of effecting the
exercise of this Warrant, at all times during the term of this Warrant, reserve
and keep available out of its authorized shares of Common Stock, free from all
taxes, liens and charges with respect to the issue thereof and not subject to
preemptive rights or other similar rights of shareholders of the Company, such
number of its shares of Common Stock as shall from time to time be sufficient
to effect in full the exercise of this Warrant.  If at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to
effect in full the exercise of this Warrant, in addition to such other
remedies as shall be available to Holder, the Company will promptly take such
corporate action as may, in the opinion of its counsel, be necessary to
increase the number of authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes, including without
limitation, using its Reasonable Best Efforts (as defined in Section 14
hereof) to obtain the requisite shareholder approval necessary to increase the
number of authorized shares of Common Stock.  The Company hereby
represents and warrants that all shares of Common Stock issuable upon exercise
of this Warrant shall be duly authorized and, when issued and paid for upon
exercise as provided herein, shall be validly issued, fully paid and
nonassessable.

 

8.           Registration
and Listing.

 

8.1          Definition
of Registrable Securities; Majority.  As used herein, the term “Registrable Securities” means any shares of
Common Stock issuable upon the exercise of this Warrant, until the date (if
any) on which such shares shall have been transferred or exchanged and new
certificates for them not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent disposition of them shall not
require registration or qualification of them under the Securities Act or any
similar state law then in force.  For 

 

4

 

purposes of this Warrant, the term “Majority”, in reference to the holders of
Registrable Securities, shall mean in excess of fifty percent (50%) of the then
outstanding Warrant Shares (assuming the exercise of the entire Warrant) that: (i) are
not held by the Company, an affiliate, officer, creditor, employee or agent
thereof or any of their respective affiliates, members of their family, Persons
acting as nominees or in conjunction therewith and (ii) have not be resold
to the public pursuant to a registration statement filed under the Securities
Act.

 

8.2          Incidental
Registration Rights.

 

(a)           If
the Company, at any time on or after the Base Date, proposes to register any of
its securities under the Securities Act (other than in connection with a
registration on Form S-4 or S-8 or any successor forms) whether for its
own account or for the account of any holder or holders of its shares other
than Registrable Securities (any shares of such holder or holders (but not those
of the Company and not Registrable Securities) with respect to any registration
are referred to herein as, “Other Shares”),
the Company shall each such time give prompt (but not less than thirty (30)
days prior to the anticipated effectiveness thereof) written notice to the
holders of Registrable Securities of its intention to do so.  Upon the
written request of any such holder of Registrable Securities made within ten (10) days
after the receipt of any such notice (which request shall specify the Registrable
Securities intended to be disposed of by such holder), except as set forth in Section 8.2(b),
the Company will use its Reasonable Best Efforts to effect the
registration under the Securities Act of all of the Registrable Securities
which the Company has been so requested to register by such holder, to the
extent requisite to permit the disposition of the Registrable Securities so to
be registered, by inclusion of such Registrable Securities in the registration
statement which covers the securities which the Company proposes to
register; provided, however, that
if, at any time after giving written notice of its intention to register any
securities and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any
reason in its sole discretion either to not register, to delay or to withdraw
registration of such securities, the Company may, at its election, give written
notice of such determination to such holder and, thereupon: (i) in the
case of a determination not to register, shall be relieved of its obligation to
register any Registrable Securities in connection with such registration (but
not from its obligation to pay the Registration Expenses in connection
therewith), (ii) in the case of a determination to delay registration,
shall be permitted to delay registering any Registrable Securities for the same
period as the delay in registering such other securities (including the
Other Shares), and (iii) in the case of a determination to withdraw
registration, shall be permitted to withdraw registration.  The Company
will pay all Registration Expenses in connection with each registration of
Registrable Securities pursuant to this Section 8.2.

 

(b)           If
the Company at any time proposes to register any of its securities under the
Securities Act as contemplated by this Section 8.2 and such securities are
to be distributed by or through one or more underwriters, the Company will, if
requested by a holder of Registrable Securities, use its Reasonable Best
Efforts to arrange for such underwriters to include all the Registrable
Securities to be offered and sold by such holder among the securities to be
distributed by such underwriters, provided that if the managing underwriter of
such underwritten offering shall inform the Company by letter of its belief
that inclusion in such distribution of all or a specified number of such
securities proposed to be distributed by such underwriters would interfere with
the successful marketing of the securities being distributed by such
underwriters (such letter to state the basis of such belief and the approximate
number of such Registrable Securities, such Other Shares and shares held by the
Company proposed so to be registered which may be distributed without such
effect), then the Company may, upon written notice to such holder, the other
holders of Registrable Securities, and holders of such Other Shares,
reduce pro rata in accordance with the number of shares of Common Stock desired
to be included in such registration (if and to the extent stated by such
managing underwriter to be necessary to eliminate such effect) the number of
such Registrable Securities and Other Shares the registration of which shall
have been requested by each holder thereof so that the resulting aggregate
number of such Registrable Securities and Other Shares so included in such
registration, together with the number of securities to be included in such
registration for the account of the Company, shall be equal to the number of
shares stated in such managing underwriter’s letter.

 

8.3          Registration
Procedures.  Whenever the holders of Registrable Securities have
properly requested that any Registrable Securities be registered pursuant to
the terms of this Warrant, the Company shall use its Reasonable Best Efforts to
effect the registration and the sale of such Registrable Securities in
accordance with the intended method of disposition thereof, and pursuant
thereto the Company shall as expeditiously as possible:

 

5

 

(a)           prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its Reasonable Best Efforts to cause such registration
statement to become effective;

 

(b)           notify
such holders of the effectiveness of each registration statement filed
hereunder and prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection therewith as
may be necessary to (i) keep such registration statement effective and the
prospectus included therein usable for a period commencing on the date that
such registration statement is initially declared effective by the SEC and
ending on the date when all Registrable Securities covered by such registration
statement have been sold pursuant to the registration statement or cease to be
Registrable Securities, and (ii) comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by
such registration statement during such period in accordance with the intended
methods of disposition by the sellers thereof set forth in such registration
statement;

 

(c)           furnish
to such holders such number of copies of such registration statement, each
amendment and supplement thereto, the prospectus included in such registration
statement (including each preliminary prospectus) and such other documents as
such seller may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such holders;

 

(d)           use
its Reasonable Best Efforts to register or qualify such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as such
holders reasonably request and do any and all other acts and things which may
be reasonably necessary or advisable to enable such holders to consummate the
disposition in such jurisdictions of the Registrable Securities owned by
such holders; provided, however, that
the Company shall not be required to: (i) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for
this subparagraph; (ii) subject itself to taxation in any such
jurisdiction; or (iii) consent to general service of process in any such
jurisdiction;

 

(e)           notify
such holders, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the happening of any event as a result
of which the prospectus included in such registration statement contains an
untrue statement of a material fact or omits any material fact necessary to
make the statements therein, in light of the circumstances in which they are
made, not materially misleading, and, at the reasonable request of such holders,
the Company shall prepare a supplement or amendment to such prospectus so that,
as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not contain an untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances in which they are made, not materially misleading;

 

(f)     
      provide a transfer agent and registrar for
all such Registrable Securities not later than the effective date of such
registration statement;

 

(g)           make
available for inspection by any underwriter participating in any disposition
pursuant to such registration statement, and any attorney, accountant or other
agent retained by any such underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors, managers, employees and independent accountants
to supply all information reasonably requested by any such underwriter, attorney,
accountant or agent in connection with such registration statement;

 

(h)     
     otherwise use its Reasonable Best Efforts to
comply with all applicable rules and regulations of the SEC, and make
available to its security holders, as soon as reasonably practicable, an
earnings statement of the Company, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and, at the option
of the Company, Rule 158 thereunder;

 

(i)     
      in the event of the issuance of any stop
order suspending the effectiveness of a registration statement, or of any order
suspending or preventing the use of any related prospectus or suspending the
qualification of any Registrable Securities included in such registration
statement for sale in any jurisdiction, the Company shall use its Reasonable
Best Efforts promptly to obtain the withdrawal of such order;

 

6

 

(j)     
      use its Reasonable Best Efforts to cause
any Registrable Securities covered by such registration statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to enable the sellers thereof to consummate the disposition
of such Registrable Securities; and

 

(k)     
      if the offering is underwritten, use its
Reasonable Best Efforts to furnish on the date that Registrable Securities are
delivered to the underwriters for sale pursuant to such registration, an
opinion dated such date of counsel representing the Company for the purposes of
such registration, addressed to the underwriters covering such issues as are
reasonably required by such underwriters.

 

8.4          Listing. 
The Company shall secure the listing of the Common Stock underlying this
Warrant upon each national securities exchange or automated quotation system
upon which shares of Common Stock are then listed or quoted (subject to
official notice of issuance) and shall maintain such listing of shares of
Common Stock.  The Company shall at all times comply in all material
respects with the Company’s reporting, filing and other obligations under the
by-laws or rules of The Nasdaq Capital Market (or such other national
securities exchange or market on which the Common Stock may then be listed, as
applicable).

 

8.6          Expenses. 
The Company shall pay all Registration Expenses relating to the registration
and listing obligations set forth in this Section 8.  For purposes of
this Warrant, the term “Registration Expenses”
means: (a) all registration, filing and FINRA (as defined below) fees, (b) all
reasonable fees and expenses of complying with securities or blue sky laws, (c) all
word processing, duplicating and printing expenses, (d) the fees and
disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits or “cold comfort”
letters required by or incident to such performance and compliance, (e) premiums
and other costs of policies of insurance (if any) against liabilities arising
out of the public offering of the Registrable Securities being registered if
the Company desires such insurance, if any, and (f) fees and disbursements
of one counsel for the selling holders of Registrable Securities; provided however, that, in any case
where Registration Expenses are not to be borne by the Company, such expenses
shall not include (and such expenses shall be borne by the Company): (i) salaries
of Company personnel or general overhead expenses of the Company, (ii) auditing
fees, (iii) premiums or other expenses relating to liability insurance
required by underwriters of the Company, or (iv) other expenses for the
preparation of financial statements or other data, to the extent that any of
the foregoing either is normally prepared by the Company in the ordinary course
of its business or would have been incurred by the Company had no public
offering taken place.  Registration Expenses shall not include any
underwriting discounts and commissions which may be incurred in the sale of any
Registrable Securities and transfer taxes of the selling holders of Registrable
Securities.

 

8.7          Information
Provided by Holders.  Any holder of Registrable Securities included in
any registration shall furnish to the Company such information as the Company
may reasonably request in writing to enable the Company to comply with the
provisions hereof in connection with any registration referred to in this
Warrant.

 

8.8          FINRA
Cobradesk Filings.  In the event that a registration statement
covering the Registrable Securities is filed, within one (1) Business Day
of the filing of such registration statement, the Company will prepare and file
the selling stockholder resale offering described in such registration
statement for review by the Financial Industry Regulatory Authority (“FINRA”) via the FINRA’s CobraDesk filing
system (“CobraDesk Filing”) for
the purpose of having the prospectus contained within such registration
statement treated as a “base prospectus” in connection with such resale
offering.  The Company will use its Reasonable Best Efforts to have the
CobraDesk Filing approved by FINRA within thirty (30) days of such filing
date.  The Company shall bear all expenses of the CobraDesk Filing,
including fees and expenses of counsel or other advisors to the Holder. 
In all circumstances, the Company shall pay for all FINRA filing fees
associated with the CobraDesk Filing.

 

8.9          Effectiveness
Period.  The Company shall use its Reasonable Best Efforts to keep
each registration statement contemplated hereunder continuously effective under
the Securities Act until the date which is the earlier date of when (i) all
Registrable Securities covered by such Registration Statement have been sold or
(ii) all Registrable Securities covered by such Registration Statement may
be sold immediately without registration under the Securities Act and without
volume restrictions pursuant to Rule 144 under the Securities Act, as
determined by the counsel to the Company pursuant to a written opinion letter
to such effect, addressed and reasonably acceptable to the Company’s transfer
agent and the affected holders of Registrable Securities.

 

7

 

8.10        Net
Cash Settlement.  Notwithstanding anything herein to the contrary, in
no event will the Holder hereof be entitled to receive a net-cash settlement as
liquidated damages in lieu of physical settlement in shares of Common Stock,
regardless of whether the Common Stock underlying this Warrant is registered
pursuant to an effective registration statement; provided, however, that the
foregoing will not preclude the Holder from seeking other remedies at law or
equity for breaches by the Company of its registration obligations hereunder.

 

9.           Restrictions
on Transfer.

 

9.1          Restrictive
Legends.  This Warrant and each Warrant issued upon transfer or in
substitution for this Warrant pursuant to Section 10 hereof, each
certificate for Common Stock issued upon the exercise of the Warrant and each
certificate issued upon the transfer of any such Common Stock shall be
transferable only upon satisfaction of the conditions specified in this Section 9. 
Each of the foregoing securities shall be stamped or otherwise imprinted with a
legend reflecting the restrictions on transfer set forth herein and any
restrictions required under the Securities Act or other applicable securities
laws.

 

9.2          Notice
of Proposed Transfer.  Prior to any transfer of any securities which
are not registered under an effective registration statement under the
Securities Act (“Restricted Securities”),
which transfer may only occur if there is an exemption from the registration
provisions of the Securities Act and all other applicable securities laws, the
Holder will give written notice to the Company of the Holder’s intention to
effect a transfer (and shall describe the manner and circumstances of the
proposed transfer). The following provisions shall apply to any proposed
transfer of Restricted Securities:

 

(i)           If
in the opinion of counsel for the Holder reasonably satisfactory to the Company
the proposed transfer may be effected without registration of the Restricted
Securities under the Securities Act (which opinion shall state in detail the
basis of the legal conclusions reached therein), the Holder shall thereupon be
entitled to transfer the Restricted Securities in accordance with the
terms of the notice delivered by the Holder to the Company.  Each
certificate representing the Restricted Securities issued upon or in connection
with any transfer shall bear the restrictive legends required by Section 9.1
hereof.

 

(ii)          If
the opinion called for in (i) above is not delivered, the Holder shall not
be entitled to transfer the Restricted Securities until either: (x) receipt
by the Company of a further notice from such Holder pursuant to the foregoing
provisions of this Section 9.2 and fulfillment of the provisions of clause
(i) above, or (y) such Restricted Securities have been effectively
registered under the Securities Act.

 

9.3          Certain
Other Transfer Restrictions.  Notwithstanding any other provision of
this Section 9: (i) prior to the Exercise Date, this Warrant or the
Restricted Securities thereunder may only be transferred or assigned to the
persons permitted under FINRA Rule 5110(g), and (ii) no opinion of
counsel shall be necessary for a transfer of Restricted Securities by the
holder thereof to any Person employed by or owning equity in the Holder, if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if the transferee were the original purchaser hereof and such
transfer is permitted under applicable securities laws.

 

9.4          Termination
of Restrictions.  Except as set forth in Section 9.3 hereof, the
restrictions imposed by this Section 9 upon the transferability of
Restricted Securities shall cease and terminate as to any particular Restricted
Securities: (a) which shall have been effectively registered under the
Securities Act, or (b) when, in the opinion of counsel for the Company,
such restrictions are no longer required in order to insure compliance with the
Securities Act or Section 10 hereof.

 

10.         Ownership,
Transfer, Sale and Substitution of Warrant.

 

10.1        Ownership
of Warrant.  The Company may treat any Person in whose name this
Warrant is registered in the Warrant Register maintained pursuant to Section 10.2(b) hereof
as the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, except that, if and when any Warrant is properly assigned in
blank, the Company may (but shall not be obligated to) treat the bearer thereof
as the owner of such Warrant for all purposes, notwithstanding any notice to
the contrary.  Subject to Sections 9 and 10 hereof, this Warrant, if
properly assigned, may be exercised by a new holder without a new Warrant first
having been issued.

 

8

 

10.2        Office;
Exchange of Warrant.

 

(a)           The
Company will maintain its principal office at the location identified in the
prospectus relating to the Offering or at such other offices as set forth in
the Company’s most current filing (as of the date notice is to be given) under
the Securities Exchange Act of 1934, as amended, or as the Company otherwise
notifies the Holder.

 

(b)           The
Company shall cause to be kept at its office maintained pursuant to Section 10.2(a) hereof
a Warrant Register for the registration and transfer of the Warrant.  The
name and address of the holder of the Warrant, the transfers thereof and the
name and address of the transferee of the Warrant shall be registered in such
Warrant Register.  The Person in whose name the Warrant shall be so
registered shall be deemed and treated as the owner and holder thereof for all
purposes of this Warrant, and the Company shall not be affected by any notice
or knowledge to the contrary.

 

(c)           Upon
the surrender of this Warrant, properly endorsed, for registration of transfer
or for exchange at the office of the Company maintained pursuant to Section 10.2(a) hereof,
the Company at its expense will (subject to compliance with Section 9
hereof, if applicable) execute and deliver to or upon the order of the Holder
thereof a new Warrant of like tenor, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes) may
direct, calling in the aggregate on the face thereof for the number of shares
of Common Stock called for on the face of the Warrant so surrendered (after
giving effect to any previous adjustment(s) to the number of Warrant
Shares).

 

10.3        Replacement
of Warrant.  Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, upon delivery
of indemnity reasonably satisfactory to the Company in form and amount or, in
the case of any mutilation, upon surrender of this Warrant for cancellation at
the office of the Company maintained pursuant to Section 10.2(a) hereof,
the Company, at its expense, will execute and deliver, in lieu thereof, a
new Warrant of like tenor and dated the date hereof.

 

10.4        Opinions. 
In connection with the sale of the Warrant Shares by Holder, the Company agrees
to cooperate with the Holder, and at the Company’s expense, have its counsel
provide any legal opinions required to remove the restrictive legends from the
Warrant Shares in connection with a sale, transfer or legend removal request of
Holder.

 

11.          No
Rights or Liabilities as Stockholder.  No Holder shall be entitled to
vote or receive dividends or be deemed the holder of any shares of Common Stock
or any other securities of the Company which may at any time be issuable on the
exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value,
consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until the
Warrant shall have been exercised and the shares of Common Stock purchasable
upon the exercise hereof shall have become deliverable, as provided
herein.  The Holder will not be entitled to share in the assets of the
Company in the event of a liquidation, dissolution or the winding up of the
Company.

 

12.           Notices. 
Any notice or other communication in connection with this Warrant shall be
given in writing and directed to the parties hereto as follows: (a) if to
the Holder, c/o Anthony DiGiandomenico, Principal (d@mdb.com), or (b) if
to the Company, to the attention of its Chief Executive Officer at its office
maintained pursuant to Section 10.2(a) hereof; provided, that the exercise of the
Warrant shall also be effected in the manner provided in Section 3
hereof.  Notices shall be deemed properly delivered and received when
delivered to the notice party (i) if personally delivered, upon receipt or
refusal to accept delivery, (ii) if sent via facsimile, upon mechanical
confirmation of successful transmission thereof generated by the sending
telecopy machine, (iii) if sent by a commercial overnight courier for
delivery on the next Business Day, on the first Business Day after deposit with

 

9

 

such courier service, or (iv) if
sent by registered or certified mail, five (5) Business Days after deposit
thereof in the U.S. mail.

 

13.           Payment
of Taxes.  The Company will pay all documentary stamp taxes
attributable to the issuance of shares of Common Stock underlying this Warrant
upon exercise of this Warrant; 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 transfer or
registration of this Warrant or any certificate for shares of Common Stock
underlying this Warrant in a name other that of the Holder.  The Holder is
responsible for all other tax liability that may arise as a result of holding
or transferring this Warrant or receiving shares of Common Stock underlying
this Warrant upon exercise hereof.

 

14.           Miscellaneous. 
This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought. 
This Warrant shall be construed and enforced in accordance with and governed by
the laws of the State of Delaware.  The section headings in this Warrant
are for purposes of convenience only and shall not constitute a part
hereof.  When used herein, the term “Reasonable
Best Efforts” means, with respect to the applicable obligation of
the Company, reasonable best efforts for similarly situated, publicly-traded
companies.

 

IN WITNESS WHEREOF, the Company has caused this Underwriter Warrant to be duly
executed as of the date first above written.

 

	
   

  	
  UNI-PIXEL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

10

 

EXHIBIT A

FORM OF
EXERCISE NOTICE

[To be executed only upon
exercise of Warrant]

 

To UNI-PIXEL, INC.:

 

The undersigned registered holder of
the within Warrant hereby irrevocably exercises the Warrant pursuant to Section 3.1
of the Warrant with respect to                                          
Warrant Shares, at an exercise price per share of $[                    ],
and requests that the certificates for such Warrant Shares be issued, subject
to Sections 9 and 10, in the name of, and delivered to:

 

	
   

  	
   

  
	
   

  	
   

  

 

The undersigned is hereby making
payment for the Warrant Shares in the following manner: [check one]

 

o            by
cash in accordance with Section 3.1(b) of the Warrant

 

o            via
cashless exercise in accordance with Section 3.1(c) of the Warrant in
the following manner:

 

	
   

  
	
   

  

 

The undersigned hereby represents
and warrants that it is, and has been since its acquisition of the Warrant, the
record and beneficial owner of the Warrant.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Print or Type Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City)

  	
  (State)

  	
  (Zip Code)

  	
   

  
						

 

11

 

EXHIBIT B

FORM OF
ASSIGNMENT

[To be executed only upon
transfer of Warrant]

 

For value received, the undersigned
registered holder of the within Warrant hereby sells, assigns and transfers
unto                                          
[include name and addresses] the rights represented by the Warrant to purchase                      
shares of Common Stock of UNI-PIXEL, INC. to which the Warrant relates,
and appoints                                    
Attorney to make such transfer on the books of UNI-PIXEL, INC. maintained
for the purpose, 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 Warrant)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City)

  	
  (State)

  	
  (Zip Code)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed in the presence of:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature of Transferee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City)

  	
  (State)

  	
  (Zip Code)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed in the presence of:

  	
   

  	
   

  	
   

  	
   

  

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]