Document:

Exhibit
4.1

EXECUTION
COPY

SUBSCRIPTION
AGENT AGREEMENT

This
Subscription Agent Agreement (the “Agreement”) is made as of  May 15, 2007 between Progen Pharmaceuticals
Limited, an Australia Corporation (the “Company”),
Computershare, Inc., a Delaware corporation and its fully owned subsidiary
Computershare Trust Company, N.A., a federally chartered trust company
(collectively, the “Agent” or
individually “Computershare” and the “Trust Company,” respectively).  All terms not defined herein shall have the
meaning given in the prospectus dated April 13, 2007 and in the preliminary
prospectus supplement dated May 10, 2007 (together, the “Prospectus”)
included in the Registration Statement on Form F-3, File No. 333-141489 filed
by the Company with the Securities and Exchange Commission on March 22, 2007,
as amended by any amendment filed with respect thereto (the “Registration Statement”).

WHEREAS,
the Company proposes to make a subscription offer by issuing certificates or
other evidences of subscription rights, in the form designated by the Company
(the “Subscription  Certificates”)
to shareholders of record (the “Shareholders”)
of its ordinary shares, no par value (“Ordinary Shares”),
as of a record date specified by the Company (the “Record Date”),
pursuant to which each Shareholder will have certain rights (the “Rights”) to subscribe for Ordinary Shares, as described in
and upon such terms as are set forth in the Prospectus, a final copy of which
has been or, upon availability will promptly be, delivered to the Agent; and

WHEREAS,
the Company wishes the Agent to perform certain acts on behalf of the Company,
and the Agent is willing to so act, in connection with the distribution of the
Subscription Certificates and the issuance and exercise of the Rights to subscribe
therein set forth, all upon the terms and conditions set forth herein.

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

1.             Appointment.

The
Company hereby appoints the Agent to act as subscription agent in connection
with the distribution of Subscription Certificates and the issuance and
exercise of the Rights in accordance with the terms set forth in this
Agreement, and the Agent hereby accepts such appointment.

2.             Form
and Execution of Subscription Certificates.

A.  Each Subscription Certificate shall be
irrevocable and non-transferable.  The
Agent shall, in its capacity as Transfer Agent of the Company, maintain a
register of Subscription Certificates and the holders of record thereof (each
of whom shall be deemed a “Shareholder”
hereunder for purposes of determining the rights of holders of Subscription
Certificates).  Each Subscription
Certificate shall, subject to the provisions thereof, entitle the Shareholder
in whose name it is recorded  the right
to acquire during the Subscription Period, as defined in the Prospectus, at the
Subscription Price, as defined in the Prospectus, one Right for every nine
ordinary shares held (the “Primary Subscription
Right.”  Each whole right will
allow the holder thereof to subscribe for one new ordinary share at a cash
price of $4.75 per share. Each Subscription Certificate shall, subject to the
provisions thereof, entitle the 

Shareholder in
whose name it is recorded to warrants to acquire ordinary shares of the
Company, as more fully described in the Prospectus and in the form of warrants
delivered to such Shareholder.

B.  In the event
the Rights Offering is not fully subscribed after holders of Rights exercise
their Primary Subscription Right, Bell Potter Securities Limited and Emerging
Growth Capital Pty Ltd (the “Underwriter”) have agreed, pursuant to a certain
Underwriting Agreement, to purchase all of the ordinary shares not subscribed
for in the Rights Offering at a price per share equal to the Subscription
Price.

3.             Rights
and Issuance of Subscription Certificates.

A.  Each Subscription Certificate shall evidence
the Rights of the Shareholder therein named to purchase Ordinary Shares upon
the terms and conditions therein and herein set forth.

B.  Upon the written advice of the Company,
signed by any of its duly authorized officers, as to the Record Date, the Agent
shall, from a list of the Company Shareholders as of the Record Date to be
prepared by the Agent in its capacity as Transfer Agent of the Company, prepare
and record Subscription Certificates in the names of the Shareholders, setting
forth the number of Rights to subscribe for the Company’s Ordinary Shares
calculated on the basis of one Right for every nine Ordinary Shares recorded on
the books in the name of each such Shareholder as of the Record Date.  The number of Rights that are issued to
Record Date Shareholders will be rounded up, by the Agent, to the nearest
number of Full Rights as Fractional Rights will not be issued.  Each Subscription Certificate shall be dated
as of the Record Date and shall be executed manually or by facsimile signature
of a duly authorized officer of the Subscription Agent.  Upon the written advice, signed as aforesaid,
as to the effective date of the Registration Statement, the Agent shall
promptly countersign and deliver the Subscription Certificates, together with a
copy of the Prospectus, instruction letter and any other document as the
Company deems necessary or appropriate, to all Shareholders with record
addresses in the United States (including its territories and possessions and
the District of Columbia).  Delivery
shall be by first class mail (without registration or insurance).

C.  The Agent will mail a copy of the Prospectus,
instruction letter, a special notice and other documents as the Company deems
necessary or appropriate, if any.

4.             Exercise.

A.  Record Date Shareholders may acquire Ordinary
Shares on Primary Subscription by delivery to the Agent as specified in the
Prospectus of (i) the Subscription Certificate with respect thereto, duly
executed by such Shareholder in accordance with and as provided by the terms
and conditions of the Subscription Certificate, together with (ii) the purchase
price, as disclosed in the Prospectus, for each Ordinary Share subscribed for
by exercise of such Rights, in U.S. dollars by money order or check drawn on a
bank in the United States, in each case payable to the order of the Company or
Computershare.

B.  Rights may be exercised at any time after the
date of issuance of the Subscription Certificates with respect thereto but no
later than 5 P.M. New York City time on such date as the Company shall
designate to the Agent in writing (the “Expiration Date”).  For the purpose of determining the time of
the exercise of any Rights, delivery of any material to the Agent shall be 

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deemed to occur
when such materials are received at the Shareholder Services Division of the
Agent specified in the Prospectus.

C.  Notwithstanding the provisions of Section 4
(a) and 4 (b) regarding delivery of an executed Subscription Certificate to the
Agent prior to 5 P.M. New York time on the Expiration Date, if prior to such
time the Agent receives a Notice of Guaranteed Delivery by facsimile (telecopy)
or otherwise from a bank, a trust company or a New York Stock Exchange member
guaranteeing delivery of (i) payment of the full Subscription Price for the
shares of Ordinary Shares subscribed for, and (ii) a properly completed and
executed Subscription Certificate, then such exercise of  Subscription Rights shall be regarded as
timely, subject, however, to receipt of the duly executed Subscription
Certificate and full payment for the Ordinary Shares by the Agent within three
Business Days (as defined below) after the Expiration Date (the “Protect Period”) and full payment for their Ordinary Shares
within ten Business Days after the Confirmation Date (as defined in Section
4(d)).  For the purposes of the
Prospectus Supplement and this Agreement, “Business Day” shall mean any day on
which trading is conducted on the New York Stock Exchange.

5.             Validity
of Subscriptions.

Irregular
subscriptions not otherwise covered by specific instructions herein shall be
submitted to an appropriate officer of the Company and handled in accordance with
his or her instructions.  Such
instructions will be documented by the Agent indicating the instructing officer
and the date thereof.

6.             Delivery
of Shares.

The
Agent will deliver certificates or Statements of Holding reflecting new shares
of Company Common Stock in the Direct Registration System, representing those
Ordinary Shares purchased pursuant to exercise of Primary Subscription Rights
as soon as practicable after the corresponding Rights have been validly
exercised and full payment for such shares has been received and cleared.

7.             Holding
Proceeds of Rights Offering.

A.  All proceeds received by Computershare from
Shareholders in respect of the exercise of Rights shall be held by
Computershare, on behalf of the Company, in a segregated account (the “Account”).  No
interest shall accrue to the Company or shareholders on funds held in the
Account.

B.  Computershare shall deliver all proceeds
received in respect of the exercise of Rights to the Company as promptly as
practicable, but in no event later than the business day after its receipt of
cleared funds.

C.  The Company acknowledges that the bank
accounts maintained by Computershare in connection with the services provided
under this Agreement will be in its name and that Computershare may receive investment
earnings in connection with the investment at Computershare’s risk and for its
benefit of funds held in those accounts from time to time.

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8.             Reports.

Daily,
during the period commencing on May 24, 2007, until termination of the
Subscription Period, the Agent will report by telephone or telecopier,
confirmed by letter, to an Officer of the Company, data regarding Rights
exercised, the total number of Ordinary Shares subscribed for, and payments
received therefor, bringing forward the figures from the previous day’s report
in each case so as to show the cumulative totals and any such other information
as may be mutually determined by the Company and the Agent.

11.          Loss
or Mutilation.

If
any Subscription Certificate is lost, stolen, mutilated or destroyed, the Agent
may, on such terms which will indemnify and protect the Company and the Agent
as the Agent may in its discretion impose (which shall, in the case of a
mutilated Subscription Certificate include the surrender and cancellation
thereof), issue a new Subscription Certificate of like denomination in
substitution for the Subscription Certificate so lost, stolen, mutilated or
destroyed.

12.          Compensation
for Services.

The
Company agrees to pay to the Agent compensation for its services hereunder in
accordance with its Fee Schedule to act as Agent attached hereto as Exhibit
A.  The Company further agrees that
it will reimburse the Agent for its reasonable out-of-pocket expenses incurred
in the performance of its duties as such.

13.          Instructions,
Indemnification and Limitation of Liability.

The
Agent undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions:

A.  The Agent shall be entitled to rely upon any
instructions or directions furnished to it by an appropriate officer of the
Company, whether in conformity with the provisions of this Agreement or
constituting a modification hereof or a supplement hereto.  Without limiting the generality of the
foregoing or any other provision of this Agreement, the Agent, in connection
with its duties hereunder, shall not be under any duty or obligation to inquire
into the validity or invalidity or authority or lack thereof of any instruction
or direction from an officer of the Company which conforms to the applicable requirements
of this Agreement and which the Agent reasonably believes to be genuine and
shall not be liable for any delays, errors or loss of data occurring by reason
of circumstances beyond the Agent’s control.

B.  The Company will indemnify the Agent and its
nominees against, and hold it harmless from, all liability and expense which
may arise out of or in connection with the services described in this Agreement
or the instructions or directions furnished to the Agent relating to this
Agreement by an appropriate officer of the Company, except for any liability or
expense which shall arise out of the gross negligence, bad faith or willful
misconduct of the Agent or such nominees.

Promptly
after the receipt by the Agent of notice of any demand or claim or the
commencement of any action, suit, proceeding or investigation, the Agent shall,
if a claim in respect thereof is to be made against the Company, notify the
Company thereof in writing.   The Company
shall be entitled to participate as its own expense in the defense of any such
claim or proceeding, and, if it so elects at any time after receipt of such
notice, it may assume the defense of any suit brought to enforce any such claim
or of any other legal action or proceeding. For the 

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purposes of this
Section 12, the term “expense or loss” means any amount paid or payable to
satisfy any claim, demand, action, suit or proceeding settled with the express
written consent of the Agent, and all reasonable costs and expenses, including,
but not limited to, reasonable counsel fees and disbursements, paid or incurred
in investigating or defending against any such claim, demand, action, suit,
proceeding or investigation.

C.  The Agent shall be responsible for and shall
indemnify and hold the Company harmless from and against any and all losses,
damages, costs, charges, counsel fees, payments, expenses and liability arising
out of or attributable to Agent’s refusal or failure to comply with the terms
of this Agreement, or which arise out of Agent’s gross negligence or willful
misconduct or which arise out of the breach of any representation or warranty
of Agent hereunder, for which  Agent is
not entitled to indemnification under this Agreement; provided, however, that
Agent’s aggregate liability during any term of this Agreement with respect to,
arising from, or arising in connection 
with  this  Agreement, or from all services provided or
omitted to be provided under this Agreement, whether in contract, or in tort,
or otherwise, is limited to, and shall not exceed, the amounts paid hereunder
by the Company to Agent as fees and charges, but not including reimbursable
expenses, during the twelve (12) calendar months immediately preceding the
event for which recovery from the Agent is being sought.

14.          Changes
in Subscription Certificate.

The
Agent may, without the consent or concurrence of the Shareholders in whose
names Subscription Certificates are registered, by supplemental agreement or
otherwise, concur with the  Company in
making any changes or corrections in a Subscription Certificate that it shall
have been advised by counsel (who may be counsel for the Company) is
appropriate to cure any ambiguity or to correct any defective or inconsistent
provision or clerical omission or mistake or manifest error therein or herein contained,
and which shall not be inconsistent with the provision of the Subscription
Certificate except insofar as any such change may confer additional rights upon
the Shareholders.

15.          Assignment/Delegation.

A.  Except as provided in Section 15(B) below,
neither this Agreement nor any rights or obligations hereunder may be assigned
or delegated by either party without the written consent of the other party.

B.  The Agent may, without further consent on the
part of the Company, subcontract with other subcontractors for systems,
processing, telephone and mailing services, and post-exchange activities, as
may be required from time to time;  provided,
however, that the Agent shall be as fully responsible to the Company for the
acts and omissions of any subcontractor as it is for its own acts and
omissions.

C.  Except as explicitly stated elsewhere in this
Agreement, nothing under this Agreement shall be construed to give any rights
or benefits in this Agreement to anyone other than the Agent and the Company
and the duties and responsibilities undertaken pursuant to this Agreement shall
be for the sole and exclusive benefit of the Agent and the Company.

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16.          Governing Law.

The
validity, interpretation and performance of this Agreement shall be governed by
the law of the Commonwealth of Massachusetts and shall inure to the benefit of
and the obligations created hereby shall be binding upon the successors and
permitted assigns of the parties hereto.

17.          Third
Party Beneficiaries.

This
Agreement does not constitute an agreement for a partnership or joint venture
between the Agent and the Company. 
Neither party shall make any commitments with third parties that are
binding on the other party without the other party’s prior written consent.

18.          Force
Majeure.

In
the event either party is unable to perform its obligations under the terms of
this Agreement because of acts of God, strikes, terrorist acts, equipment or
transmission failure or damage reasonably beyond its control, or other cause
reasonably beyond its control, such party shall not be liable for damages to
the other for any damages resulting from such failure to perform or otherwise
from such causes.  Performance under this
Agreement shall resume when the affected party or parties are able to perform
substantially that party’s duties.

19.          Consequential
Damages.

Neither
party to this Agreement shall be liable to the other party for any
consequential, indirect, special or incidental damages under any provisions of
this Agreement or for any consequential, indirect, penal, special or incidental
damages arising out of any act or failure to act hereunder even if that party
has been advised of or has foreseen the possibility of such damages.

20.          Severability.

If
any provision of this Agreement shall be held invalid, unlawful, or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired.

21.          Counterparts.

This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together shall be considered one and the
same agreement.

22.          Captions.

The
captions and descriptive headings herein are for the convenience of the parties
only.  They do not in any way modify,
amplify, alter or give full notice of the provisions hereof.

23.          Confidentiality.

The
Agent and the Company agree that all books, records, information and data
pertaining to the business of the other party which are exchanged or received
pursuant to the negotiation or the carrying out of this Agreement including the
fees for services set forth in the attached schedule shall remain confidential,
and shall not be voluntarily disclosed to any other person, except as may be
required by law.

24.          Term
and Termination.

This
Agreement shall remain in effect until the earlier of (a) thirty (30) days
after the Expiration Date; (b) it is terminated by either party upon a material
breach of this Agreement which remains uncured for 30 days after written notice
of such breach has been provided; or (c) 

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30 days’ written
notice has been provided by either party to the other.  Upon termination of this Agreement, the Agent
shall retain all canceled Certificates and related documentation as required by
applicable law.

25.          Notices.

Until
further notice in writing by either party hereto to the other party, all

written reports,
notices and other communications between the Exchange Agent and the  Company required or permitted  hereunder shall be delivered or mailed by
first class mail, postage prepaid, telecopier or overnight courier guaranteeing
next day delivery, addressed as follows:

If
to the Company, to:

Progen Pharmaceuticals Limited

PO Box 2403, Toowong

Queensland 4066 Australia

Attention:  Linton Burns

Facsimile No.: +61-7-3720-9624

with a copy to:

Greenberg Traurig LLP

MetLife Building

200 Park Ave

New York, NY 10166

Attention: Ross Kaufman

Facsimile No.: (212) 805-9380

If
to the Agent, to:

Computershare Trust Company, N.A.

c/o Computershare, Inc.

350 Indiana Street, Suite 800

Golden, CO  80401

Attn:  Reorganization Department

26.          Survival.

The
provisions of Paragraphs 13, 16, 18-20, 23, and 25-27 shall survive any
termination, for any reason, of this Agreement.

27.          Merger
of Agreement.

This
Agreement constitutes the entire agreement between the parties hereto and
supersedes any prior agreement with respect to the subject matter hereof
whether oral or written.

[Signature page follows]

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

Computershare,   Inc., and

Computershare Trust Company, N.A.

On Behalf of Both Entities

By:  /s/Kellie Gwinn

Name: Kellie Gwinn

Title: Vice President

Date: May 15, 2007

Progen
Pharmaceuticals Limited

By:  /s/ Linton Burns

Name: Linton Burns

Title: Company Secretary

Date: May 16, 2007

 8Exhibit 4.2

WARRANT
AGENT AGREEMENT

Progen
Pharmaceuticals Limited, an Australia corporation (the “Company”),
Computershare, Inc., a Delaware corporation, and its fully owned subsidiary
Computershare Trust Company, N.A. a federally chartered trust company, having
its principal office at 250 Royall Street, Canton, MA 02021 (collectively “Warrant Agent” or individually “Computershare”
and the “Trust Company,” respectively),  agree as follows:

1.             Warrants. 
Each Warrant (a “Warrant”)
will entitle the registered holder of a Warrant (“Warrant
Holder”) to purchase from the Company one share of Company ordinary
shares, no par value per share (each a  “Share”) for every two Shares acquired in the rights
offering, at the US dollar equivalent of AUD$8.40 per Share at the average
interbank exchange rate in effect on the date of exercise (“Exercise
Price”).  A Warrant Holder may
exercise all or any number of Warrants resulting in the purchase of a whole
number of Shares; provided, however, that the
Warrants must be exercised in parcels of not less than 500 Warrants, unless the
Warrant Holder’s entire holding of Warrants is less than 500, in which case it
may exercise its entire holding.

2.             Exercise Period. 
The Warrant may be exercised at any time during the period (the “Exercise Period”)  ending at 5
p.m. New York City time on May 28, 2010 (“Expiration Date”)
as set forth in the Warrant.  After the
Expiration Date, any unexercised Warrants will be void and all rights of
Warrant Holders shall cease.

3.             Execution of Warrant.  The Warrant shall be in registered form only
and shall be substantially in the form set forth in Exhibit A attached
to this Agreement (“Warrant Certificate”).  Warrant Certificates shall be signed by, or
shall bear the facsimile signature of, the Chairman or another officer of the
Company and the Company Secretary of the Company.  If any person, whose facsimile signature has
been placed upon any Warrant or the signature of an officer of the Company,
shall have ceased to be such officer before such Warrant is countersigned,
issued an delivered, such Warrant shall be countersigned, issued and delivered
with the same effect as if such person had not ceased to be such officer.  Any Warrant may be signed by, or made to bear
the facsimile signature of, any person who at the actual date of the
preparation of such Warrant shall be a proper officer of the Company to sign
such Warrant even though such person was not such an officer upon the date of
the Agreement.

4.             Countersigning. 
Warrants shall be manually countersigned by the Warrant Agent and shall
not be valid for any purpose unless so countersigned.  The Warrant Agent hereby is authorized to
countersign and deliver to, or in accordance with the instructions of, any
Warrant Holder any Warrant which is properly issued.

5.             Registration of Transfer and Exchanges.  The Warrant Agent shall from time to time
register the transfer of any outstanding Warrant upon records maintained by the
Warrant Agent for such purpose upon surrender of such Warrant to the Warrant
Agent for transfer, accompanied by appropriate instruments of transfer in form
satisfactory to the Company and the Warrant Agent and duly executed by the
Warrant Holder or a duly authorized attorney. 
Upon any such registration of transfer, a new Warrant shall be issued in
the name of and to the transferee and the surrendered Warrant shall be
cancelled.

6.                                       Exercise
of Warrants.

(a)           Subject to the terms of the Warrant,
any Warrant may be exercised upon any one or more occasions during the exercise
period.  A Warrant shall be exercised by
the Warrant Holder by surrendering to the Warrant Agent the Warrant with the
exercise form on the reverse of such Warrant duly completed and executed and
delivering to the Warrant Agent, by good check or bank draft payable to

the order of the Warrant
Agent, the Exercise Price for each Share to be purchased in United States
Dollars.

(b)           Upon receipt of a Warrant with the
exercise form thereon duly executed together with payment in full of the
Exercise Price for the Shares for which Warrants are then being exercised, the
Warrant Agent shall requisition from any transfer agent for the Shares, and
upon receipt shall make delivery of, a Statement of Holding evidencing the
total number of whole Shares for which Warrants are then being exercised in
such names and denominations as are required for delivery to, or in accordance
with the instructions of, the Warrant Holder. 
Such Statements of Holding for the Shares shall be deemed to be issued,
and the person whom such Shares are issued of record shall be deemed to have
become a holder of record of such Shares, as of the date of the surrender of
such Warrant and payment of the Exercise Price, whichever shall last occur,
provided that if the transfer books of the Company with respect to the Shares,
shall be closed, the Statement of Holdings for the Shares issuable upon
exercise of the Warrant shall be issued as of the date on which such books
shall next be open, and the person to whom such Shares are issued of record
shall be deemed to have become a record holder of such Shares as of the date on
which such books shall next be open (whether before, on or after the Expiration
Date) and until such date the Warrant Agent shall be under no duty to deliver
any certificate for such Shares.

(c)           If less than all a Warrant Holder’s
Warrant is exercised upon a single occasion, a new Warrant for the balance of
the Warrant not so exercised shall be issued and delivered to, or in accordance
with, transfer instructions properly given by the Warrant Holder until the
Expiration Date.

(d)           All Warrants surrendered upon
exercise shall be cancelled.

(e)           Upon the exercise, of any Warrant,
the Warrant Agent shall promptly deposit the payment into an escrow account
established by mutual agreement of the Company and the Warrant Agent at a
federally insured commercial bank.  All
funds deposited in the escrow account will be disbursed daily to the Company
once they have been determined by the Warrant Agent to be collected funds.  Once the funds are determined to be
collected, the Warrant Agent shall cause the Statements of Holdings
representing the exercised Warrants to be issued.

(f)            Expenses incurred by the Warrant
Agent will be paid by the Company.  These
expenses, including delivery of Statements of Holdings to the shareholder, will
be deducted from the Exercise Price submitted by a Warrant Holder prior to the
distribution of funds to the Company.  A
detailed accounting statement relating to the number of Warrants exercised,
names and registered Warrant Holder(s) and the net amount of exercised funds
remitted will be given to the Company with the payment of each exercise amount.

7.             Taxes.  The
Company will pay all taxes attributable to the initial issuance of shares upon
exercise of Warrants, if any.  The
Company shall not, however, be required to pay any tax which may be payable in
respect to any transfer involved in any issue of Warrants or in the issue of
any Statements of Holdings in the name other than that of the Warrant Holder
upon the exercise of any Warrant.

8.             Mutilated or Missing Warrant Certificates.  On receipt by the Company and the Warrant
Agent of evidence satisfactory as to the ownership of and the loss, theft,
destruction or mutilation of any Warrant, the Company shall execute and the
Warrant Agent shall countersign and deliver in lieu thereof, a new
Warrant.  In the case of loss, theft or
destruction of any Warrant, the Registered Owner requesting issuance of a new
Warrant shall be required to secure an indemnity bond from an approved surety
bonding company.  In the event a Warrant
is mutilated, such Warrant shall be surrendered and canceled by the Warrant
Agent prior to delivery of a new Warrant. 
Applicants for a substitute Warrant shall also

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comply with such other
regulations and pay such other reasonable charges as the Warrant Agent may
prescribe.

9.             Reservation of Shares.  For the purpose of enabling the Company to
satisfy all obligations to issue Shares upon exercise of Warrants, the Company
will at all times reserve and keep available free from preemptive rights, out
of the aggregate of its authorized but unissued shares, the full number of
Shares which may be issued upon the exercise of the Warrants and will upon
issue be fully paid and nonassessable by the Company and free from all taxes,
liens, charges and security interests with respect to the issue thereof.

10.           Governmental Restrictions.  If any Shares issuable upon the exercise of
Warrants require registration or approval of any governmental authority, the
Company will endeavor to secure such registration or approval; provided that in
no event shall such Shares be issued, and the Company shall have the authority
to suspend the exercise of all Warrants, until such registration or approval
shall have been obtained; but all Warrants, the exercise of which is requested
during any such suspension, shall be exercisable at the Exercise Price.  If any such period of suspension continues
past the Expiration Date, all Warrants, the exercise of which have been
requested on or prior to the Expiration Date, shall be exercisable upon the
removal of such suspension until the close of business on the business day
immediately following the expiration of such suspension.

11.           Adjustments.  If prior to the exercise of any Warrants, the
Company shall have effected one or more stock split-ups, stock dividends or
other increases or reductions of the number of shares of its ordinary shares
outstanding without receiving compensation therefor in money, services or
property, the number of shares of common stock subject to the Warrant granted
shall (i) if a net increase shall have been effected in the number of
outstanding shares of the Company’s common stock, be proportionately increased,
and the cash consideration payable per share shall be proportionately reduced,
and, (ii) if a net reduction shall have been effected in the number of
outstanding shares of the Company’s common stock, be proportionately reduced
and the cash consideration payable per share be proportionately increased.

12.           Notice to Warrant Holders.  (a) Upon any adjustment as described in
Section 11, the Company within 20 days thereafter shall (i) cause to be filed
with the Warrant Agent a certificate signed by a Company officer setting forth
the details of such adjustment, the method of calculation and the facts upon
which such calculation is based, which certificate shall be conclusive evidence
of the correctness of the matters set forth therein, (ii) cause written notice
of such adjustments to be given to each Warrant Holder as of the record date
applicable to such adjustment.  Also, if
the Company proposes to enter into any reorganization, reclassification, sale
of substantially all of its assets, consolidation, merger, dissolution,
liquidation or winding up, the Company shall give notice of such fact at least
20 days prior to such action to all Warrant Holders which notice shall set
forth such facts as indicate the effect of such action (to the extent such
effect may be known at the date of such notice) on the Exercise Price and the
kind and amount of the shares or other securities and property deliverable upon
exercise of the Warrants.  Without
limiting the obligation of the Company hereunder to provide notice to each
Warrant Holder, failure of the Company to give notice shall not invalidate any
corporate action taken by the Company.

(b)  Warrant holders will not be entitled to
participate in new issues of shares to shareholders (including bonus issues (as
such term is used in Australia) and other pro rata issues).  The Company will, however, ensure that for
the purposes of determining entitles to any such issue, holders of warrants
will be notified of the proposed issue at least 7 business days before the
record of any proposed issue.  This may
give warrant holders the opportunity to exercise the warrants prior to the date
for determining entitlements to participate in any such issue.

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13.           No Fractional Warrants or Shares.  The Company shall not be required to issue
fractions of Shares issuable upon exercise of the Warrants or upon the reissue
of Warrants, any adjustments as described in Section 11 or otherwise; but the
Company in lieu of issuing any such fractional interest, shall round down to
the nearest full Share issuable upon exercise of the Warrant.  If the total Warrants surrendered by exercise
would result in the issuance of a fractional share, the Company shall not be
required to issue a fractional share but rather the aggregate number of shares
issuable will be rounded down to the nearest full share.

14.           Rights of Warrant Holders.  No Warrant Holder, as such, shall have any
rights of a shareholder of the Company, either at law or equity, and the rights
of the Warrant Holders, as such, are limited to those rights expressly provided
in the Warrant.  The Company and the Warrant
Agent may treat the registered Warrant Holder in respect of any Warrant as the
absolute owner thereof for all purposes notwithstanding any notice to the
contrary.

15.           Warrant Agent.  The Company hereby appoints the Warrant Agent
to act as the agent of the Company and the Warrant Agent hereby accepts such
appointment upon the following terms and conditions by all of which the Company
and every Warrant Holder, by acceptance of his Warrants, shall be bound:

(a)           Statements contained in this
Agreement and in the Warrant shall be taken as statements of the Company.  The Warrant Agent assumes no responsibility
for the correctness of any of the same except such as describes the Warrant
Agent or for action taken or to be taken by the Warrant Agent.

(b)           The Warrant Agent shall not be
responsible for any failure of the Company to comply with any of the Company’s
covenants contained in this Agreement or in the Warrant.

(c)           The Warrant Agent may consult at any
time with counsel satisfactory to it (who may be counsel for the Company) and
the Warrant Agent shall incur no liability or responsibility to the Company or
to any Warrant Holder in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with the opinion or the advice of
such counsel, provided the Warrant Agent shall have exercised reasonable care
in the selection and continued employment of such counsel.

(d)           The Warrant Agent shall incur no
liability or responsibility to the Company or to any Warrant Holder for any
action taken in reliance upon any notice, resolution, waiver, consent, order,
certificate or other paper, document or instrument believed by it to be genuine
and to have been signed, sent or presented by the proper party or parties.

(e)           The Company agrees to pay to the
Warrant Agent reasonable compensation for all services rendered by the Warrant
Agent in the execution of this Agreement, to reimburse the Warrant Agent for
all expenses, taxes and governmental charges and all other charges of any kind
or nature incurred by the Warrant Agent in the execution of this Agreement and
to indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and counsel fees, for this Agreement
except as a result of the Warrant Agent’s gross negligence or bad faith or willful
misconduct.

(f)            The Warrant Agent shall be under no
obligation to institute any action, suit or legal proceeding or to take any
other action likely to involve expense unless the Company or one or more
Warrant Holders shall furnish the Warrant Agent with reasonable security and
indemnity for any costs and expenses which may be incurred in connection with
such action, suit or legal proceeding, but this provision shall not affect the
power of the Warrant Agent to take such action as the Warrant Agent may consider
proper, whether with or without any such security or indemnity.  All rights of action under this Agreement or
under any of the Warrants may be enforced by the Warrant Agent without the
possession of

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any of the Warrants or
the production thereof at any trial or other proceeding relative thereto, and
any such action, suit or proceeding instituted by the Warrant Agent shall be
brought in its name as Warrant Agent, and any recovery of judgment shall be for
the ratable benefit of the Warrant Holders as their respective rights or
interest may appear.

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

(h)           The Warrant Agent’s fees are
specified on Exhibit B hereto.

16.           Successor Warrant Agent.  Any corporation into which the Warrant Agent
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Warrant Agent shall be a party, or any corporation succeeding to the corporate
trust business of the Warrant Agent, shall be the successor to the Warrant
Agent hereunder with the same powers, rights, responsibilities and obligations
of the Warrant Agent without the execution or filing of any paper or any
further act of a party or the parties hereto. 
In any such event or if the name of the Warrant Agent is changed, the
Warrant Agent or such successor may adopt the countersignature of the original
Warrant Agent and may countersign such Warrants either in the name of the
predecessor Warrant Agent or in the name of the successor Warrant Agent.

17.           Change of Warrant Agent.  The Warrant Agent may resign or be
discharged by the Company from its duties under this Agreement by the Warrant
Agent or the Company, as the case may be, giving notice in writing to the
other, and by giving a date when such resignation or discharge shall take
effect, which notice shall be sent at least 30 days prior to the date so
specified.  If the Warrant Agent shall
resign, be discharged or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Warrant Agent.  If the Company shall fail to make such
appointment within a period of 30 days after it has been notified in writing of
such resignation or incapacity by the resigning or incapacitated Warrant Agent
or by any Warrant Holder or after discharging the Warrant Agent, then any
Warrant Holder may apply to the District Court for Denver County, Colorado, for
the appointment of a successor to the Warrant Agent.  Pending appointment of a successor to the
Warrant Agent, either by the Company or such Court, the duties of the Warrant
Agent shall be carried out by the Company. 
Any successor Warrant Agent, whether appointed by the Company or by such
Court, shall be a bank or a trust company, in good standing, organized under the
laws of the State of Colorado or of the United States of America, having its
principal office in the United States and having at the time of its appointment
as Warrant Agent, a combined capital and surplus of at least 100 million
dollars.  After appointment, the
successor Warrant Agent shall be vested with the same powers, rights, duties
and responsibilities as if it had been originally named as Warrant Agent
without further act or deed and the former Warrant Agent shall deliver and
transfer to the successor Warrant Agent any property at the time held by it
there under, and execute and deliver any further assurance, conveyance, act or
deed necessary for effecting the delivery or transfer.  Failure to give any notice provided for in
the section, however, or any defect therein, shall not affect the legality or
validity of the resignation or removal of the Warrant or the appointment of the
successor Warrant Agent, as the case may be.

18.           Notices.  Any notice or demand authorized by this
Agreement to be given or made by the Warrant Agent or by any Warrant Holder to
or on the Company shall be sufficiently given or made if sent by facsimile, or
recognized international air courier service, addressed (until another address
is filed in writing by the Company with the Warrant Agent), as follows:

 5
  
 

 

To the Company:

Progen Pharmaceuticals
Limited

PO Box 2403, Toowong

Queensland 4066 Australia

Attention:  Linton Burns

Facsimile No.: +61-7-3720-9624

with a copy to:

Greenberg Traurig LLP

MetLife Building

200 Park Ave

New York, NY 10166

Attention: Ross Kaufman

Facsimile No.: (212) 805-9380

To the Warrant Agent:

Computershare, Inc.

350 Indiana Street, Suite
800

Golden, CO, 80401

Attn:  Corporate Actions

Facsimile:  303-262-0606

Any distribution,
notice or demand required or authorized by this Agreement to be given or made
by the Company or the Warrant Agent to or on the Warrant Holders shall be
sufficiently given or made if sent by mail, first class, certified or
registered, postage prepaid, addressed to the Warrant Holders at their last
known addresses as they shall appear on the registration books for the Warrants
maintained by the Warrant Agent.

If the Warrant
Agent shall receive any notice or demand addressed to the Company by the holder
of a Warrant Certificate pursuant to the provisions of the Warrant Certificates,
the Warrant Agent shall promptly forward such notice or demand to the Company.

19.           Supplements and Amendments.  The Company and the Warrant Agent may from
time to time supplement or amend this Agreement without the approval of any
Warrant Holders in order to cure any ambiguity or to correct or supplement any
provisions herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and the Warrant Agent may deem
necessary or desirable.

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

21.           Termination.  This Agreement shall terminate at the close
of business on the Expiration Date or such earlier date upon which all Warrants
have been exercised; provided, however, that if exercise of the Warrants is
suspended pursuant to Section 10 and such suspension continues past the
Expiration Date, this Agreement shall terminate at the close of business on the
business day immediately following the expiration of such suspension.  The provisions of Section 15 shall survive
such termination.

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22.           Governing Law.  This Agreement and each Warrant issued
hereunder shall be deemed to be a contract made under the laws of the State of
Colorado and for all purposes shall be construed in accordance with the laws of
said State.

23.           Benefits of this Agreement.  Nothing in this Agreement shall be construed
to give any person or corporation other than the Company and the Warrant Agent
any legal or equitable right, remedy or claim under this Agreement.

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

[The remainder of
page intentionally left blank]

 

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IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be executed by one of its
officers thereunto duly authorized.

Date:  May 15, 2007

PROGEN PHARMACEUTICALS LIMITED

By: /s/ Linton Burns

Name: Linton Burns

Title: Company Secretary

COMPUTERSHARE, INC. AND

COMPUTERSHARE TRUST COMPANY, N.A.

On
Behalf of Both Entities:

By: /s/ Kellie Gwinn

Name: Kellie Gwinn

Title: Vice President

 

 8

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