Document:

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                                                                    Exhibit 4.11

                                                                            W-24

          THIS WARRANT AND THE WARRANT SHARES HAVE NOT BEEN REGISTERED
                      UNDER THE SECURITIES ACT OF 1933, AS
              AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY STATE
             SECURITIES LAWS, AND MAY NOT BE PLEDGED, HYPOTHECATED,
              SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS SO
               REGISTERED OR AN EXEMPTION THEREFROM IS AVAILABLE.

                        WARRANT TO PURCHASE COMMON STOCK
                                OF SCANSOFT, INC.

Date of Issuance: May 9, 2005

      In consideration for the payment by Warburg Pincus Private Equity VIII,
L.P. to Scansoft, Inc., a Delaware corporation (the "Company"), of $104,570.25
in cash, by certified check, or by wire transfer (the "Purchase Price"), the
Company agrees to the provisions set forth herein. The Company certifies that
Warburg Pincus Private Equity VIII, L.P. and its permitted assigns (the
"Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company, up to 836,562 fully-paid and nonassessable shares of Common Stock
(the "Warrant Shares") at a purchase price per share equal to the Warrant Price
(defined below). The number of shares of Common Stock purchasable upon exercise
of this Warrant and the Warrant Price shall be subject to adjustment from time
to time as provided herein. The initial Warrant Price (the "Warrant Price") per
share of Common Stock shall equal $5.00.

      This Warrant is one in a series of warrants issued on May 9, 2005 (the
"Issuance Date") with substantially similar terms and conditions that (x) as of
the Issuance Date and subject to the provisions of this Warrant and such other
warrants (as applicable), allow for the purchase of up to an aggregate of
863,236 shares of Common Stock and (y) as of the Issuance Date, are represented
by warrant certificate numbers W-24, W-25, and W-26. Such warrants and any
warrants issued upon assignment or replacement thereof are referred to herein as
the "Warrants," and the holders thereof and their permitted assigns are referred
to herein as the "Holders."

      For the purpose of this Warrant, the term "Common Stock" shall mean (i)
the Common Stock, par value $0.001 per share, of the Company as of the Issuance
Date, or (ii) any other class or classes of stock resulting from successive
changes or reclassifications of such class of stock, and the term "Business Day"
shall mean any day other than a Saturday or Sunday or a day on which commercial
banks in New York, New York are required or authorized to be closed.

      Section 1. Term of Warrant, Exercise of Warrant. (a) Subject to the terms
of this Warrant, the Holder shall have the right, at its option, which may be
exercised in whole or in part, at any time, and from time to time, commencing at
the time immediately following the time the Purchase Price has been paid and
until the earlier of (x) 5:00 p.m. Eastern Time on the four year anniversary of
the Issuance Date and (y) the closing of a Change of Control (as defined below)
(the "Warrant Expiration Date") to purchase from the Company the Warrant Shares.
"Change of Control" shall mean the sale, conveyance or disposal of all or
substantially all of the Company's property or business or the Company's merger
with or into or consolidation with any

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other corporation (other than a wholly-owned subsidiary of the Company) or any
other transaction or series of related transactions in which the stockholders of
the Company immediately prior to the transaction or transactions own less than a
majority of the voting power of the surviving corporation following the
transaction or transactions.

      (b) The purchase rights evidenced by this Warrant shall be exercised by
the Holder surrendering this Warrant, with the form of subscription at the end
hereof duly executed by the Holder, to the Company at its office in Peabody,
Massachusetts (or, in the event the Company's principal office is no longer in
Peabody, Massachusetts its then principal office in the United States (the
"Principal Office")), accompanied by payment, of an amount (the "Exercise
Payment") equal to the Warrant Price multiplied by the number of Warrant Shares
being purchased pursuant to such exercise, payable as follows: (i) by payment to
the Company in cash, by certified check, or by wire transfer of the Exercise
Payment, (ii) by surrender to the Company for cancellation of securities of the
Company having a Market Price (as hereinafter defined) on the date of exercise
equal to the Exercise Payment; or (iii) by a combination of the methods
described in clauses (i) and (ii) above. In lieu of exercising the Warrant as
set forth in the foregoing sentence, the Holder may elect to perform a net
exercise and receive a payment equal to the difference between (i) the Market
Price on the date of exercise multiplied by the number of Warrant Shares as to
which the payment is then being elected and (ii) the aggregate Warrant Price
with respect to such Warrant Shares, payable by the Company to the Holder only
in shares of Common Stock valued at the Market Price on the date of exercise.
For purposes hereof, the term "Market Price" shall mean, with respect to any
day, the average closing price of a share of Common Stock or other security for
the 5 consecutive trading days preceding such day on the principal national
securities exchange on which the shares of Common Stock or securities are listed
or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, the average of the reported high and low prices during such
5 trading day period on Nasdaq or, if the shares are not listed on Nasdaq, in
the over-the-counter market or, if the shares of Common Stock or securities are
not publicly traded, the Market Price for such day shall be the fair market
value thereof determined in good faith jointly by the Company and the Holders of
a majority in interest of the shares of Common Stock then purchasable pursuant
to outstanding Warrants (a "Holder Majority"); provided, however, that if such
parties are unable to reach agreement within a reasonable period of time, the
Market Price shall be determined in good faith by an independent investment
banking firm selected jointly by the Company and a Holder Majority or, if that
selection cannot be made within 15 days, by an independent investment banking
firm selected by the American Arbitration Association in accordance with its
rules. All costs and expenses of such independent investment banking firm shall
be borne 50% by the Company and 50% by the Holders, pro rata based on the number
of Warrant Shares then held by each.

      (c) Upon any exercise of this Warrant, the Company shall issue and cause
to be delivered with all reasonable dispatch, but in any event within 10
Business Days, to or upon the written order of the Holder and, subject to
Section 3, in such name or names as the Holder may designate (provided that such
names other than the Holder may include only affiliates of the Holder), a
certificate or certificates for the number of full Warrant Shares issuable upon
such exercise together with such other property, including cash (if necessary
pursuant to Section 5.3 hereof), which may be deliverable upon such exercise. If
fewer than all of the Warrant Shares represented by this Warrant are purchased,
a new Warrant of the same tenor as this Warrant,

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evidencing the Warrant Shares not purchased will be issued and delivered by the
Company at the Company's expense, to the Holder together with the issue of the
certificates representing the Warrant Shares then being purchased. All Warrant
certificates surrendered upon exercise of Warrants shall be canceled by the
Company.

      Section 2. Warrant Register, Registration of Transfers.

      Section 2.1. Warrant Register. The Company shall keep at its Principal
Office, a register (the "Warrant Register") in which the Company shall record
the name and address of the Holder from time to time and all transfers and
exchanges of this Warrant. The Company shall give the Holder prior written
notice of any change of the address at which such register is kept.

      Section 2.2. Registration of Transfers, Exchanges or Assignment of
Warrants. The Holder shall be entitled to assign its interest in this Warrant in
whole or in part to any affiliate of Holder upon surrender thereof accompanied
by a written instrument or instruments of transfer in the form of assignment at
the end hereof duly executed by the Holder. Except as set forth in the preceding
sentence, this Warrant may not be assigned by the Holder. This Warrant may also
be exchanged or combined with warrants of like tenor at the option of the Holder
for another Warrant or Warrants of like tenor and representing in the aggregate
the right to purchase a like number of Warrant Shares upon presentation thereof
to the Company as its Principal Office together with a written notice signed by
the Holder specifying the denominations in which the new Warrant is or the new
Warrants are to be issued.

      Upon surrender for transfer or exchange of this Warrant to the Company at
its Principal Office for transfer or exchange, in accordance with this Section
2, the Company shall, without charge (subject to Section 3), execute and deliver
a new Warrant or Warrants of like tenor and of a like aggregate amount of
Warrant Shares in the name of the assignee named in such instrument of
assignment and, if the Holder's entire interest is not being assigned, in the
name of the Holder with respect to that portion not transferred, and this
Warrant shall promptly be canceled.

      Notwithstanding the foregoing, the Holder acknowledges that this Warrant
and the Warrant Shares have not been registered under the Securities Act of
1933, as amended (the "Act"), and agrees not to sell, pledge, distribute, offer
for sale, transfer or otherwise dispose of this Warrant and Warrant Shares in
the absence of (i) registration or qualification of this Warrant and such
Warrant Shares under any applicable U.S. federal or state securities law then in
effect, or (ii) an opinion of counsel, satisfactory to the Company, that such
registration and qualification are not required.

      Section 3. Payment of Taxes. The Company shall pay all documentary stamp
taxes, if any, attributable to the initial issuance of any Warrant Shares upon
the exercise of this Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue or delivery of any Warrant or certificate for Warrant
Shares in a name other than that of the Holder as such name is then shown on the
books of the Company.

      Section 4. Certain Covenants.

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      Section 4.1. Reservation of Warrant Shares. There have been reserved and
the Company shall at all times keep reserved, out of its authorized but unissued
Common Stock, free from any preemptive rights, rights of first refusal or other
restrictions (other than pursuant to the Act and applicable state securities
laws) a number of shares of Common Stock sufficient to provide for the exercise
of the rights of purchase represented by this Warrant.

      Section 4.2. No Impairment. The Company shall not by any action including,
without limitation, amending its Restated Certificate of Incorporation, any
reorganization, transfer of assets, consolidation, merger, 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 shall at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action, as may be necessary or appropriate to protect the
rights of the Holder against impairment. Without limiting the generality of the
foregoing, the Company shall take all such action as may be necessary or
appropriate in order that the Company may validly issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant at the
then Warrant Price therefor.

      Section 4.3. Notice of Certain Corporate Action. In case the Company shall
propose (a) to offer to the holders of its Common Stock rights to subscribe for
or to purchase any shares of Common Stock or shares of stock of any class or any
other securities, rights or options, or (b) to effect any reclassification of
its Common Stock (other than a reclassification involving only the subdivision,
or combination, of outstanding shares of Common Stock), or (c) to effect any
capital reorganization, or (d) to effect any Change of Control, or (e) to effect
the liquidation, dissolution or winding up of the Company or (f) to offer to the
holders of its Common Stock the right to have their shares of Common Stock
repurchased or redeemed or otherwise acquired by the Company, or (g) to take any
other action which would require the adjustment of the Warrant Price and/or the
number of Warrant Shares issuable upon exercise of this Warrant, then in each
such case (but without limiting the provisions of Section 5), the Company shall
give to the Holder, a notice of such proposed action, which shall specify the
date on which a record is to be taken for purposes of such dividend,
distribution of offer of rights, or the date on which such reclassification,
reorganization, Change of Control, liquidation, dissolution, or winding up is to
take place and the date of participation therein by the holders of Common Stock,
if any such date is to be fixed and shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action
on the Common Stock. Such notice shall be so given at least ten (10) Business
Days prior to the record date for determining holders of the Common Stock for
purposes of participating in or voting on such action, or at least ten (10)
Business Days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of Common Stock, whichever shall be
the earlier. Such notice shall specify, in the case of any subscription or
repurchase rights, the date on which the holders of Common Stock shall be
entitled thereto, or the date on which the holders of Common Stock shall be
entitled to exchange their Common Stock for securities or other property
deliverable upon any reorganization, reclassification, Change of Control or
other action, as the case may be. Such notice shall also state whether the
action in question or the record date is subject to the effectiveness of a
registration statement under the Act or to a favorable vote of security holders,
if either is required, and the adjustment in Warrant Price and/or number of
Warrant Shares issuable upon exercise of this Warrant as a result of such
reorganization, reclassification, Change of Control or other action, to the
extent then determinable. No such notice shall be given if the

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Company reasonably determines that the giving of such notice would require
disclosure of material information which the Company has a bona fide purpose for
preserving as confidential or the disclosure of which would not be in the best
interests of the Company.

      Section 4.4. Purchase Entirely for Own Account. The Holder acknowledges
that this Warrant is given to the Holder in reliance upon the Holder's
representation to the Company, which by its acceptance of this Warrant the
Holder hereby confirms, that the Warrant, the Warrant Shares, and the Common
Stock issuable upon conversion of the Warrant Shares (collectively, the
"Securities") being acquired by the Holder are being acquired for investment for
the Holder's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that the Holder has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Warrant, the Holder further represents that the
Holder does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities. The Holder
represents that it has full power and authority to enter into this Warrant. The
Holder has not been formed for the specific purpose of acquiring any of the
Securities.

      Section 4.5. Disclosure of Information. The Holder has had an opportunity
to discuss the Company's business, management, financial affairs and the terms
and conditions of the offering of the Securities with the Company's management
and has had an opportunity to review the Company's facilities, and has had an
opportunity to read all of the Company's filings with the Securities and
Exchange Commission.

      Section 4.6. Restricted Securities. The Holder understands that the
Securities have not been, and will not be, registered under the Act, by reason
of a specific exemption from the registration provisions of the Act which
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Holder's representations as expressed herein. The Holder
understands that the Securities are "restricted securities" under applicable
U.S. federal and state securities laws and that, pursuant to these laws, the
Holder must hold the Securities indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or an
exemption from such registration and qualification requirements is available.
The Holder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the Securities, and on requirements relating to the Company which are
outside of the Holder's control, and which the Company is under no obligation
and may not be able to satisfy.

      Section 4.7. Accredited Investor. The Holder is an accredited investor as
defined in Rule 501(a) of Regulation D promulgated under the Act.

      Section 5. Adjustment of Warrant Price.

      Section 5.1. Subdivision or Combination of Stock. In case the Company
shall at any time (i) issue a dividend payable in Common Stock or any rights to
subscribe for or to purchase, or any options for the purchase of, Common Stock
or (ii) subdivide its outstanding shares of Common Stock into a greater number
of shares or combine its outstanding shares of Common

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Stock into a smaller number of shares, then (x) in the case of a dividend or
subdivision, the Warrant Price in effect immediately prior to such dividend or
subdivision shall be proportionately decreased and the number of shares of
Common Stock purchasable upon the exercise of the Warrant immediately prior to
such adjustment shall be proportionately increased, and (y) in the case of a
combination, the Warrant Price in effect immediately prior to such combination
shall be proportionately increased and the number of shares of Common Stock
purchasable upon the exercise of the Warrant immediately prior to such
adjustment shall be proportionately decreased.

      Section 5.2. Reorganization, Reclassification, Consolidation, Merger or
Sale. If any capital reorganization or reclassification of the capital stock of
the Company or any consolidation or merger of the Company with another
corporation, other than a Change of Control, shall be effected in such a way
that holders of Common Stock shall be entitled to receive stock, securities or
assets with respect to or in exchange for Common Stock, then, as a condition of
such reorganization, reclassification, consolidation, exercise, merger or sale,
lawful and adequate provision shall be made whereby the Holder shall thereafter
have the right to receive upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately
theretofore receivable upon the exercise of this Warrant, that number of shares
of stock, securities or assets (including cash) as may be issued or payable with
respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of Warrant Shares for which this Warrant could have
been exercised immediately prior to such reorganization, reclassification,
consolidation, merger or sale, and in any such case appropriate provision shall
be made with respect to the rights and interests of such Holder to the end that
the provisions hereof shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets (including cash)
thereafter deliverable upon the exercise of this Warrant. The Company will not
effect any such consolidation, merger or sale, unless prior to the consummation
thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall
assume, by written instrument executed and mailed or delivered to the Holder at
the last address of such Holder appearing on the books of the Company, the
obligation to deliver to such Holder such shares of stock, securities or assets
(including cash) as, in accordance with the foregoing provisions, the Holder may
be entitled to receive.

      Section 5.3. Fractional Shares. The Company shall not issue fractions of
shares of Common Stock upon exercise of this Warrant or scrip in lieu thereof.
If any fraction of a share of Common Stock would, except for the provisions of
this Section 5.3, be issuable upon exercise of this Warrant, the Company shall
in lieu thereof pay to the person entitled thereto an amount in cash equal to
the current value of such fraction, calculated to the nearest one-hundredth
(1/100) of a share, to be computed on the basis of the Market Price for a share
of Common Stock as of the date of exercise.

      Section 5.4. Notice of Adjustment. Upon any adjustment of the Warrant
Price, and from time to time upon the request of the Holder the Company shall
furnish to the Holder the Warrant Price resulting from such adjustment or
otherwise in effect and the number of Warrant Shares then available for purchase
under this Warrant, setting forth in reasonable detail the method of calculation
and the facts upon which such calculation is based.

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      Section 5.5. Certain Events. If any event occurs as to which, in the good
faith judgment of the Board of Directors of the Company the other provisions of
this Section 5 are not strictly applicable or if strictly applicable would not
fairly protect the exercise rights of the Holder in accordance with the
essential intent and principles of such provisions, then the Board of Directors
of the Company in the good faith, reasonable exercise of its business judgment
shall make an adjustment in the application of such provisions, in accordance
with such essential intent and principles so as to protect such exercise rights
as aforesaid.

      Section 6. No Rights as a Stockholder; Notice to Holder. Nothing contained
in this Warrant shall be construed as conferring upon the Holder the right to
vote or to consent or to receive notice as a stockholder in respect of any
meeting of stockholders for the election of directors of the Company or any
other matter, or any rights whatsoever as a stockholder of the Company.

      Section 7. 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 loss, theft or destruction) upon delivery of an
indemnity agreement (with, in the case of a Holder which is not a qualified
institutional buyer within the meaning of Rule 144A under the Act, surety) in an
amount reasonably satisfactory to it, or (in the case of mutilation) upon
surrender and cancellation thereof, the Company will issue, in lieu thereof, a
new Warrant of like tenor.

      Section 8. Notices. All notices and other written communications provided
for hereunder shall be given in writing and delivered in person or sent by
overnight delivery service (with charges prepaid) or by facsimile transmission,
if the original of such facsimile transmission is sent by overnight delivery
service (with charges prepaid) by the next succeeding Business Day and (i) if to
the Holder addressed to it at the address or fax number specified for such
Holder in the Warrant Register or at such other address or fax number as the
Holder shall have specified to the Company in writing in accordance with this
Section 8, and (ii) if to the Company, addressed to it at 9 Centennial Drive,
Peabody, Massachusetts 01960, Attention General Counsel Fax No: (978) 977-2412
or at such other address or fax number as the Company shall have specified to
the Holder in writing in accordance with this Section 8. Notice given in
accordance with this Section 8 shall be effective upon the earlier of the date
of delivery or the second Business Day at the place of delivery after dispatch.

      Section 9. Applicable Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of New York without giving effect to
principles of conflict of laws.

      Section 10. Warrant Share Legend. Each certificate representing Warrant
Shares, until such Warrant Shares have been distributed pursuant to a
registration statement effective under the Act or sold to the public through a
broker, dealer or market maker in compliance with Rule 144 under the Act (or any
similar rule then in force) shall bear one or all of the following legends:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO, OR IN CONNECTION

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WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

            Any legend required by the Blue Sky laws of any state to the extent
such laws are applicable to the shares represented by the certificate so
legended.

      Section 11. Captions. The captions of the Sections and subsections of this
Warrant have been inserted for convenience only
and shall have no substantive effect.

      Section 12. Amendment or Waiver. Any term of the Warrants may be amended
or waived only by an instrument in writing signed by the Company and a Holder
Majority, and any such amendment or waiver (and any other action taken or
decision made by a Holder Majority) shall be binding upon all Holders.

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      IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the
9th day of May, 2005.

                                       SCANSOFT, INC.

                                       By: /s/ Paul Ricci
                                          -----------------------------------
                                          Name:  Paul Ricci
                                          Title: Chairman & CEO

                                       WARBURG PINCUS PRIVATE EQUITY VIII, L.P.

                                       By: Warburg Pincus Partners LLC,
                                           its General Partner

                                               By: Warburg Pincus & Co.,
                                                   its Managing Member

                                       By: /s/ Jeffrey A. Harris
                                          -----------------------------------
                                          Name:  Jeffrey A. Harris
                                          Title: Partner

<PAGE>

                  [To be signed only upon exercise of Warrant]

TO Scansoft, Inc.:

            The undersigned, the holder of the within Warrant (the "Holder"),
hereby irrevocably elects to exercise the purchase right represented by such
Warrant for, and to purchase thereunder, ______ shares of Common Stock of
Scansoft, Inc. and herewith [makes payment of $______ therefor in full payment
of the Exercise Payment][tenders securities having a Market Price of $_____ in
full payment of the Exercise Payment] or [elects to receive a payment equal to
the difference between (i) the Market Price (as defined in the Warrant)
multiplied by ________ (the number of Warrant Shares as to which the payment is
being elected) and (ii) ___________, which is the exercise price with respect to
such Warrant Shares, in full payment of the Exercise Payment, payable by the
Company to the Holder only in shares of Common Stock valued at the Market Price
in accordance with the terms of the Warrant], and requests that the certificates
for such shares be issued in the name of, and be delivered to ______, whose
address is ________.

Dated:

________________________

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

                                             ___________________________________
                                                         Address

<PAGE>

                  [To be signed only upon transfer of Warrant]

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto _____________ the right represented by the within Warrant to purchase
shares _____of the Common Stock of Scansoft, Inc. to which the within Warrant
relates, and appoints _______ attorney to transfer said right on the books of
Scansoft, Inc. with full power of substitution in the premises.

Dated:

__________________________

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

                                              __________________________________
                                                           Address

In the presence of:

___________________________

                                      -2-
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                                                                            W-25

          THIS WARRANT AND THE WARRANT SHARES HAVE NOT BEEN REGISTERED
                      UNDER THE SECURITIES ACT OF 1933, AS
              AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY STATE
             SECURITIES LAWS, AND MAY NOT BE PLEDGED, HYPOTHECATED,
              SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS SO
               REGISTERED OR AN EXEMPTION THEREFROM IS AVAILABLE.

                        WARRANT TO PURCHASE COMMON STOCK
                                OF SCANSOFT, INC.

Date of Issuance: May 9, 2005

      In consideration for the payment by Warburg Pincus Netherlands Private
Equity VIII, C.V. I to Scansoft, Inc., a Delaware corporation (the "Company"),
of $3,031.00 in cash, by certified check, or by wire transfer (the "Purchase
Price"), the Company agrees to the provisions set forth herein. The Company
certifies that Warburg Pincus Netherlands Private Equity VIII, C.V. I and its
permitted assigns (the "Holder"), is entitled, subject to the terms set forth
below, to purchase from the Company, up to 24,248 fully-paid and nonassessable
shares of Common Stock (the "Warrant Shares") at a purchase price per share
equal to the Warrant Price (defined below). The number of shares of Common Stock
purchasable upon exercise of this Warrant and the Warrant Price shall be subject
to adjustment from time to time as provided herein. The initial Warrant Price
(the "Warrant Price") per share of Common Stock shall equal $5.00.

      This Warrant is one in a series of warrants issued on May 9, 2005 (the
"Issuance Date") with substantially similar terms and conditions that (x) as of
the Issuance Date and subject to the provisions of this Warrant and such other
warrants (as applicable), allow for the purchase of up to an aggregate of
863,236 shares of Common Stock and (y) as of the Issuance Date, are represented
by warrant certificate numbers W-24, W-25, and W-26. Such warrants and any
warrants issued upon assignment or replacement thereof are referred to herein as
the "Warrants," and the holders thereof and their permitted assigns are referred
to herein as the "Holders."

      For the purpose of this Warrant, the term "Common Stock" shall mean (i)
the Common Stock, par value $0.001 per share, of the Company as of the Issuance
Date, or (ii) any other class or classes of stock resulting from successive
changes or reclassifications of such class of stock, and the term "Business Day"
shall mean any day other than a Saturday or Sunday or a day on which commercial
banks in New York, New York are required or authorized to be closed.

      Section 1. Term of Warrant, Exercise of Warrant. (a) Subject to the terms
of this Warrant, the Holder shall have the right, at its option, which may be
exercised in whole or in part, at any time, and from time to time, commencing at
the time immediately following the time the Purchase Price has been paid and
until the earlier of (x) 5:00 p.m. Eastern Time on the four year anniversary of
the Issuance Date and (y) the closing of a Change of Control (as defined below)
(the "Warrant Expiration Date") to purchase from the Company the Warrant Shares.
"Change of Control" shall mean the sale, conveyance or disposal of all or
substantially all of the Company's property or business or the Company's merger
with or into or consolidation with any

<PAGE>

other corporation (other than a wholly-owned subsidiary of the Company) or any
other transaction or series of related transactions in which the stockholders of
the Company immediately prior to the transaction or transactions own less than a
majority of the voting power of the surviving corporation following the
transaction or transactions.

      (b) The purchase rights evidenced by this Warrant shall be exercised by
the Holder surrendering this Warrant, with the form of subscription at the end
hereof duly executed by the Holder, to the Company at its office in Peabody,
Massachusetts (or, in the event the Company's principal office is no longer in
Peabody, Massachusetts its then principal office in the United States (the
"Principal Office")), accompanied by payment, of an amount (the "Exercise
Payment") equal to the Warrant Price multiplied by the number of Warrant Shares
being purchased pursuant to such exercise, payable as follows: (i) by payment to
the Company in cash, by certified check, or by wire transfer of the Exercise
Payment, (ii) by surrender to the Company for cancellation of securities of the
Company having a Market Price (as hereinafter defined) on the date of exercise
equal to the Exercise Payment; or (iii) by a combination of the methods
described in clauses (i) and (ii) above. In lieu of exercising the Warrant as
set forth in the foregoing sentence, the Holder may elect to perform a net
exercise and receive a payment equal to the difference between (i) the Market
Price on the date of exercise multiplied by the number of Warrant Shares as to
which the payment is then being elected and (ii) the aggregate Warrant Price
with respect to such Warrant Shares, payable by the Company to the Holder only
in shares of Common Stock valued at the Market Price on the date of exercise.
For purposes hereof, the term "Market Price" shall mean, with respect to any
day, the average closing price of a share of Common Stock or other security for
the 5 consecutive trading days preceding such day on the principal national
securities exchange on which the shares of Common Stock or securities are listed
or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, the average of the reported high and low prices during such
5 trading day period on Nasdaq or, if the shares are not listed on Nasdaq, in
the over-the-counter market or, if the shares of Common Stock or securities are
not publicly traded, the Market Price for such day shall be the fair market
value thereof determined in good faith jointly by the Company and the Holders of
a majority in interest of the shares of Common Stock then purchasable pursuant
to outstanding Warrants (a "Holder Majority"); provided, however, that if such
parties are unable to reach agreement within a reasonable period of time, the
Market Price shall be determined in good faith by an independent investment
banking firm selected jointly by the Company and a Holder Majority or, if that
selection cannot be made within 15 days, by an independent investment banking
firm selected by the American Arbitration Association in accordance with its
rules. All costs and expenses of such independent investment banking firm shall
be borne 50% by the Company and 50% by the Holders, pro rata based on the number
of Warrant Shares then held by each.

      (c) Upon any exercise of this Warrant, the Company shall issue and cause
to be delivered with all reasonable dispatch, but in any event within 10
Business Days, to or upon the written order of the Holder and, subject to
Section 3, in such name or names as the Holder may designate (provided that such
names other than the Holder may include only affiliates of the Holder), a
certificate or certificates for the number of full Warrant Shares issuable upon
such exercise together with such other property, including cash (if necessary
pursuant to Section 5.3 hereof), which may be deliverable upon such exercise. If
fewer than all of the Warrant Shares represented by this Warrant are purchased,
a new Warrant of the same tenor as this Warrant,

                                       2
<PAGE>

evidencing the Warrant Shares not purchased will be issued and delivered by the
Company at the Company's expense, to the Holder together with the issue of the
certificates representing the Warrant Shares then being purchased. All Warrant
certificates surrendered upon exercise of Warrants shall be canceled by the
Company.

      Section 2. Warrant Register, Registration of Transfers.

      Section 2.1. Warrant Register. The Company shall keep at its Principal
Office, a register (the "Warrant Register") in which the Company shall record
the name and address of the Holder from time to time and all transfers and
exchanges of this Warrant. The Company shall give the Holder prior written
notice of any change of the address at which such register is kept.

      Section 2.2. Registration of Transfers, Exchanges or Assignment of
Warrants. The Holder shall be entitled to assign its interest in this Warrant in
whole or in part to any affiliate of Holder upon surrender thereof accompanied
by a written instrument or instruments of transfer in the form of assignment at
the end hereof duly executed by the Holder. Except as set forth in the preceding
sentence, this Warrant may not be assigned by the Holder. This Warrant may also
be exchanged or combined with warrants of like tenor at the option of the Holder
for another Warrant or Warrants of like tenor and representing in the aggregate
the right to purchase a like number of Warrant Shares upon presentation thereof
to the Company as its Principal Office together with a written notice signed by
the Holder specifying the denominations in which the new Warrant is or the new
Warrants are to be issued.

      Upon surrender for transfer or exchange of this Warrant to the Company at
its Principal Office for transfer or exchange, in accordance with this Section
2, the Company shall, without charge (subject to Section 3), execute and deliver
a new Warrant or Warrants of like tenor and of a like aggregate amount of
Warrant Shares in the name of the assignee named in such instrument of
assignment and, if the Holder's entire interest is not being assigned, in the
name of the Holder with respect to that portion not transferred, and this
Warrant shall promptly be canceled.

      Notwithstanding the foregoing, the Holder acknowledges that this Warrant
and the Warrant Shares have not been registered under the Securities Act of
1933, as amended (the "Act"), and agrees not to sell, pledge, distribute, offer
for sale, transfer or otherwise dispose of this Warrant and Warrant Shares in
the absence of (i) registration or qualification of this Warrant and such
Warrant Shares under any applicable U.S. federal or state securities law then in
effect, or (ii) an opinion of counsel, satisfactory to the Company, that such
registration and qualification are not required.

      Section 3. Payment of Taxes. The Company shall pay all documentary stamp
taxes, if any, attributable to the initial issuance of any Warrant Shares upon
the exercise of this Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue or delivery of any Warrant or certificate for Warrant
Shares in a name other than that of the Holder as such name is then shown on the
books of the Company.

      Section 4. Certain Covenants.

                                       3
<PAGE>

      Section 4.1. Reservation of Warrant Shares. There have been reserved and
the Company shall at all times keep reserved, out of its authorized but unissued
Common Stock, free from any preemptive rights, rights of first refusal or other
restrictions (other than pursuant to the Act and applicable state securities
laws) a number of shares of Common Stock sufficient to provide for the exercise
of the rights of purchase represented by this Warrant.

      Section 4.2. No Impairment. The Company shall not by any action including,
without limitation, amending its Restated Certificate of Incorporation, any
reorganization, transfer of assets, consolidation, merger, 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 shall at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action, as may be necessary or appropriate to protect the
rights of the Holder against impairment. Without limiting the generality of the
foregoing, the Company shall take all such action as may be necessary or
appropriate in order that the Company may validly issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant at the
then Warrant Price therefor.

      Section 4.3. Notice of Certain Corporate Action. In case the Company shall
propose (a) to offer to the holders of its Common Stock rights to subscribe for
or to purchase any shares of Common Stock or shares of stock of any class or any
other securities, rights or options, or (b) to effect any reclassification of
its Common Stock (other than a reclassification involving only the subdivision,
or combination, of outstanding shares of Common Stock), or (c) to effect any
capital reorganization, or (d) to effect any Change of Control, or (e) to effect
the liquidation, dissolution or winding up of the Company or (f) to offer to the
holders of its Common Stock the right to have their shares of Common Stock
repurchased or redeemed or otherwise acquired by the Company, or (g) to take any
other action which would require the adjustment of the Warrant Price and/or the
number of Warrant Shares issuable upon exercise of this Warrant, then in each
such case (but without limiting the provisions of Section 5), the Company shall
give to the Holder, a notice of such proposed action, which shall specify the
date on which a record is to be taken for purposes of such dividend,
distribution of offer of rights, or the date on which such reclassification,
reorganization, Change of Control, liquidation, dissolution, or winding up is to
take place and the date of participation therein by the holders of Common Stock,
if any such date is to be fixed and shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action
on the Common Stock. Such notice shall be so given at least ten (10) Business
Days prior to the record date for determining holders of the Common Stock for
purposes of participating in or voting on such action, or at least ten (10)
Business Days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of Common Stock, whichever shall be
the earlier. Such notice shall specify, in the case of any subscription or
repurchase rights, the date on which the holders of Common Stock shall be
entitled thereto, or the date on which the holders of Common Stock shall be
entitled to exchange their Common Stock for securities or other property
deliverable upon any reorganization, reclassification, Change of Control or
other action, as the case may be. Such notice shall also state whether the
action in question or the record date is subject to the effectiveness of a
registration statement under the Act or to a favorable vote of security holders,
if either is required, and the adjustment in Warrant Price and/or number of
Warrant Shares issuable upon exercise of this Warrant as a result of such
reorganization, reclassification, Change of Control or other action, to the
extent then determinable. No such notice shall be given if the

                                       4
<PAGE>

Company reasonably determines that the giving of such notice would require
disclosure of material information which the Company has a bona fide purpose for
preserving as confidential or the disclosure of which would not be in the best
interests of the Company.

      Section 4.4. Purchase Entirely for Own Account. The Holder acknowledges
that this Warrant is given to the Holder in reliance upon the Holder's
representation to the Company, which by its acceptance of this Warrant the
Holder hereby confirms, that the Warrant, the Warrant Shares, and the Common
Stock issuable upon conversion of the Warrant Shares (collectively, the
"Securities") being acquired by the Holder are being acquired for investment for
the Holder's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that the Holder has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Warrant, the Holder further represents that the
Holder does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities. The Holder
represents that it has full power and authority to enter into this Warrant. The
Holder has not been formed for the specific purpose of acquiring any of the
Securities.

      Section 4.5. Disclosure of Information. The Holder has had an opportunity
to discuss the Company's business, management, financial affairs and the terms
and conditions of the offering of the Securities with the Company's management
and has had an opportunity to review the Company's facilities, and has had an
opportunity to read all of the Company's filings with the Securities and
Exchange Commission.

      Section 4.6. Restricted Securities. The Holder understands that the
Securities have not been, and will not be, registered under the Act, by reason
of a specific exemption from the registration provisions of the Act which
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Holder's representations as expressed herein. The Holder
understands that the Securities are "restricted securities" under applicable
U.S. federal and state securities laws and that, pursuant to these laws, the
Holder must hold the Securities indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or an
exemption from such registration and qualification requirements is available.
The Holder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the Securities, and on requirements relating to the Company which are
outside of the Holder's control, and which the Company is under no obligation
and may not be able to satisfy.

      Section 4.7. Accredited Investor. The Holder is an accredited investor as
defined in Rule 501(a) of Regulation D promulgated under the Act.

      Section 5. Adjustment of Warrant Price.

      Section 5.1. Subdivision or Combination of Stock. In case the Company
shall at any time (i) issue a dividend payable in Common Stock or any rights to
subscribe for or to purchase, or any options for the purchase of, Common Stock
or (ii) subdivide its outstanding shares of Common Stock into a greater number
of shares or combine its outstanding shares of Common

                                       5
<PAGE>

Stock into a smaller number of shares, then (x) in the case of a dividend or
subdivision, the Warrant Price in effect immediately prior to such dividend or
subdivision shall be proportionately decreased and the number of shares of
Common Stock purchasable upon the exercise of the Warrant immediately prior to
such adjustment shall be proportionately increased, and (y) in the case of a
combination, the Warrant Price in effect immediately prior to such combination
shall be proportionately increased and the number of shares of Common Stock
purchasable upon the exercise of the Warrant immediately prior to such
adjustment shall be proportionately decreased.

      Section 5.2. Reorganization, Reclassification, Consolidation, Merger or
Sale. If any capital reorganization or reclassification of the capital stock of
the Company or any consolidation or merger of the Company with another
corporation, other than a Change of Control, shall be effected in such a way
that holders of Common Stock shall be entitled to receive stock, securities or
assets with respect to or in exchange for Common Stock, then, as a condition of
such reorganization, reclassification, consolidation, exercise, merger or sale,
lawful and adequate provision shall be made whereby the Holder shall thereafter
have the right to receive upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately
theretofore receivable upon the exercise of this Warrant, that number of shares
of stock, securities or assets (including cash) as may be issued or payable with
respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of Warrant Shares for which this Warrant could have
been exercised immediately prior to such reorganization, reclassification,
consolidation, merger or sale, and in any such case appropriate provision shall
be made with respect to the rights and interests of such Holder to the end that
the provisions hereof shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets (including cash)
thereafter deliverable upon the exercise of this Warrant. The Company will not
effect any such consolidation, merger or sale, unless prior to the consummation
thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall
assume, by written instrument executed and mailed or delivered to the Holder at
the last address of such Holder appearing on the books of the Company, the
obligation to deliver to such Holder such shares of stock, securities or assets
(including cash) as, in accordance with the foregoing provisions, the Holder may
be entitled to receive.

      Section 5.3. Fractional Shares. The Company shall not issue fractions of
shares of Common Stock upon exercise of this Warrant or scrip in lieu thereof.
If any fraction of a share of Common Stock would, except for the provisions of
this Section 5.3, be issuable upon exercise of this Warrant, the Company shall
in lieu thereof pay to the person entitled thereto an amount in cash equal to
the current value of such fraction, calculated to the nearest one-hundredth
(1/100) of a share, to be computed on the basis of the Market Price for a share
of Common Stock as of the date of exercise.

      Section 5.4. Notice of Adjustment. Upon any adjustment of the Warrant
Price, and from time to time upon the request of the Holder the Company shall
furnish to the Holder the Warrant Price resulting from such adjustment or
otherwise in effect and the number of Warrant Shares then available for purchase
under this Warrant, setting forth in reasonable detail the method of calculation
and the facts upon which such calculation is based.

                                       6
<PAGE>

      Section 5.5. Certain Events. If any event occurs as to which, in the good
faith judgment of the Board of Directors of the Company the other provisions of
this Section 5 are not strictly applicable or if strictly applicable would not
fairly protect the exercise rights of the Holder in accordance with the
essential intent and principles of such provisions, then the Board of Directors
of the Company in the good faith, reasonable exercise of its business judgment
shall make an adjustment in the application of such provisions, in accordance
with such essential intent and principles so as to protect such exercise rights
as aforesaid.

      Section 6. No Rights as a Stockholder; Notice to Holder. Nothing contained
in this Warrant shall be construed as conferring upon the Holder the right to
vote or to consent or to receive notice as a stockholder in respect of any
meeting of stockholders for the election of directors of the Company or any
other matter, or any rights whatsoever as a stockholder of the Company.

      Section 7. 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 loss, theft or destruction) upon delivery of an
indemnity agreement (with, in the case of a Holder which is not a qualified
institutional buyer within the meaning of Rule 144A under the Act, surety) in an
amount reasonably satisfactory to it, or (in the case of mutilation) upon
surrender and cancellation thereof, the Company will issue, in lieu thereof, a
new Warrant of like tenor.

      Section 8. Notices. All notices and other written communications provided
for hereunder shall be given in writing and delivered in person or sent by
overnight delivery service (with charges prepaid) or by facsimile transmission,
if the original of such facsimile transmission is sent by overnight delivery
service (with charges prepaid) by the next succeeding Business Day and (i) if to
the Holder addressed to it at the address or fax number specified for such
Holder in the Warrant Register or at such other address or fax number as the
Holder shall have specified to the Company in writing in accordance with this
Section 8, and (ii) if to the Company, addressed to it at 9 Centennial Drive,
Peabody, Massachusetts 01960, Attention General Counsel Fax No: (978) 977-2412
or at such other address or fax number as the Company shall have specified to
the Holder in writing in accordance with this Section 8. Notice given in
accordance with this Section 8 shall be effective upon the earlier of the date
of delivery or the second Business Day at the place of delivery after dispatch.

      Section 9. Applicable Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of New York without giving effect to
principles of conflict of laws.

      Section 10. Warrant Share Legend. Each certificate representing Warrant
Shares, until such Warrant Shares have been distributed pursuant to a
registration statement effective under the Act or sold to the public through a
broker, dealer or market maker in compliance with Rule 144 under the Act (or any
similar rule then in force) shall bear one or all of the following legends:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION

                                       7
<PAGE>

WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

            Any legend required by the Blue Sky laws of any state to the extent
such laws are applicable to the shares represented by the certificate so
legended.

      Section 11. Captions. The captions of the Sections and subsections of this
Warrant have been inserted
for convenience only and shall have no substantive effect.

      Section 12. Amendment or Waiver. Any term of the Warrants may be amended
or waived only by an instrument in writing signed by the Company and a Holder
Majority, and any such amendment or waiver (and any other action taken or
decision made by a Holder Majority) shall be binding upon all Holders.

                                       8
<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the
9th day of May, 2005.

                                          SCANSOFT, INC.

                                          By: /s/ Paul Ricci
                                              __________________________________
                                              Name:  Paul Ricci
                                              Title: Chairman & CEO

                                          WARBURG PINCUS NETHERLANDS
                                          PRIVATE EQUITY VIII, C.V.I

                                          By: Warburg Pincus Partners LLC,
                                              its General Partner

                                                   By: Warburg Pincus & Co.,
                                                       its Managing Member

                                              By: /s/ Jeffrey A. Harris
                                                  ______________________________
                                                  Name:  Jeffrey A. Harris
                                                  Title: Partner
<PAGE>

                  [To be signed only upon exercise of Warrant]

TO Scansoft, Inc.:

            The undersigned, the holder of the within Warrant (the "Holder"),
hereby irrevocably elects to exercise the purchase right represented by such
Warrant for, and to purchase thereunder, ______ shares of Common Stock of
Scansoft, Inc. and herewith [makes payment of $______ therefor in full payment
of the Exercise Payment][tenders securities having a Market Price of $_____ in
full payment of the Exercise Payment] or [elects to receive a payment equal to
the difference between (i) the Market Price (as defined in the Warrant)
multiplied by ________ (the number of Warrant Shares as to which the payment is
being elected) and (ii) ___________, which is the exercise price with respect to
such Warrant Shares, in full payment of the Exercise Payment, payable by the
Company to the Holder only in shares of Common Stock valued at the Market Price
in accordance with the terms of the Warrant], and requests that the certificates
for such shares be issued in the name of, and be delivered to _______, whose
address is _______.

Dated:

__________________________

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

                                            ____________________________________
                                                       Address

<PAGE>

                  [To be signed only upon transfer of Warrant]

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________ the right represented by the within Warrant to purchase
______ shares of the Common Stock of Scansoft, Inc. to which the within Warrant
relates, and appoints __________ attorney to transfer said right on the books of
Scansoft, Inc. with full power of substitution in the premises.

Dated:

___________________________

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

                                            ____________________________________
                                                          Address

In the presence of:

___________________________

                                      -2-
<PAGE>
                                                                            W-26

          THIS WARRANT AND THE WARRANT SHARES HAVE NOT BEEN REGISTERED
                      UNDER THE SECURITIES ACT OF 1933, AS
              AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY STATE
             SECURITIES LAWS, AND MAY NOT BE PLEDGED, HYPOTHECATED,
              SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS SO
               REGISTERED OR AN EXEMPTION THEREFROM IS AVAILABLE.

                        WARRANT TO PURCHASE COMMON STOCK
                                OF SCANSOFT, INC.

Date of Issuance: May 9, 2005

      In consideration for the payment by Warburg Pincus Germany Private Equity
VIII, K.G. to Scansoft, Inc., a Delaware corporation (the "Company"), of $303.25
in cash, by certified check, or by wire transfer (the "Purchase Price"), the
Company agrees to the provisions set forth herein. The Company certifies that
Warburg Pincus Germany Private Equity VIII, K.G. and its permitted assigns (the
"Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company, up to 2,426 fully-paid and nonassessable shares of Common Stock
(the "Warrant Shares") at a purchase price per share equal to the Warrant Price
(defined below). The number of shares of Common Stock purchasable upon exercise
of this Warrant and the Warrant Price shall be subject to adjustment from time
to time as provided herein. The initial Warrant Price (the "Warrant Price") per
share of Common Stock shall equal $5.00.

      This Warrant is one in a series of warrants issued on May 9, 2005 (the
"Issuance Date") with substantially similar terms and conditions that (x) as of
the Issuance Date and subject to the provisions of this Warrant and such other
warrants (as applicable), allow for the purchase of up to an aggregate of
863,236 shares of Common Stock and (y) as of the Issuance Date, are represented
by warrant certificate numbers W-24, W-25, and W-26. Such warrants and any
warrants issued upon assignment or replacement thereof are referred to herein as
the "Warrants," and the holders thereof and their permitted assigns are referred
to herein as the "Holders."

      For the purpose of this Warrant, the term "Common Stock" shall mean (i)
the Common Stock, par value $0.001 per share, of the Company as of the Issuance
Date, or (ii) any other class or classes of stock resulting from successive
changes or reclassifications of such class of stock, and the term "Business Day"
shall mean any day other than a Saturday or Sunday or a day on which commercial
banks in New York, New York are required or authorized to be closed.

      Section 1. Term of Warrant, Exercise of Warrant. (a) Subject to the terms
of this Warrant, the Holder shall have the right, at its option, which may be
exercised in whole or in part, at any time, and from time to time, commencing at
the time immediately following the time the Purchase Price has been paid and
until the earlier of (x) 5:00 p.m. Eastern Time on the four year anniversary of
the Issuance Date and (y) the closing of a Change of Control (as defined below)
(the "Warrant Expiration Date") to purchase from the Company the Warrant Shares.
"Change of Control" shall mean the sale, conveyance or disposal of all or
substantially all of the Company's property or business or the Company's merger
with or into or consolidation with any

<PAGE>

other corporation (other than a wholly-owned subsidiary of the Company) or any
other transaction or series of related transactions in which the stockholders of
the Company immediately prior to the transaction or transactions own less than a
majority of the voting power of the surviving corporation following the
transaction or transactions.

      (b) The purchase rights evidenced by this Warrant shall be exercised by
the Holder surrendering this Warrant, with the form of subscription at the end
hereof duly executed by the Holder, to the Company at its office in Peabody,
Massachusetts (or, in the event the Company's principal office is no longer in
Peabody, Massachusetts its then principal office in the United States (the
"Principal Office")), accompanied by payment, of an amount (the "Exercise
Payment") equal to the Warrant Price multiplied by the number of Warrant Shares
being purchased pursuant to such exercise, payable as follows: (i) by payment to
the Company in cash, by certified check, or by wire transfer of the Exercise
Payment, (ii) by surrender to the Company for cancellation of securities of the
Company having a Market Price (as hereinafter defined) on the date of exercise
equal to the Exercise Payment; or (iii) by a combination of the methods
described in clauses (i) and (ii) above. In lieu of exercising the Warrant as
set forth in the foregoing sentence, the Holder may elect to perform a net
exercise and receive a payment equal to the difference between (i) the Market
Price on the date of exercise multiplied by the number of Warrant Shares as to
which the payment is then being elected and (ii) the aggregate Warrant Price
with respect to such Warrant Shares, payable by the Company to the Holder only
in shares of Common Stock valued at the Market Price on the date of exercise.
For purposes hereof, the term "Market Price" shall mean, with respect to any
day, the average closing price of a share of Common Stock or other security for
the 5 consecutive trading days preceding such day on the principal national
securities exchange on which the shares of Common Stock or securities are listed
or admitted to trading or, if not listed or admitted to trading on any national
securities exchange, the average of the reported high and low prices during such
5 trading day period on Nasdaq or, if the shares are not listed on Nasdaq, in
the over-the-counter market or, if the shares of Common Stock or securities are
not publicly traded, the Market Price for such day shall be the fair market
value thereof determined in good faith jointly by the Company and the Holders of
a majority in interest of the shares of Common Stock then purchasable pursuant
to outstanding Warrants (a "Holder Majority"); provided, however, that if such
parties are unable to reach agreement within a reasonable period of time, the
Market Price shall be determined in good faith by an independent investment
banking firm selected jointly by the Company and a Holder Majority or, if that
selection cannot be made within 15 days, by an independent investment banking
firm selected by the American Arbitration Association in accordance with its
rules. All costs and expenses of such independent investment banking firm shall
be borne 50% by the Company and 50% by the Holders, pro rata based on the number
of Warrant Shares then held by each.

      (c) Upon any exercise of this Warrant, the Company shall issue and cause
to be delivered with all reasonable dispatch, but in any event within 10
Business Days, to or upon the written order of the Holder and, subject to
Section 3, in such name or names as the Holder may designate (provided that such
names other than the Holder may include only affiliates of the Holder), a
certificate or certificates for the number of full Warrant Shares issuable upon
such exercise together with such other property, including cash (if necessary
pursuant to Section 5.3 hereof), which may be deliverable upon such exercise. If
fewer than all of the Warrant Shares represented by this Warrant are purchased,
a new Warrant of the same tenor as this Warrant,

                                       2
<PAGE>

evidencing the Warrant Shares not purchased will be issued and delivered by the
Company at the Company's expense, to the Holder together with the issue of the
certificates representing the Warrant Shares then being purchased. All Warrant
certificates surrendered upon exercise of Warrants shall be canceled by the
Company.

      Section 2. Warrant Register, Registration of Transfers.

      Section 2.1. Warrant Register. The Company shall keep at its Principal
Office, a register (the "Warrant Register") in which the Company shall record
the name and address of the Holder from time to time and all transfers and
exchanges of this Warrant. The Company shall give the Holder prior written
notice of any change of the address at which such register is kept.

      Section 2.2. Registration of Transfers, Exchanges or Assignment of
Warrants. The Holder shall be entitled to assign its interest in this Warrant in
whole or in part to any affiliate of Holder upon surrender thereof accompanied
by a written instrument or instruments of transfer in the form of assignment at
the end hereof duly executed by the Holder. Except as set forth in the preceding
sentence, this Warrant may not be assigned by the Holder. This Warrant may also
be exchanged or combined with warrants of like tenor at the option of the Holder
for another Warrant or Warrants of like tenor and representing in the aggregate
the right to purchase a like number of Warrant Shares upon presentation thereof
to the Company as its Principal Office together with a written notice signed by
the Holder specifying the denominations in which the new Warrant is or the new
Warrants are to be issued.

      Upon surrender for transfer or exchange of this Warrant to the Company at
its Principal Office for transfer or exchange, in accordance with this Section
2, the Company shall, without charge (subject to Section 3), execute and deliver
a new Warrant or Warrants of like tenor and of a like aggregate amount of
Warrant Shares in the name of the assignee named in such instrument of
assignment and, if the Holder's entire interest is not being assigned, in the
name of the Holder with respect to that portion not transferred, and this
Warrant shall promptly be canceled.

      Notwithstanding the foregoing, the Holder acknowledges that this Warrant
and the Warrant Shares have not been registered under the Securities Act of
1933, as amended (the "Act"), and agrees not to sell, pledge, distribute, offer
for sale, transfer or otherwise dispose of this Warrant and Warrant Shares in
the absence of (i) registration or qualification of this Warrant and such
Warrant Shares under any applicable U.S. federal or state securities law then in
effect, or (ii) an opinion of counsel, satisfactory to the Company, that such
registration and qualification are not required.

      Section 3. Payment of Taxes. The Company shall pay all documentary stamp
taxes, if any, attributable to the initial issuance of any Warrant Shares upon
the exercise of this Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue or delivery of any Warrant or certificate for Warrant
Shares in a name other than that of the Holder as such name is then shown on the
books of the Company.

      Section 4. Certain Covenants.

                                       3
<PAGE>

      Section 4.1. Reservation of Warrant Shares. There have been reserved and
the Company shall at all times keep reserved, out of its authorized but unissued
Common Stock, free from any preemptive rights, rights of first refusal or other
restrictions (other than pursuant to the Act and applicable state securities
laws) a number of shares of Common Stock sufficient to provide for the exercise
of the rights of purchase represented by this Warrant.

      Section 4.2. No Impairment. The Company shall not by any action including,
without limitation, amending its Restated Certificate of Incorporation, any
reorganization, transfer of assets, consolidation, merger, 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 shall at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action, as may be necessary or appropriate to protect the
rights of the Holder against impairment. Without limiting the generality of the
foregoing, the Company shall take all such action as may be necessary or
appropriate in order that the Company may validly issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant at the
then Warrant Price therefor.

      Section 4.3. Notice of Certain Corporate Action. In case the Company shall
propose (a) to offer to the holders of its Common Stock rights to subscribe for
or to purchase any shares of Common Stock or shares of stock of any class or any
other securities, rights or options, or (b) to effect any reclassification of
its Common Stock (other than a reclassification involving only the subdivision,
or combination, of outstanding shares of Common Stock), or (c) to effect any
capital reorganization, or (d) to effect any Change of Control, or (e) to effect
the liquidation, dissolution or winding up of the Company or (f) to offer to the
holders of its Common Stock the right to have their shares of Common Stock
repurchased or redeemed or otherwise acquired by the Company, or (g) to take any
other action which would require the adjustment of the Warrant Price and/or the
number of Warrant Shares issuable upon exercise of this Warrant, then in each
such case (but without limiting the provisions of Section 5), the Company shall
give to the Holder, a notice of such proposed action, which shall specify the
date on which a record is to be taken for purposes of such dividend,
distribution of offer of rights, or the date on which such reclassification,
reorganization, Change of Control, liquidation, dissolution, or winding up is to
take place and the date of participation therein by the holders of Common Stock,
if any such date is to be fixed and shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action
on the Common Stock. Such notice shall be so given at least ten (10) Business
Days prior to the record date for determining holders of the Common Stock for
purposes of participating in or voting on such action, or at least ten (10)
Business Days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of Common Stock, whichever shall be
the earlier. Such notice shall specify, in the case of any subscription or
repurchase rights, the date on which the holders of Common Stock shall be
entitled thereto, or the date on which the holders of Common Stock shall be
entitled to exchange their Common Stock for securities or other property
deliverable upon any reorganization, reclassification, Change of Control or
other action, as the case may be. Such notice shall also state whether the
action in question or the record date is subject to the effectiveness of a
registration statement under the Act or to a favorable vote of security holders,
if either is required, and the adjustment in Warrant Price and/or number of
Warrant Shares issuable upon exercise of this Warrant as a result of such
reorganization, reclassification, Change of Control or other action, to the
extent then determinable. No such notice shall be given if the

                                       4
<PAGE>

Company reasonably determines that the giving of such notice would require
disclosure of material information which the Company has a bona fide purpose for
preserving as confidential or the disclosure of which would not be in the best
interests of the Company.

      Section 4.4. Purchase Entirely for Own Account. The Holder acknowledges
that this Warrant is given to the Holder in reliance upon the Holder's
representation to the Company, which by its acceptance of this Warrant the
Holder hereby confirms, that the Warrant, the Warrant Shares, and the Common
Stock issuable upon conversion of the Warrant Shares (collectively, the
"Securities") being acquired by the Holder are being acquired for investment for
the Holder's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that the Holder has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Warrant, the Holder further represents that the
Holder does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities. The Holder
represents that it has full power and authority to enter into this Warrant. The
Holder has not been formed for the specific purpose of acquiring any of the
Securities.

      Section 4.5. Disclosure of Information. The Holder has had an opportunity
to discuss the Company's business, management, financial affairs and the terms
and conditions of the offering of the Securities with the Company's management
and has had an opportunity to review the Company's facilities, and has had an
opportunity to read all of the Company's filings with the Securities and
Exchange Commission.

      Section 4.6. Restricted Securities. The Holder understands that the
Securities have not been, and will not be, registered under the Act, by reason
of a specific exemption from the registration provisions of the Act which
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Holder's representations as expressed herein. The Holder
understands that the Securities are "restricted securities" under applicable
U.S. federal and state securities laws and that, pursuant to these laws, the
Holder must hold the Securities indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or an
exemption from such registration and qualification requirements is available.
The Holder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the Securities, and on requirements relating to the Company which are
outside of the Holder's control, and which the Company is under no obligation
and may not be able to satisfy.

      Section 4.7. Accredited Investor. The Holder is an accredited investor as
defined in Rule 501(a) of Regulation D promulgated under the Act.

      Section 5. Adjustment of Warrant Price.

      Section 5.1. Subdivision or Combination of Stock. In case the Company
shall at any time (i) issue a dividend payable in Common Stock or any rights to
subscribe for or to purchase, or any options for the purchase of, Common Stock
or (ii) subdivide its outstanding shares of Common Stock into a greater number
of shares or combine its outstanding shares of Common

                                       5
<PAGE>

Stock into a smaller number of shares, then (x) in the case of a dividend or
subdivision, the Warrant Price in effect immediately prior to such dividend or
subdivision shall be proportionately decreased and the number of shares of
Common Stock purchasable upon the exercise of the Warrant immediately prior to
such adjustment shall be proportionately increased, and (y) in the case of a
combination, the Warrant Price in effect immediately prior to such combination
shall be proportionately increased and the number of shares of Common Stock
purchasable upon the exercise of the Warrant immediately prior to such
adjustment shall be proportionately decreased.

      Section 5.2. Reorganization, Reclassification, Consolidation, Merger or
Sale. If any capital reorganization or reclassification of the capital stock of
the Company or any consolidation or merger of the Company with another
corporation, other than a Change of Control, shall be effected in such a way
that holders of Common Stock shall be entitled to receive stock, securities or
assets with respect to or in exchange for Common Stock, then, as a condition of
such reorganization, reclassification, consolidation, exercise, merger or sale,
lawful and adequate provision shall be made whereby the Holder shall thereafter
have the right to receive upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately
theretofore receivable upon the exercise of this Warrant, that number of shares
of stock, securities or assets (including cash) as may be issued or payable with
respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of Warrant Shares for which this Warrant could have
been exercised immediately prior to such reorganization, reclassification,
consolidation, merger or sale, and in any such case appropriate provision shall
be made with respect to the rights and interests of such Holder to the end that
the provisions hereof shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets (including cash)
thereafter deliverable upon the exercise of this Warrant. The Company will not
effect any such consolidation, merger or sale, unless prior to the consummation
thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall
assume, by written instrument executed and mailed or delivered to the Holder at
the last address of such Holder appearing on the books of the Company, the
obligation to deliver to such Holder such shares of stock, securities or assets
(including cash) as, in accordance with the foregoing provisions, the Holder may
be entitled to receive.

      Section 5.3. Fractional Shares. The Company shall not issue fractions of
shares of Common Stock upon exercise of this Warrant or scrip in lieu thereof.
If any fraction of a share of Common Stock would, except for the provisions of
this Section 5.3, be issuable upon exercise of this Warrant, the Company shall
in lieu thereof pay to the person entitled thereto an amount in cash equal to
the current value of such fraction, calculated to the nearest one-hundredth
(1/100) of a share, to be computed on the basis of the Market Price for a share
of Common Stock as of the date of exercise.

      Section 5.4. Notice of Adjustment. Upon any adjustment of the Warrant
Price, and from time to time upon the request of the Holder the Company shall
furnish to the Holder the Warrant Price resulting from such adjustment or
otherwise in effect and the number of Warrant Shares then available for purchase
under this Warrant, setting forth in reasonable detail the method of calculation
and the facts upon which such calculation is based.

                                       6
<PAGE>

      Section 5.5. Certain Events. If any event occurs as to which, in the good
faith judgment of the Board of Directors of the Company the other provisions of
this Section 5 are not strictly applicable or if strictly applicable would not
fairly protect the exercise rights of the Holder in accordance with the
essential intent and principles of such provisions, then the Board of Directors
of the Company in the good faith, reasonable exercise of its business judgment
shall make an adjustment in the application of such provisions, in accordance
with such essential intent and principles so as to protect such exercise rights
as aforesaid.

      Section 6. No Rights as a Stockholder; Notice to Holder. Nothing contained
in this Warrant shall be construed as conferring upon the Holder the right to
vote or to consent or to receive notice as a stockholder in respect of any
meeting of stockholders for the election of directors of the Company or any
other matter, or any rights whatsoever as a stockholder of the Company.

      Section 7. 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 loss, theft or destruction) upon delivery of an
indemnity agreement (with, in the case of a Holder which is not a qualified
institutional buyer within the meaning of Rule 144A under the Act, surety) in an
amount reasonably satisfactory to it, or (in the case of mutilation) upon
surrender and cancellation thereof, the Company will issue, in lieu thereof, a
new Warrant of like tenor.

      Section 8. Notices. All notices and other written communications provided
for hereunder shall be given in writing and delivered in person or sent by
overnight delivery service (with charges prepaid) or by facsimile transmission,
if the original of such facsimile transmission is sent by overnight delivery
service (with charges prepaid) by the next succeeding Business Day and (i) if to
the Holder addressed to it at the address or fax number specified for such
Holder in the Warrant Register or at such other address or fax number as the
Holder shall have specified to the Company in writing in accordance with this
Section 8, and (ii) if to the Company, addressed to it at 9 Centennial Drive,
Peabody, Massachusetts 01960, Attention General Counsel Fax No: (978) 977-2412
or at such other address or fax number as the Company shall have specified to
the Holder in writing in accordance with this Section 8. Notice given in
accordance with this Section 8 shall be effective upon the earlier of the date
of delivery or the second Business Day at the place of delivery after dispatch.

      Section 9. Applicable Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of New York without giving effect to
principles of conflict of laws.

      Section 10. Warrant Share Legend. Each certificate representing Warrant
Shares, until such Warrant Shares have been distributed pursuant to a
registration statement effective under the Act or sold to the public through a
broker, dealer or market maker in compliance with Rule 144 under the Act (or any
similar rule then in force) shall bear one or all of the following legends:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION

                                       7
<PAGE>

WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

            Any legend required by the Blue Sky laws of any state to the extent
such laws are applicable to the shares represented by the certificate so
legended.

      Section 11. Captions. The captions of the Sections and subsections of this
Warrant have been inserted for convenience only and shall have no
substantive effect.

      Section 12. Amendment or Waiver. Any term of the Warrants may be amended
or waived only by an instrument in writing signed by the Company and a Holder
Majority, and any such amendment or waiver (and any other action taken or
decision made by a Holder Majority) shall be binding upon all Holders.

                                       8
<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the
9th day of May, 2005.

                                          SCANSOFT, INC.

                                          By: /s/ Paul Ricci
                                              __________________________________
                                              Name: Paul Ricci
                                              Title: Chairman & CEO

                                          WARBURG PINCUS GERMANY PRIVATE
                                          EQUITY VIII, K.G.

                                          By: Warburg Pincus Partners LLC,
                                              its General Partner

                                                  By: Warburg Pincus & Co.,
                                                  its Managing Member

                                              By: /s/ Jeffrey A. Harris
                                                  ______________________________
                                                  Name: Jeffrey A. Harris
                                                  Title: Partner
<PAGE>

                  [To be signed only upon exercise of Warrant]

TO Scansoft, Inc.:

            The undersigned, the holder of the within Warrant (the "Holder"),
hereby irrevocably elects to exercise the purchase right represented by such
Warrant for, and to purchase thereunder, ______ shares of Common Stock of
Scansoft, Inc. and herewith [makes payment of $______ therefor in full payment
of the Exercise Payment][tenders securities having a Market Price of $_____ in
full payment of the Exercise Payment] or [elects to receive a payment equal to
the difference between (i) the Market Price (as defined in the Warrant)
multiplied by ________ (the number of Warrant Shares as to which the payment is
being elected) and (ii) ___________, which is the exercise price with respect to
such Warrant Shares, in full payment of the Exercise Payment, payable by the
Company to the Holder only in shares of Common Stock valued at the Market Price
in accordance with the terms of the Warrant], and requests that the certificates
for such shares be issued in the name of, and be delivered to ______, whose
address is ________.

Dated:

________________________________

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

                                              __________________________________
                                                         Address

<PAGE>

                  [To be signed only upon transfer of Warrant]

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ____________ the right represented by the within Warrant to purchase
________ shares of the Common Stock of Scansoft, Inc. to which the within
Warrant relates, and appoints __________ attorney to transfer said right on the
books of Scansoft, Inc. with full power of substitution in the premises.

Dated:

________________________________

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

                                              __________________________________
                                                          Address

In the presence of:

________________________________

                                      -2-<PAGE>
                                                                     EXHIBIT 4.3

                                                                     Grant No.

                             XENONICS HOLDINGS, INC.

                               STOCK OPTION GRANT

OPTIONEE:

ADDRESS:

GRANT DATE:

EXERCISE PRICE:   $__________ per share

NUMBER OF OPTION SHARES:   __________ shares

EXPIRATION DATE:

TYPE OF OPTION:   ____ Incentive Option     ____ Non-Statutory Option

      This Stock Option Grant is made, as of the Grant Date set forth above, by
and between Xenonics Holdings, Inc., a Nevada corporation (the "Corporation")
and the Optionee named above. This Stock Option Grant includes the terms of the
Stock Option Exercise Notice and Purchase Agreement attached hereto as Exhibit
A, and is subject to the terms of the Corporation's Stock Option Plan (the
"Plan"), a copy of which is attached hereto as Exhibit B. All capitalized terms
not defined herein shall have the meaning set forth in the Appendix to the Plan.

      1. GRANT OF OPTION. The Corporation hereby grants to Optionee named above,
as of the Grant Date, an option to purchase up to the total number of Option
Shares specified above. The Option Shares shall be purchasable from time to time
during the option term specified in paragraph 2 below at the Exercise Price.

      2. OPTION TERM. The option term shall be measured from the Grant Date and
shall accordingly expire at the close of business on the Expiration Date
specified above, unless sooner terminated in accordance with paragraph 5 below.
<PAGE>
      3. LIMITED TRANSFERABILITY. This option shall be neither transferable nor
assignable, in whole or in part, by Optionee other than by will or by the laws
of descent and distribution following Optionee's death and may be exercised,
during Optionee's lifetime, only by Optionee. However, if this option is
designated a Non-Statutory Option above, then this option may also, in
connection with Optionee's estate plan, be assigned in whole or in part during
Optionee's lifetime to one or more members of Optionee's immediate family
(spouse or children) or to a trust established exclusively for the benefit of
one or more such immediate family members. Optionee shall give written notice of
any such assignment during Optionee's lifetime to the Corporation within 20 days
of assignment. The assigned portion may only be exercised by the person or
persons who acquire a proprietary interest in the option pursuant to the
assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment and shall
be set forth in such documents issued to the assignee as the Plan Administrator
may deem appropriate.

      4.    EXERCISABILITY.

      [ ]   (a)  All rights hereunder are immediately vested; or

      [ ] (b) This option shall become vested or exercisable for the Option
Shares in installments as provided in the Exercise Schedule below:

<TABLE>
<CAPTION>
MONTHS                  ADDITIONAL EXERCISABLE                     ACCUMULATED
SINCE GRANT                   PERCENT                      EXERCISABLE PERCENT
-----------                   -------                      -------------------

<S>                     <C>                                <C>
       0                    33.33%                                33.33%
      12                    33.33%                                66.66%
      24                    33.33%                               100.00%
</TABLE>

      For purposes of calculating the number of months since grant only full
complete calendar months from the first of said month until the end of said
month will be counted. For example, if the grant was issued on June 18th, the
remaining days in the month of June would be disregarded and a full calendar
month would not accrue until July 31st. If the grant was issued on June 1st a
full calendar month would accrue on June 30th.

      If the Optionee is terminated by the actions of the Corporation, except
for Misconduct, at any time before he has obtained an accumulated exercisable
percentage of 100% then, upon such termination, he shall receive a pro-rated
percentage for the number of whole months worked on the basis of 2.77% per
month.

      As the option becomes exercisable or vested for such installments, those
installments shall accumulate and the option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination of the
option term under paragraph 5 below. The exercisable installments may be
exercised in whole or in part, but only as to whole shares.
<PAGE>
      5. CESSATION OF SERVICE. The option term specified in paragraph 2 above
shall terminate, and this option shall cease to be outstanding prior to the
Expiration Date, upon Optionee's ceasing to be in the Service of the
Corporation. In such event, the following provisions shall apply:

            a. Should Optionee cease to remain in Service for any reason (other
than death, Permanent Disability or Misconduct) while this option is
outstanding, then Optionee shall have a period of three (3) months (commencing
with the date of such cessation of Service) during which to exercise this option
as to vested Option Shares.

            b. Should Optionee die while this option is outstanding, then the
personal representative of Optionee's estate (or the person or persons to whom
the option is transferred pursuant to Optionee's will or in accordance with the
laws of descent and distribution) shall have a period of twelve (12) months
(commencing with the date of such cessation of service) during which to exercise
this option as to vested Option Shares.

            c. Should Optionee cease Service by reason of Permanent Disability
while this option is outstanding, then Optionee shall have a period of twelve
(12) months (commencing with the date of such cessation of Service) during which
to exercise this option as to vested Option Shares.

            d. Should Optionee's Service be terminated for Misconduct, then this
option shall terminate immediately and cease to remain outstanding.

            e. During the limited post-Service exercise period, this option may
not be exercised in the aggregate for more than the number of vested Option
Shares for which the option is exercisable on the date of the Optionee's
cessation of Service. Upon the expiration of such limited post-Service exercise
period or upon the Expiration Date (if earlier), this option shall terminate and
cease to be outstanding for any vested Option Shares for which the option has
not been exercised. In no event shall this option be exercisable at any time
after the Expiration Date. To the extent this option is not otherwise
exercisable for vested Option Shares at the time of Optionee's cessation of
Service, this option shall immediately terminate and cease to be outstanding
with respect to those shares.

      6. ADJUSTMENT IN OPTION SHARES. Should any change be made to the Common
Stock by reason of any split, stock dividend, recapitalization, combination of
shares, exchange of shares or other change affecting the outstanding Common
Stock as a class without the Corporation's receipt of consideration, appropriate
adjustments shall be made to (i) the total number and/or class of securities
subject to this option, and (ii) the Exercise Price, in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder.

      7. STOCKHOLDER RIGHTS. The holder of this option shall not have any
stockholder rights with respect to the Option Shares until such person shall
have exercised the option, paid the Exercise Price, and become a holder of
record of the Purchased Shares.
<PAGE>
      8.    MANNER OF EXERCISING OPTIONS

            a. In order to exercise this option with respect to all or any part
of the Option Shares for which this option is at the time exercisable, Optionee
(or any other person or persons exercising this option) must take the following
actions:

                  (1) Execute and deliver to the Corporation a Stock Option
Exercise Notice and Purchase Agreement (Exhibit A) for the Option Shares for
which the option is exercised.

                  (2) Pay the aggregate Exercise Price for the Purchased Shares
in one or more of the following forms:

                        (a)  Cash or check made payable to the Corporation; or

                        (b) A promissory note payable to the Corporation, but
            only to the extent authorized by the Plan Administrator in
            accordance with paragraph 13.

            Upon prior written approval of the Plan Administrator, the Exercise
Price may also be paid as follows:

                        (c) In shares of Common Stock held by Optionee (or any
            other person or persons exercising the option) for the requisite
            period necessary to avoid a charge to the Corporation's earnings for
            financial reporting purposes and valued at Fair Market Value on the
            Exercise Date; or

                        (d) Through a special sale and remittance procedure
            pursuant to which Optionee (or any other person or persons
            exercising the option) shall concurrently provide irrevocable
            written instructions (1) to a Corporation-designated brokerage firm
            to effect the immediate sale of the Purchased Shares and remit to
            the Corporation, out of the sale proceeds available on the
            settlement date, sufficient funds to cover the aggregate Exercise
            Price payable for the Purchased Shares plus all applicable federal,
            state and local income and employment taxes required to be withheld
            by the Corporation by reason of such exercise and (2) to the
            Corporation to deliver the certificates for the Purchased Shares
            directly to such brokerage firm in order to complete the sale.

            Except to the extent the sale and remittance procedure is utilized
in connection with the option exercise, payment of the Exercise Price must
accompany the Stock Option Exercise Notice and Purchase Agreement delivered to
the Corporation in connection with the option exercise.

                        (3) Furnish to the Corporation appropriate documentation
                  that the person or persons exercising the option (if other
                  than Optionee) have the right to exercise this option.
<PAGE>
                        (4) Execute and deliver to the Corporation such written
                  representations as may be requested by the Corporation in
                  order for it to comply with the applicable requirements of
                  federal and state securities laws.

                        (5) Make appropriate arrangements with the Corporation
                  (or Parent or Subsidiary employing or retaining Optionee) for
                  the satisfaction of all federal, state and local income and
                  employment tax withholding requirements applicable to the
                  option exercise.

            b. As soon as practical after the Exercise Date, the Corporation
shall issue to, or, on behalf of Optionee (or any other person or persons
exercising this option), a share certificate for the Purchased Shares, with the
appropriate legends affixed thereto.

            c. In no event may this option be exercised for an fractional
shares.

      9.    COMPLIANCE WITH LAWS AND REGULATIONS

            a. The exercise of this option and the issuance of the Option Shares
upon such exercise shall be subject to compliance by the Corporation and
Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange (or Nasdaq, if applicable) on which
the Common Stock may be listed for trading at the time of such exercise and
issuance.

            b. The inability of the Corporation to obtain approval from any
regulatory body having authority deemed by the Corporation to be necessary to
the lawful issuance and sale of any Common Stock pursuant to this option shall
relieve the Corporation of any liability with respect to the non-issuance or
sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such
approvals.

      10. SUCCESSORS AND ASSIGNS. Except to the extent otherwise provided in
paragraph 3 above, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and
Optionee, Optionee's permitted assigns and the legal representatives, heirs and
legatees of Optionee's estate.

      11. NOTICES. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation at its principal corporate offices. Any notice required to be
given or delivered to Optionee shall be in writing and addressed to Optionee at
the address indicated on the Stock Option Grant. All notices shall be deemed
effective upon personal delivery or upon deposit in the U.S. mail, postage
prepaid and properly addressed to the party to be notified.

      12. FINANCING. The Plan Administrator may, in its absolute discretion and
without any obligation to do so, permit Optionee to pay the Exercise Price for
the purchase Option Shares by delivering a full-recourse promissory note payable
to the Corporation. The terms of any such promissory note (including the
interest rate, the requirements for collateral and the terms of repayment) shall
be established by the Plan Administrator in its sole discretion.
<PAGE>
      13. CONSTRUCTION. This Agreement and the option evidenced hereby are made
and granted pursuant to the Plan and are in all respects limited by and subject
to the terms of the Plan and the Stock Option Exercise Notice and Purchase
Agreement. All decisions of the Plan Administrator with respect to any question
or issue arising under the Plan or this Agreement shall be conclusive and
binding on all persons having an interest in this option.

      14. GOVERNING LAW. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Nevada without resort to
its conflict-of-laws rules.

      15. ADDITIONAL TERMS APPLICABLE TO AN INCENTIVE OPTION. In the event this
option is designated an Incentive Option above, the following terms and
conditions shall also apply to the grant:

            a. This option shall cease to qualify for favorable tax treatment as
an Incentive Option if (and to the extent) this option is exercised for one or
more Option Shares: (1) more than three (3) months after the date Optionee
ceases to be an Employee or in the Service of the Corporation for any reason
other than death or Permanent Disability or (2) more than twelve (12) months
after the date Optionee ceases to be an Employee by reason of death or Permanent
Disability.

            b. No installment under this option shall qualify for favorable tax
treatment as an Incentive Option if (and to the extent) the aggregate Fair
Market Value (determined at the Grant Date) of the Common Stock for which such
installment first becomes exercisable hereunder would, when added to the
aggregate value (determined as of the respective date or dates of grant) of any
earlier installments of the Common Stock and any other securities for which this
option or any other Incentive Options granted to Optionee prior to the Grant
Date (whether under the Plan or any other option plan of the Corporation or any
Parent or Subsidiary) first become exercisable during the same calendar year,
exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should such One
Hundred Thousand Dollar ($100,000) limitation be exceeded in any calendar year,
this option shall nevertheless become exercisable for the excess shares in such
calendar year as a Non-Statutory Option.

            c. Should the Board elect to accelerate the exercisability of this
option upon a Corporate Transaction, then this option shall qualify as an
Incentive Option only to the extent the aggregate Fair Market Value (determined
at the Grant Date) of the Common Stock for which this option first becomes
exercisable in the calendar year in which the Corporate Transaction occurs does
not, when added to the aggregate value (determined as of the respective date or
dates of grant) of the Common Stock or other securities for which this option or
one or more other Incentive Options granted to Optionee prior to the Grant Date
(whether under the Plan or any other option plan of the Corporation or any
Parent or Subsidiary) first become exercisable during the same calendar year,
exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should the
applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the
calendar year of such Corporate Transaction, the option may nevertheless be
exercised for the excess shares in such calendar year as a Non-Statutory Option.
<PAGE>
            d. Should Optionee hold, in addition to this option, one or more
other options to purchase Common Stock which become exercisable for the first
time in the same calendar year as this option, then the foregoing limitations on
the exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

            e. The grant of this option is subject to approval of the Plan by
Corporation's stockholders within twelve (12) months after the adoption of the
Plan by the Board. In the event that such stockholder approval is not obtained,
then this option shall not qualify as an Incentive Option.

            f. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder
approval be issued under the Plan, then this option shall cease to qualify as an
Incentive Option unless stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock issuable under the Plan is
obtained in accordance with the provisions of the Plan.

            g. If Optionee is a 10% Stockholder, then the Exercise Price shall
not be less than one hundred ten percent (110%) of the Fair Market Value per
share of Common Stock on the Grant Date, and the option term shall not exceed
five (5) years measured from the Grant Date.

            h. Shares purchased pursuant to this option shall cease to qualify
for favorable tax treatment as Incentive Option shares if and to the extent
Optionee disposes of such shares within two (2) years from the Grant Date or
within one (1) year of Optionee's purchase of said shares.

            i. Optionee acknowledges that the rules regarding Incentive Options
as contained in the Internal Revenue Code are subject to amendment in the
future. Optionee should consult his or her tax advisor prior to taking any
action with respect to this option or the shares purchased hereunder.

      IN WITNESS WHEREOF, this Agreement is executed as of the Grant Date first
noted above.

                                          XENONICS HOLDINGS, INC.

                                          By:
                                              ----------------------------------

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