Document:

Exhibit
      10.5

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR APPLICABLE STATE SECURITIES LAWS. IT MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR EVIDENCE
      REASONABLY SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION IS NOT REQUIRED.
      THE SECURITIES ISSUED UPON SUCH CONVERSION MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR EVIDENCE REASONABLY
      SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    

    SENIOR
      CONVERTIBLE SECURED PROMISSORY NOTE

    

    

    
      	$__________       	Parsippany, New Jersey
January 11,
              2007

    

     

     

    FOR
      VALUE
      RECEIVED, Alteon Inc., a Delaware corporation (the “Borrower”),
      located at 6 Campus Drive, Parsippany, NJ 07054, hereby promises to pay to
      _______________________ (the “Lender”),
      located at ____________________________________________, or at such other place
      as the Lender may from time to time reasonably designate, the principal sum
      of
      ______________________ ($___________) (the “Principal
      Amount”)
      in
      lawful money of the United States, in immediately available funds, ON DEMAND,
      on
      or after May 31, 2007 (the “Maturity
      Date”),
      together with any additional amounts as may be required to be paid under Section
      9 of this Note, unless the Principal Amount is earlier converted as set forth
      herein. Interest shall accrue from the date hereof until maturity (whether
      by
      demand on or after the Maturity Date or by acceleration) on the principal at
      a
      rate per annum equal to eight percent (8%), and shall be payable at maturity
      or
      upon conversion. In no event shall the rate of interest hereunder exceed the
      maximum interest rate permitted by applicable law. 

     

    1. This
      Note
      is one of several notes (the “Notes”)
      in the
      aggregate principal amount of up to $3,000,000 and of like tenor issued by
      the
      Borrower to the Lender and others (together, the “Lenders”)
      pursuant to the terms of a Convertible Note and Warrant Purchase Agreement,
      dated January 11, 2007 (the “Bridge
      Loan Agreement”).
      By
      acceptance of this Note, the Lender hereby agrees that each of the Notes issued
      pursuant to the Bridge Loan Agreement shall rank equally and ratably without
      priority over one another, and the Borrower agrees that, except as expressly
      provided by the terms of the Notes, none of the Notes shall be paid, in whole
      or
      in part, unless an equivalent, pro rata payment is made with respect to all
      other Notes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. As
      security for the payment, performance and observance of the obligations set
      forth in the Notes, the Borrower has agreed to grant a security interest in
      its
      assets to the collateral agent named in, and pursuant to, that certain Security
      & Guaranty Agreement, dated January 11, 2007 (the “Security
      Agreement”).

     

    3.
       If
      this
      Note has not previously been converted, the Borrower may repay the principal
      balance of this Note plus accrued but unpaid interest, together with any
      additional amounts as may be required to be paid under Section 9 of this Note,
      without penalty, at any time prior to the Maturity Date.

     

    4. In
      the
      event that any principal or accrued interest on this Note remains outstanding
      at
      such time as the Borrower consummates a Preferred Financing (as defined below),
      the entire principal balance then outstanding plus accrued but unpaid interest
      shall automatically be converted into the securities of the Borrower issued
      in a
      Preferred Financing at a conversion rate equal to the price per security at
      which the securities are issued in a Preferred Financing and with the same
      terms
      and conditions as such securities (hereinafter, an “Automatic
      Conversion”).
      The
      Automatic Conversion will be effective upon the consummation of a Preferred
      Financing, and the Borrower shall be relieved of any continued obligation to
      repay the principal or unpaid interest on this Note thereafter. The Borrower
      shall promptly deliver to the Lender written notification of the consummation
      of
      a Preferred Financing, and the Lender shall deliver the original of this Note
      to
      the Borrower for cancellation. The Borrower shall have no obligation to deliver
      securities issuable upon a Preferred Financing until such time as it receives
      the original of this Note or an affidavit of lost security from the Lender.
      

     

    For
      purposes of this Note, “Preferred
      Financing”
shall
      mean that certain contemplated transaction or series of transactions prior
      to
      the Maturity Date in which the Borrower sells shares of its preferred capital
      stock and warrants to purchase preferred stock to the Lenders and other
      investors as the Lenders may approve, in an amount up to $20,000,000, as more
      particularly described in the Memorandum of Proposed Terms for Private Placement
      of Preferred Stock and Warrants dated as of January 4, 2007.

     

    5. In
      the
      event that any principal or accrued interest on this Note remains outstanding
      at
      such time as Borrower consummates an Equity Financing (as defined below), the
      principal balance then outstanding plus accrued but unpaid interest may be
      converted, in whole or in part, at the election of the Lender, into the
      securities of the Borrower issued in the Equity Financing at a conversion rate
      equal to the price per security at which the securities are issued in the Equity
      Financing (hereinafter, a “Voluntary
      Conversion”).
      The
      Borrower shall promptly deliver to the Lender written notification of the
      consummation of an Equity Financing, and the Lender shall have ten (10) business
      days from the date of such notice to elect, by written notice to the Borrower,
      to convert the Note. In the event the Lender elects to convert the Note into
      securities issued in the Equity Financing, the Lender shall deliver the original
      of this Note to the Borrower for cancellation together with the election notice.
      The Borrower shall have no obligation to deliver securities issuable upon a
      Voluntary Conversion until such time as it receives the original of this Note
      or
      an affidavit of lost security from the Lender. If this Note is converted in
      part, the Borrower shall reissue a Note in substantially the same form to the
      Lender reflecting the remaining principal balance.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    For
      purposes of this Note, “Equity
      Financing”
shall
      mean a transaction or series of transactions in which the Borrower sells its
      securities which occurs after the date hereof and prior to the Maturity Date
      and
      which does not constitute a Preferred Financing. 

     

    6. In
      the
      event that any principal or accrued interest on this Note remains outstanding
      prior to the Maturity Date and no Automatic Conversion or Voluntary Conversion
      has taken place, the principal balance then outstanding plus accrued but unpaid
      interest may be converted, in whole or in part, at the election of the Lender,
      into shares of the Borrower’s common stock, $0.01 per value per share
      (“Common
      Stock”),
      at a
      conversion rate equal to the closing price on the American Stock Exchange or
      the
      Nasdaq Stock Market (as reported by Bloomberg L.P. at 4:15 PM New York time))
      of
      a share of the Borrower’s Common Stock on the date hereof (hereinafter, a
“Voluntary
      Common Stock Conversion”).
      Upon
      election to consummate a Voluntary Common Stock Conversion, the Lender shall
      promptly deliver to the Borrower written notification of such election. The
      Lender shall also deliver the original of this Note to the Borrower for
      cancellation together with the election notice. The Borrower shall have no
      obligation to deliver securities issuable upon a Voluntary Common Stock
      Conversion until such time as it receives the original of this Note or an
      affidavit of lost security from the Lender. If this Note is converted in part,
      the Borrower shall reissue a Note in substantially the same form to the Lender
      reflecting the remaining principal balance.

     

    7. No
      fractional shares of capital stock of the Borrower shall be issued upon
      conversion of this Note. In lieu of any fractional shares to which the holder
      would otherwise be entitled, the Borrower shall pay cash equal to such fraction
      multiplied by the applicable conversion price.

     

    8. Unless
      and until conversion of this Note as aforesaid, the Lender shall not by virtue
      of this Note have or exercise any rights by virtue hereof as a stockholder
      of
      the Borrower.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    9. If
      no
      Preferred Financing is consummated on or prior to the Maturity Date, and the
      Lender has not elected a Voluntary Conversion or Voluntary Common Stock
      Conversion, then (i) the entire principal amount of this Note, together with
      all
      accrued but unpaid interest, shall, at the election of the Lender, ON DEMAND,
      be
      due and payable on or after such date, (ii) the Borrower shall pay the Lender
      an
      additional sum of [_______________] ($___________)and (iii) the Borrower agrees
      to pay the Lender an amount equal to fifteen percent (15%) of the Gross Proceeds
      (defined below) to the Borrower of all Financing Transactions (defined below),
      Sale Transactions (defined below) and Product Candidate Transactions (defined
      below) completed by the Borrower on or before June 30, 2008, subject to a
      maximum additional payment under this Section 9(iii) of [_______________]
      ($___________)1 ];
      and
      provided that no amount under this clause (iii) shall be payable in the event
      of
      a Sale Transaction in which the price per share paid by the acquiror in such
      transaction equals or exceeds $0.15 (as adjusted for all subsequent stock
      splits, stock dividends, consolidations, recapitalizations and reorganizations).
      “Gross
      Proceeds”
shall
      mean (a) in the case of a Financing Transaction the amount paid by the
      purchasers of the securities in the transaction, irrespective of underwriting
      discounts, private placement commissions or other fees; (b) in the case of
      a
      Sale Transaction the sum of (i) the aggregate fair market value of any
      securities issued and any other non-cash consideration delivered (including,
      without limitation, any joint venture interest delivered to, or retained by,
      the
      Borrower), and any cash consideration paid to the Borrower or its security
      holders (including, without limitation, holders of options, warrants,
      convertible securities and preferred securities) in connection with the Sale
      Transaction, and (ii) the amount of all indebtedness and preferred stock of
      the
      Borrower or any subsidiary thereof, which is assumed or acquired by the
      purchaser or retired or defeased in connection with the Sale Transaction; and
      (c) in the case of a Product Candidate Transaction the aggregate fair market
      value of any securities issued and any other non-cash consideration delivered
      (including, without limitation, any joint venture interest delivered to, or
      retained by, the Borrower), and any cash consideration paid to the Borrower
      in
      connection with the Product Candidate Transaction. “Financing
      Transaction”
shall
      mean any equity financing by or on behalf of the Borrower or its subsidiaries,
      including, but not limited to, any sale of common stock, preferred stock,
      warrants, convertible debt or other equity linked security. “Sale
      Transaction”
shall
      mean any transaction or series of transactions in which one or more persons
      or
      entities acquires directly or indirectly a majority of the stock or all or
      substantially all of the assets, revenues, income or business of the Borrower
      or
      any subsidiary or otherwise gains control of the Borrower or any subsidiary,
      including any combination of the businesses regardless of the structure or
      form
      of the transaction. “Product
      Candidate Transaction” shall
      mean any licensing, development, commercialization, distribution, marketing,
      co-marketing, collaboration, partnering, sale, divestiture or similar agreement
      relating to the transfer of intellectual property or other rights to the
      Borrower’s current or future product candidates.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    10. If
      (a)
      the Borrower fails to make any payment under this Note; (b) the Borrower
      breaches any representation, warranty, covenant or agreement in the Bridge
      Loan
      Agreement or any other Transaction Document (as defined in the Bridge Loan
      Agreement); (c) the Borrower fails to pay when due any Indebtedness (as defined
      in the Bridge Loan Agreement) of the Borrower in an aggregate amount of Five
      Hundred Thousand Dollars ($500,000) or greater at any one time; (d) a final
      judgment or judgments for the payment of money aggregating in excess of Five
      Hundred Thousand Dollars ($500,000) are rendered against the Borrower and which
      judgments are not, within sixty (60) days after the entry thereof, bonded,
      discharged or stayed pending appeal, or are not discharged within sixty (60)
      days after the expiration of such stay; (e) the Borrower shall be dissolved,
      become insolvent (however defined or evidenced), make an assignment for the
      benefit of creditors or make or send a notice of intended bulk transfer; (f)
      any
      petition or proceeding for any relief under any bankruptcy, reorganization,
      arrangement, insolvency, readjustment of debt, receivership, liquidation or
      dissolution law or statute now or hereinafter in effect (whether at law or
      in
      equity) is filed or commenced by the Borrower; or (g) any trustee or receiver
      is
      appointed for the Borrower or any property of the Borrower, a meeting of
      creditors is convened or a committee of creditors is appointed for, or any
      petition or proceeding for any relief under any bankruptcy, reorganization,
      arrangement, insolvency, readjustment of debt, receivership, liquidation or
      dissolution law or statute now or hereinafter in effect (whether at law or
      in
      equity) is filed or commenced against the Borrower, which proceeding is not
      dismissed within one hundred twenty (120) days (each of the foregoing, an
“Event
      of Default”),
      then
      and in any such event and at any time thereafter, the Lender may, at its option,
      declare all amounts owing under Section 9 of this Note to be due and payable,
      whereupon the maturity of the unpaid balance hereof shall be accelerated and
      the
      principal, together with all unpaid interest accrued thereon, shall forthwith
      become due and payable; provided,
      that,
      if any petition or proceeding for any relief under any bankruptcy,
      reorganization, arrangement, insolvency, readjustment or debt, receivership,
      liquidation or dissolution law or statute now or hereinafter in effect (whether
      at law or in equity) is filed or commenced by the Borrower, all amounts owing
      under this Note shall be, without notice, declaration or any action by the
      Lender, accelerated, and immediately due and payable. 

     

    11. The
      Borrower hereby waives diligence, demand, presentment, protest and notice of any
      kind, and assents to extensions of time of payment, release, surrender or
      substitution or security, or forbearance or other indulgence, without
      notice.

     

    12. No
      act,
      omission or delay by the Lender or course of dealing between the Lender and
      the
      Borrower shall constitute a waiver of the rights and remedies of the Lender
      hereunder. No single or partial waiver by the Lender of any Event of Default
      or
      right or remedy which it may have shall operate as a waiver of any other Event
      of Default, right or remedy or of the same Event of Default, right or remedy
      on
      a future occasion.

     

    13. Unless
      otherwise provided herein or in the Bridge Loan Agreement, any notice or other
      communication herein required or permitted to be given shall be in writing
      and
      may be personally served, telecopied, telexed or sent by United States mail,
      to
      Borrower or Lender, as the case may be, addressed to it at the respective
      address set forth on the first page of this Note and in the Bridge Loan
      Agreement, or at such other address as shall be designated by Borrower or
      Lender, as the case may be, in a written notice to the other party complying
      as
      to delivery with the terms of this Section 13. All such notices and other
      communications shall be deemed to have been given when (i) delivered by hand,
      (ii) sent
      by
      overnight courier, with receipt acknowledgment, or (iii) sent by certified
      mail, return receipt requested, postage prepaid.

     

    14. This
      Note
      shall be governed by and construed in accordance with the internal law of the
      State of New York (without giving effect to the conflict of laws principles
      thereof). Any legal action or proceeding with respect to this Note shall be
      brought in the courts of the State of New York or of the United States of
      America for the Southern District of New York, and, by execution and delivery
      of
      this Note, the Borrower hereby accepts for itself and in respect of its
      property, generally and unconditionally, the jurisdiction of the aforesaid
      courts. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    15. No
      provision hereof shall be modified, altered or limited except by a written
      instrument expressly executed by the Borrower and Lenders holding a majority
      in
      principal amount of the then outstanding Notes.

     

    16. In
      the
      event that any court of competent jurisdiction shall determine that any
      provision, or any portion thereof, contained in this Note shall be unreasonable
      or unenforceable in any respect, then such provision shall be deemed limited
      to
      the extent that such court deems it reasonable and enforceable, and as so
      limited shall remain in full force and effect. In the event that such court
      shall deem any such provision, or portion thereof, wholly unenforceable, the
      remaining provisions of this Note shall nevertheless remain in full force and
      effect.

     

    17. This
      Note
      and all obligations evidenced hereby shall be binding upon the heirs, executors,
      administrators, successors and assigns of the Borrower and shall, together
      with
      the rights and remedies of the Lender hereunder, inure to the benefit of the
      Lender, its successors, endorsees and permitted assigns.

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    In
      witness whereof, the Borrower has caused this Note to be executed by its duly
      elected officer as of the date first set forth above.

     

    

    ALTEON
      INC.

    

    

    

    By:
      ____________________________
Noah
      Berkowitz
President
      and Chief Executive Officer

    

    
      
         

      

      
        7Exhibit
      10.6

    

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    To
      Purchase [__________] Shares of Common Stock of

     

    ALTEON
      INC.

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, [_______________________] (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after May 31, 2007 (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth anniversary of the closing of
      the
      transactions contemplated by the Purchase Agreement (as defined below), subject
      to earlier expiration as discussed below (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Alteon Inc., a Delaware
      corporation (the “Company”),
      up to
      ______ shares (the “Warrant
      Shares”)
      of
      Common Stock, par value $0.01 per share, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant shall be equal
      to
      the Exercise Price, as defined in Section 2(b). 

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Convertible Note and Warrant Purchase Agreement (the
      “Purchase
      Agreement”),
      dated
      January 11, 2007, between the Company and the Holder, relating to a bridge
      loan
      from the Holder to the Company (the “Bridge
      Loan”).

     

    Section
      2. Exercise.

     

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); and, within three (3) Trading Days of the date said Notice of Exercise
      is delivered to the Company, the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation within
      three (3) Trading Days of the date the final Notice of Exercise is delivered
      to
      the Company. Partial exercises of this Warrant resulting in purchases of a
      portion of the total number of Warrant Shares available hereunder shall have
      the
      effect of lowering the outstanding number of Warrant Shares purchasable
      hereunder in an amount equal to the applicable number of Warrant Shares
      purchased. The Holder and the Company shall maintain records showing the number
      of Warrant Shares purchased and the date of such purchases. The Company shall
      deliver any objection to any Notice of Exercise Form within three (3) Business
      Days of receipt of such notice. The Holder and any assignee, by acceptance
      of
      this Warrant, acknowledge and agree that, by reason of the provisions of this
      paragraph, following the purchase of a portion of the Warrant Shares hereunder,
      the number of Warrant Shares available for purchase hereunder at any given
      time
      may be less than the amount stated on the face hereof. Notwithstanding anything
      herein to the contrary, this Warrant shall expire on any date prior to the
      Termination Date on which the Bridge Loan is fully converted into shares of
      the
      Company’s preferred stock and warrants to purchase shares of preferred stock or
      into another security issued by the Company in a financing that is completed
      prior to May 31, 2007. 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be $0.01,
      subject to adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      This
      Warrant may also be exercised by means of a “cashless exercise” in which the
      Holder shall be entitled to receive a certificate for the number of Warrant
      Shares equal to the quotient obtained by dividing ((A-B) (X)) by (A),
      where:

     

    
      	 	
              (A)
                = 

            	
              the
                VWAP (as defined below) on the Trading Day immediately preceding
                the date
                of such election;

            

    

    

    
      	 	
              (B)
                = 

            	
              the
                Exercise Price of this Warrant, as adjusted; and
                

            

    

    

    
      	 	
              (X)
                = 

            	
              the
                number of Warrant Shares issuable upon exercise of this Warrant in
                accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise.

            

    

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on the American Stock
      Exchange or another exchange (the “Trading
      Market”),
      the
      daily volume weighted average price of the Common Stock for such date (or the
      nearest preceding date) on the Trading Market on which the Common Stock is
      then
      listed or quoted for trading as reported by Bloomberg Financial L.P. (based
      on a
      Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
      time); (b) if the OTC Bulletin Board is not a Trading Market, the volume
      weighted average price of the Common Stock for such date (or the nearest
      preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then
      quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
      are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
      similar organization or agency succeeding to its functions of reporting prices),
      the most recent price per share of the Common Stock so reported; or (d) in
      all other cases, the fair market value of a share of Common Stock as determined
      by an independent appraiser selected in good faith by the Holder and reasonably
      acceptable to the Company. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Except
      in
      connection with the termination of this Warrant as set forth in the final
      sentence of Section 2(a), if the VWAP exceeds the Exercise Price on the
      Termination Date, this Warrant shall be automatically exercised on the
      Termination Date via cashless exercise pursuant to this Section
      2(c).

     

    d) Exercise
      Limitations.
      Solely
      to the extent required by applicable rules of the Trading Market, the Company
      shall not effect any exercise of this Warrant or conversion of the Bridge Loan,
      and a Holder shall not have the right to exercise any portion of this Warrant
      or
      convert the Bridge Loan, pursuant to Section 2(c) or otherwise, to the extent
      that after giving effect to such issuance after exercise as set forth on the
      applicable Notice of Exercise and such conversion, such Holder (together with
      such Holder’s Affiliates, and any other person or entity acting as a group
      together with such Holder or any of such Holder’s Affiliates), as set forth on
      the applicable Notice of Exercise, would beneficially own 20% or more of the
      Company’s Common Stock outstanding on the date hereof, unless the Company has
      previously received shareholder approval for the issuance of such shares under
      applicable rules of the Trading Market on which the Common Stock is then listed
      or quoted.

     

    e) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      Subject
      to the Holder’s compliance with the limitations of Section 2(d) hereof, the
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges created
      by the Company in respect of the issue thereof (other than taxes in respect
      of
      any transfer occurring contemporaneously with such issue). 

     

    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      three (3) Trading Days from the delivery to the Company of the Notice of
      Exercise Form, surrender of this Warrant (if required) and payment of the
      aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be
      paid
      by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance
      of
      such shares, have been paid. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iv. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the close of business on the third Trading Day after the
      Warrant Share Delivery Date, then the Holder will have the right to rescind
      such
      exercise.

     

    v. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise by the close of business
      on the third Trading Day after the Warrant Share Delivery Date, and if after
      such date the Holder is required by its broker to purchase (in an open market
      transaction or otherwise) shares of Common Stock to deliver in satisfaction
      of a
      sale by the Holder of the Warrant Shares which the Holder anticipated receiving
      upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In and, upon request of
      the
      Company, evidence of the amount of such loss. Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    vi. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    vii. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    viii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
      3. Certain Adjustments.

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

     

    b) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then the
      Exercise Price shall be multiplied by a fraction, of which the denominator
      shall
      be the number of shares of the Common Stock outstanding on the date of issuance
      of such rights or warrants plus the number of additional shares of Common Stock
      offered for subscription or purchase, and of which the numerator shall be the
      number of shares of the Common Stock outstanding on the date of issuance of
      such
      rights or warrants plus the number of shares which the aggregate offering price
      of the total number of shares so offered (assuming receipt by the Company in
      full of all consideration payable upon exercise of such rights, options or
      warrants) would purchase at such VWAP. Such adjustment shall be made whenever
      such rights or warrants are issued, and shall become effective immediately
      after
      the record date for the determination of stockholders entitled to receive such
      rights, options or warrants.

     

    c) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    d) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) if the Company is acquired in an all cash transaction, cash equal
      to the value of this Warrant as determined in accordance with the Black-Scholes
      option pricing formula. For purposes of any such exercise, the determination
      of
      the Exercise Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Exercise Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3(b) and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental Transaction.
      Notwithstanding anything herein to the contrary, the Holder shall have the
      right
      to exercise this Warrant immediately prior to any Fundamental Transaction,
      including any Fundamental Transaction occuring on or before the Initial Exercise
      Date.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    e) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    f) Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

     

    g) Notice
      to Holders.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to each Holder a notice setting
      forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. 

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section
      4. Transfer
      of Warrant.

     

    a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof, this Warrant and all rights hereunder (including,
      without limitation, any registration rights) are transferable, in whole or
      in
      part, upon surrender of this Warrant at the principal office of the Company
      or
      its designated agent, together with a written assignment of this Warrant
      substantially in the form attached hereto duly executed by the Holder or its
      agent or attorney and funds sufficient to pay any transfer taxes payable upon
      the making of such transfer. Upon such surrender and, if required, such payment,
      the Company shall execute and deliver a new Warrant or Warrants in the name
      of
      the assignee or assignees and in the denomination or denominations specified
      in
      such instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled. A Warrant, if properly assigned, may be exercised by
      a
      new holder for the purchase of Warrant Shares without having a new Warrant
      issued. 

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    d) Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any permitted transfer of
      this
      Warrant, the transfer of this Warrant shall not be registered pursuant to an
      effective registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer (i) that the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, (ii)
      that
      the holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company and (iii) that the transferee
      be
      an “accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) under the Securities Act.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Section
      5. Miscellaneous.

     

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(ii). 

     

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    d) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. Upon receipt of notice of exercise of the Warrant,
      the Company will take all such reasonable action as may be necessary to assure
      that such Warrant Shares may be issued as provided herein without violation
      of
      any applicable law or regulation, or of any requirements of the Trading Market
      upon which the Common Stock may be listed. 

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through 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 will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any damages to the Holder, the Company shall pay to Holder such amounts as
      shall
      be sufficient to cover any costs and expenses including, but not limited to,
      reasonable attorneys’ fees, including those of appellate proceedings, incurred
      by Holder in collecting any amounts due pursuant hereto or in otherwise
      enforcing any of its rights, powers or remedies hereunder. 

     

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

     

    l) Amendment.
      Except
      as otherwise provided herein, the provisions of this Warrant may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, if the Company has obtained the written
      consent of the Holders representing at least fifty percent (50%) of the Warrant
      Shares issuable upon exercise of the Warrant then outstanding.

     

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

     

    
      	Dated: January
              ____, 2007	 	 
	 	ALTEON
              INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            
	 	
            

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    NOTICE
      OF EXERCISE

    

    TO: ALTEON
      INC.

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2) Payment
      shall take the form of (check applicable box):

     

    [   
      ] in lawful money of the United States; or

     

    [  
      ] the cancellation of such number of Warrant Shares as is necessary, in
      accordance with the formula set forth in subsection 2(c), to exercise this
      Warrant with respect to the maximum number of Warrant Shares purchasable
      pursuant to the cashless exercise procedure set forth in subsection
      2(c).

     

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

     

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    Holder’s
      Address: _____________________________

     

     
      _____________________________

    

    

    

    Signature
      Guaranteed: ___________________________________________

    

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]