Document:

ex10_53.htm

    
      
        

      

      EMPLOYMENT
AGREEMENT

    

    
       

      

      This
Employment Agreement is made and entered into by and between Alynx, Co. (the
"Company") and Brian J. Splan ("Executive") as of February 20, 2008 (the
“Effective Date”).

      

      
        	
                1.

              	
                Position and
      Duties.  Executive shall be employed by the Company as
      its President, reporting to the Company's Chief
      Executive.  Executive agrees to devote his full-time business
      time, energy and skill to his duties at the Company.  These
      duties shall include all those duties customarily performed by the
      President and the Executive's services shall be performed out of the
      Company’s Tampa offices.

              

      

       

      
        	
                2.

              	
                Term of
      Employment:  Executive’s employment as an employee of the
      Company will be for a two-year term, renewable for consecutive one-year
      terms upon mutual agreement of the parties.   However,
      subject to the terms and conditions hereof, such employment may be
      terminated by Executive or the Company at any time, with or without good
      reason.  Upon the termination of Executive’s employment as an
      employee of the Company, for any reason, neither Executive nor the Company
      shall have any further obligation or liability under this Agreement to the
      other, except for the accrued rights of the Executive hereunder and as set
      forth in this paragraph and paragraphs 6 and 7
  below.

              

      

       

      
        	
                3.

              	
                Compensation:  Executive
      shall be compensated by the Company for his services as
      follows:

              

      

       

      
        	
                (a)

              	
                Signing
      Bonus:  Executive shall receive a signing bonus equal to
      $11,250, payable upon the first regularly scheduled payroll subsequent to
      his commencing work at the Company.

              

      

       

      
        	
                (b)

              	
                Base
      Salary:  Executive shall be paid a monthly Base Salary of
      $14,583.33 per month ($175,000 on an annualized basis), subject to
      applicable withholding, in accordance with the Company's normal payroll
      procedures.  Executive's salary shall be reviewed on at least an
      annual basis.  In the event of such an increase, that increased
      amount shall become Executive's Base Salary.  The parties
      acknowledge that Executive will be eligible as additional compensation of
      up to 20% of the Base Salary if certain Alynx objectives are achieved as
      approved of Directors.

              

      

       

      
        	
                (c)

              	
                Relocation
      Costs:  Executive shall be paid actual costs incurred to
      relocate to Tampa up to a total of $10,000, in addition to the costs for
      three months of travel and temporary living expenses in the Tampa
      area.  In the event the Executive voluntarily leaves the
      employment of the Company within the first twelve months of employment,
      the amount advanced to the Executive for such relocation expenses
      incurred, up to the $10,000, shall be prorated on a monthly basis over a
      twelve month basis and an amount will be repaid to the Company for the
      number of months the Executive ceased to be employed by the Company during
      the twelve months following the Effective date of Executive’s employment
      with the Company.

              

      

       

      
        	
                4.

              	
                Benefits:  Executive
      shall have the right to participate in and to receive benefits under any
      of the Company's employee benefit plans, as such plans may be modified
      from time to time. In addition, Executive shall be entitled to the
      benefits afforded to other members of senior
  management.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                5.

              	
                Stock:  Management
      will recommend to the Board of Directors at the next Board Meeting that
      the Executive will be granted a stock option to acquire 1,854,852 shares
      of the Company’s Common Stock with an exercise price determined to be the
      fair market value as of the date of grant.  Such options shall
      vest 25% immediately and 25% on each anniversary of the option
      grant.  Such options shall fully vest on a Change of Control, as
      subsequently defined.

              

      

       

      
        	
                6.

              	
                Benefits Upon
      Termination:  In the event of Executive's voluntary
      termination from employment with the Company, or in the event that
      Executive's employment terminates as a result of his death, Executive
      shall be entitled to no compensation or benefits from the Company other
      than those earned under paragraph 3 above through the date of his
      termination or in the case of any stock, vested through the date of his
      termination.

              

      

       

      
        	
                7.

              	
                Benefits Upon Other
      Termination.  Executive agrees that his employment may be
      terminated by the Company at any time, with or without good
      reason.  In the event of the termination of Executive's
      employment by the Company for the reasons set forth below, he shall be
      entitled to the following:

              

      

       

      (a)          Termination for Good
Reason:  If Executive's employment is terminated by the Company
for good reason as defined below, Executive shall be entitled to no compensation
or benefits from the Company other than those earned under paragraph 3, or in
the case of any restricted stock, vested through the date of his
termination.

       

      For
purposes of this Agreement, a termination "for good reason" occurs if Executive
is terminated for any of the following reasons:

      

      (i)          theft,
dishonesty, or falsification of any employment or Company
records;

       

      (ii)         conviction
of a felony or any act involving moral turpitude;

       

      (iii)         improper
disclosure of the Company's confidential or proprietary
information;

       

      (iv)        any
intentional act by Executive that has a material detrimental effect on the
Company's reputation or business; or

       

      (v)         any
material breach of this Agreement, which breach, if curable, is not cured within
thirty (30) days following written notice of such breach from the
Company.

      

      (b)         Termination Without Good
Reason:  The following shall be deemed to be termination
without good reason:

      

      (i)           If
the Company requires the Executive to be based at any office or location other
than that which the Executive initially is employed at within thirty days of
this Employment Agreement, except for travel reasonably required in the
performance of the Executive's responsibilities consistent with practices in
effect prior to the Effective Date,

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (ii)         The
assignment to Executive by the Company of duties inconsistent with Executive’s
duties as defined in Section 1 of this Employment Agreement, or any material
change in his duties or responsibilities without his prior written consent,
or:

       

      (iii)        A
reduction by the Company in Executive’s Base Salary as is defined by this
Agreement or as the same may be increased from time to time during the term of
this Agreement.

       

      If
Executive's employment is terminated by the Company following the Effective Date
for any reason other than for good reason, Executive shall be entitled to the
following separation benefits:

       

      (x)          all
accrued compensation and benefits through the date of termination including any
option grants that have been vested through that date; and

      

      (y)        
continued payment of Executive’s salary at his Base Salary rate together with
applicable fringe benefits (including any COBRA expense) as provided to other
executive employees, less applicable withholding, until the greater of either
(i) the end of the Term of Employment as set forth in this Employment Agreement
or (ii) twelve months.

       

      (c)         Change of
Control:    In the event the Executive’s employment is
terminated during the term hereof by either the Executive or the Company (not
for good reason) after the occurrence of a “Change of Control,” such termination
shall be deemed to be a termination without good reason  For the
purposes of this Agreement a “Change of Control” shall be deemed to occur upon
any of the following: (x) the acquisition, directly or indirectly, following the
Effective Date by any person (as such term is defined in Section 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended), in one transaction
or a series of related transactions, of securities of the Company representing
in excess of fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding securities if such person or his or its affiliate(s)
do not own in excess of 50% of such voting power on the Effective Date, or (y)
the date of the closing of a  disposition by the Company (whether
direct or indirect, by sale of assets or stock, merger, consolidation or
otherwise) of all or substantially all of its business and/or assets in one
transaction or series of related transactions, where the Company an affiliate of
the Company or a control person of the Company immediately prior to the
transaction(s) in question is not the controlling entity or person after such
transaction(s).

       

       
Notwithstanding the foregoing, a Change in Control shall not be deemed to have
occurred in the event the Company forms a holding company as a result of which
the holders of the Company’s voting securities immediately prior to the
transaction hold, in approximately the same relative proportions as they hold
prior to the transaction, substantially all of the voting securities of a
holding company owning all of the Company’s voting securities after the
completion of the transaction.

       

        A
Change in Control shall not be deemed to have occurred as a result of an initial
public offering of the common stock of the Company, or the creation or
development of a public market for the shares of common stock of the Company
through a “reverse merger” into a public company or other similar
transaction.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                8.

              	
                Employee Inventions
      and Proprietary Rights Assignment Agreement:  Executive
      agrees to execute and abide by the terms and conditions of the Company's
      standard Employee Inventions and Proprietary Rights Assignment Agreement,
      which shall not be materially different from the form attached as Exhibit
      A hereto.

              

      

      

      
        	
                9.

              	
                Agreement Not To
      Compete Unfairly:  Employee agrees that in the event of
      his termination at any time and for any reason, he shall not compete with
      the Company in any unfair manner, including, without limitation, using any
      confidential or proprietary information of the Company to compete with the
      Company in any way.

              

      

       

      
        	
                10.

              	
                Dispute
      Resolution:  In the event of any dispute or claim
      relating to or arising out of this Agreement (including, but not limited
      to, any claims of breach of contract, wrongful termination or age, sex,
      race or other discrimination), Employee and the Company agree that all
      such disputes shall be fully and finally resolved by binding arbitration
      conducted by the American Arbitration Association in Atlanta, Georgia in
      accordance with its National Employment Dispute Resolution rules, as those
      rules are currently in effect (and not as they may be modified in the
      future).  Both parties acknowledge that by accepting this
      arbitration provision each is waiving any right to a jury trial in the
      event of such dispute.  This agreement to arbitrate shall be
      without prejudice to the right of the parties to seek preliminary
      injunctive, interim, or other form of provisional equitable relief in any
      court or any judicial authority which has jurisdiction over the parties
      and/or the subject matter of the
controversy.

              

      

       

      
        	
                11.

              	
                Interpretation:  Executive
      and the Company agree that this Agreement shall be interpreted in
      accordance with and governed by the laws of the State of
      Florida.

              

      

       

      
        	
                12.

              	
                Successors and
      Assigns:  This Agreement shall inure to the benefit of
      and be binding upon each party and its successors and
      assigns.  This Agreement is personal to Executive and may not be
      assigned in any way by Executive without the prior written consent of the
      Company.  The Company may assign its rights and obligations
      under this Agreement only to an “affiliate,” as such term is defined in
      Rule 501 of Regulation D as promulgated under the Securities Act of 1933,
      as amended.

              

      

       

      
        	
                13.

              	
                Entire
      Agreement:  This Agreement constitutes the entire
      employment agreement between Executive and the Company regarding the terms
      and conditions of his employment, with the exception of (i) the agreement
      described in paragraph 8 and (ii) any stock or option agreements between
      Executive and the Company.  This Agreement (including the
      documents described in (i) and (ii) herein) supersedes all prior
      negotiations, representations or agreements between Executive and the
      Company, whether written or oral, concerning Executive's employment by the
      Company.

              

      

       

      
        	
                14.

              	
                Validity:  If
      any one or more of the provisions (or any part thereof) of this Agreement
      shall be held invalid, illegal or unenforceable in any respect, the
      validity, legality and enforceability of the remaining provisions (or any
      part thereof) shall not in any way be affected or impaired
      thereby.

              

      

       

      
        	
                15.

              	
                Modification:  This
      Agreement may only be modified or amended by a supplemental written
      agreement signed by Executive and the
Company.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year written below.

       

      
        	 
      	
                ALYNXALYNX,
      CO.

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:
      /s/ Matthew J.
      Miller

              
	 
      	 
      
	 
      	
                Its: President

              
	 
      	 
      
	 
      	 
      
	 
      	
                /s/ Brian J. Splan

              	 
      
	 
      	
                Brian
      J. Splan

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      EMPLOYEE INVENTION
ASSIGNMENT

      CONFIDENTIALITY
AGREEMENT

      

      In
consideration of, and as a condition of my employment with AlynxAlynx, Co., a
Florida corporation (the “Company”), I hereby represent to, and agree with the
Company as follows:

      

      
        	
                1.

              	
                Purpose of
      Agreement.  I understand that the company is engaged in a
      continuous program of research, development, production and marketing in
      connection with its business and that it is critical for the company to
      preserve and protect its “proprietary information” (as defined in Section
      7 below), its rights in “inventions” (as defined in Section 2 below) and
      in all related intellectual property rights.  Accordingly, I am
      entering into this employee invention Assignment and Confidentiality
      Agreement (this “Agreement”) as a condition of my employment with the
      Company, whether or not I am expected to create inventions of value for
      the Company

              

      

       

      
        	
                2.

              	
                Disclosure of
      Inventions.  I will promptly disclose in confidence to
      the Company all inventions, improvements, designs, original works of
      authorship, formulas, processes, compositions of matter, computer software
      programs, databases, mask works and trade secrets related to the field of
      Orthopaedic medical devices that I make or conceive or first reduce to
      practice or create, either alone or jointly with others, during the period
      of my employment (“Inventions”), and whether or not such Inventions are
      patentable, copyrightable or protectible as trade
  secrets.

              

      

       

      
        	
                3.

              	
                Work for Hire;
      Assignment of Inventions.  I acknowledge and agree that
      any copyrightable works prepared by me within the scope of my employment
      are “works for hire” under the Copyright Act and that the Company will be
      considered the author and owner of such copyrightable works.  I
      agree that all Inventions that (i) are developed using equipment,
      supplies, facilities or trade secrets of the Company, (ii) result from
      work performed by me for the Company, or (iii) relate to the Company’s
      business or current research and development, will be the sole and
      exclusive property of the Company and are hereby irrevocably assigned by
      me to the Company.

              

      

       

      
        	
                4.

              	
                Assignment of Other
      Rights.  In addition to the foregoing assignment of
      Inventions to the Company, I hereby irrevocably transfer and assign to the
      Company: (i) all worldwide patents, patent applications, copyrights, mask
      works, trade secrets and other intellectual property rights in any
      Invention; and (ii) any and all “Moral Rights” (as defined below) that I
      may have in or with respect to any Invention.  I also hereby
      forever waive and agree never to assert any and all Moral Rights I may
      have in or with respect to any Invention, even after termination of my
      work on behalf of the Company. “Moral Rights” mean any rights to claim
      authorship of an Invention, to object to or prevent the modification of
      any Invention, or to withdraw from circulation or control the publication
      or distribution of any Invention, and any similar right, existing under
      judicial or statutory law of any country in the world, or under any
      treaty, regardless of whether or not such right is denominated or
      generally referred to as a “moral
right.”

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                5.

              	
                Assistance.  I
      agree to assist the Company in every proper way to obtain for the Company
      and enforce patents, copyrights, mask work rights, trade secret rights and
      other legal protections for the Company’s Inventions in any and all
      countries.  I will execute any documents that the Company may
      reasonably request for use in obtaining or enforcing such patents,
      copyrights, mask work rights, trade secrets and other legal
      protections.  My obligations under this paragraph will continue
      beyond the termination of my employment with the Company for any reason or
      no reason, provided that the Company will compensate me at a reasonable
      rate after such termination for time or expenses actually spent by me at
      the Company’s request on such assistance.   I hereby
      constitute and appoint the Company as my agent and attorney in fact to
      execute and deliver any such assignments or documents, including
      applications for patent or copyright protection that I fail or refuse to
      execute and deliver, this power and agency being coupled with an interest
      and being irrevocable.

              

      

       

      
        	
                6.

              	
                Proprietary
      Information.  I understand that my employment by the
      Company creates a relationship of confidence and trust with respect to any
      information of a confidential or secret nature that may be disclosed to me
      by the Company that relates to the business of the Company or to the
      business of any parent, subsidiary, affiliate, customer or supplier of the
      Company or any other party with whom the Company agrees to hold
      information of such party in confidence (the “Proprietary Information”).
      Such Proprietary Information includes, but is not limited to, Inventions,
      marketing plans, product plans, business strategies, financial
      information, forecasts, personnel information, customer lists and domain
      names.  Provided, however, that Proprietary Information does not
      include information:  (a) I can demonstrate I knew at the time
      of receipt from Company; (b) is or becomes a part of the public domain
      without breach of this Agreement by me; or (c) is disclosed pursuant to
      judicial action or government regulations, provided I notify the Company
      prior to such disclosure and cooperates with the Company in the event the
      Company elects to legally contest and avoid such
    disclosure.

              

      

       

      
        	
                7.

              	
                Confidentiality.  At
      all times, both during my employment and after its termination, I will
      keep and hold all such Proprietary Information in strict confidence and
      trust.  I will not use or disclose any Proprietary Information
      without the prior written consent of the Company, except as may be
      necessary to perform my duties as an employee of the Company for the
      benefit of the Company.  Upon termination of my employment with
      the Company, I will promptly deliver to the Company all documents and
      materials of any nature pertaining to my work with the
      Company.  I will not take with me any documents or materials or
      copies thereof containing any Proprietary
  Information.

              

      

       

      
        	
                8.

              	
                No Breach of Prior
      Agreement.  I represent that my performance of all the
      terms of this Agreement and my duties as an employee of the Company will
      not breach any invention assignment, proprietary information,
      confidentiality or similar agreement with any former employer or other
      party.  I represent that I will not bring with me to the Company
      or use in the performance of my duties for the Company any documents or
      materials or intangibles of a former employer or third party that are not
      generally available to the public or have not been legally transferred to
      the Company.

              

      

       

      
        	
                9.

              	
                Efforts; Duty Not to
      Compete.  I understand that my employment with the
      Company requires my attention and effort during normal business
      hours.  While I am employed by the Company, I will not, without
      the Company’s express prior written consent, provide services to, or
      assist in any manner, any business or third party which competes with the
      current or planned business of the
Company.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                10.

              	
                Notification.  I
      hereby authorize the Company to notify my actual or future employers of
      the terms of this Agreement and my responsibilities
    hereunder.

              

      

       

      
        	
                11.

              	
                Non-Solicitation of
      Employees/Consultants. During my employment with the Company and
      for a period of twelve months thereafter, I will not directly or
      indirectly solicit away employees or consultants of the Company for my own
      benefit or for the benefit of any other person or
  entity.

              

      

       

      
        	
                12.

              	
                Non-Solicitation of
      Suppliers/Customers.  During my employment with the
      Company and for a period of twelve months after termination of my
      employment, I will not directly or indirectly solicit or take away
      suppliers or customers of the Company if the identity of the supplier or
      customer or information about the supplier or customer relationship is a
      trade secret or is otherwise deemed confidential information under
      applicable law.

              

      

       

      
        	
                13.

              	
                Injunctive
      Relief.  I understand that in the event of a breach or
      threatened breach of this Agreement by me the Company may suffer
      irreparable harm and will therefore be entitled to injunctive relief to
      enforce this Agreement.

              

      

       

      
        	
                14.

              	
                Governing Law;
      Severability.  This Agreement will be governed by and
      construed in accordance with the laws of the State of Florida, without
      giving effect to that body of laws pertaining to conflict of
      laws.  If any provision of this Agreement is determined by any
      court or arbitrator of competent jurisdiction to be invalid, illegal or
      unenforceable in any respect, such provision will be enforced to the
      maximum extent possible given the intent of the parties
      hereto.  If such clause or provision cannot be so enforced, such
      provision shall be stricken from this Agreement and the remainder of this
      Agreement shall be enforced as if such invalid, illegal or unenforceable
      clause or provision had (to the extent not enforceable) never been
      contained in this Agreement.  Notwithstanding the forgoing, if
      the value of this Agreement based upon the substantial benefit of the
      bargain for any party is materially impaired, which determination as made
      by the presiding court or arbitrator of competent jurisdiction shall be
      binding, then this Agreement will not be enforceable against such affected
      party and both parties agree to renegotiate such provision(s) in good
      faith.

              

      

       

      
        	
                15.

              	
                Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which
      when so executed and delivered will be deemed an original, and all of
      which together shall constitute one and the same
  agreement.

              

      

       

      
        	
                16.

              	
                Titles and
      Headings.  The titles, captions and headings of this
      Agreement are included for ease of reference only and will be disregarded
      in interpreting or construing this Agreement.  Unless otherwise
      specifically stated, all references herein to “sections” and “exhibits”
      will mean “sections” and “exhibits” to this
  Agreement.

              

      

       

      
        	
                17.

              	
                Entire
      Agreement.  This Agreement and the documents referred to
      herein constitute the entire agreement and understanding of the parties
      with respect to the subject matter of this Agreement, and supersede all
      prior understandings and agreements, whether oral or written, between or
      among the parties hereto with respect to the specific subject matter
      hereof.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                18.

              	
                Amendment and
      Waiver.  This Agreement may be amended only by a written
      agreement executed by each of the parties hereto.  No amendment
      of or waiver of, or modification of any obligation under this Agreement
      will be enforceable unless set forth in a writing signed by the party
      against which enforcement is sought.  Any amendment effected in
      accordance with this section will be binding upon all parties hereto and
      each of their respective successors and assigns.  No delay or
      failure to require performance of any provision of this Agreement shall
      constitute a waiver of that provision as to that or any other
      instance.  No waiver granted under this Agreement as to any one
      provision herein shall constitute a subsequent waiver of such provision or
      of any other provision herein, nor shall it constitute the waiver of any
      performance other than the actual performance specifically
      waived.

              

      

       

      
        	
                19.

              	
                Successors and
      Assigns; Assignment.  This Agreement shall inure to the
      benefit of and be binding upon each party and its successors and
      assigns.  This Agreement is personal to Executive and may not be
      assigned in any way by Executive without the prior written consent of the
      Company.  The Company may assign its rights and obligations
      under this Agreement only to an “affiliate,” as such term is defined in
      Rule 501 of Regulation D as promulgated under the Securities Act of 1933,
      as amended.

              

      

       

      
        	
                20.

              	
                Further
      Assurances.  The parties agree to execute such further
      documents and instruments and to take such further actions as may be
      reasonably necessary to carry out the purposes and intent of this
      Agreement.

              

      

      

      
        	
                Alynx,
      Co.

              	
                Employee:

              
	 
      	 
      
	 
      	 
      
	
                By:

              	 
      	 
      	 
      
	 
      	
                Signature

              
	 
      	 
      
	
                Name:

              	 
      	 
      	 
      
	 
      	
                Name
      (Please print)Exhibit
      4.1

    

      Execution
        Copy

    

     

    WARRANT

     

    THE
      SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      OR
      ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON
      AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
      OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
      HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED,
      HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION
      WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

     

    FEBRUARY
      21, 2008

     

    Warrant
      to Purchase up to 180,000 shares of Common Stock of Lumera Corporation (the
      “Company”).

     

    In
      consideration for Kingsbridge Capital Limited (the “Investor”)
      agreeing to enter into that certain Common Stock Purchase Agreement, dated
      as of
      the date hereof, between the Investor and the Company (the “Agreement”),
      the
      Company hereby agrees that the Investor or any other Warrant Holder (as defined
      below) is entitled, on the terms and conditions set forth below, to purchase
      from the Company at any time during the Exercise Period (as defined below)
      up to
      180,000 fully paid and non-assessable shares of common stock, par value $0.001
      per share, of the Company (the “Common
      Stock”)
      at the
      Exercise Price (hereinafter defined), as the same may be adjusted from time
      to
      time pursuant to Section 6 hereof. The resale of the shares of Common Stock
      or other securities issuable upon exercise or exchange of this Warrant is
      subject to the provisions of the Registration Rights Agreement. Capitalized
      terms used herein and not otherwise defined shall have the meanings given them
      in the Agreement.

     

    Section
      1.  Definitions.

     

    “Affiliate”
shall
      mean any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by, or is under direct or indirect common control
      with
      any other Person. For the purposes of this definition, “control,”
when
      used with respect to any Person, means the power to direct the management and
      policies of such Person, directly or indirectly through the ownership of voting
      securities, and the term “controls”
and
      “controlled”
have
      meanings correlative to the foregoing.

     

    “Closing
      Price”
as
      of
      any particular day shall mean the closing price per share of the Company’s
      Common Stock as reported by Bloomberg L.P. on such day.

     

    “Exercise
      Period”
shall
      mean that period beginning six months after the date of this Warrant and
      continuing until (i) the expiration of the five-year period thereafter, or
      (ii) a Funding Default, subject in each case to earlier termination in
      accordance with Section 6 hereof.

     

    “Exercise
      Price”
shall
      mean three dollars ($3.00).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Funding
      Default”
shall
      mean a failure by Investor to accept a Draw Down Notice made by the Company
      and
      to acquire and pay for the Shares in accordance therewith within three (3)
      Trading Days following the delivery of such Shares to the Investor, provided
      such Draw Down Notice was made in accordance with the terms and conditions
      of
      the Agreement (including the satisfaction or waiver of the conditions to the
      obligation of the Investor to accept a Draw Down set forth in Article VII of
      the
      Agreement), provided further, that such failure was reasonably within the
      control of the Investor.

     

    “Per
      Share Warrant Value”
shall
      mean the difference resulting from subtracting the Exercise Price from the
      Closing Price on the Trading Day immediately preceding the Exercise
      Date.

     

    “Person”
shall
      mean an individual, a corporation, a partnership, a limited liability company,
      an association, a trust or other entity or organization, including a government
      or political subdivision or an agency or instrumentality thereof.

     

    “Principal
      Market”
shall
      mean the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
      Capital Market, the American Stock Exchange or the New York Stock Exchange,
      whichever is at the time the principal trading exchange or market for the Common
      Stock.

     

    “SEC”
shall
      mean the United States Securities and Exchange Commission.

     

    “Trading
      Day”
shall
      mean any day other than a Saturday or a Sunday on which the Principal Market
      is
      open for trading in equity securities.

     

    “Warrant
      Holder”
shall
      mean the Investor or any permitted assignee or permitted transferee of all
      or
      any portion of this Warrant.

     

    “Warrant
      Shares”
shall
      mean those shares of Common Stock received upon exercise of this
      Warrant.

     

    Section
      2.  Exercise.

     

    (a)  Method
      of Exercise.
      This
      Warrant may be exercised in whole or in part (but not as to a fractional share
      of Common Stock), at any time and from time to time during the Exercise Period,
      by the Warrant Holder by surrender of this Warrant, with the form of exercise
      attached hereto as Exhibit A
      completed and duly executed by the Warrant Holder (the “Exercise
      Notice”),
      to
      the Company at the address set forth in Section 10.4 of the Agreement,
      accompanied by payment of the Exercise Price multiplied by the number of shares
      of Common Stock for which this Warrant is being exercised (the “Aggregate
      Exercise Price”).
      The
      later of the date on which an Exercise Notice or payment of the Exercise Price
      (unless this Warrant is exercised in accordance with Section 2(c) below) is
      received by the Company in accordance with this clause (a) shall be deemed
      an “Exercise
      Date.”

     

    (b)  Payment
      of Aggregate Exercise Price.
      Subject
      to paragraph (c) below, payment of the Aggregate Exercise Price shall be
      made by wire transfer of immediately available funds to an account designated
      by
      the Company. If the amount of the payment received by the Company is less than
      the Aggregate Exercise Price, the Warrant Holder will be notified of the
      deficiency and shall make payment in that amount within three (3) Trading Days.
      In the event the payment exceeds the Aggregate Exercise Price, the Company
      will
      refund the excess to the Warrant Holder within five (5) Trading Days of
      receipt.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  Cashless
      Exercise.
      In the
      event that the Warrant Shares to be received by the Warrant Holder upon exercise
      of the Warrant may not be resold pursuant to an effective registration statement
      or an exemption to the registration requirements of the Securities Act and
      applicable state laws, the Warrant Holder may, as an alternative to payment
      of
      the Aggregate Exercise Price upon exercise in accordance with paragraph
      (b) above, elect to effect a cashless exercise by so indicating on the
      Exercise Notice and including a calculation of the number of shares of Common
      Stock to be issued upon such exercise in accordance with the terms hereof (a
      “Cashless
      Exercise”).
      If a
      registration statement on Form S-3 under the Securities Act or such other form
      as deemed appropriate by counsel to the Company for the registration for the
      resale by the Warrant Holder of (x) the shares of Common Stock of the Company
      that may be purchased under the Agreement, (y) the Warrant Shares, or (z) any
      securities issued or issuable with respect to any of the foregoing by way of
      exchange, stock dividend or stock split or in connection with a combination
      of
      shares, recapitalization, merger, consolidation or other reorganization or
      otherwise, has been declared effective by the SEC and remains effective, the
      Company may, in its sole discretion, permit the Warrant Holder to effect a
      Cashless Exercise or require the Warrant Holder to pay the Exercise Price of
      the
      Warrant Shares being purchased by the Warrant Holder under this Warrant. In
      the
      event of a Cashless Exercise, the Warrant Holder shall receive that number
      of
      shares of Common Stock determined by (i) multiplying the number of Warrant
      Shares for which this Warrant is being exercised by the Per Share Warrant Value
      and (ii) dividing the product by the Closing Price on the Trading Day
      immediately preceding the Exercise Date, rounded to the nearest whole share.
      The
      Company shall cancel the total number of Warrant Shares equal to the excess
      of
      the number of the Warrant Shares for which this Warrant is being exercised
      over
      the number of Warrant Shares to be received by the Warrant Holder pursuant
      to
      such Cashless Exercise.

     

    (d)  Replacement
      Warrant.
      In the
      event that the Warrant is not exercised in full, the number of Warrant Shares
      shall be reduced by the number of such Warrant Shares for which this Warrant
      is
      exercised, and the Company, at its expense, shall forthwith issue and deliver
      to
      or upon the order of the Warrant Holder a new Warrant of like tenor in the
      name
      of the Warrant Holder, reflecting such adjusted number of Warrant
      Shares.

     

    Section
      3.  Ten
      Percent Limitation.
      The
      Warrant Holder may not exercise this Warrant such that the number of Warrant
      Shares to be received pursuant to such exercise aggregated with all other shares
      of Common Stock then owned by the Warrant Holder beneficially or deemed
      beneficially owned by the Warrant Holder would result in the Warrant Holder
      owning more than 9.9% of all of such Common Stock as would be outstanding on
      such Exercise Date, as determined in accordance with Section 13(d) of the
      Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      4.  Delivery
      of Warrant Shares.

     

    (a)  Subject
      to the terms and conditions of this Warrant, as soon as practicable after the
      exercise of this Warrant in full or in part, and in any event within ten (10)
      Trading Days thereafter, the Company at its expense (including, without
      limitation, the payment by it of any applicable issue taxes) will cause to
      be
      issued in the name of and delivered to the Warrant Holder, or as the Warrant
      Holder may lawfully direct, a certificate or certificates for, or make deposit
      with the Depositary Trust Company via book-entry of, the number of validly
      issued, fully paid and non-assessable Warrant Shares to which the Warrant Holder
      shall be entitled on such exercise, together with any other stock or other
      securities or property (including cash, where applicable) to which the Warrant
      Holder is entitled upon such exercise in accordance with the provisions
      hereof.

     

    (b)  This
      Warrant may not be exercised as to fractional shares of Common Stock. In the
      event that the exercise of this Warrant, in full or in part, would result in
      the
      issuance of any fractional share of Common Stock, then in such event the Warrant
      Holder shall receive the number of shares rounded to the nearest whole
      share.

     

    Section
      5.  Representations,
      Warranties and Covenants of the Company.

     

    (a)  The
      Warrant Shares, when issued in accordance with the terms hereof, will be duly
      authorized and, when paid for or issued in accordance with the terms hereof,
      shall be validly issued, fully paid and non-assessable.

     

    (b)  The
      Company shall take all commercially reasonable action and proceedings as may
      be
      required and permitted by applicable law, rule and regulation for the legal
      and
      valid issuance of this Warrant and the Warrant Shares to the Warrant
      Holder.

     

    (c)  The
      Company has authorized and reserved for issuance to the Warrant Holder the
      requisite number of shares of Common Stock to be issued pursuant to this
      Warrant. The Company shall at all times reserve and keep available, solely
      for
      issuance and delivery as Warrant Shares hereunder, such shares of Common Stock
      as shall from time to time be issuable as Warrant Shares.

     

    (d)  From
      the
      date hereof through the last date on which this Warrant is exercisable, the
      Company shall take all steps commercially reasonable to ensure that the Common
      Stock remains listed or quoted on the Principal Market.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      6.  Adjustment
      of the Exercise Price.
      The
      Exercise Price and, accordingly, the number of Warrant Shares issuable upon
      exercise of the Warrant, shall be subject to adjustment from time to time upon
      the happening of certain events as follows:

     

    (a)  Reclassification,
      Consolidation, Merger, Mandatory Share Exchange, Sale or
      Transfer.

     

    (i)  Upon
      occurrence of any of the events specified in subsection (a)(ii) below (the
      “Adjustment
      Events”)
      while
      this Warrant is unexpired and not exercised in full, the Warrant Holder may
      in
      its sole discretion require the Company, or any successor or purchasing
      corporation, as the case may be, without payment of any additional consideration
      therefor, to execute and deliver to the Warrant Holder a new Warrant providing
      that the Warrant Holder shall have the right to exercise such new Warrant (upon
      terms not less favorable to the Warrant Holder than those then applicable to
      this Warrant) and to receive upon such exercise, in lieu of each share of Common
      Stock theretofore issuable upon exercise of this Warrant, the kind and amount
      of
      shares of stock, other securities, money or property receivable upon such
      Adjustment Event by the holder of one share of Common Stock issuable upon
      exercise of this Warrant had this Warrant been exercised immediately prior
      to
      such Adjustment Event. Such new Warrant shall provide for adjustments that
      shall
      be as nearly equivalent as may be practicable to the adjustments provided for
      in
      this Section 6.

     

    (ii)  The
      Adjustment Events shall be (1) any reclassification or change of Common Stock
      (other than a change in par value, as a result of a subdivision or combination
      of Common Stock or in connection with an Excluded Merger or Sale), (2) any
      consolidation, merger or mandatory share exchange of the Company with or into
      another corporation (other than a merger or mandatory share exchange with
      another corporation in which the Company is a continuing corporation and which
      does not result in any reclassification or change other than a change in par
      value or as a result of a subdivision or combination of Common Stock), other
      than (each of the following referred to as an “Excluded
      Merger or Sale”)
      a
      transaction involving (A) sale of all or substantially all of the assets of
      the Company, (B) any merger, consolidation or similar transaction where the
      consideration payable to the shareholders of the Company by the acquiring Person
      consists substantially of cash or publicly traded securities, or a combination
      thereof, or where the acquiring Person does not agree to assume the obligations
      of the Company under outstanding warrants (including this Warrant). In the
      event
      of an Excluded Merger or Sale, the Company shall deliver a notice to the Warrant
      Holder at least 10 days before the consummation of such Excluded Merger or
      Sale,
      the Warrant Holder may exercise this Warrant at any time before the consummation
      of such Excluded Merger or Sale (and such exercise may be made contingent upon
      the consummation of such Excluded Merger or Sale), and any portion of this
      Warrant that has not been exercised before consummation of such Excluded Merger
      or Sale shall terminate and expire, and shall no longer be
      outstanding.

     

    (b)  Subdivision
      or Combination of Shares.
      If the
      Company, at any time while this Warrant is unexpired and not exercised in full,
      shall subdivide its Common Stock, the Exercise Price shall be proportionately
      reduced as of the effective date of such subdivision, or, if the Company shall
      take a record of holders of its Common Stock for the purpose of so subdividing,
      as of such record date, whichever is earlier. If the Company, at any time while
      this Warrant is unexpired and not exercised in full, shall combine its Common
      Stock, the Exercise Price shall be proportionately increased as of the effective
      date of such combination, or, if the Company shall take a record of holders
      of
      its Common Stock for the purpose of so combining, as of such record date,
      whichever is earlier.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  Stock
      Dividends.
      If the
      Company, at any time while this Warrant is unexpired and not exercised in full,
      shall pay a dividend or other distribution in shares of Common Stock to all
      holders of Common Stock, then the Exercise Price shall be adjusted, as of the
      date the Company shall take a record of the holders of its Common Stock for
      the
      purpose of receiving such dividend or other distribution (or if no such record
      is taken, as at the date of such payment or other distribution), to that price
      determined by multiplying the Exercise Price in effect immediately prior to
      such
      payment or other distribution by a fraction: (i) the numerator of which
      shall be the total number of shares of Common Stock outstanding immediately
      prior to such dividend or distribution, and (ii) the denominator of which
      shall be the total number of shares of Common Stock outstanding immediately
      after such dividend or distribution. The provisions of this subsection
      (c) shall not apply under any of the circumstances for which an adjustment
      is provided in subsections (a) or (b).

     

    (d)  Liquidating
      Dividends, Etc.
      If the
      Company, at any time while this Warrant is unexpired and not exercised in full,
      makes a distribution of its assets or evidences of indebtedness to the holders
      of its Common Stock as a dividend in liquidation or by way of return of capital
      or other than as a dividend payable out of earnings or surplus legally available
      for dividends under applicable law or any distribution to such holders made
      in
      respect of the sale of all or substantially all of the Company’s assets (other
      than under the circumstances provided for in the foregoing subsections
      (a) through (c)), then the Warrant Holder shall be entitled to receive upon
      exercise of this Warrant in addition to the Warrant Shares receivable in
      connection therewith, and without payment of any consideration other than the
      Exercise Price, the kind and amount of such distribution per share of Common
      Stock multiplied by the number of Warrant Shares that, on the record date for
      such distribution, are issuable upon such exercise of the Warrant (with no
      further adjustment being made following any event which causes a subsequent
      adjustment in the number of Warrant Shares issuable), and an appropriate
      provision therefor shall be made a part of any such distribution. The value
      of a
      distribution that is paid in other than cash shall be determined in good faith
      by the Board of Directors of the Company. Notwithstanding the foregoing, in
      the
      event of a proposed dividend in liquidation or distribution to the shareholders
      made in respect of the sale of all or substantially all of the Company’s assets,
      the Company shall deliver a notice to the Warrant Holder at least 10 days before
      the consummation of such event, the Warrant Holder may exercise this Warrant
      at
      any time before the consummation of such event (and such exercise may be made
      contingent upon the consummation of such event), and any portion of this Warrant
      that has not been exercised before consummation of such event shall terminate
      and expire, and shall no longer be outstanding.

     

    (e)  Adjustment
      for Spin Off.
      If, for any reason, prior to the exercise of this Warrant in full, the Company
      spins off or otherwise divests itself of a part of its business or operations
      or
      disposes all or a part of its assets in a transaction (a "Spin
      Off")
      in which the Company does not receive compensation for such business, operations
      or assets, but causes securities of another entity ("Spin
      Off Securities")
      to be issued to holders of Common Stock, then the Company shall cause (i) to
      be
      reserved Spin Off Securities equal to the number thereof which would have been
      issued to the Warrant Holder in the event that the entire unexercised portion
      of
      this Warrant outstanding on the record date (the "Record
      Date")
      for determining the number of Spin Off Securities to be issued to holders of
      Common Stock had been exercised by the Warrant Holder as of the close of
      business on the Trading Day immediately prior to the Record Date (the
      "Reserved
      Spin Off Shares"),
      and (ii) to be issued to the Warrant Holder on the exercise of all or any
      unexercised portion of this Warrant, such amount of the Reserved Spin Off Shares
      equal to (x) the Reserved Spin Off Shares multiplied by (y) a fraction, of
      which
      (I) the numerator is the unexercised portion of this Warrant then being
      exercised, and (II) the denominator is the aggregate amount of the unexercised
      portion of this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      7.  Notice
      of Adjustments.
      Whenever the Exercise Price or number of Warrant Shares shall be adjusted
      pursuant to Section 6 hereof, the Company shall promptly prepare a
      certificate signed by its Chief Executive Officer or Chief Financial Officer
      setting forth in reasonable detail the event requiring the adjustment, the
      amount of the adjustment, the method by which such adjustment was calculated
      (including a description of the basis on which the Company’s Board of Directors
      made any determination hereunder), and the Exercise Price and number of Warrant
      Shares purchasable at that Exercise Price after giving effect to such
      adjustment, and shall promptly cause copies of such certificate to be sent
      by
      overnight courier to the Warrant Holder.

     

    Section
      8.  No
      Impairment.
      The
      Company will not, by amendment of its Certificate or Bylaws or through any
      reorganization, transfer of assets, consolidation, merger, dissolution or issue
      or sale of securities, 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 action as
      may
      be necessary or appropriate in order to protect the rights of the Warrant Holder
      against impairment. Without limiting the generality of the foregoing, the
      Company (a) will not increase the par value of any Warrant Shares above the
      amount payable therefor on such exercise, and (b) will take all such action
      as may be reasonably necessary or appropriate in order that the Company may
      validly and legally issue fully paid and non-assessable Warrant Shares on the
      exercise of this Warrant.

     

    Section
      9.  Rights
      As Stockholder.
      Except
      as set forth in Section 6 above, prior to exercise of this Warrant, the
      Warrant Holder shall not be entitled to any rights as a stockholder of the
      Company with respect to the Warrant Shares, including (without limitation)
      the
      right to vote such shares, receive dividends or other distributions thereon
      or
      be notified of stockholder meetings.

     

    Section
      10.  Replacement
      of Warrant.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of the Warrant and, in the case of any such loss,
      theft or destruction of the Warrant, upon delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of such Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

     

    Section
      11.  Choice
      of Law.
      This
      Warrant shall be construed under the laws of the State of New York.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      12.  Entire
      Agreement; Amendments.
      Except
      for any written instrument concurrent or subsequent to the date hereof executed
      by the Company and the Investor, this Warrant and the Agreement contain the
      entire understanding of the parties with respect to the matters covered hereby
      and thereby. No provision of this Warrant may be waived or amended other than
      by
      a written instrument signed by the party against whom enforcement of any such
      amendment or waiver is sought.

     

    Section
      13.  Restricted
      Securities.

     

    (a)  Registration
      or Exemption Required.
      This
      Warrant has been issued in a transaction exempt from the registration
      requirements of the Securities Act of 1933, as amended, in reliance upon the
      provisions of Section 4(2) thereof. This Warrant and the Warrant Shares
      issuable upon exercise of this Warrant may not be resold except pursuant to
      an
      effective registration statement or an exemption to the registration
      requirements of the Securities Act and applicable state laws.

     

    (b)  Legend.
      Any
      replacement Warrants issued pursuant to Section 2 and Section 10
      hereof and, unless a registration statement has been declared effective by
      the
      SEC in accordance with the Securities Act with respect thereto, any Warrant
      Shares issued upon exercise hereof, shall bear the following
      legend:

     

    “THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      OR
      ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON
      AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
      OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
      HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED,
      HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION
      WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.”

     

    (c)  No
      Other Legend or Stock Transfer Restrictions.
      No
      legend other than the one specified in Section 13(b) has been or shall be
      placed on the share certificates representing the Warrant Shares and no
      instructions or “stop
      transfer orders”
(so
      called “stock
      transfer restrictions”)
      or
      other restrictions have been or shall be given to the Company’s transfer agent
      with respect thereto other than as expressly set forth in this
      Section 13.

     

    (d)  Assignment.
      Assuming the conditions of Section 13(a) above regarding registration or
      exemption have been satisfied, the Warrant Holder may sell, transfer, assign,
      pledge or otherwise dispose of this Warrant (each of the foregoing, a
“Transfer”),
      in
      whole or in part, but only to an Affiliate of the Warrant Holder. The Warrant
      Holder shall deliver a written notice to Company, substantially in the form
      of
      the Assignment attached hereto as Exhibit B,
      indicating the person or persons to whom the Warrant shall be Transferred and
      the respective number of warrants to be Transferred to each assignee. The
      Company shall effect the Transfer within ten (10) days, and shall deliver to
      the
      Transferee(s) designated by the Warrant Holder a Warrant or Warrants of like
      tenor and terms for the appropriate number of shares. In connection with and
      as
      a condition of any such proposed Transfer, the Company may request the Warrant
      Holder to provide an opinion of counsel to the Warrant Holder in form and
      substance reasonably satisfactory to the Company to the effect that the proposed
      Transfer complies with all applicable federal and state securities
      laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  Investor’s
      Compliance.
      Nothing
      in this Section 13 shall affect in any way the Investor’s obligations under
      any agreement to comply with all applicable securities laws upon resale of
      the
      Common Stock.

     

    Section
      14.  Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be given in accordance with
      Section 10.4 of the Agreement.

     

    Section
      15.  Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. The headings in
      this
      Warrant are for purposes of reference only, and shall not limit or otherwise
      affect any of the terms hereof. The invalidity or unenforceability of any
      provision hereof shall in no way affect the validity or enforceability of any
      other provision.

     

    Section
      16.  Company
      Call Right.

     

    (a)  If
      a
      Funding Default occurs, the Company shall have the right to demand the surrender
      of this Warrant or any remaining portion thereof, Shares and/or cash from the
      Investor as follows (the “Call
      Right”):

     

    (i)  If
      the
      Investor has not previously exercised this Warrant in full, then the Company
      shall have a right to demand the surrender of this Warrant, or remaining portion
      thereof, from the Investor without compensation, and the Investor shall promptly
      surrender this Warrant, or remaining portion thereof. Following such demand
      for
      surrender, this Warrant shall automatically be deemed to have been canceled
      and
      shall have no further force or effect.

     

    (ii)  If,
      prior
      to receiving a Call Right Notice, the Investor has previously exercised this
      Warrant with respect to some or all of the Warrant Shares, and the Investor
      has
      not previously sold such Warrant Shares, then Company shall have a right to
      purchase from the Investor that number of shares of Common Stock equal to the
      number of shares of Common Stock issued in connection with the exercise(s)
      of
      the Warrant, at a repurchase price per share equal to the price per share paid
      by the Investor in connection with such exercise(s). For greater certainty,
      (a) if Warrant Shares were exercised for cash, the purchase price per share
      under the Call Right shall be equal to the Exercise Price, (b) if Warrant
      Shares were exercised on a cashless exercise basis, the purchase price per
      share
      for such Warrant Shares under the Call Right shall be zero, and (c) if such
      Warrant Shares were exercised on both a cash and cashless exercise basis, the
      purchase price per share under the Call Right shall be equal to the total amount
      of cash paid in connection with such cash exercise(s) divided by the total
      number of shares of Common Stock issued in connection with all exercises of
      the
      Warrant (whether on a cash or cashless basis).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)  If,
      prior
      to receiving a Call Right Notice, the Investor has previously exercised this
      Warrant with respect to some or all of the Warrant Shares, and the Investor
      subsequently sold such Warrant Shares, then the Investor shall remit to the
      Company the excess, if any, of (x) the proceeds received by Investor through
      the
      sale of such Warrant Shares, over (y) the aggregate Exercise Price for such
      Warrant Shares. In the event that the Investor obtained such Warrant Shares
      through a Cashless Exercise, then the Investor shall instead remit to the
      Company all proceeds received by the Investor through the sale of such Warrant
      Shares. For the avoidance of doubt, in the event that the Investor has sold
      some
      or all of the Warrant Shares prior to receiving a Call Right Notice, then the
      right set forth in this paragraph (iii) shall constitute the sole Call
      Right of the Company with respect to such Warrant Shares which have been
      sold.

     

    (b)  Company
      may exercise the Call Right by delivering a notice (the “Call
      Right Notice”)
      to
      Investor within thirty (30) days after the occurrence of a Funding Default.
      On
      the tenth (10th) business day following delivery of the Call Right Notice to
      Investor, Company shall tender the purchase price, if any, and Investor shall
      tender shares of Common Stock, if any, to be sold to Company pursuant to the
      Call Right Notice, immediately following which Company and Investor shall
      consummate such purchase and sale. The Call Right shall survive both the
      assignment of the Warrant by the Investor and the disposition of the Warrant
      Shares by the Investor following exercise of the Warrant.

     

    [Remainder
      of Page Intentionally Left Blank. Signature Page Follows.]

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Warrant was duly executed by the undersigned, thereunto
      duly authorized, as of the date first set forth above.

     

    
      	 	 	 
	 	
              LUMERA
                CORPORATION

            
	 
 	 
 	 
 
	 	By:  	/s/ Peter
              J.
              Biere
	 	
              

              Name:
                Peter J. Biere

            
	 	
              Title:  
                Chief Financial Officer

            

    

     

    Investor
      acknowledges and agrees to the terms and conditions of this
      Warrant.

     

    
      	 	 	 
	 	
              KINGSBRIDGE
                CAPITAL LIMITED

            
	 
 	 
 	 
 
	 	By:  	/s/ Adam
              Gurney
	 	
              

              Adam
                Gurney

            
	 	
              Managing
                Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]