Document:

Broker Warrant No:  

 

THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), STATE SECURITIES LAWS IN THE UNITED STATES OR THE SECURITIES LAW OF ANY OTHER COUNTRY AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (A) SUCH TRANSACTION OCCURS OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE ACT (OR SUCH SUCCESSOR RULE OR REGULATION THEN IN EFFECT), IF APPLICABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (B) THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT ARE REGISTERED UNDER THE ACT OR (C) SUCH TRANSACTION CONSTITUTES A TRANSACTION THAT OTHERWISE DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER PRIOR TO SUCH TRANSACTION HAS FURNISHED TO
THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING TO THAT EFFECT REASONABLY SATISFACTORY TO THE CORPORATION, SUBJECT IN EACH CASE TO ANY APPLICABLE UNITED STATES FEDERAL OR STATE OR FOREIGN SECURITIES LAW RESTRICTIONS APPLICABLE TO THE RESALE OF THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT.

 

THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON AND NO SECURITIES MAY BE DELIVERED IN THE UNITED STATES UPON EXERCISE OF THIS WARRANT UNLESS THE EXERCISE IS REGISTERED UNDER THE ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.  ANY PERSON EXERCISING THIS WARRANT WILL BE REQUIRED TO PROVIDE (1) WRITTEN CERTIFICATION THAT IT IS NOT A U.S. PERSON WITHIN THE MEANING OF REGULATION S OF THE ACT AND THAT THIS WARRANT IS NOT BEING EXERCISED WITHIN THE UNITED STATES OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON OR A PERSON IN THE UNITED STATES, OR (2) A WRITTEN OPINION OF COUNSEL OF RECOGNIZED STANDING TO THE EFFECT THAT THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE ACT AND UNDER ANY APPLICABLE U.S. STATE SECURITIES LAWS OR ARE EXEMPT FROM REGISTRATION THEREUNDER.  HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

 

WARRANT TO PURCHASE COMMON STOCK

 

__________ Shares of Common Stock

 

SYNTHEMED, INC.

 

THIS CERTIFIES THAT, for good and valuable consideration, the receipt of which is hereby acknowledged, ____________ (the “Warrantholder”) with an address at _____________________, is the registered holder of this Warrant and is entitled to subscribe for and purchase from SyntheMed, Inc., a Delaware corporation (the “Corporation”), at any time after the date hereof and before 5:00 p.m. (Eastern Standard Time) on, April 3, 2010 (the “Time of Expiry”), up to ________ fully paid and non-assessable shares of common stock of the Corporation (“Shares”) par value $.001 per Share of the Corporation at an exercise price of $0.60 per Share, subject to adjustment as provided below (collectively the “Exercise Price”). 

 

 

 

This Warrant is subject to the provisions of the Agency Agreement dated April 3, 2006 between the Warrantholder and the Corporation (the “Agency Agreement”), and the following provisions, terms and conditions:

 

	
            1.
 	
            Designation
 

 

 

This warrant certificate (the “Warrant”) is issued to the Warrantholder pursuant to the Agency Agreement to purchase up to __________ Shares at the Exercise Price of $0.60 per Share.

 

	
            2.
 	
            Exercise of Warrant
 

 

 

	
             
 	
            (a)
 	
            Election to Purchase.  This Warrant may be exercised by the Warrantholder prior to the Time of Expiry in whole or in part and in accordance with the provisions hereof by delivery of an Election to Purchase in a form substantially the same as that attached hereto as Annex “A”, properly completed and executed, together with this Warrant and payment of the Exercise Price multiplied by the number of Shares specified in the Election to Purchase to the Corporation at P.O. Box 219, Little Silver, New Jersey 07739, U.S.A., Attention:  Robert P. Hickey, or such other address as may be notified in writing by the Corporation. Payment shall be made in U.S. dollars by certified or bank cashier’s cheque payable to the order of the Corporation.
 

 

 

	
             
 	
            (b)
 	
            Exercise.  The Corporation shall, promptly following the date it receives a duly executed Election to Purchase, this Warrant and payment of the Exercise Price for the number of Shares specified in the Election to Purchase (the “Exercise Date”), issue or cause to be issued that number of Shares specified in the Election to Purchase as fully paid and non-assessable Shares.  Such duly executed Election to Purchase shall constitute the Warrantholder's acknowledgement of and undertaking to comply to the reasonable satisfaction of the Corporation and its counsel, with all applicable laws, rules, regulations and policies of every stock exchange upon which the Shares of the Corporation may from time to time be listed or traded, and any other applicable governmental or regulatory authorities.
 

 

 

	
             
 	
            (c)
 	
            Share Certificates.  As promptly as practicable after the Exercise Date (and in any event not later than 10 days after the Exercise Date), the Corporation shall send to the Warrantholder, registered in such name or names as the Warrantholder may direct or if no such direction has been given, in the name of the Warrantholder, a certificate or certificates for the number of Shares specified in the Election to Purchase.  To the extent permitted by law, such exercise shall be deemed to have been effected as of the close of business on the Exercise Date, and at such time the rights of the Warrantholder with respect to the portion of the Warrant exercised shall cease, and the person or persons in whose name or names any certificate or certificates for Shares shall then be issuable upon such exercise shall be
deemed to have become the holder or holders of record of the Shares represented thereby.
 

 

 

 

 

	
             
 	
            (d)
 	
            Fractional Shares.  No fractional Shares shall be issued upon exercise of this Warrant and no payments or adjustment shall be made upon any exercise on account of any cash dividends on the Shares issued upon such exercise.  If any fractional interest in a Share would, except for the provisions of the first sentence of this subsection 2(d), be deliverable upon the exercise of this Warrant, the number of Shares to be issued to the Warrantholder upon the exercise of this Warrant shall be rounded to the nearest whole number.
 

 

 

	
             
 	
            (e)
 	
            Subscription for Less than Entitlement.  The Warrantholder may from time to time subscribe for and purchase a number of Shares less than the aggregate number which the holder is entitled to purchase pursuant to this Warrant.  In the event of a purchase of a number of Shares less than the aggregate number which may be purchased pursuant to this Warrant, the holder thereof shall be entitled to receive, without charge, a new Warrant certificate in respect of the balance of the Shares subject to this Warrant which were not purchased by the Warrantholder.
 

 

 

	
             
 	
            (f)
 	
            Corporate Changes.  If the Corporation shall be a party to any reorganization, merger, dissolution or sale of all or substantially all of its assets (the “Event”), (other than a reorganization or merger in which the Corporation is the surviving entity) then the securities purchasable hereunder shall be the securities (the “Event Securities”) which the Warrantholder would have received or been entitled to receive in such Event if such Warrantholder had fully exercised this Warrant prior to the record date (or if there was no record date, then prior to the effective date) of such Event, and the Exercise Price shall be adjusted to be the amount determined by multiplying the Exercise Price in effect immediately prior to the Event by the number of Shares as to which this Warrant was
unexercised immediately prior to the Event, and dividing the product thereof by the number of Event Securities; provided however, that the Event shall not be carried into effect unless all necessary steps have been taken to ensure that any surviving entity is subject to the terms of this Warrant as adjusted.
 

 

 

Notwithstanding anything to the contrary contained in the immediately preceding paragraph, in the event of a transaction contemplated by such paragraph in which the surviving or purchasing corporation demands that all outstanding Warrants be extinguished prior to the closing date of the contemplated transaction, the Corporation shall give prior notice (the “Merger Notice”) thereof to the Warrantholders advising them of such transaction.  The Warrantholders shall have ten days after the date of the Merger Notice to elect to (i) exercise the Warrants in the manner provided herein, or (ii) receive from the surviving or purchasing corporation the same consideration receivable by a holder of the number of Shares for which this Warrant might have been exercised immediately prior to such consolidation, merger, sale, or purchase reduced by such amount of the consideration as has a market
value equal to the Exercise Price, as determined by the board of directors of the Corporation in accordance with the terms of the Warrants.  If any Warrantholder fails to timely notify the Corporation of its election, the Warrantholder shall be deemed for all purposes to have elected the 

 

option set forth in (ii) above.  Any amounts receivable by a Warrantholder who has elected the option set forth in (ii) above shall be payable at the same time as amounts payable to stockholders in connection with any such transaction.

 

	
             
 	
            (g)
 	
            Subdivision or Consolidation of Shares
 

 

 

	
             
 	
            (i)
 	
            In the event the Corporation shall subdivide its outstanding Shares into a greater number of Shares, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in the event the outstanding Shares of the Corporation shall be consolidated into a smaller number of Shares, the Exercise Price in effect immediately prior to such consolidation shall be proportionately increased.
 

 

 

	
             
 	
            (ii)
 	
            Upon each adjustment of the Exercise Price as provided herein, the Warrantholder shall thereafter be entitled to acquire, at the Exercise Price resulting from such adjustment, the number of Shares (calculated to the nearest tenth of a Share) obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Shares which may be acquired hereunder immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment.
 

 

 

	
             
 	
            (h)
 	
            Change or Reclassification of Shares.  In the event the Corporation shall change or reclassify its outstanding Shares into a different class of securities, this Warrant shall be adjusted as follows so as to apply to the successor class of securities:
 

 

 

	
             
 	
            (i)
 	
            the number and kind of the successor class of securities which the Warrantholder shall be entitled to acquire shall be the aggregate number and kind of securities which, if this Warrant had been exercised immediately prior to such change or reclassification, the Warrantholder would have been entitled to receive by reason of such change or reclassification; and
 

 

 

	
             
 	
            (ii)
 	
            the Exercise Price shall be determined by multiplying the Exercise Price in effect immediately prior to the change or reclassification by the number of Shares as to which this Warrant was unexercised immediately prior to the change or reclassification, and dividing the product thereof by the number of the successor class of securities determined in paragraph 2(h)(i) hereof.
 

 

 

	
             
 	
            (i)
 	
            Distribution to Shareholders.  If and whenever at any time prior to the Time of Expiry the Corporation shall fix a record date or if a date is otherwise established (any such date being hereinafter referred to in this subsection 2(i) as the “record date”) for the issuance of rights, options or warrants to all or substantially all the holders of the outstanding Shares of the Corporation entitling them, for a period expiring not more than 45 days after such record date, to subscribe for or purchase Shares of the Corporation or securities convertible into or exchangeable for Shares 
 

 

 

at a price per share or, as the case may be, having a conversion or exchange price per share less than 95% of the Fair Market Value (as hereinafter defined) on such record date, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction, of which the numerator shall be the total number of Shares outstanding on such record date plus a number equal to the number arrived at by dividing the aggregate price of the total number of additional Shares offered for subscription or purchase or, as the case may be, the aggregate conversion or exchange price of the convertible or exchangeable securities so offered by the Fair Market Value, and of which the denominator shall be the total number of Shares outstanding on such record date plus the total number of additional
Shares so offered (or into which the convertible or exchangeable securities so offered are convertible or exchangeable); Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation shall be deemed not to be outstanding for the purpose of any such computation; such adjustment shall be made successively whenever such a record date is fixed; to the extent that any rights or warrants are not so issued or any such rights or warrants are not exercised prior to the expiration thereof, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed or to the Exercise Price which would then be in effect based upon the number of Shares or conversion or exchange rights contained in convertible or exchangeable securities actually issued upon the exercise of such rights or warrants, as the case may be.

 

	
             
 	
            (j)
 	
            Additional Subscriptions.  If at any time the Corporation grants to its shareholders the right to subscribe for and purchase pro rata additional securities of the Corporation (other than securities described in subsection (2)(i) hereof) or of any other corporation or entity, there shall be no adjustments made to the number of Shares or other securities subject to this Warrant or to the Exercise Price in consequence thereof and this Warrant shall remain unaffected.
 

 

 

	
             
 	
            (k)
 	
            Carry Over of Adjustments.  No adjustment of the Exercise Price shall be made if the amount of such adjustment shall be less than 1% of the Exercise Price in effect immediately prior to the event giving rise to the adjustment, provided however, that in such case any adjustment that would otherwise be required then to be made shall be carried forward and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment so carried forward, shall amount to at least 1% of the Exercise Price in effect prior to such adjustment.
 

 

 

	
             
 	
            (l)
 	
            Notice of Adjustment.  Upon any adjustment of the number of Shares and upon any adjustment of the Exercise Price, then and in each such case the Corporation shall give written notice thereof to the Warrantholder, which notice shall state the Exercise Price and the number of Shares or other securities into which each Warrant is exercisable resulting from such adjustment, and shall set forth in reasonable detail the method of calculation and the facts upon which such calculation is based.  Upon the request of a Warrantholder there shall be 
 

 

 

transmitted promptly to all Warrantholders a statement prepared by the firm of independent certified public accountants retained to audit the financial statements of the Corporation to the effect that such firm concurs in the Corporation's calculation of the change.

 

	
             
 	
            (m)
 	
            Other Notices.  If at any time:
 

 

 

	
             
 	
            (i)
 	
            the Corporation shall declare any dividend upon its Shares;
 

 

 

	
             
 	
            (ii)
 	
            the Corporation shall offer for subscription pro rata to the holders of its Shares any additional shares of any class or other rights;
 

 

 

	
             
 	
            (iii)
 	
            there shall be any capital reorganization or reclassification of the capital stock of the Corporation, or consolidation, amalgamation or merger of the Corporation with, or sale of all or substantially all of its assets to, another corporation; or
 

 

 

	
             
 	
            (iv)
 	
            there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Corporation,
 

 

 

then, in any one or more of such cases, the Corporation shall give to the Warrantholder (A) at least 20 days' prior written notice of the date on which a record shall be taken for such dividend, distribution or subscription rights or for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, amalgamation, sale, dissolution, liquidation or winding-up and (B) in the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, at least 20 days' prior written notice of the date when the same shall take place.  Such notice in accordance with the foregoing clause shall also specify (1) in the case of any such dividend, distribution or subscription rights, the date on which the holders of Shares shall be entitled thereto, and (2) in the case of any transaction described in the foregoing
clauses (iii) and (iv), the date on which the holders of Shares are to be entitled to exchange their Shares for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, amalgamation, sale, dissolution, liquidation or winding-up, as the case may be.

 

	
             
 	
            (n)
 	
            Shares to be Reserved.  The Corporation will at all times keep available and reserve out of its authorized Shares, solely for the purpose of issue upon the exercise of this Warrant, such number of Shares as shall then be issuable upon the exercise of this Warrant.  The Corporation covenants and agrees that all Shares which shall be so issuable will, upon issuance, be duly authorized and issued, fully paid and non-assessable.  The Corporation will take all such action as may be necessary to assure that all such Shares may be so issued without violation of any applicable requirements of any stock exchange upon which the Shares of the Corporation may be listed or in respect of which the Shares are qualified for unlisted trading privileges.  The Corporation will take all such action as is within 
 

 

 

its power to assure that all such Shares may be so issued without violation of any applicable law. 

 

	
             
 	
            (o)
 	
            Issue Tax.  The issuance of certificates for Shares upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issuance tax in respect thereto, provided that the Corporation shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the Warrantholder.
 

 

 

	
             
 	
            (p)
 	
            Fair Market Value.  For the purposes of any computation hereunder, unless otherwise specified, the “Fair Market Value” at any date shall be: (i) if the Shares are listed on a stock exchange or quoted on a similar securities market, the weighted average sale price per share for the Shares for any 20 consecutive trading days (selected by the Corporation) commencing not more than 25 trading days before such date on the principal stock exchange or similar securities market upon which the Shares are listed or quoted, as the case may be; or (ii) if the computation is being made in connection with a public offering of Shares, the gross distribution price per Share under the offering; or (iii) in all other cases, the Fair Market Value shall be determined by the Board of Directors in good faith, which
determination shall be conclusive.  The weighted average sale price shall be determined by dividing the aggregate sale price of all Shares sold on the said exchange or market during the said 20 consecutive trading days by the total number of Shares so sold.
 

 

 

	
             
 	
            (q)
 	
            The Shares issued upon exercise of this Warrant shall be subject to a stop transfer order and the certificate or certificates evidencing such Shares shall bear the following legend:
 

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), STATE SECURITIES LAWS IN THE UNITED STATES OR THE SECURITIES LAWS OF ANY OTHER COUNTRY, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (A) SUCH TRANSACTION OCCURS OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE ACT (OR SUCH SUCCESSOR RULE OR REGULATION THEN IN EFFECT), IF APPLICABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (B) THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE REGISTERED UNDER THE ACT OR (C) SUCH TRANSACTION CONSTITUTES A TRANSACTION THAT OTHERWISE DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER PRIOR TO SUCH TRANSACTION HAS FURNISHED TO THE CORPORATION AN
OPINION OF COUNSEL OF RECOGNIZED STANDING TO THAT EFFECT REASONABLY SATISFACTORY TO THE CORPORATION, SUBJECT IN EACH CASE TO ANY APPLICABLE UNITED STATES FEDERAL, STATE OR FOREIGN SECURITIES LAW RESTRICTIONS APPLICABLE TO THE RESALE OF THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT.

 

	
            3.
 	
            Transfer
 

 

 

Subject to compliance by the Warrantholder with any applicable resale restrictions, the Corporation acknowledges and agrees that this Warrant may be assigned or 

 

transferred by the Warrantholder at the Warrantholder’s option.  It is the sole responsibility of the Warrantholder to ensure that all such restrictions have been observed.  Upon any permitted assignment or transfer, the Warrantholder shall furnish the Corporation with such information including a properly completed and executed form substantially the same as that attached hereto as Annex “B”, regarding the transferee as the Corporation may reasonably require to register this Warrant in the name of the transferee.  The Corporation shall be obligated to refuse to register any proposed transfer of this Warrant or underlying Shares unless made in accordance with the provisions of Regulations S, pursuant to registration under the Act or pursuant to an available exemption from registration.

 

	
            4.
 	
            Replacement
 

 

 

Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this Warrant and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this Warrant), the Corporation will issue to the Warrantholder a replacement Warrant (containing the same terms and conditions as this Warrant).

 

	
            5.
 	
            Expiry Date
 

 

 

This Warrant shall expire and all rights to purchase Shares hereunder shall cease and become null and void at 5:00 p.m. (Eastern Standard Time) on April 3, 2010.

 

	
            6.
 	
            Amendment
 

 

 

Neither this Warrant nor any term hereof may be changed, waived, discharged or terminated except by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought.

 

 

	
            7.
 	
            Governing Law
 

 

The laws of the State of New York and applicable federal laws of the United States shall govern this Warrant.

 

 

	
            8.
 	
            Successors
 

 

This Warrant shall enure to the benefit of and shall be binding upon the Warrantholder and the Corporation and their respective successors.

 

[signature page follows]

 

 

 

IN WITNESS WHEREOF the Corporation has caused this Warrant to be signed by its duly authorised officer and its corporate seal hereto affixed.

 

	
            DATED: April 3, 2006.
 

 

 

	
            SYNTHEMED, INC.
 

 

 

 

	
            By:  
 

 

 

Annex “A” to Warrant

 

Election to Purchase

 

The undersigned Warrantholder hereby irrevocably elects to exercise the Warrant issued by SyntheMed, Inc. dated April 3, 2006 for the number of shares of common stock (or other property or securities subject thereto) (“Shares”) par value $.001 per Share as set forth below:

 

	
            (a)
 	
            Number of Shares to be Acquired:
 

 

	
            (b)
 	
            Exercise Price per Share:
 	
            $
 

 

	
            (c)
 	
            Aggregate Purchase Price
 	
            $
 
	
             
	
            [(a) multiplied by (b)]
 	
             

				

 

and hereby tenders a certified or cashier's cheque or bank draft for such aggregate purchase price, and directs such Shares to be registered and a certificate therefor to be issued as directed below.

 

 

	
            DATED this
 	
            day of
 	
            ,
 	
            .
 

 

 

 

	
            Witness
 	
            Signature
 

 

 

Direction as to Registration

 

	
            Name of Registered Holder:
 	
             

	
            Address of Registered Holder:
 

 

                 

 

 

 

Annex “B”

 

 

	
            TO:
 	
            SYNTHEMED, INC.
 

 

 

FOR VALUE RECEIVED, the undersigned hereby sells, transfers and assigns unto             the within warrant (herein called the “Warrant”).  The undersigned hereby irrevocably instructs you to transfer the Warrant on your books of registration and to issue in substitution therefor a new warrant exercisable for the same number of shares or other securities or property as the Warrant.

 

 

	
            DATED the
 	
            day of
 	
            ,
 	
            .
 

 

 

 

Signature of Transferor is

hereby guaranteed:

 

                

 

Note:      The signature to this Warrant transfer must correspond with the name as set forth on the face of the Warrant in every particular without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or other financial institution acceptable to the Corporation.EX-10.32

 

EXHIBIT 10.32

AFFIDAVIT, RELEASE & WAIVER OF CLAIMS

ARTICLE I

CONSIDERATION

          This Affidavit, Release & Waiver of Claims (“Release”) is given to
OpenTV, Inc. (the
“Company”) and its affiliates in consideration of the Company’s agreement to provide me, Mark
Allen, with the following, as provided, by my Employment Agreement, dated July 9, 2004 (the
“Employment Agreement”), as modified by this Release, my Stock Option Agreements as modified by the
provisions of this Release, and as otherwise agreed by me and the Company under the terms set forth
herein :

	 	1.	 	Payment of my base salary, which is $425,000, through the Termination Date,” as
hereafter defined. The “Termination Date” for purposes of this Release shall be the later
of (i) April 5, 2006 or (ii) the fifth business day after written notice is delivered (a)
to me by the Company or (b) by me to the Company, in each case, in the discretion of the
Company or me;
	 
	 	2.	 	A lump sum payment, on or before the fifth business day after the Termination Date (or,
if I have not returned this Release to the Company by that date, within five days after I
return a signed Release to the Company), of my vacation time not used as of the Termination
Date to the extent that such vacation time has been accrued through the Termination Date,
calculated based upon my base salary at the Termination Date;
	 
	 	3.	 	A lump sum payment, on or before the fifth business day after
the Termination Date (or,
if I have not returned this Release to the Company by that date, within five days after I
return a signed Release to the Company), of all business expenses reimbursable to the
extent not theretofore paid, understanding that any business expenses for which
reimbursement has not been requested on or before the day immediately preceding the
Termination Date, will be reimbursed to me in accordance with normal Company business
practices as in effect as of the Termination Date;
	 
	 	4.	 	Continuation of my base salary, payable in accordance with normal Company payroll
practices in effect on the Termination Date, until the first anniversary of the Termination
Date (such anniversary date being referred to as the “Anniversary Date”); provided,
however, that, notwithstanding the foregoing, on March 15, 2007, the Company will
pay to me, in a lump sum payment, all remaining payments of base salary that would
otherwise be payable to me after March 15, 2007 through the Anniversary Date, so that, as
of March 15, 2007, (i) I will have received all remaining payments of base salary that
would otherwise have been due to me through the Anniversary Date, (ii) I will no longer be
entitled to any additional payments of base salary from and after March 15, 2007, and (iii)
the Company will have no further obligation to make any of the continuation payments
referred to in this Section 4 of Article I. My base salary continuation shall not be
extended beyond the Anniversary Date for any reason, including in the event of any Change
in Control of the Company prior to that date;

					
	 
	 	 	 	 

 

 

	 	5.	 	Consideration for my annual discretionary bonus for 2005 as though I were still
employed by the Company on the date of payment (in a manner consistent with any review or
evaluation that would have been applicable to me had I remained an employee of the
Company), whatever that date may be, notwithstanding the termination of my employment prior
to that payment date. I understand that I will not be entitled to any discretionary bonus
for 2006;
	 
	 	6.	 	Continued vesting of options granted to me under the Plan (as defined in the Employment
Agreement) in the manner set forth in Exhibit A hereto;
	 
	 	7.	 	The right to exercise vested stock options granted to me under the Plan in the manner
set forth in Exhibit A hereto; and
	 
	 	8.	 	The opportunity to provide consulting services to the Company, to the extent that I am
available and the Company requests my services, as contemplated in Article V below.

          All payments referred to in the preceding Sections 1 through 8 of this Article I, inclusive,
will be made by the Company subject to any and all applicable payroll deductions, including payment
of applicable withholding taxes. I understand that I am fully responsible for any and all taxes
that may be imposed on me pursuant to Section 409A of the Internal Revenue Code of 1986, as
amended, in respect of any deferred compensation that I may be deemed to receive hereunder.

          I acknowledge that effective from the Termination Date, I shall be responsible for the payment
of any premiums associated with continuation of my health insurance under the provisions of COBRA.
The entitlement under COBRA shall not be extended in any way by virtue of any terms of this
Release.

          I acknowledge that I have been both encouraged and given the opportunity to discuss this
document with counsel of my own choosing.

          I understand that the consideration described in this Release includes various benefits for
which I am not eligible unless I elect to sign and return to the Company, and I do not revoke, this
Release. I understand that I have forty-five days (45) days from receipt of this Release to
consider whether I wish to accept these additional benefits in exchange for executing this Release.
I understand that I may sign this document sooner, and if I do so, I acknowledge with my signature
that the decision to sign was mine and mine alone and that, as a result, I voluntarily have waived
the 45-day consideration period referred to in the preceding sentence. I also understand that even
if I do sign and return this Release to the Company, I may change my mind and revoke this Release
and forego the Release consideration as described in this Release, provided I notify Human
Resources in writing via confidential fax at (415) 962-5362 within seven (7) days of my signing and
returning this Release to the Company that I wish to revoke this Release and that I no longer want
any of the benefits to referred to in this Release which would not otherwise be expressly provided
under the terms of my Employment Agreement in connection with my termination.

					
	 
	 	 	 	 

-2-

 

ARTICLE II

RELEASES

          In consideration of the Company’s entering into this Release and the consideration provided to
me hereunder, I, on behalf of my heirs, spouse and assigns, hereby completely release and forever
discharge the Company, together with its past and present affiliates, agents, officers, directors,
shareholders, employees, attorneys, insurers, successors and assigns (collectively referred to as
the “Company Releasees”, which term shall include, without limitation and for the avoidance of
doubt, OpenTV Corp. and OpenTV, Inc.), from any and all claims, of any and every kind, nature and
character, known or unknown, foreseen or unforeseen, based on any act or omission occurring prior
to the date of my signing this Release, including but not limited to any claims arising out of my
offer of employment, my employment or termination of my employment with any Company Releasee, and,
without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty and breach of
duty under applicable state corporate law. I expressly agree and consent to the termination of my
employment effective as of the Termination Date. The matters released include, but are not limited
to, any claims under federal, state or local laws, including claims arising under the federal Age
Discrimination in Employment Act or the Older Workers Benefit Protection Act, Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee
Retirement and Income Security Act of 1974 (“ERISA”), the Americans with Disabilities Act, the
Worker Adjustment and Retraining Act and applicable regulations and the California Fair Employment
and Housing Act or any similar state or local law, and any claims for attorneys’ fees and costs.
The only exceptions are any claims I may have: (i) for unemployment or workers compensation; (ii)
to enforce the terms of this Release against the Company; and (iii) with respect to obligations of
the Company, if any, that are contemplated by their terms to survive my Employment Agreement and
Stock Option Agreements, and which are not otherwise superseded by the terms of this Release.

          I understand and agree that this Release extinguishes all claims, whether known or unknown,
foreseen or unforeseen, except for those claims expressly described above. I expressly waive any
rights or benefits under Section 1542 of the California Civil Code, or any similar state or local
law. California Civil Code Section 1542 provides as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known
by him must have materially affected his settlement with the debtor.”

          I fully understand that, if any fact with respect to any matter covered by this Release is
found hereafter to be other than or different from the facts now believed by me to be true, I
expressly accept and assume that this Release shall be and remain effective, notwithstanding such
difference in the facts.

          I represent that I have no complaint, charge, grievance, lawsuit, or any other action of any
kind pending against any Company Releasee. I promise that neither I nor anyone acting on my behalf
will assert or file any complaint, charge, grievance, lawsuit, or action of any kind against

					
	 
	 	 	 	 	 	 	 	 

-3-

 

any Company Releasee, which is based in any way, in whole or in part, on facts or
circumstances arising, or alleged to have arisen, on or before the last date of execution of this
document. I further promise that if any agency, person, or court, on my behalf, assumes
jurisdiction over any such complaint, charge or grievance naming me as a plaintiff, complainant,
charging party or grievant against any Company Releasee, I will explain to the agency, person, or
court the effect of this Release and request that the complaint, charge, or grievance be dismissed.

          I acknowledge that I will continue to be bound by any obligations under any confidential or
proprietary information, inventions assignment or non-disclosure agreement or other similar
agreement that I have signed during my employment, including those provisions set forth in my
Employment Agreement, which remain effective notwithstanding this Release.

          In consideration of my release as set forth above, the Company hereby completely releases and
forever discharges me from any and all claims, of any and every kind, nature and character, based
on any act or omission occurring prior to the date of my signing this Release, that are, in each
such case, known to the Company as of the date of this Release. The Company represents that it is
not aware of any known claims that it may have against me as of the date of this Release.

ARTICLE III

COMPANY PROPERTY

          As of the date of this Release, I confirm that I have returned to the Company any and all
confidential information (in whatever medium recorded), including all copies, reproductions,
compilations, summaries, analyses, or other documents containing or reflecting my or other Company
representatives’ use of any confidential information, as well as all Company property, including
without limitation, all computers, cell phones, pda’s, Blackberrys or other equipment or devices,
all files and records, regardless of the media and all copies thereof, except only files of a
personal nature, such as employment agreements, benefits information, option agreements, etc., keys
or entry cards, and any other property of any kind whatsoever which is owned by the Company, except
(i) for such files and property that I have been specifically authorized by the Chief Executive
Officer to retain (provided that I will promptly return any of these files and property upon
request) and (ii) that I have purchased my computer and miscellaneous other items as agreed by the
Chief Executive Officer. Notwithstanding the return or of the confidential information, I shall
continue to be bound by the obligations of confidentiality contained in my Employment Agreement. I
further represent that I have not recreated or delivered to anyone else any confidential
information and that I will not recreate or deliver to anyone else any confidential information,
and that I have not used, nor will I use, any confidential information for the benefit of myself,
any future employer, or any other third party. If, and to the extent, that I perform consulting
services for the Company, I understand that I may receive confidential information regarding the
Company, and I will continue to hold that confidential information in a manner consistent with the
manner in which I held confidential information while an employee of the Company.

					
	 
	 	 	 	 	 	 	 	 

-4-

 

ARTICLE IV

NONDISPARAGEMENT AND DESTRUCTIVE ACTS

          I agree not to impugn the business of the Company and its affiliates, including use of
disparaging or defamatory statements toward the Company and its affiliates, or their respective
past or present officers, directors, employees, consultants and advisors. I will not interfere
with the Company’s relationship with its prospective or current customers, suppliers or partners in
any way that would be detrimental to the Company, nor cause any services to be delayed.

          I acknowledge that I have not committed nor will I commit, directly or indirectly, any
destructive action against the Company and its affiliates or the property of the Company and its
affiliates, including, but not limited to, gaining or allowing unauthorized access to or
introducing viruses or bugs into their products, computer systems or networks.

ARTICLE V

CONSULTING ARRANGEMENTS

          I understand that the Company may request that I consult on various matters after the
Termination Date, but that neither the Company nor I have any obligation to undertake such a
relationship or to continue any such relationship after it has commenced. If the Company and I
mutually agree to retain my services as a consultant, I agree that my initial rate for these
services will be $250 per hour and that I will be reimbursed for all reasonable business expenses
that I may incur in connection with providing those services. If I propose to change the hourly
rate for my consulting services, I will provide the Company with 30 days prior written notice
thereof. I will provide reasonable documentation to the Company to support any fees or expenses
that are owed to me.

ARTICLE VI

MISCELLANEOUS

          This Release constitutes the entire agreement between the Company and me with respect to any
matters referred to in this Release.

          This Release supersedes any and all of the other agreements between the Company and me, except
for continuing obligations under my Employee Proprietary Information and Inventions Agreement,
dated as of March 25, 2004 (the “Employee Inventions Agreement”). The Company confirms
that my termination is being effected without cause, and that the non-competition provisions set
forth in my Employment Agreement and Stock Option Agreements are, therefore, not applicable or
effective. In the event of any conflict between the terms of this Release and my Employment
Agreement or Stock Option Agreements, the terms of this Release shall control and supersede the
similar provisions set forth in my Employment Agreement and Stock Option Agreements.

					
	 
	 	 	 	 	 	 	 	 

-5-

 

          No other consideration, agreements, representations, oral statements, understandings or course
of conduct which are not expressly set forth in this Release should be implied or are binding. I
am not relying upon any other agreement, representation, statement, omission, understanding or
course of conduct which is not expressly set forth in this Release. I understand and agree that
this Release shall not be deemed or construed at any time or for any purposes as an admission of
any liability or wrongdoing by either myself or any Company Releasee. I also agree that to the
extent that any term, condition or provision of this Release is held to be invalid, illegal or
otherwise unenforceable under applicable law, then such term, condition or provision shall be
deemed amended only to the extent necessary to render such term, condition or provision enforceable
under applicable law, preserving to the fullest extent possible the intent and agreements of the
parties set forth herein; in the event that such term, condition or provision cannot be so amended
as to be enforceable under applicable law, then such term, condition or provision shall be deemed
excluded from this Release and the other terms, conditions and provisions hereof shall remain in
full force and effect as if such unenforceable term, condition or provision had not been included
herein.

          The terms and conditions of this Release shall be interpreted and construed in accordance with
the internal laws of the State of California, without regard to the principles of the conflict of
laws thereof. The terms and conditions of this Release shall inure to the benefit of and be
binding upon the respective successors and assigns of the Company.

          I have read this Release and understand all of its terms. I further acknowledge and agree
that this Release is executed voluntarily and with full knowledge of its legal significance. I
also understand and agree that if any suit is brought to enforce the provisions of this Release,
the prevailing party shall be entitled to its costs, expenses, and attorneys’ fees as well as any
and all other remedies specifically authorized under the law.

[Remainder of Page Intentionally Left Blank]

					
	 
	 	 	 	 
	 	 	-6-	 	 

 

 

EMPLOYEE’S ACCEPTANCE OF RELEASE

          I HAVE CAREFULLY READ THE FOREGOING AND UNDERSTAND, APPROVE AND VOLUNTARILY AGREE TO THE TERMS
OF THE RELEASE IN EXCHANGE FOR THE ADDITIONAL BENEFITS PROVIDED FOR HEREIN TO WHICH I WOULD
OTHERWISE NOT BE ENTITLED.

	 	 	 	 	 
	 	 	 
	Dated: April 5, 2006 	/s/ Mark Allen
 	 
	 	MARK ALLEN 	 
	 	 	 
	 
	 	OPENTV, INC.

 	 
	Dated: April 5, 2006 	By:  	/s/ James A. Chiddix
 	 
	 	 	Name:  	James A. Chiddix 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

					
	 
	 	 	 	 
	 
	 	-7-	 	 

 

 

\

ATTACHMENT 1

CALIFORNIA LABOR CODE SECTION 2870

EMPLOYMENT AGREEMENTS, ASSIGNMENT OF RIGHTS

California Labor Code § 2870. Invention on Own Time — Exemption from Agreement.

	 	(a)	 	Any provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or her
employer shall not apply to an invention that the employee developed entirely on his or
her own time without using the employer’s equipment, supplies, facilities, or trade
secret information except for those inventions that either:

	 	(1)	 	Relate at the time of conception or reduction to practice of
the invention to the employer’s business, or actual or demonstrably anticipated
research or development of the employer.
	 
	 	(2)	 	Result from any work performed by the employee for the
employer.

	 	(b)	 	To the extent a provision in an employment agreement purports to require an employee to assign
an invention otherwise excluded from being required to be assigned under subdivision (a), the
provision is against the public policy of this state and is unenforceable.

					
	 
	 	 	 	 

 

 

Exhibit A

Stock Option Vesting and Exercise

Notwithstanding anything to the contrary contained in each of the Stock Option Agreements
governing the stock options referred to below, the vesting term (and the period through which
vesting shall continue) and exercise period for the option grants to Mr. Allen identified in the
table below shall be modified (and the relevant Stock Option Agreements shall be deemed so modified
and amended, without further action, to reflect such modifications) as follows:

AD = Anniversary Date, as defined in the Release

AD2 = the second Anniversary Date of the Termination Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Option Grant Date

	 	Number of Options
	 	End of Vesting Term
(end date through
which options will
continue to vest,
unless earlier
vested in
accordance with
existing schedule)
	 	Exercise Price
	 	Exercise Period
(date through which
vested options may
be exercised after
end of vesting
term)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	June 3, 2003

	 	 	12,500	 	 	AD- currently vested
	 	$	1.78	 	 	December 31, 2007
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12,500	 	 	AD
	 	 	 	 	 	December 31, 2007
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12,500	 	 	AD2
	 	 	 	 	 	90 days after End
	 

	 	 	 	 	 	 	 	 	 	 	 	of Vesting Term
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12,500	 	 	AD2	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	90 days after End of
	 

	 	 	 	 	 	 	 	 	 	 	 	Vesting Term
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	December 12, 2003
(vesting commenced as
of May 18, 2002)

	 	 	100,000	 	 	AD2
	 	$	5.00	 	 	90 days after End
of Vesting Term
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	March 23, 2004

	 	 	36,750	 	 	AD2
	 	$	2.99	 	 	90 days after End
of Vesting Term
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	March 23, 2004

	 	 	3,250	 	 	AD2
	 	$	2.99	 	 	90 days after End
of Vesting Term
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	March 31, 2005

	 	 	40,000	 	 	AD2
	 	$	2.84	 	 	90 days after End
of Vesting Term

					
	 
	 	 	 	 
	
	 	-2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]