Document:

Exhibit 10.3

 

EXECUTIVE AGREEMENT

 

AGREEMENT
made as of this 15th day of July, 2009 by and between Virtusa
Corporation (the “Company”), and Ranjan Kalia (the “Executive”).

 

1.
Purpose. The Company considers it essential to the best interests of its stockholders
to promote and preserve the continuous employment of key management  personnel. The Board of
Directors of the Company (the “Board”) recognizes that,  as is the case with many
corporations, the possibility of a Change in Control  (as defined in Section 2 hereof) exists
and that such possibility, and the  uncertainty and questions that it may raise
among management, may result in the  departure or distraction of key management
personnel to the detriment of the  Company and its stockholders. Therefore, the
Board has determined that  appropriate steps should be taken to reinforce and encourage the
continued  attention and
dedication of members of the Company’s key management, including  the Executive, to their
assigned duties without distraction in the face of  potentially disturbing circumstances arising
from the possibility of a Change in  Control. Nothing in this Agreement shall be
construed as creating an express or  implied contract of employment and, except as
otherwise agreed in writing  between the Executive and the Company, the Executive shall not have any
right to  be retained in
the employ of the Company.

 

2.
Change in Control. A “Change in Control” shall be deemed to have occurred upon
the occurrence of any one of the following events:

 

(a) any
“Person,” as such term is used in Sections 13(d) and 14(d) of  the Securities Exchange Act
of 1934, as amended (the “Act”) (other than the  Company, any of its subsidiaries, or any
trustee, fiduciary or other person or  entity holding securities under any employee
benefit plan or trust of the  Company or any of its subsidiaries), together with all “affiliates” and  “associates” (as such terms
are defined in Rule 12b-2 under the Act) of such  person, shall become the “beneficial
owner” (as such term is defined in Rule  13d-3 under the Act), directly or indirectly,
of securities of the Company  representing 50 percent or more of the combined voting power of the
Company’s  then
outstanding securities having the right to vote in an election of the  Company’s Board of Directors
(“Voting Securities”) (in such case other than as a  result of an acquisition of securities
directly from the Company); or

 

(b) persons
who, as of the date hereof, constitute the Company’s Board of Directors (the “Incumbent
Directors”) cease for any reason, including,  without limitation, as a result of a tender
offer, proxy contest, merger or  similar transaction, to constitute at least a
majority of the Board, provided  that any person becoming a director of the
Company subsequent to the date hereof  shall be considered an Incumbent Director if
such person’s election was approved  by or such person was nominated for election
by either (A) a vote of at least a majority of the Incumbent Directors or (B) a
vote of at least a majority of the

 

1

 

Incumbent
Directors who are members of a nominating committee comprised, in the  majority, of Incumbent
Directors; but provided further, that any such person  whose initial assumption of
office is in connection with an actual or threatened  election contest relating to the election of
members of the Board of Directors  or other actual or threatened solicitation of
proxies or consents by or on  behalf of a Person other than the Board, including by reason of
agreement intended to avoid or settle any such actual or threatened contest or
solicitation, shall not be considered an Incumbent Director; or

 

(c) the
consummation of (A) any consolidation or merger of the Company where the
stockholders of the Company, immediately prior to the consolidation or  merger, would not,
immediately after the consolidation or merger, beneficially  own (as such term is defined
in Rule 13d-3 under the Act), directly or  indirectly, shares representing in the
aggregate more than 50 percent of the  voting shares of the Company issuing cash or
securities in the consolidation or  merger (or of its ultimate parent
corporation, if any), or (B) any sale, lease,  exchange or other transfer (in one
transaction or a series of transactions  contemplated or arranged by any party as a
single plan) of all or substantially  all of the assets of the Company; or

 

(d) the
approval by the Company’s stockholders of any plan or proposal for the
liquidation or dissolution of the Company.

 

Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to  have occurred for purposes
of the foregoing clause (a) solely as the result of  an acquisition of securities
by the Company that, by reducing the number of  shares of Voting Securities outstanding,
increases the proportionate number of  shares of Voting Securities beneficially
owned by any person to 50 percent or  more of the combined voting power of all then
outstanding Voting Securities;  provided, however, that if any person
referred to in this sentence shall  thereafter become the beneficial owner of any
additional shares of Voting  Securities (other than pursuant to a stock split, stock dividend, or
similar  transaction or
as a result of an acquisition of securities directly from the  Company) and immediately
thereafter beneficially owns 50 percent or more of the  combined voting power of all
then outstanding Voting Securities, then a “Change  in Control” shall be deemed to have occurred
for purposes of the foregoing  clause (a). 

 

3.
Terminating Event. A “Terminating Event” shall mean any of the events provided
in this Section 3:

 

(a) Termination
by the Company. Termination by the Company of the employment of the Executive
with the Company for any reason other than for Cause, death or Disability. For
purposes of this Agreement, “Cause” shall mean:

 

(i) conduct by the Executive constituting a
material act of

 

2

 

willful
misconduct in connection with the performance of his duties, including, without
limitation, misappropriation of funds or property of the Company or any of its
subsidiaries or affiliates other than the occasional, customary and de minimis
use of Company property for personal purposes; or

 

(ii) the commission by the Executive of any
felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud,
or any conduct by the Executive that would reasonably be expected to result in material
injury to the Company or any of its subsidiaries and affiliates if he were
retained in his position; or

 

(iii) continued, willful and deliberate non-performance
by the Executive of his duties to the Company (other than by reason of the Executive’s
physical or mental illness, incapacity or disability) which has continued for
more than 30 days following written notice of such non-performance from the Board;
or

 

(iv) a violation by the Executive of the
Company’s employment policies which has continued following written notice of
such violation from the Chief Executive Officer; or

 

(v) willful failure to cooperate with a bona
fide internal investigation or an investigation by regulatory or law
enforcement authorities, after being instructed by the Company to cooperate, or
the willful destruction or failure to preserve documents or other materials known
to be relevant to such investigation or the willful inducement of others to
fail to cooperate or to produce documents or other materials.

 

A
Terminating Event shall not be deemed to have occurred pursuant to this  Section 3(a) solely
as a result of the Executive being an employee of any direct  or indirect successor to the
business or assets of the Company, rather than  continuing as an employee of the Company
following a Change in Control. For  purposes of clauses (i), (iii) and (v) hereof,
no act, or failure to act, on the  Executive’s part shall be deemed “willful”
unless done, or omitted to be done,  by the Executive without reasonable belief
that the Executive’s act, or failure  to act, was in the best interests of the
Company and its subsidiaries and  affiliates. For purposes hereof, the
Executive will be considered “Disabled” if,  as a result of the Executive’s incapacity due
to physical or mental illness, the  Executive shall have been absent from his
duties to the Company on a full-time  basis for 180 calendar days in the aggregate
in any 12-month period.

 

(b) Termination
by the Executive for Good Reason. Termination by the Executive of the Executive’s
employment with the Company for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean the occurrence of any of the following events:

 

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(i) a substantial diminution or other
substantial adverse change,  not consented to by the Executive, in the nature or scope of the  Executive’s
responsibilities, authorities, powers, functions or duties from  the responsibilities,
authorities, powers, functions or duties exercised by  the Executive immediately
prior to the Terminating Event; or

 

(ii) a material reduction in the Executive’s
annual base salary or targeted total annual cash compensation (i.e., base
salary and targeted bonus) as in effect on the date hereof or as the same may
be increased from time to time hereafter except for across-the-board reductions
similarly affecting all or substantially all management employees; or

 

(iii) the relocation of the Company’s offices
at which the Executive is principally employed immediately prior to the date of
a Terminating Event (the “Current Offices”) to any other location more than 50
miles from the Current Offices, or the requirement by the Company for  the Executive to be based
anywhere other than the Current Offices, except  for required travel on the Company’s business
to an extent substantially  consistent with the Executive’s business travel obligations immediately  prior to the Terminating
Event; or

 

(iv) the failure by the Company to obtain an
effective agreement  from any
successor to assume and agree to perform this Agreement, as  required by Section 20.

 

4.
Severance and Change in Control Payments.

 

(a) In
the event a Terminating Event occurs within 12 months after a Change in
Control, the following shall occur:

 

(i) the Company shall pay to the Executive an
amount equal to  the sum of (x) one-half
of the Executive’s annual base salary in effect  immediately prior to the Terminating Event
(or the Executive’s annual base  salary in effect immediately prior to the
Change in Control, if higher) and  (y) provided that the Company achieves
its corporate performance targets  for the period, a pro rated portion of the
Executive’s targeted annual  bonus for the period in which the Change in Control occurred, payable
in  one lump-sum
payment no later than three days following the Date of  Termination (provided that
any pro rated bonus amount shall be payable no  later then three days following the date on
which such bonus is payable to  other management employees);

 

(ii) subject to the Executive’s copayment of
premium amounts at  the active
employees’ rate, the Executive shall continue to participate in  the Company’s group health,
dental and vision program for six months;

 

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provided,
however, that the continuation of health benefits under this  Section shall reduce
and count against the Executive’s rights under the  Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended
(“COBRA”); and

 

(iii) all stock options and other stock-based
awards granted to  the Executive
by the Company shall immediately accelerate and become  exercisable or
non-forfeitable as of the effective date of such Change in  Control.

 

(b) In
the event a Terminating Event occurs prior to a Change in Control, the
following shall occur:

 

(i) the Company shall pay to the Executive an
amount equal to  the sum of (x) one-half
of the Executive’s annual base salary in effect  immediately prior to the Terminating Event
and (y) provided that the  Company achieves its corporate performance
targets for the period, a pro  rated portion of the Executive’s targeted annual bonus for the period
in  which the
Terminating Event occurred, payable in one lump-sum payment no  later than three days
following the Date of Termination (provided that any  pro rated bonus amount shall be payable no
later than three days following  the date on which such bonus is payable to
other management employees); and

 

(ii) subject to the Executive’s copayment of
premium amounts at  the active
employees’ rate, the Executive shall continue to participate in  the Company’s group health,
dental and vision program for six months;  provided, however, that the continuation of
health benefits under this  Section shall reduce and count against the Executive’s rights
under COBRA.

 

(c) Notwithstanding
anything to the contrary in any applicable option  agreement or stock-based award agreement,
upon a Change in Control, all stock  options and other stock-based awards granted
to the Executive (whether before or after the date of this Agreement) by the
Company shall immediately accelerate twelve (12) months so that the shares that
would have vested in the one-year period following such  Change in Control would
become immediately vested and the remaining unvested  shares would continue to vest in accordance
with their terms but on a schedule  that would be twelve (12) months earlier than
had the Change in Control not  transpired. The Executive shall also be entitled to any other rights
and  benefits with respect
to stock-related awards, to the extent and upon the terms  provided in the employee
stock option or incentive plan or any agreement or  other instrument attendant thereto pursuant
to which such options or awards were  granted.

 

(d) Anything
in this Agreement to the contrary notwithstanding, if at  the time of the Executive’s
termination of employment, the Executive is  considered a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i)

 

5

 

of
the Internal Revenue Code of 1986, as amended (the “Code”), and if any  payment that the Executive
becomes entitled to under this Agreement is  considered deferred compensation subject to
interest and additional tax imposed  pursuant to Section 409A(a) of the
Code as a result of the application of  Section 409A(a)(2)(B)(i) of the
Code, then no such payment shall be payable  prior to the date that is the earliest of (i) six
months after the Executive’s  Date of Termination, (ii) the Executive’s death, or (iii) such
other date as  will cause such
payment not to be subject to such interest and additional tax,  and the initial payment
shall include a catch-up amount covering amounts that  would otherwise have been
paid during the first six-month period but for the  application of this Section 4(e).

 

5.
ADDITIONAL LIMITATION.

 

(a) Additional
Limitation. Anything in this Agreement to the contrary  notwithstanding, in the
event that any compensation, payment or distribution by  the Company to or for the
benefit of the Executive, whether paid or payable or  distributed or distributable pursuant to the
terms of this Agreement or  otherwise (the “Severance Payments”), would be subject to the excise
tax imposed  by Section 4999
of the Code, then the benefits payable under this Agreement  shall be reduced (but not
below zero) to the extent necessary so that the  maximum Severance Payments shall not exceed
the Threshold Amount. To the extent  that there is more than one method of
reducing the payments to bring them within  the Threshold Amount, the Executive shall
determine which method shall be  followed; provided that if the Executive
fails to make such determination within  15 business days after the Company has sent
the Executive written notice of the  need for such reduction, the Company may determine
the amount of such reduction  in its sole discretion.

 

For
the purposes of this Section 5(a), “Threshold Amount” shall mean three  times the Executive’s “base
amount” within the meaning of Section 280G(b)(3) of  the Code and the regulations
promulgated thereunder less one dollar ($1.00); and  “Excise Tax” shall mean the excise tax
imposed by Section 4999 of the Code, and  any interest or penalties incurred by the
Executive with respect to such excise  tax.

 

6.
Term. This Agreement shall take effect on the date first set forth above  and shall terminate upon the
earlier of (a) the termination of the Executive’s  employment with the Company
for any reason other than the occurrence of a  Terminating Event, or (b) the date which
is 12 months after a Change in Control  if the Executive is still employed by the
Company.

 

7.
Withholding. All payments made by the Company under this Agreement shall be net
of any tax or other amounts required to be withheld by the Company under applicable
law.

 

6

 

8.
Notice and Date of Termination.

 

(a) Notice
of Termination. During the term of this Agreement, any  purported termination of the
Executive’s employment (other than by reason of  death) shall be communicated by written
Notice of Termination from one party  hereto to the other party hereto in
accordance with this Section 8. For purposes  of this Agreement, a “Notice of Termination”
shall mean a notice which shall  indicate the specific termination provision
in this Agreement relied upon and  the Date of Termination.

 

(b) Date
of Termination. “Date of Termination,” with respect to any  purported termination of the
Executive’s employment during the term of this  Agreement, shall mean the date specified in
the Notice of Termination. In the  case of a termination by the Company
following a Change in Control other than a  termination for Cause (which may be effective
immediately), the Date of  Termination shall not be less than 30 days after the Notice of
Termination is  given. In the
case of a termination by the Executive, the Date of Termination  shall not be less than 30
days from the date such Notice of Termination is  given. Notwithstanding the foregoing, in the
event that the Executive gives a  Notice of Termination to the Company, the
Company may unilaterally accelerate  the Date of Termination and such acceleration
shall not result in a termination  by the Company for purposes of this
Agreement.

 

9.
No Mitigation. The Company agrees that, if the Executive’s employment by  the Company is terminated during
the term of this Agreement, the Executive is  not required to seek other employment or to
attempt in any way to reduce any  amounts payable to the Executive by the
Company pursuant to Section 4 hereof.  Further, the amount of any payment provided
for in this Agreement shall not be  reduced by any compensation earned by the
Executive as the result of employment  by another employer, by retirement benefits,
by offset against any amount  claimed to be owed by the Executive to the Company or otherwise.

 

10.
Arbitration of Disputes. Any controversy or claim arising out of or  relating to this Agreement
or the breach thereof or otherwise arising out of the  Executive’s employment or
the termination of that employment (including, without  limitation, any claims of
unlawful employment discrimination whether based on  age or otherwise) shall, to the fullest
extent permitted by law, be settled by  arbitration in any forum and form agreed upon
by the parties or, in the absence  of such an agreement, under the auspices of
the American Arbitration Association  (“AAA”) in Boston, Massachusetts in
accordance with the Employment Dispute  Resolution Rules of the AAA, including,
but not limited to, the rules and  procedures applicable to the selection of
arbitrators. In the event that any  person or entity other than the Executive or
the Company may be a party with regard to any such controversy or claim, such
controversy or claim shall be

 

7

 

submitted
to arbitration subject to such other person or entity’s agreement.

 

Judgment
upon the award rendered by the arbitrator may be entered in any court  having jurisdiction thereof.
This Section 10 shall be specifically enforceable.  Notwithstanding the
foregoing, this Section 10 shall not preclude either party  from pursuing a court action
for the sole purpose of obtaining a temporary  restraining order or a preliminary injunction
in circumstances in which such  relief is appropriate; provided that any
other relief shall be pursued through  an arbitration proceeding pursuant to this Section 10.

 

11.
Consent to Jurisdiction. To the extent that any court action is  permitted consistent with or
to enforce Section 10 of this Agreement, the  parties hereby consent to the jurisdiction of
the Superior Court of the  Commonwealth of Massachusetts and the United States District Court for
the  District of
Massachusetts. Accordingly, with respect to any such court action,  the Executive (a) submits
to the personal jurisdiction of such courts; (b)  consents to service of process; and (c) waives
any other requirement (whether  imposed by statute, rule of court, or
otherwise) with respect to personal  jurisdiction or service of process.

 

12.
Integration. This Agreement shall constitute the sole and entire  agreement among the parties
with respect to the subject matter hereof, and  supersedes and cancels all prior, concurrent
and/or contemporaneous
arrangements, understandings, promises, programs, policies, plans,
practices,  offers,
agreements and/or discussions, whether written or oral, by or among the  parties regarding the
subject matter hereof; provided, however, that this Agreement is not intended
to, and shall not, supersede, affect, limit, modify or terminate any of the
following, all of which shall remain in full force and effect in accordance
with their respective terms: (i) any written agreements, programs,
policies, plans, arrangements or practices of the Company that do not relate to
the subject matter hereof; (ii) any written  stock or stock option agreements between the
Executive and the Company (except  as expressly modified hereby); and (iii) any
written agreements between  Executive and the Company concerning noncompetition, non-solicitation,
inventions  and/or
nondisclosure obligations.

 

13.
Successor to the Executive. This Agreement shall inure to the benefit  of and be enforceable by the
Executive’s personal representatives, executors,  administrators, heirs, distributees, devisees
and legatees. In the event of the  Executive’s death after a Terminating Event
but prior to the completion by the  Company of all payments due him under Section 4
of this Agreement, the Company  shall continue such payments to the Executive’s
beneficiary designated in  writing to the Company prior to his death (or to his estate, if the
Executive  fails to make
such designation).

 

14.
Enforceability. If any portion or provision of this Agreement shall to any
extent be declared illegal or unenforceable by a court of competent

 

8

 

jurisdiction,
then the remainder of this Agreement, or the application of such  portion or provision in
circumstances other than those as to which it is so  declared illegal or unenforceable, shall not
be affected thereby, and each  portion and provision of this Agreement shall be valid and enforceable
to the  fullest extent
permitted by law.

 

15.
Waiver. No waiver of any provision hereof shall be effective unless  made in writing and signed
by the waiving party. The failure of any party to  require the performance of any term or
obligation of this Agreement, or the  waiver by any party of any breach of this
Agreement, shall not prevent any  subsequent enforcement of such term or
obligation or be deemed a waiver of any  subsequent breach.

 

16.
Notices. Any notices, requests, demands and other communications  provided for by this
Agreement shall be sufficient if in writing and delivered  in person or sent by
registered or certified mail, postage prepaid, to the  Executive at the last
address the Executive has filed in writing with the  Company, or to the Company at its main
office, attention of the Board of  Directors.

 

17.
Amendment. This Agreement may be amended or modified only by a written  instrument signed by the
Executive and by a duly authorized representative of  the Company.

 

18.
Effect on Other Plans. An election by the Executive to resign for Good  Reason under the provisions
of this Agreement shall not be deemed a voluntary  termination of employment by the Executive
for the purpose of interpreting the  provisions of any of the Company’s benefit plans,
programs or policies. Nothing  in this Agreement shall be construed to limit the rights of the
Executive under  the Company’s
benefit plans, programs or policies except as otherwise provided  in Section 5 hereof,
and except that the Executive shall have no rights to any  severance benefits under any
Company severance pay plan.

 

19.
Governing Law. This is a Massachusetts contract and shall be construed  under and be governed in all
respects by the laws of the Commonwealth of  Massachusetts, without giving effect to the
conflict of laws principles of such  Commonwealth. With respect to any disputes
concerning federal law, such disputes  shall be determined in accordance with the
law as it would be interpreted and  applied by the United States Court of Appeals
for the First Circuit.

 

20.
Successors to Company. The Company shall require any successor (whether  direct or indirect, by
purchase, merger, consolidation or otherwise) to all or  substantially all of the
business or assets of the Company to expressly assume  and agree to perform this
Agreement in the same manner and to the same extent  that the Company would be required to perform
if no such succession had taken place. Failure of the Company to obtain an
assumption of this Agreement at or

 

9

 

prior
to the effectiveness of any succession shall be a breach of this Agreement  and shall constitute Good
Reason if the Executive elects to terminate  employment.

 

21.
Gender Neutral. Wherever used herein, a pronoun in the masculine gender  shall be considered as
including the feminine gender unless the context clearly  indicates otherwise.

 

22.
Confidential Information. The Executive shall never use, publish or  disclose in a manner adverse
to the Company’s interests, any proprietary or  confidential information relating to (a) the
business, operations or properties  of the Company or any subsidiary or other
affiliate of the Company, or (b) any  materials, processes, business practices,
technology, know-how, research,  programs, customer lists, customer
requirements or other information used in the  manufacture, sale or marketing of any of the
respective products or services of  the Company or any subsidiary or other
affiliate of the Company; provided,  however, that no breach or alleged breach of
this Section 22 shall entitle the Company to fail to comply fully and in a
timely manner with any other provision hereof. Nothing in this Agreement shall
preclude the Company from seeking money damages, or equitable relief by
injunction or otherwise without the necessity of proving actual damage to the  Company, for any breach by
the Executive hereunder.

 

23.
Conditions of Benefits. The amounts payable to the Executive by the  Company pursuant to Section 4
hereof shall be condition upon, and payable only  if, the Executive: (a) executes a
general release in a form and of a scope  reasonably acceptable to the Company; (b) returns
all property, equipment,
confidential information and documentation of the Company; (c) has
complied and  continues to
comply in all material respects with any noncompetition, inventions  and/or nondisclosure
obligations that the Executive may owe to the Company,  whether pursuant to an
agreement or applicable law; and (d) provides a signed,  written resignation of
Executive’s status as an officer and director (if  applicable) of the Company and, if
applicable, its subsidiaries.

 

10

 

IN
WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the
Company by its duly authorized officer, and by the Executive, as of the date
first above written.

 

 

	
   

  	
  VIRTUSA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Kris
  Canekeratne

  
	
   

  	
   

  	
  Name:
  Kris Canekeratne

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Ranjan Kalia

  
	
   

  	
   

  	
  Name:
  Ranjan Kalia

  
	
   

  	
   

  	
  Title:
  Senior Vice President, Chief Financial Officer

  
	
   

  	
   

  	
       
      Secretary and
  Treasurer

  

 

11Exhibit 4.1

 

Form of Warrant

 

COMMON STOCK PURCHASE WARRANT

 

To Purchase [              ] Shares of Class A Common
Stock of

 

Date:  July 17, 2009

 

WAVE SYSTEMS CORP.

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, [                                     ] (the “Holder”),
is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time after January 17, 2010 (the “Initial
Exercise Date”) and on or prior to the fifth anniversary of the Initial
Exercise Date (the “Termination Date”) but not thereafter, to subscribe
for and purchase from Wave Systems Corp., a Delaware corporation (the “Company”),
up to [          ]  shares (the “Warrant Shares”) of Class A
Common Stock, par value $0.01 per share, of the Company (the “Common Stock”).  The purchase price of one share of Common
Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).  This Warrant is being issued pursuant to the
terms of that certain Subscription Agreement, of even date herewith (the “Subscription
Agreement”), among the Company and the Holder.

 

Section 1.       Definitions.  As used herein, the following terms shall
have the following meanings:

 

“Trading Day” means a day on which the
Common Stock is traded on a Trading Market.

 

“Trading Market” means the following
markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question: the Nasdaq Capital Market, the Nasdaq Global Market,
the American Stock Exchange, the New York Stock Exchange, the Nasdaq National
Market or the OTC Bulletin Board.

 

Section 2.       Exercise.

 

a)             Exercise of Warrant.  Exercise of the purchase rights represented
by this Warrant may be made, in whole or in part, at any time or times on or
after the Initial Exercise Date and on or before the Termination Date by
delivery to the Company of a duly executed facsimile copy of the Notice of
Exercise Form annexed hereto (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at
the address of such Holder appearing on the books of the Company).  The Holder shall be required to physically
surrender this Warrant to the Company when the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in
full.  Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant Shares
available hereunder shall have the effect of lowering the outstanding number of
Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased.  The
Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases.  The Company shall honor any valid Notice of
Exercise Form pursuant to the terms hereof.  The Company
shall deliver an objection to any 

 

1

 

invalid Notice of Exercise Form within 3 Trading Days of its
receipt thereof.  The Holder and any
assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face
hereof.

 

b)            Exercise Price.  The exercise price of the Common Stock under
this Warrant shall be $1.155, subject to adjustment hereunder (the “Exercise
Price”).

 

c)             Cashless Exercise.  If at any time after January 17, 2010 there
is no effective registration statement registering, or no current prospectus
available for, the resale of the Warrant Shares by the Holder, then this
Warrant may also be exercised at such time by means of a “cashless exercise” in
which the Holder shall be entitled to receive a certificate for the number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

(A) = the VWAP on the Trading Day immediately
preceding the date of such election;

 

(B) = 
the Exercise Price of this Warrant, as adjusted; and

 

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

 

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

 

For purposes of Rule 144(d) promulgated under the Securities
Act, as in effect on the date hereof, it is intended that the Warrant Shares
issued in a Cashless Exercise shall be deemed to have been acquired by the
Holder, and the holding period for the Warrant Shares shall be deemed to have
commenced, on the date this Warrant was originally issued pursuant to the
Subscription Agreement.

 

2

 

d)            Mechanics of Exercise.

 

i.              Authorization of Warrant
Shares.  The Company covenants that all
Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights
represented by this Warrant, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

4

 

e)             Exercise Limitations.

 

i.              Holder’s Restrictions.  The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any portion of
this Warrant, pursuant to Section 2 or otherwise, to the extent that after
giving effect to such issuance after exercise, such Holder (together with such
Holder’s affiliates, and any other person or entity acting as a group together
with such Holder or any of such Holder’s affiliates), as set forth on the
applicable Notice of Exercise, would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below).  For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by
such Holder and its affiliates shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which the
determination of such sentence is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (A) exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by such
Holder or any of its affiliates and (B) exercise or conversion of the
unexercised or nonconverted portion of any other securities of the Company
(including, without limitation, any other Warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein
beneficially owned by such Holder or any of its affiliates.  Except as set
forth in the preceding sentence, for purposes of this Section 2(e),
beneficial ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder, it
being acknowledged by a Holder that the Company is not representing to such
Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and such Holder is solely responsible for any schedules
required to be filed in accordance therewith. 
To the extent that the limitation contained in this Section 2(e) applies,
the determination of whether this Warrant is exercisable (in relation to other
securities owned by such Holder) and of which a portion of this Warrant is
exercisable shall be in the sole discretion of a Holder, and the submission of
a Notice of Exercise shall be deemed to be each Holder’s determination of
whether this Warrant is exercisable (in relation to other securities owned by
such Holder) and of which portion of this Warrant is exercisable, in each case
subject to such aggregate percentage limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination.  In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(e),
in determining the number of outstanding shares of Common Stock, a Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a
more recent public announcement by the Company or (z) any other notice by
the Company or the Company’s Transfer Agent setting forth the number of shares
of Common Stock outstanding.   Upon
the written or oral request of a Holder, the Company shall within two Trading
Days confirm orally and in writing to such Holder the number of shares of
Common Stock then outstanding.   In
any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the 

 

5

 

conversion or exercise of securities of the Company, including this
Warrant, by such Holder or its affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall
be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant.  The Beneficial
Ownership Limitation provisions of this Section 2(e) may be waived by
such Holder, at the election of such Holder, upon not less than 61 days’ prior
notice to the Company to change the Beneficial Ownership Limitation to 9.99% of
the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon exercise of this Warrant,
and the provisions of this Section 2(e) shall continue to apply.  Upon such a change by a Holder of the
Beneficial Ownership Limitation from such 4.99% limitation to such 9.99%
limitation, the Beneficial Ownership Limitation may not be waived by such
Holder.  The provisions of this paragraph
shall be implemented in a manner otherwise than in strict conformity with the
terms of this Section 2(e) to correct this paragraph (or any portion
hereof) which may be defective or inconsistent with the intended Beneficial
Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

ii.             Exercise Without
Registration Statement.  If,
at the time of any exercise of this Warrant, the Warrant Shares shall not be
registered under the Securities Act of 1933, as amended (the “Securities Act”),
the Company may require, as a condition of such exercise, that the Holder
furnish to the Company an opinion of counsel reasonably satisfactory to the
Company to the effect that such exercise may be made without registration under
the Securities Act or registration or qualification under any state or other
applicable securities laws.

 

Section 3.       Certain  Adjustments.

 

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

 

6

 

the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or re-classification.

 

b)            Fundamental Transactions.  If, at any time after the Initial Exercise
Date, there shall occur any capital reorganization or reclassification of the
Common Stock (other than a change in par value or a subdivision or combination
as provided for in Section 3(a) above), or any consolidation or
merger of the Company with or into another corporation, or a transfer of all or
substantially all of the assets of the Company, or the payment of a liquidating
distribution, then, as part of any such reorganization, reclassification,
consolidation, merger, sale, or liquidating distribution, lawful provision
shall be made so that Holder shall have the right thereafter to receive upon
the exercise hereof (to the extent still exercisable) the kind and amount of
shares of stock or other securities or property to which Holder would have been
entitled to receive if, immediately prior to any such reorganization,
reclassification, consolidation, merger, sale, or liquidating distribution, as
the case may be, Holder had held the number of shares of Common Stock which
were then purchasable upon the exercise of this Warrant.  In any such case, appropriate adjustment (as
reasonably determined by the Board of Directors of the Company) shall be made
in the application of the provisions set forth herein with respect to the
rights and interests thereafter of Holder such that the provisions set forth in
this paragraph (b) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.

 

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

 

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

 

Section 4.       Transfer of Warrant.

 

a)             Transferability.  Subject to Section 5(a) below, this
Warrant and all rights hereunder are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company, together with
a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to
pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A
Warrant, if properly assigned, 

 

7

 

may be exercised by a new holder for the purchase of Warrant Shares
without having a new Warrant issued.

 

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

 

Section 5.       Miscellaneous.

 

a)             Title to Warrant.  Prior to the Termination Date and subject to
compliance with applicable laws and Section 4 of this Warrant, this
Warrant and all rights hereunder are transferable, in whole or in part, at the
office or agency of the Company by the Holder in person or by duly authorized
attorney, upon surrender of this Warrant together with the Assignment Form annexed
hereto properly endorsed.

 

b)            No Rights as Shareholder Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof.  Upon the surrender of
this Warrant and the payment of the aggregate Exercise Price (or by means of a
cashless exercise), the Warrant Shares so purchased shall be and be deemed to
be issued to such Holder as the record owner of such shares as of the close of
business on the later of the date of such surrender or payment.

 

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

 

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

 

e)             Authorized Shares.  The Company covenants that during the period
the Warrant is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the
Warrant Shares upon the exercise of any purchase rights under this
Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary 

 

8

 

certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant.

 

f)             Governing Law; Jurisdiction.  This Warrant will be governed by, and
construed in accordance with, the internal laws of the State of New York,
without giving effect to the principles of conflicts of law that would require
the application of the laws of any other jurisdiction.  Any legal action, suit or proceeding arising
out of or relating to this Warrant or the transactions contemplated hereby
shall only be instituted, heard and adjudicated (excluding appeals) only in a
state or federal court located in New York, and each party hereto knowingly,
voluntarily and intentionally waives any objection which such party may now or
hereafter have to the laying of the venue of any such action, suit or
proceeding, and irrevocably submits to the exclusive personal jurisdiction of
any such court in any such action, suit or proceeding.  Service of process in connection with any
such action, suit or proceeding may be served on each party hereto anywhere in
the world by the same methods as are specified for the giving of notices under
this Agreement.

 

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

 

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

 

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

 

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

 

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

 

l)              Amendment.  This Warrant may be modified or amended or
the provisions hereof waived with the written consent of the Company and the
Holder.

 

9

 

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

 

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

 

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

 

10

 

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

 

 

Dated:  July 17, 2009

 

 

	
   

  	
  WAVE
  SYSTEMS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

11

 

NOTICE OF EXERCISE

 

TO:         WAVE SYSTEMS
CORP.

 

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

 

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

 

o in lawful money of the United States; or

 

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

 

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

 

 

 

The
Warrant Shares shall be delivered to the following:

 

 

 

 

ASSIGNMENT FORM

 

(To assign the foregoing
warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to

 

	
   

  	
   whose
  address is

  
	
   

  
	
   

  	
  .

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  

  	
   

  	
  ,

  	
   

  
						

 

 

	
   

  	
  Holder’s
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Holder’s
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Signature
  Guaranteed:

  	
   

  	
   

  

 

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

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