Document:

EX-4.5 ASSOCIATE STOCK OPTIONS PLAN - RSUs.

 

Exhibit 4.5

SATYAM COMPUTER SERVICES LIMITED

Regd. Office: I Floor, Mayfair Centre, SP Road, Secunderabad-500 003

ASSOCIATE STOCK OPTION PLAN — RESTRICTED STOCK UNITS 

(ASOP — RSUs or the Plan)

1. OBJECTIVE

	 	i)	 	In its continuing efforts to create participative environment contributing to
the growth of associates as part of the corporate growth plans, SATYAM COMPUTER
SERVICES LIMITED (SATYAM) formulated a new Associate Stock Option Plan — Restricted
Stock Units, (ASOP-RSUs), pursuant to the enabling authority given by the members of
SATYAM in its Annual General Meeting held on August 21, 2006.

	 	ii)	 	Among others, the Plan is primarily aimed at the following:

	 	•	 	To reward the associates for their performance and contribution to the
success and growth of SATYAM.

	 	•	 	To motivate, retain and attract the best talent.

	 	•	 	To provide an opportunity for the professional partners to become
financial partners.

	 	iii)	 	The Plan shall become effective from the date of its adoption by the
Compensation Committee of SATYAM. It shall continue in effect till all the RSUs granted
under the Plan are exercised or have been extinguished, unless the Plan is terminated
by the Compensation Committee.

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2. DEFINITIONS

     In this Plan, unless the context otherwise requires

	 	i)	 	“Associate” means employee of SATYAM on full time, in the regular service and
includes full time employees of subsidiary companies or parent company of SATYAM if
any, including a director of the Company or its subsidiary company, whether a whole
time director or not.

	 	ii)	 	“Board of Directors” means the “Board of Directors of SATYAM”.

	 	iii)	 	“Compensation Committee” means a committee of directors constituted and
authorized by the “Board of Directors” of SATYAM comprising of a majority of
independent directors.

	 	iv)	 	“Eligible Associate” means an Associate who fulfills the criteria fixed for
eligibility as per the evaluation process guidelines of SATYAM for this purpose.

	 	v)	 	“Exercise” means the act of making of an application by the Associate to SATYAM
for issue of share(s) against unit(s) vested in him/her in pursuance of the ASOP-RSUs.

	 	vi)	 	“Exercise Period” means the period after vesting within which the Associate
should exercise his right to apply for shares against the unit(s) vested in him/her in
pursuance of ASOP — RSUs. Such period shall be after 12 months from the date of grant
of units to the Associate but within 60 months from the date of vesting of units in the
Associate provided the contract of service between the Associate and the Company has
not ceased. RSUs not exercised by Associates within exercise period will lapse.

	 	vii)	 	“Exercise Price” means the price not less than face value of the equity shares
or such other price as determined by the Compensation Committee from time to time in
accordance with the applicable statutory rules, regulations, guidelines, laws,
notifications and clarifications issued by Securities and Exchange Board of India
(SEBI) or any other statutory authority from time to time as applicable, which shall be
paid by the Associate at the time of Exercise.

	 	viii)	 	“Grant” means the act of issue of unit(s) to Associates under ASOP-RSUs.

	 	ix)	 	“Fair value”: Fair value shall have the same meaning as defined under SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

	 	x)	 	“Restricted Stock Unit” (RSU) means a unit having a right but not an obligation
granted to an Associate in pursuance of ASOP-RSUs to apply for shares of the Company at
a pre-determined price on fulfillment of certain conditions.

	 	xi)	 	“RSUs Agreement” means a written or typed or printed or electronic agreement
between SATYAM and the unit holder giving the terms and conditions of ASOP-RSUs.

	 	xii)	 	“Plan” means “Associate Stock Option Plan — Restricted Stock Units” of SATYAM.

	 	xiii)	 	“SATYAM” means “Satyam Computer Services Limited”.

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	 	xiv)	 	“Share” means equity shares and securities convertible into equity shares of
SATYAM and shall include American Depository Receipts (ADRs), Global Depository
Receipts (GDRs) or other depository receipts representing underlying equity shares or
securities convertible into equity shares of SATYAM.

	 	xv)	 	“Subsidiary Company” shall have the same meaning as defined under section 4 of
the Indian Companies Act, 1956 and shall include the foreign subsidiary.

	 	xvi)	 	“RSU holder” means the holder of an outstanding RSU granted pursuant to
ASOP-RSUs.

	 	xvii)	 	“Vesting” means the process by which the Associate is given the right to apply
for shares of SATYAM against the RSU(s) granted to him/her in pursuance of ASOP-RSUs.

	 	xviii)	 	“Vesting period” means the period after the completion of which the vesting of the
Restricted Stock Unit granted to an Associate in pursuance of the Plan takes place.

All other expressions unless defined herein shall have the same meaning as have been assigned to
them under the Securities and Exchange Board of India Act, 1992 or the Securities Contracts
(Regulation) Act, 1956 or the Companies Act, 1956 or SEBI (Disclosure and Investor Protection)
Guidelines, or such other relevant and applicable statutory enactments, guidelines, regulations,
rules and notifications including any statutory modification or re-enactment thereof, as the
case may be.

3. FUNCTIONS OF THE COMPENSATION COMMITTEE

The Compensation Committee shall be responsible for administration and superintendence of the
ASOP — RSUs and shall formulate the detailed terms and conditions of the ASOP-RSUs including,
but not limited to:

	 	•	 	The exercise price from time to time.

	 	•	 	The date of grant for each or a group of cases.

	 	•	 	Selection of the Associates for the benefits of the ASOP-RSUs among the eligible
Associates from time to time.

	 	•	 	Finalizing the quantum of RSUs to be granted to each Associate.

	 	•	 	Determining the vesting and exercise periods.

	 	•	 	Procedure for exercise after vesting within exercise period

	 	•	 	Approval of forms for use under the ASOP-RSUs

	 	•	 	Prescribe, amend and rescind rules and regulations of the ASOP-RSUs.

	 	•	 	Clarify, interpret and advise on the terms of the ASOP-RSUs

	 	•	 	Conditions under which RSUs vested in Associate may lapse in case of cessation
of service for misconduct, termination and resignation or otherwise, non-exercise
of RSUs within the exercise period etc.

	 	•	 	The procedure for making a fair and reasonable adjustment to the number of RSUs
and to the exercise price in case of rights issue, bonus issues, merger, demerger
and other corporate actions including consolidation or split.

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	 	•	 	The grant, vest and exercise of RSUs in case of Associates who are on long
leave.

	 	•	 	The procedure for cashless exercise of RSUs.

Notwithstanding anything contained above, the Compensation Committee shall also discharge
such other functions as may be required for administration and superintendence of ASOP —
RSUs and shall have power to alter, waive, modify, extend or change the vesting and/or
exercise period at its sole discretion subject to 8 (i) clause dealing with minimum vesting
period.

The Compensation Committee can delegate its function(s) to ‘Advisory Board’ for ASOP — RSUs
which shall discharge those function(s) guided by the principles of fairness, impartiality
and natural justice and make its recommendations to Compensation Committee.

No RSUs shall be offered unless disclosures as specified in Schedule IV of the SEBI (ESOP
and ESPS) Guidelines, 1999 are made by the Company to the prospective RSU grantees.

The decisions, determinations and interpretations of the Compensation Committee shall be
final and binding on all Associates and are not subject to review or appeal at the
request/demand of Associates.

4. THE ADVISORY BOARD AND ITS FUNCTIONS

	 	i)	 	The ‘Advisory Board’ shall consist of the Managing Director / CEO, Head (AIC)
 — Human Resources, ‘Chief Financial Officer’ (CFO), and ‘the Company Secretary’. The
Compensation Committee may also nominate such other additional members, if required at
its sole discretion. The Advisory Board will study and assess the eligible Associates,
based on the guidelines for assessment formulated for this purpose and make
recommendations of identified Associates to the Compensation Committee.

	 	ii)	 	Subject to the principles of fairness, impartiality and natural justice, the
Advisory Board shall have the right to exclude any one from the list of eligible
Associates, from being identified for the benefits of ASOP — RSUs.

	 	iii)	 	The recommendations of the Advisory Board shall be submitted to the
Compensation Committee for its consideration and final decision.

	 	iv)	 	The Advisory Board can discharge any other functions as and when they are
delegated to it by the Compensation Committee.

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5. QUANTUM OF THE ASOP-RSUs

	 	i)	 	The maximum number of RSUs which will be granted under ASOP-RSUs is as per
details given below

	 	 	 
	Approved by the shareholders in Annual General Meeting
held on August 21, 2006

	 	6,500,000 RSUs
	Adjustment for Bonus issue in the ratio of 1:1. (the
record date was October 10, 2006)

	 	6,500,000 RSUs
	Total
	 	13,000,000 RSUs

or such adjusted figure for any bonus, stock split, consolidations or any other
reorganization of the capital structure of the Company, as may be applicable from
time to time. The underlying shares may be authorized but unissued or reacquired.
The Compensation Committee shall determine and earmark the number of ADS-RSUs to be
granted from time to time out of the total available RSUs as on the date of grant.

	 	ii)	 	The Board or its Committee will allot shares at periodic intervals, after the
unit holder exercises the RSUs within the exercise period.

	 	iii)	 	The quantum and the exercise price of the ASOP-RSUs can be suitably adjusted
based on fair and reasonable grounds in case of rights issue, bonus issue, merger,
demerger or any other corporate actions including consolidation or split.

	 	iv)	 	In case of Unit(s) expiring or becoming unexercisable for reasons of
non-fulfillment of conditions of ASOP-RSUs without the right of purchase being
exercised, such Unit(s) shall be available for future grant or sale under ASOP-RSUs
unless the Plan has been terminated. The shares that are already issued on exercise of
right can not be returned to the ASOP-RSUs and shall not be available for future grant
or sale.

6. BASIS OF SELECTION OF ELIGIBLE ASSOCIATES

	 	i)	 	Basis of selection of eligible Associates shall be as per the guidelines framed
and approved by the Compensation Committee from time to time.

	 	ii)	 	An employee who is a promoter or belongs to the promoter group shall not be
eligible to participate in the ASOP-RSUs.

	 	iii)	 	A director who either by himself/herself or through his relative or through any
body corporate, directly or indirectly holds more than 10% of the outstanding equity
shares of the Company shall not be eligible to participate in the ASOP-RSUs.

	 	iv)	 	The factors to be considered for assessment of Associates for selection shall
be:

	 	•	 	Performance & Criticality
	 
	 	•	 	Organizational Development
	 
	 	•	 	Customer Satisfaction

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	 	v)	 	The Compensation Committee shall have power to add or delete the factors from
time to time at its sole discretion.

	 	vi)	 	The weightage to the factors mentioned in 6(iv) and any addition or deletion to
the list of factors shall be decided by the Compensation Committee initially and shall
be reviewed periodically for implementation by the Advisory Board.

	 	vii)	 	The Compensation Committee reserves the right to factor different parameters
and different weightages for different categories of the Associates.

	 	viii)	 	The Advisory Board shall recommend the quantum of eligibility for different
categories of Associates on the basis of identified parameters and process.

	 	ix)	 	The Advisory Board can also recommend Associates for awards for exceptional
performance and/or contribution for the organizational growth for consideration by the
Compensation committee.

	 	x)	 	The Advisory Board can also recommend new Associates joining Satyam to the
benefits of the Plan.

	 	xi)	 	The Advisory Board shall seek the guidance and clarifications if any, required,
from the Compensation Committee in implementing the assessment procedure.

7. GRANT OF RSUs

	 	i)	 	The Compensation Committee may, on such dates as it may determine, grant to
such eligible Associates as it may, at its absolute discretion select, RSUs under the
Plan on such terms and conditions and for the consideration as it may decide. The
Compensation Committee may consider the recommendations of the Advisory Board, while it
reserves its right to reject the recommendations of the Advisory Board in part or in
full.

	 	ii)	 	The date of grant of an RSU, shall, for all purposes, be the date on which the
Compensation Committee makes the determinations of granting such unit(s), or such other
date as is determined by the Compensation Committee. Intimation of determination shall
be given to each Associate to whom an RSU is so granted within a reasonable time after
the date of such grant.

	 	iii)	 	The intimation of grant of RSUs shall indicate the number of RSUs granted, name
of the Associate who was granted the RSUs, exercise price, vesting schedule and the
exercise period, along with main terms and conditions of the grant.

	 	iv)	 	The intimation of grant of RSUs shall also include the term of each RSU,
subject to the condition that the term shall be no more than 5 Years from the date of
vesting thereof.

	 	v)	 	The maximum number of RSUs per Associate shall not exceed 0.5% in
any financial year and 2% in aggregate, of the total number of RSUs
reserved under the Plan. Further, allotment of shares to an Associate
during any one year exceeding 1% of the issued capital at the time of
allotment of shares shall be subject to a separate resolution.

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8. LOCK-IN PERIOD AND RIGHTS OF THE RSU HOLDER

	 	i)	 	There shall be a minimum period of one year between the grant of RSUs and
vesting of RSUs.

	 	ii)	 	The vesting period and/or exercise period under any grant or grants of RSUs,
may differ from Associate to Associate or Unit to Unit within the Company or
Subsidiary, as shall be determined by the Compensation Committee, from time to time.

	 	iii)	 	The Compensation Committee shall have the freedom to specify the lock-in period
for the shares issued pursuant to exercise of RSUs.

	 	iv)	 	The Associate shall not have right to receive any dividend or to vote or in any
manner enjoy the benefits of a shareholder in respect of RSU granted to him/her, unless
and until shares are allotted on exercise of RSU(s).

9. RSU EXERCISE PRICE

	 	i)	 	The exercise price for shares to be issued on exercise of RSUs shall be not
less than face value of the equity shares of the Company or such other price as may be
decided by the Compensation Committee at the time of grant. The mode of payment can be
by way of (i) cheque (ii) demand draft (iii) electronic transfer of funds (iv)
consideration received by the Company under a cashless exercise program, if any or (v)
any combination of them.

	 	ii)	 	The exercise price shall be subject to fair and reasonable adjustment in case
of rights issues, bonus issues, merger, demerger and other corporate actions. The
Compensation Committee shall be the authority to decide upon such matters conforming to
the relevant provision(s) in the SEBI (ESOP and ESPS) Guidelines, 1999.

10. EXERCISE OF RSUs

	 	i)	 	Associates opting for exercise can apply for conversion of RSUs into shares in
the form prescribed for the purpose, along with full payment for the shares with
respect to which the RSU grant is being exercised.

	 	ii)	 	Exercise of RSUs can not be for a fraction of a share.

	 	iii)	 	Associates may at their discretion, opt for exercise after the expiry of
vesting period, but within the exercise period of all or part of the RSUs granted to
him/her.

	 	iv)	 	Associates who do not want to avail ASOP-RSUs, may opt out of the Plan any time
before exercise period and surrender the RSUs to SATYAM for cancellation. Such RSUs
will be available for re-issuance under the ASOP-RSUs.

	 	v)	 	In the event of the Associate dying in harness while in employment, all the
RSUs granted to him till such date shall vest in the legal heirs or nominees of the
deceased Associate on the date of death. Such vested RSUs shall be exercisable within
one year from the date of death, but

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	 	 	 	not earlier to ONE YEAR from the date of grant. RSUs not exercised within such
period will become invalid in the hands of the legal heirs or nominees and shall be
available for re-issuance under the Plan.
	 
	 	vi)	 	In case the Associate suffers a permanent total disability while in employment,
all the RSUs granted to him as on the date of permanent total disability, shall vest in
him on that day. Such vested RSUs shall be exercisable within ONE YEAR from date of
disablement, but not earlier to ONE YEAR from the date of grant. RSUs not exercised
within such period will become invalid and shall be available for re-issuance under the
Plan.

	 	vii)	 	In the event of resignation or termination of the Associate, all RSUs not
vested as on the date of separation (i.e. the last working day) shall expire and be
available for re-issuance under the Plan. However, the Associate shall be entitled to
retain all the vested RSUs as on the date of separation. Such vested RSUs shall be
exercisable within three (3) months from the date of separation. RSUs not exercised
within such period shall expire and be available for re-issuance under the Plan.
	 
	 	 	 	In the event of abandonment of service (absconding) by an associate without the
Company’s consent, all RSUs including those, which are vested but were not exercised
at the time of abandonment of service, shall stand terminated with immediate effect.
The date of abandonment of an associate shall be decided by the Company at its sole
discretion which, decision shall be binding on all concerned. At a later date, if
the Company accepts resignation of an Associate who had previously absconded from /
abandoned the Company’s service, any previous decision to terminate all vested and
unvested options of such Associate as a consequence will remain unaffected and not
confer any rights under the Plan.
	 
	 	 	 	In the event of Misconduct or breach of the policies of the company or the terms of
employment by the associate, during the term of his/her employment and thereafter
for a period of one year, the Advisory Board is authorized for appropriate decision
from time to time.
	 
	 	viii)	 	In the event of superannuation/retirement, all the RSUs vested as on the date
of retirement shall be exercised within 3 months from the date of retirement and all
the unvested RSUs as on the date of retirement, shall vest on the date of retirement or
at the expiry of one year from the date of grant whichever is later, and be available
for exercise by the retired / superannuated Associate, within 3 months thereof. In
case of death of a superannuated or retired Associate, the right of exercise of RSUs
shall vest in the nominees / legal heirs and the other terms and conditions shall
remain the same. RSUs not exercised within such period become invalid in the hands of
legal heirs or nominees and shall be available for reissuance under the plan.
	 
	 	ix)	 	In the case of transfer of Associates to subsidiaries, the vesting and exercise
of RSUs shall continue and all other terms and conditions of this Plan shall remain the
same.

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11. SHARES AFTER EXERCISE

	 	i)	 	Subject to completion of the exercise process, shares will be allotted and issued in
the name of the Associate in compliance with applicable laws, rules, regulations,
guidelines, circulars, notifications or such other requirements, as may be necessary in
this regard. The inability of the Company to obtain approval from any statutory and/or
regulatory body having jurisdiction, which approval is necessary to the lawful allotment
and issuance of any shares hereunder, shall relieve the Company of any liability
(whatsoever in nature) in respect of the failure to allot and issue such shares without
prejudice to rights of the Company in the contract of employment.

	 	ii)	 	The shares thus allotted and issued, shall be the absolute property of the Associate
and will be held by the Associate, subject to the lock-in period and subject to lien
favoring SATYAM for any statutory or other liability that may arise out of the Plan.

	 	iii)	 	As a registered shareholder, the Associate will be entitled to all the benefits, such
as dividends, bonus, rights, etc.

	 	iv)	 	The shares allotted and issued upon exercise of RSUs shall rank pari passu with all
other equity shares of SATYAM for the time being in force; from the date of allotment.

12. CONSEQUENCE OF FAILURE TO EXERCISE RSUs

	 	i)	 	The amount paid by the Associate, if any, at the time of grant of RSUs, may be
refunded to the Associate if the RSUs are not vested due to non-fulfillment of
condition(s) relating to vesting of RSUs as per the Plan at the sole discretion of the
Compensation Committee.

13. NON TRANSFERABILITY OF RSUs

	 	i)	 	RSUs granted to an Associate shall not be transferable to any person.

	 	ii)	 	Except in the case of death of the Associate, no person other than the
Associate to whom the RSU(s) is/are granted shall be entitled to exercise the RSU(s).

	 	iii)	 	Under the cashless system of exercise, SATYAM may itself fund or permit the
empanelled service provider(s) to fund the payment of exercise price, subject to the
provisions of the Companies Act, 1956 as amended from time to time and other applicable
laws.

	 	iv)	 	The RSUs granted to the Associate shall not be pledged hypothecated, mortgaged
or otherwise alienated in any other manner.

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14. LISTING OF SHARES

	 	i)	 	The shares allotted to Associates on exercise shall be listed on the concerned
stock exchanges subject to the terms and conditions of the listing agreement and other
applicable regulatory requirements.

15. TAX LIABILITY

	 	i)	 	Any tax liability on account of grant of RSUs / vesting / exercise of RSUs/
allotment and/or transfer of shares shall be that of the Associate alone.

16. MODIFICATIONS TO THE PLAN

	 	i)	 	The Compensation Committee reserves the right to amend, alter, suspend or
terminate the Plan provided the variation is not prejudicial to the interests of the
RSU holder(s). In this connection, the Board of directors of the Company shall obtain
the approval of shareholders for any amendment to the Plan, if required.

	 	ii)	 	Such changes in terms and conditions as per clause 16 (i) can also be due to
any change in the law applicable to the Plan or any mutual agreement between SATYAM and
its Associates.

17. CONTRACT OF EMPLOYMENT

	 	i)	 	This Plan shall not form part of any contract of employment between SATYAM and
the Associate. The rights and obligations of any individual under the contract of
employment shall not be affected by his participation in this Plan or any right, which
he may have to participate in it.

	 	ii)	 	Nothing in this Plan shall afford any Associate any additional right(s) as to
compensation or damages in consequence of the termination of such office or employment
for any reason.

	 	iii)	 	This Plan shall not confer any Associate any legal or equitable right against
SATYAM either directly or indirectly or give rise to any cause of action in law or
equity against SATYAM.

18. GOVERNMENT REGULATIONS

	 	i)	 	This Plan is subject to all applicable laws, rules, regulations, guidelines and
to such approvals from any governmental agencies as may be required. In case of any
contradiction between the provisions of this Plan and any provisions, rules,
regulations, guidelines issued by any governmental agencies, the provisions of law
shall override the provisions of this Plan.

	 	ii)	 	The Associates who are granted RSUs under the Plan shall comply with such
requirements of law(s) as may be necessary.

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19. CONFIDENTIALITY

No Associate who holds any RSUs under the Plan shall disclose the details of the Plan and /
or his/her holdings, to any person, except with the prior permission of the Company.

20. GENERAL RISKS

SATYAM does not guarantee any return on the equity investment made by Associates as part of
the Plan. Any loss due to fluctuations in the market price of the equity including the
shortfall in the expectations or projections and the risks associated with the investment
are that of the Associate alone.

21. ACCOUNTING POLICY

The Company shall conform to the accounting policies specified in the SEBI
(ESOS & ESPS) Guidelines, 1999.

22. ARBITRATION

All disputes and claims in relation to this Plan shall be referred to
arbitration in accordance with the Arbitration & Conciliation Act, 1996, which
shall be conducted at Hyderabad.

*********

11Exhibit 4.1

    EXHIBIT
      4.1

     

    Right
      to

    Purchase
      _____

    Shares
      of

    Common
      Stock,

    par
      value
      $0.001

    per
      share

     

    AMENDED
      AND RESTATED COMMON STOCK PURCHASE WARRANT A

     

    THIS
      CERTIFIES THAT, for value received, ________ or its registered assigns
      (the “Holder”), is entitled to purchase from Geron Corporation, a Delaware
      corporation (the "Company"), at any time or from time to time during the period
      specified in Paragraph 2 hereof, _________ (______) fully paid and
      nonassessable shares of the Company's common stock, par value $0.001 per share
      (the "Common Stock"), at an exercise price of $8.62 per share (the "Exercise
      Price"). The term "Warrant Shares," as used herein, refers to the shares of
      Common Stock purchasable hereunder. The Warrant Shares and the Exercise Price
      are subject to adjustment as provided in Paragraph 4 hereof. The term
      "Warrants" means this Warrant and the other warrants (including the B
      Warrants and the C Warrants (each as defined in the Purchase Agreement)) issued
      pursuant to that certain Securities Purchase Agreement, dated November 10,
      2004, by and among the Company and the Buyers listed on the execution page
      thereof (the "Purchase Agreement").

     

    This
      Warrant is subject to the following terms, provisions, and
      conditions:

     

    1.  Manner
      of Exercise; Issuance of Certificates; Payment for Warrant Shares

     

    (a)  Subject
      to the provisions hereof, this Warrant may be exercised by the Holder, in whole
      or in part, by the surrender of this Warrant, together with a completed exercise
      agreement in the form attached hereto (the "Exercise Agreement"), to the Company
      during normal business hours on any business day at the Company's principal
      executive offices (or such other office or agency of the Company as it may
      designate by notice to the Holder), and upon (i) payment to the Company in
      cash,
      by certified or official bank check or by wire transfer for the account of
      the
      Company of the Exercise Price for the Warrant Shares specified in the Exercise
      Agreement or (ii) delivery to the Company of a written notice of an election
      to
      effect a "Cashless Exercise" (as defined in Paragraph 10(c) below) for the
      Warrant Shares specified in the Exercise Agreement (a “Conversion”). The Company
      may elect to provide that any exercise of the Warrant shall be a Conversion
      (a
“Company-Elected Conversion”). The Company shall provide written notice of such
      election (a “Company Conversion Election”) by the end of the business day
      following the date of the receipt of the Exercise Agreement. The Warrant Shares
      purchased by the Holder shall be deemed to be issued to the Holder or such
      holder's designee, as the record owner of such shares, as of the close of
      business on the date on which this Warrant shall have been surrendered, the
      completed Exercise Agreement shall have been delivered, and payment shall have
      been made for such shares (or an election to effect a Conversion or a Company
      Conversion Election shall have been made) as set forth above. In
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        	 	
                event
                  of any exercise of the rights represented by this Warrant in accordance
                  with and subject to the terms and conditions hereof (whether by
                  payment of
                  the exercise price, Conversion or Company-Elected Conversion),
                  the Warrant
                  Shares shall be issued and delivered to the Depository Trust Company
                  account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
                  system ("DWAC Transfer") within a reasonable time, not exceeding
                  two (2)
                  trading days after such exercise (or, if DWAC Transfer is not available
                  or
                  Holder requests in writing otherwise, certificates for the Warrant
                  Shares
                  shall be issued, dated the date of such exercise and delivered
                  to the
                  Holder hereof within a reasonable time, not exceeding three (3)
                  trading
                  days after such exercise), and the Holder hereof shall be deemed
                  for all
                  purposes to be the holder of the Warrant Shares so purchased as
                  of the
                  date of such exercise. If the Warrant Shares are issued pursuant
                  to a
                  Company-Elected Conversion, the number of Warrant Shares to be
                  issued
                  within the time period specified in the preceding sentence shall
                  equal the
                  number of Warrant Shares to be delivered if such Cashless Exercise
                  was
                  made at the Holder’s election (the “Estimated Warrant Shares”);
                  provided,
                  however,
                  that within three (3) trading days after the number of Warrant
                  Shares to
                  be issued pursuant to Paragraph 10(c) is able to be calculated
                  (i) if the
                  number of Estimated Warrant Shares exceeds the number of Warrant
                  Shares to
                  be delivered pursuant to Paragraph 10(c) hereof, Holder shall return
                  to
                  the Company the number of Warrant Shares which exceed the number
                  of
                  Warrant Shares to which Holder is entitled pursuant to Paragraph
                  10(c);
                  and (ii) if the Estimated Warrant Shares are less than the number
                  of
                  Warrant Shares to be delivered pursuant to Paragraph 10(c) hereof,
                  the
                  Company shall issue to Holder the number of Warrant Shares equal
                  to the
                  difference between the Estimated Warrant Shares and the Warrant
                  Shares to
                  be delivered pursuant to Paragraph 10(c). Any certificates requested
                  shall
                  be delivered in such denominations as may be requested by the Holder
                  and
                  shall be registered in the name of the Holder or such other name
                  as shall
                  be designated by the Holder. If this Warrant shall have been exercised
                  only in part, then, unless this Warrant has expired, the Company
                  shall, at
                  its expense, at the time of delivery of such certificates, deliver
                  to the
                  Holder a new Warrant representing the number of shares with respect
                  to
                  which this Warrant shall not then have been exercised. In the event
                  an
                  Exercise Agreement is delivered and the Company is unable to issue
                  the
                  Warrant Shares, the Holder may, at its option, rescind such Exercise
                  Agreement and such rescission will not effect the Holder's right
                  to an
                  extension of the Exercise Period pursuant to Section 4.13 of the
                  Purchase
                  Agreement. In any event, if the Company is unable to issue the
                  Warrant
                  Shares via DWAC transfer (or otherwise without restrictive legend),
                  because (i) the Securities and Exchange Commission (the “Commission”) has
                  issued a stop order with respect to the registration statement
                  relating to
                  the Shares (the “Registration Statement”), (ii) the Commission otherwise
                  has suspended or withdrawn the effectiveness of the Registration
                  Statement, either temporarily or permanently, (iii) the Company
                  has
                  suspended or withdrawn the effectiveness of the Registration Statement,
                  either temporarily or permanently, (iv) no exemption from the registration
                  requirements is otherwise available (including,
                  without limitation, under Section 3(a)(9) of the Act by virtue
                  of a
                  Conversion or Company-Elected Conversion) or
                  (v) otherwise, the Company shall not be required to make any cash
                  payments
                  to the Holder in lieu of issuance of the Warrant Shares. Further,
                  subject
                  to Section 4.13 of the Purchase Agreement,
                  the Warrant shall not be exercisable if (i) the Registration Statement
                  is
                  not effective at the time of exercise or (ii) an exemption from
                  the
                  registration requirements of the Securities Act, as amended (the
                  "Act"),
                  is not available; provided, however, that for purposes of Section
                  4.13 of
                  the Purchase Agreement and the extension of the Exercise Period
                  pursuant
                  thereto, (x) the Company will have been deemed unable to issue
                  Warrant
                  Shares without restrictive legend and (y) the Warrant shall be
                  deemed to
                  have been exercised, if at the time the Holder attempts to deliver
                  an
                  Exercise Agreement, (1) the Registration Statement is not effective
                  and
                  (2) no exemption from the registration requirements of the Act
                  is
                  available
                  (including, without limitation, under Section 3(a)(9) of the Act
                  by virtue
                  of a Conversion or Company-Elected Conversion).

              

      

       

                       

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

                    

    

     

    (b)  Notwithstanding
      anything in this Warrant to the contrary, in no event shall the Holder be
      entitled to exercise a number of Warrants (or portions thereof) in excess of
      the
      number of Warrants (or portions thereof) upon exercise of which the sum of
      (i)
      the number of shares of Common Stock beneficially owned by the Holder and its
      affiliates (other than shares of Common Stock which, but for this proviso,
      may
      be deemed beneficially owned through the ownership of the unexercised Warrants
      and the unexercised or unconverted portion of any other securities of the
      Company subject to a limitation on conversion or exercise analogous to the
      limitation contained herein) and (ii) the number of shares of Common Stock
      issuable upon exercise of the Warrants (or portions thereof) with respect to
      which the determination described herein is being made, would result in
      beneficial ownership by the Holder and its affiliates of more than 4.9% of
      the
      outstanding shares of Common Stock. For purposes of the immediately preceding
      sentence, beneficial ownership shall be determined in accordance with Section
      13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G
      thereunder, except as otherwise provided in this paragraph (b). Notwithstanding
      anything in this Warrant to the contrary, the restrictions on exercise of this
      Warrant set forth in this paragraph shall not be amended without (i) the written
      consent of the Holder and the Company and (ii) the approval of the holders
      of a
      majority of the Common Stock present, or represented by proxy, and voting at
      any
      meeting called to vote on the amendment of such restriction. 

     

    2.  Period
      of Exercise. This Warrant is exercisable at
      any time or from time to time on or after May 11, 2005 and before 8:00
      p.m., New York City time on the fourth (4th) anniversary of the date of issuance
      of this Warrant (the "Issue Date") (the "Exercise Period"); provided, however,
      that the Exercise Period may be extended pursuant to Section 4.13 of the
      Purchase Agreement upon the occurrence of events set forth in such
      section.

     

    3.  Certain
      Agreements of the Company. The Company hereby
      covenants and agrees as follows:

     

    (a)  Shares
      to be Fully Paid. All Warrant Shares will, upon
      issuance in accordance with the terms of this Warrant, be validly issued, fully
      paid, and nonassessable and free from all taxes, liens, and charges with respect
      to the issue thereof.

     

    
      
        3

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Reservation
      of Shares. During the Exercise Period, the Company
      shall at all times have authorized, and reserved for the purpose of issuance
      upon exercise of this Warrant, a sufficient number of shares of Common Stock
      to
      provide for the full exercise of this Warrant.

     

    (c)  Listing.
      The Company shall promptly secure the listing of the Warrant Shares upon each
      national securities exchange or automated quotation system, if any, upon which
      shares of Common Stock are then listed (subject to official notice of issuance
      upon exercise of this Warrant) and shall maintain, so long as any other shares
      of Common Stock shall be so listed, such listing of all Warrant Shares; and
      the
      Company shall so list on each national securities exchange or automated
      quotation system, as the case may be, and shall maintain such listing of, any
      other shares of capital stock of the Company issuable upon the exercise of
      this
      Warrant if and so long as any shares of the same class shall be listed on such
      national securities exchange or automated quotation system.

     

    (d)  Certain
      Actions Prohibited. The Company will not, by
      amendment of its charter or through any reorganization, transfer of assets,
      consolidation, merger, dissolution, issue or sale of securities, or any other
      voluntary action, avoid or seek to avoid the observance or performance of any
      of
      the terms to be observed or performed by it hereunder, but will at all times
      in
      good faith assist in the carrying out of all the provisions of this Warrant
      and
      in the taking of all such action as may reasonably be requested by the Holder
      in
      order to protect the exercise privilege of the Holder against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. Without
      limiting the generality of the foregoing, the Company (i) will not increase
      the
      par value of any shares of Common Stock receivable upon the exercise of this
      Warrant above the Exercise Price then in effect, and (ii) will take all such
      actions as may be necessary or appropriate in order that the Company may validly
      and legally issue fully paid and nonassessable shares of Common Stock upon
      the
      exercise of this Warrant. 

     

    (e)  Successors
      and Assigns. This Warrant will be binding upon any
      entity succeeding to the Company by merger, consolidation, or acquisition of
      all
      or substantially all the Company's assets. 

     

    4.  Antidilution
      Provisions. During the Exercise Period, the
      Exercise Price and the number of Warrant Shares shall be subject to adjustment
      from time to time as provided in this Paragraph 4. In the event that any
      adjustment of the Exercise Price as required herein results in a fraction of
      a
      cent, such Exercise Price shall be rounded up to the nearest cent.

     

    
      (a) Subdivision
        or Combination of Common Stock. If the Company at
        any time subdivides (by any stock split, stock dividend,  recapitalization,
        reorganization, reclassification or otherwise) the shares of Common Stock
        acquirable hereunder into a greater number of shares, then, after the date
        of
        record for effecting such subdivision, the Exercise Price in effect immediately
        prior to such subdivision will be proportionately reduced. If the Company
        at any
        time combines (by reverse stock split, recapitalization, reorganization,
        reclassification or otherwise) the shares of Common Stock acquirable hereunder
        into a smaller number of shares, then, after the date of record for effecting
        such combination, the Exercise Price in effect immediately prior to such
        combination will be proportionately increased. "Common Stock," for purposes
        of
        this Paragraph 4, includes the Common Stock, par value $0.001 per share,
        and any
        additional class of stock of the Company having no preference as to dividends
        or
        distributions on liquidation, provided that the shares purchasable pursuant
        to
        this Warrant shall include only shares of Common Stock, par value $0.001
        per
        share, in respect of which this Warrant is exercisable, or shares resulting
        from
        any subdivision or combination of such Common Stock, or in the case of any
        reorganization, reclassification, consolidation, merger, or sale of the
        character referred to in Paragraph 4(c) hereof, the stock or other securities
        or
        property provided for in such Paragraph.

       

    

    
      
        4

      

      
        
        

        
          

        

      

      
        
        

      

                  

    

    (b)  Adjustment
      in Number of Shares. Upon each adjustment of the
      Exercise Price pursuant to the provisions of this Paragraph 4, the number of
      shares of Common Stock issuable upon exercise of this Warrant shall be adjusted
      by multiplying a number equal to the Exercise Price in effect immediately prior
      to such adjustment by the number of shares of Common Stock issuable upon
      exercise of this Warrant immediately prior to such adjustment and dividing
      the
      product so obtained by the adjusted Exercise Price.

     

    (c)  Consolidation,
      Merger or Sale. In case of (i) any consolidation
      of the Company with, or merger of the Company into any other corporation or
      entity, or (ii) any sale or conveyance of all or substantially all of the assets
      of the Company other than in connection with a plan of complete liquidation
      of
      the Company (each of clause (i) and (ii) shall be referred to as a “Fundamental
      Transaction”), then as a condition of such Fundamental Transaction, adequate
      provision will be made whereby the Holder will thereafter (at any time or from
      time to time during the remainder of the Exercise Period) have the right to
      acquire and receive upon exercise of this Warrant in lieu of the shares of
      Common Stock immediately theretofor acquirable upon the exercise of this
      Warrant, such shares of stock, securities or assets as may be issued or payable
      with respect to or in exchange for the number of shares of Common Stock
      immediately theretofore acquirable and receivable upon exercise of this Warrant
      had such Fundamental Transaction not taken place.

     

    In
      any
      such case, the Company will make appropriate provision to insure that the
      provisions of this Paragraph 4 hereof will thereafter be applicable as nearly
      as
      may be in relation to any shares of stock or securities thereafter deliverable
      upon the exercise of this Warrant. The Company will not effect any Fundamental
      Transaction unless, prior to the consummation thereof, (i) the successor or
      acquiring entity (if other than the Company), (ii) any other entity whose stock,
      securities or assets the holders of the Common Stock of the Company are entitled
      to receive as a result of such Fundamental Transaction, and (iii) any parent,
      subsidiary or affiliate of such successor, acquiring entity or other entity
      whose common stock this Warrant shall be exercisable into by virtue of the
      penultimate paragraph of this Paragraph 4(c) (any or all of such entities being
      hereafter referred to as a “Successor Entity”) assumes by written instrument the
      obligations under this Paragraph 4 and the obligations to deliver to the Holder
      such shares of stock, securities or assets as, in accordance with the foregoing
      provisions, the Holder may be entitled to acquire. 

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

       

      Furthermore,
        in the event of a transaction
        contemplated by this Paragraph 4(c) involving the acquisition of the Company
        by
        a Public Acquirer (as defined below) for consideration consisting of all
        or part
        cash, at the option of the Holder, in lieu of any cash in respect of shares
        of
        Common Stock underlying this Warrant, this Warrant (or such proportion thereof
        as is equal to the proportion of cash to stock to be paid for the Company)
        shall
        thereafter be exercisable for the common stock of the Public Acquirer for
        the
        remainder of the Exercise Period (and otherwise in accordance with the terms
        hereof), with the number of shares thereafter underlying this Warrant determined
        by multiplying the number of shares for which this Warrant is exercisable
        immediately prior to such transaction by a fraction, the numerator of which
        is
        the cash consideration per share paid for the Company and the denominator
        of
        which is the Market Price of the Public Acquirer’s common stock, where “Market
        Price” means the average closing price of the Public Acquirer’s common stock
        over the five trading days immediately following the closing date of the
        transaction. In the case of a transaction involving partial cash consideration,
        the proportion of this Warrant as is equal to the proportion of stock to
        cash in
        such transaction shall thereafter be exercisable for stock of the Public
        Acquirer in accordance with the preceding terms of this Paragraph 4(c), with
        the
        number of shares underlying this Warrant adjusted to reflect the number of
        shares of common stock of the Public Acquirer to be issued for each share
        of
        Common Stock of the Company. Following any adjustment hereunder, the Exercise
        Price shall be proportionately adjusted, by multiplying the Exercise Price
        then
        in effect by a fraction, the numerator of which is the number of shares issuable
        prior to the adjustment and the denominator of which is the number of shares
        issuable after the adjustment. “Public Acquirer” means any entity that has
        publicly traded common stock whether publicly traded in the United States
        or in
        any other jurisdiction, it being understood that (1) “common stock” as used in
        this Paragraph 4(c) includes common equity equivalents, trust shares, limited
        partnership interests, ordinary shares, American Depositary Receipts, American
        Depositary Shares, and any other similar securities or derivate thereof,
        and (2)
        the Company shall be deemed to have been acquired by a Public Acquirer where
        any
        Successor Entity has publicly traded common stock whether traded in the United
        States or any other jurisdiction, even if such Successor Entity is not the
        direct acquirer or successor to the Company. Following any transaction
        contemplated by this Paragraph 4(c) the term Warrant Shares shall be deemed
        to
        refer to the shares for which this Warrant is thereafter exercisable in
        accordance with the provisions hereof.

    

     

    In
      addition, if holders of Common Stock are given a choice as to the securities,
      cash (which shall be treated in accordance with the preceding paragraph) or
      property to be received in a Fundamental Transaction (including a right to
      elect
      to receive any particular one or combination of more than one of the foregoing),
      then the Holder shall be given the same choice of consideration upon any
      exercise of this Warrant following such Fundamental Transaction, which choice
      of
      consideration can be made at the time of exercise at any time prior to the
      expiration of the Exercise Period.

     

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  Distribution
      of Assets. In case the Company shall declare or
      make any distribution of its assets (including cash) to holders of Common Stock
      as a partial liquidating dividend, by way of return of capital or otherwise,
      then, after the date of record for determining stockholders entitled to such
      distribution, but prior to the date of distribution, the Holder shall be
      entitled upon exercise of this Warrant for the purchase of any or all of the
      shares of Common Stock subject hereto, to receive the amount of such assets
      which would have been payable to the holder had such holder been the holder
      of
      such shares of Common Stock on the record date for the determination of
      stockholders entitled to such distribution.

     

    (e)  Notice
      of Adjustment. Upon the occurrence of any event
      which requires any adjustment of the Exercise Price, then, and in each such
      case, the Company shall give notice thereof to the Holder, which notice shall
      state the Exercise Price resulting from such adjustment and the increase or
      decrease in the number of Warrant Shares purchasable at such price upon
      exercise, setting forth in reasonable detail the method of calculation and
      the
      facts upon which such calculation is based. Such calculation shall be certified
      by the chief financial officer of the Company.

     

    (f)  Minimum
      Adjustment of Exercise Price. No adjustment of the
      Exercise Price shall be made in an amount of less than 1% of the Exercise Price
      in effect at the time such adjustment is otherwise required to be made, but
      any
      such lesser adjustment shall be carried forward and shall be made at the time
      and together with the next subsequent adjustment which, together with any
      adjustments so carried forward, shall amount to not less than 1% of such
      Exercise Price.

     

    (g)  No
      Fractional Shares. No fractional shares of Common
      Stock are to be issued upon the exercise of this Warrant. If the exercise of
      this Warrant would result in a fractional share of Common Stock, such fractional
      share shall be disregarded and the number of shares of Common Stock issuable
      upon exercise of the Warrant shall be the next higher number of shares.

     

    (h)  Other
      Notices. In case at any time:

     

    (i)  the
      Company shall declare any dividend upon the Common Stock payable in shares
      of
      stock of any class or make any other distribution (including dividends or
      distributions payable in cash out of retained earnings) to the holders of the
      Common Stock;

     

    (ii)  the
      Company shall offer for subscription pro rata to the holders of the Common
      Stock
      any additional shares of stock of any class or other rights;

     

    (iii)  there
      shall be any capital reorganization of the Company, or reclassification of
      the
      Common Stock, or consolidation or merger of the Company with or into, or sale
      of
      all or substantially all its assets to, another corporation or entity;
      or

     

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

     

    
      
        7

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    then,
      in
      each such case, the Company shall give to the Holder (a) notice of the date
      on
      which the books of the Company shall close or a record shall be taken for
      determining the holders of Common Stock entitled to receive any such dividend,
      distribution, or subscription rights or for determining the holders of Common
      Stock entitled to vote in respect of any such reorganization, reclassification,
      consolidation, merger, sale, dissolution, liquidation or winding-up and (b)
      in
      the case of any such reorganization, reclassification, consolidation, merger,
      sale, dissolution, liquidation or winding-up, notice of the date (or, if not
      then known, a reasonable approximation thereof by the Company) when the same
      shall take place. Such notice shall also specify the date on which the holders
      of Common Stock shall be entitled to receive such dividend, distribution, or
      subscription rights or to exchange their Common Stock for stock or other
      securities or property deliverable upon such reorganization, reclassification,
      consolidation, merger, sale, dissolution, liquidation, or winding-up, as the
      case may be. Such notice shall be given at least 15 days prior to the record
      date or the date on which the Company's books are closed in respect thereto.
      Failure to give any such notice or any defect therein shall not affect the
      validity of the proceedings referred to in clauses (i), (ii), (iii) and (iv)
      above.

     

    (i)  Certain
      Events. If any event occurs of the type
      contemplated by the adjustment provisions of this Paragraph 4 but not expressly
      provided for by such provisions, the Company will give notice of such event
      as
      provided in Paragraph 4(e) hereof, and the Company's Board of Directors will
      make an appropriate adjustment in the Exercise Price and the number of shares
      of
      Common Stock acquirable upon exercise of this Warrant so that the rights of
      the
      Holder shall be neither enhanced nor diminished by such event.

     

    5.  Issue
      Tax. The issuance of certificates for Warrant
      Shares upon the exercise of this Warrant shall be made without charge to the
      Holder or such shares for any issuance tax or other costs in respect thereof,
      provided that the Company 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 the Holder.

     

    6.  No
      Rights or Liabilities as a Stockholder. This
      Warrant shall not entitle the Holder to any voting rights or other rights as
      a
      stockholder of the Company. No provision of this Warrant, in the absence of
      affirmative action by the Holder to purchase Warrant Shares, and no mere
      enumeration herein of the rights or privileges of the Holder, shall give rise
      to
      any liability of such holder for the Exercise Price or as a stockholder of
      the
      Company, whether such liability is asserted by the Company or by creditors
      of
      the Company.

     

    7.  Transfer,
      Exchange, and Replacement of Warrant.

     

    (a)  Transfer.
      This Warrant and the rights granted to the Holder are transferable, in whole
      or
      in part, upon surrender of this Warrant, together with a properly executed
      assignment in the form attached hereto, at the office or agency of the Company
      referred to in Paragraph 7(e) below. Until due presentment for registration
      of
      transfer on the books of the Company, the Company may treat the registered
      Holder as the owner and Holder for all purposes, and the Company shall not
      be
      affected by any notice to the contrary. 

     

    
      
        8

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Warrant
      Exchangeable for Different Denominations. This
      Warrant is exchangeable, upon the surrender hereof by the Holder at the office
      or agency of the Company referred to in Paragraph 7(e) below, for new Warrants
      of like tenor representing in the aggregate the right to purchase the number
      of
      shares of Common Stock which may be purchased hereunder, each of such new
      Warrants to represent the right to purchase such number of shares as shall
      be
      designated by the Holder at the time of such surrender.

     

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

     

    (d)  Cancellation;
      Payment of Expenses. Upon the surrender of this
      Warrant in connection with any transfer, exchange, or replacement as provided
      in
      this Paragraph 7, this Warrant shall be promptly canceled by the Company. The
      Company shall pay all taxes (other than securities transfer taxes) and all
      other
      expenses (other than legal expenses, if any, incurred by the Holder or
      transferees) and charges payable in connection with the preparation, execution,
      and delivery of Warrants pursuant to this Paragraph 7.

     

    (e)  Register.
      The Company shall maintain, at its principal executive offices (or such other
      office or agency of the Company as it may designate by notice to the Holder),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee and each prior owner of this Warrant.

     

    8.  Notices.
      All notices, requests, and other communications required or permitted to be
      given or delivered hereunder to the Holder shall be in writing, and shall be
      personally delivered, or shall be sent by certified or registered mail or by
      recognized overnight mail courier, postage prepaid and addressed, to such holder
      at the address shown for such holder on the books of the Company, or at such
      other address as shall have been furnished to the Company by notice from such
      Holder. All notices, requests, and other communications required or permitted
      to
      be given or delivered hereunder to the Company shall be in writing, and shall
      be
      personally delivered, or shall be sent by certified or registered mail or by
      recognized overnight mail courier, postage prepaid and addressed, to the office
      of the Company at 230 Constitution Drive, Menlo Park, California 94025, Attn:
      David Greenwood, fax no. (650) 473-7701 with copies to Latham & Watkins LLP,
      140 Scott Drive, Menlo Park, California 94025, Attn: Alan C. Mendelson, Esq.,
      fax no. (650) 463-2600, or at such other address as shall have been furnished
      to
      the Holder by notice from the Company. Any such notice, request, or other
      communication may be sent by facsimile, but shall in such case be subsequently
      confirmed by a writing personally delivered or sent by certified or registered
      mail or by recognized overnight mail courier as provided above. All notices,
      requests, and other communications shall be deemed to have been given either
      at
      the time of the receipt thereof by the person entitled to receive such notice
      at
      the address of such person for purposes of this Paragraph 8, or, if mailed
      by
      registered or certified mail or with a recognized overnight mail courier upon
      deposit with the United States Post Office or such overnight mail courier,
      if
      postage is prepaid and the mailing is properly addressed, as the case may
      be.

     

    
      
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    9.  Governing
      Law. THIS WARRANT SHALL BE GOVERNED BY AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO
      AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF DELAWARE (WITHOUT REGARD
      TO
      PRINCIPLES OF CONFLICT OF LAWS). BOTH PARTIES IRREVOCABLY CONSENT TO THE
      EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS AND THE STATE COURTS
      LOCATED IN DELAWARE WITH RESPECT TO ANY SUIT OR PROCEEDING BASED ON OR ARISING
      UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR
      THE
      TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY AND IRREVOCABLY AGREE THAT ALL
      CLAIMS IN RESPECT OF SUCH SUIT OR PROCEEDING MAY BE DETERMINED IN SUCH COURTS.
      BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
      MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE
      OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY
      RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
      PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS
      IN
      ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL
      NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE
      AND
      MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
      LAWFUL MANNER. 

     

    10.  Miscellaneous.

     

    (a)  Amendments.
      This Warrant and any provision hereof may only be amended by an instrument
      in
      writing signed by the Company and the Holder.

     

    (b)  Descriptive
      Headings. The descriptive headings of the several
      paragraphs of this Warrant are inserted for purposes of reference only, and
      shall not affect the meaning or construction of any of the provisions
      hereof.

     

    (c)  Cashless
      Exercise. This Warrant may be exercised by presentation and
      surrender of this Warrant to the Company at its principal executive offices
      with
      a written notice of the holder's intention to effect a cashless exercise,
      including a calculation of the number of shares of Common Stock to be issued
      upon such exercise in accordance with the terms hereof, or in connection with
      a
      Company-Elected Conversion (a "Cashless Exercise"). In the event of a Cashless
      Exercise, 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:

    
      
        10

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (A)
      = the
      closing price on the trading day immediately preceding the date of such
      election; provided, however, that if the Cashless Exercise is in
      connection with a Company-Elected Conversion, “A” in the formula above shall
      equal the volume-weighted average price of the Company’s common stock as
      reported by Bloomberg L.P., or any successor performing similar functions for
      the five (5) trading days beginning the day immediately following the date
      of
      the Company-Elected Conversion.

    

    (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.

     

    (d)  Remedies.
      The Company acknowledges that a breach by it of its obligations hereunder will
      cause irreparable harm to the Holder by vitiating the intent and purpose of
      the
      transactions contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for a breach of its obligations under this Warrant will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Warrant, that the Holder shall be entitled,
      in
      addition to all other available remedies in law or in equity, to an injunction
      or injunctions to prevent or cure any breaches of the provisions of this
      Agreement and to enforce specifically the terms and provisions of this Warrant,
      without the necessity of showing economic loss and without any bond or other
      security being required.

     

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        11

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      4.1

            

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

    
      	 	 	 
	 	GERON
              CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:   
David
              L. Greenwood 
	 	
              Title:     
                Executive Vice President and

                    
                Chief Financial Officer

            
	 	 
	 	 
	 	Dated as of March 13,
              2007

    

                                                                    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF EXERCISE AGREEMENT

     

    Dated:
      ________ __, 200_

     

    To:
      GERON
      CORPORATION

     

    The
      undersigned, pursuant to the provisions set forth in the Warrant attached
      hereto, hereby agrees to purchase ________ shares of Common Stock covered by
      such Warrant, and makes payment herewith in full therefor at the price per
      share
      provided by such Warrant in cash or by certified or official bank check in
      the
      amount of, or by surrender of securities issued by the Company (including a
      portion of the Warrant) having a market value (in the case of a portion of
      this
      Warrant, determined in accordance with Paragraph 10(c) of the Warrant) equal
      to
      $_________. Please issue a certificate or certificates for such shares of Common
      Stock in the name of and pay any cash for any fractional share to:

     

    

      
        	 	
                Name:
                  

              
	 	
                Signature:
                  

              
	 	
                Address:

              
	 	
              
	 	 
	 	 
	 	
                Note:
                  The
                  above signature should correspond exactly with the name on the
                  face of the
                  Warrant attached hereto.

              

      

    

     

    and,
      if
      said number of shares of Common Stock shall not be all the shares purchasable
      under the Warrant attached hereto, a new Warrant is to be issued in the name
      of
      said undersigned covering the balance of the shares purchasable thereunder
      less
      any fraction of a share paid in cash.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights
      of
      the undersigned under the Warrant attached hereto, with respect to the number
      of
      shares of Common Stock covered thereby set forth hereinbelow, to:

    

      
        	
                Name
                  of Assignee

              	
                Address

              	
                No
                  of Shares

              
	 	 	 
	 	 	 

      

    

     

     
      ,
      and
      hereby irrevocably constitutes and appoints
      _____________________________________ as agent and attorney-in-fact to transfer
      said Warrant on the books of the within-named corporation, with full power
      of
      substitution in the premises.

     

    

      
        	
                Dated:
                  ________ __, 200_

              
	
                In
                  the presence of:

              
	
                _________________________

              

      

    

     

    
      
        	 	
                Name:
                  

              
	 	
                Signature:

              
	 	Title
                of Signing Officer or Agent (if any):
	 	
                Address:

              
	 	
              
	 	 
	 	 
	 	
                Note:
                  The
                  above signature should correspond exactly with the name on the
                  face of the
                  Warrant attached
                  hereto.

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