Document:

EXHIBIT
4.9

 

 

 

 

 

AVIGEN,
INC.

and

________, AS WARRANT AGENT

FORM OF PREFERRED
STOCK 
WARRANT AGREEMENT

DATED AS OF
_______

 

 

 

 

 

AVIGEN,
INC.

FORM OF PREFERRED
STOCK WARRANT AGREEMENT

     PREFERRED STOCK WARRANT AGREEMENT (this
“Agreement”), dated as of __________ between AVIGEN,
INC., a Delaware corporation (the
“Company”) and __________, a [corporation] [national banking association]
organized and existing under the laws of __________ and having a corporate trust
office in ___________, as warrant agent (the “Warrant Agent”).

     WHEREAS, the
Company proposes to sell [if Warrants are sold with other securities - [title of
such other securities being offered] (the “Other Securities”) with] warrant
certificates evidencing one or more warrants (the “Warrants” or, individually, a
“Warrant”) representing the right to purchase [title of Preferred Stock
purchasable through exercise of Warrants] (the “Warrant Securities”), such
warrant certificates and other warrant certificates issued pursuant to this
Agreement being herein called the “Warrant Certificates”; and

     WHEREAS, the
Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing so to act, in connection with the issuance,
registration, transfer, exchange, exercise and replacement of the Warrant
Certificates, and in this Agreement wishes to set forth, among other things, the
form and provisions of the Warrant Certificates and the terms and conditions on
which they may be issued, registered, transferred, exchanged, exercised and
replaced.

     NOW THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

ARTICLE
1

ISSUANCE OF WARRANTS
AND EXECUTION AND DELIVERY OF WARRANT 
CERTIFICATES

     1.1 Issuance of Warrants. [If Warrants alone -
Upon issuance, each Warrant Certificate shall evidence one or more Warrants.]
[If Other Securities and Warrants – Warrant Certificates shall be [initially]
issued in connection with the issuance of the Other Securities [but shall be
separately transferable on and after ___________ (the “Detachable Date”)] [and
shall not be separately transferable] and each Warrant Certificate shall
evidence one or more Warrants.] Each Warrant evidenced thereby shall represent
the right, subject to the provisions contained herein and therein, to purchase
one Warrant Security. [If Other Securities and Warrants - Warrant Certificates
shall be initially issued in units with the Other Securities and each Warrant
Certificate included in such a unit shall evidence ___________ Warrants for
each [$___________ principal
amount] [____ shares] of Other Securities included in such
unit.]

2

     1.2 Execution And Delivery Of Warrant
Certificates. Each Warrant Certificate, whenever issued, shall be in
registered form substantially in the form set forth in Exhibit A hereto, shall
be dated the date of its countersignature by the Warrant Agent and may have such
letters, numbers, or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the
officers of the Company executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any securities exchange on which the Warrants may be listed, or to conform to
usage. The Warrant Certificates shall be signed on behalf of the Company by any
of its present or future chief executive officers, presidents, senior vice
presidents, vice presidents, chief financial officers, chief legal officers,
treasurers, assistant treasurers, controllers, assistant controllers,
secretaries or assistant secretaries under its corporate seal reproduced
thereon, if applicable. Such signatures may be manual or facsimile signatures of
such authorized officers and may be imprinted or otherwise reproduced on the
Warrant Certificates. The seal of the Company, if applicable, may be in the form
of a facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Warrant Certificates.

     No Warrant Certificate shall be
valid for any purpose, and no Warrant evidenced thereby shall be exercisable,
until such Warrant Certificate has been countersigned by the manual signature of
the Warrant Agent. Such signature by the Warrant Agent upon any Warrant
Certificate executed by the Company shall be conclusive evidence that the
Warrant Certificate so countersigned has been duly issued hereunder.

     In case any officer of the Company
who shall have signed any of the Warrant Certificates either manually or by
facsimile signature shall cease to be such officer before the Warrant
Certificates so signed shall have been countersigned and delivered by the
Warrant Agent, such Warrant Certificates may be countersigned and delivered
notwithstanding that the person who signed Warrant Certificates ceased to be
such officer of the Company; and any Warrant Certificate may be signed on behalf
of the Company by such persons as, at the actual date of the execution of such
Warrant Certificate, shall be the proper officers of the Company, although at
the date of the execution of this Agreement any such person was not such
officer.

     The term “holder” or “holder of a
Warrant Certificate” as used herein shall mean any person in whose name at the
time any Warrant Certificate shall be registered upon the books to be maintained
by the Warrant Agent for that purpose [If Other Securities and Warrants are not
immediately detachable—or upon the registration of the Other Securities prior to
the Detachable Date. Prior to the Detachable Date, the Company will, or will
cause the registrar of the Other Securities to, make available at all times to
the Warrant Agent such information as to holders of the Other Securities as may
be necessary to keep the Warrant Agent’s records up to date].

     1.3 Issuance Of Warrant Certificates. Warrant
Certificates evidencing the right to purchase Warrant Securities may be executed
by the Company and delivered to the Warrant Agent upon the execution of this
Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon
receipt of Warrant Certificates duly executed on behalf of the Company,
countersign such Warrant Certificates and shall deliver such Warrant
Certificates to or upon the order of the Company.

3

ARTICLE
2

WARRANT PRICE,
DURATION AND EXERCISE OF WARRANTS

     2.1 Warrant Price. During the period specified in
Section 2.2, each Warrant shall, subject to the terms of this Warrant Agreement
and the applicable Warrant Certificate, entitle the holder thereof to purchase
the number of Warrant Securities specified in the applicable Warrant Certificate
at an exercise price of $___________ per Warrant Security, subject to adjustment
upon the occurrence of certain events, as hereinafter provided. Such purchase
price per Warrant Security is referred to in this Agreement as the “WARRANT
PRICE.”

     2.2 Duration Of Warrants. Each Warrant may be
exercised in whole or in part at any time, as specified herein, on or after [the
date thereof] [___________] and at or before [___________]p.m., [City] time, on ___________ or such
later date as the Company may designate by notice to the Warrant Agent and the
holders of Warrant Certificates mailed to their addresses as set forth in the
record books of the Warrant Agent (the “Expiration Date”). Each Warrant not
exercised at or before [___________] p.m., [City] time, on the Expiration Date
shall become void, and all rights of the holder of the Warrant Certificate
evidencing such Warrant under this Agreement shall cease.

     2.3
Exercise Of Warrants.

          (a) During the period specified in Section 2.2, the
Warrants may be exercised to purchase a whole number of Warrant Securities in
registered form by providing certain information as set forth on the reverse
side of the Warrant Certificate and by paying in full, in lawful money of the
United States of America, [in cash or by certified check or official bank check
in New York Clearing House funds] [by bank wire transfer in immediately
available funds] the Warrant Price for each Warrant Security with respect to
which a Warrant is being exercised to the Warrant Agent at its corporate trust
office, provided that such exercise is subject to receipt within five business
days of such payment by the Warrant Agent of the Warrant Certificate with the
form of election to purchase Warrant Securities set forth on the reverse side of
the Warrant Certificate properly completed and duly executed. The date on which
payment in full of the Warrant Price is received by the Warrant Agent shall,
subject to receipt of the Warrant Certificate as aforesaid, be deemed to be the
date on which the Warrant is exercised; provided, however, that if, at the date
of receipt of such Warrant Certificates and payment in full of the Warrant
Price, the transfer books for the Warrant Securities purchasable upon the
exercise of such Warrants shall be closed, no such receipt of such Warrant
Certificates and no such payment of such Warrant Price shall be effective to
constitute the person so designated to be named as the holder of record of such
Warrant Securities on such date, but shall be effective to constitute such
person as the holder of record of such Warrant Securities for all purposes at
the opening of business on the next succeeding day on which the transfer books
for the Warrant Securities purchasable upon the exercise of such Warrants shall
be opened, and the certificates for the Warrant Securities in respect of which
such Warrants are then exercised shall be issuable as of the date on such next
succeeding day on which the transfer books shall next be opened, and until such
date the Company shall be under no duty to deliver any certificate for such
Warrant Securities. The Warrant Agent shall deposit all funds received by it in
payment of the Warrant Price in an account of the Company maintained with it and
shall advise the Company by telephone at the end of each day on which a payment
for the exercise of Warrants is received of the amount so deposited to its
account. The Warrant Agent shall promptly confirm such telephone advice to the
Company in writing.

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          (b) The Warrant Agent shall, from time to time, as
promptly as practicable, advise the Company of (i) the number of Warrant
Securities with respect to which Warrants were exercised, (ii) the instructions
of each holder of the Warrant Certificates evidencing such Warrants with respect
to delivery of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any,
of the Warrants for the remaining Warrant Securities after such exercise, and
(iv) such other information as the Company shall reasonably require.

          (c) As soon as practicable after the exercise of any
Warrant, the Company shall issue to or upon the order of the holder of the
Warrant Certificate evidencing such Warrant the Warrant Securities to which such
holder is entitled, in fully registered form, registered in such name or names
as may be directed by such holder. If fewer than all of the Warrants evidenced
by such Warrant Certificate were exercised, the Company shall execute, and an
authorized officer of the Warrant Agent shall manually countersign and deliver,
a new Warrant Certificate evidencing Warrants for the number of Warrant
Securities remaining unexercised.

          (d) The Company shall not be required to pay any stamp
or other tax or other governmental charge required to be paid in connection with
any transfer involved in the issue of the Warrant Securities, and in the event
that any such transfer is involved, the Company shall not be required to issue
or deliver any Warrant Security until such tax or other charge shall have been
paid or it has been established to the Company’s satisfaction that no such tax
or other charge is due.

          (e) Prior to the issuance of any Warrants there shall
have been reserved, and the Company shall at all times through the Expiration
Date keep reserved, out of its authorized but unissued Warrant Securities, a
number of shares sufficient to provide for the exercise of the
Warrants.

ARTICLE
3

OTHER PROVISIONS
RELATING TO RIGHTS OF HOLDERS OF WARRANT 
CERTIFICATES

     3.1 No Rights As Warrant Securityholder Conferred By
Warrants or Warrant Certificates. No Warrant Certificate or Warrant
evidenced thereby shall entitle the holder thereof to any of the rights of a
holder of Warrant Securities, including, without limitation, the right to
receive the payment of dividends or distributions, if any, on the Warrant
Securities or to exercise any voting rights, except to the extent expressly set
forth in this Agreement or the applicable Warrant Certificate.

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     3.2 Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it and the Company of the ownership of and the loss, theft,
destruction or mutilation of any Warrant Certificate and/or indemnity reasonably
satisfactory to the Warrant Agent and the Company and, in the case of
mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing Warrants for a like number of
Warrant Securities. Upon the issuance of any new Warrant Certificate under this
Section 3.2, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Warrant Agent) in
connection therewith. Every substitute Warrant Certificate executed and
delivered pursuant to this Section 3.2 in lieu of any lost, stolen or destroyed
Warrant Certificate shall represent an additional contractual obligation of the
Company, whether or not the lost, stolen or destroyed Warrant Certificate shall
be at any time enforceable by anyone, and shall be entitled to the benefits of
this Agreement equally and proportionately with any and all other Warrant
Certificates duly executed and delivered hereunder. The provisions of this
Section 3.2 are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement of mutilated, lost, stolen
or destroyed Warrant Certificates.

     3.3 Holder of Warrant Certificate May Enforce
Rights. Notwithstanding any of the provisions of this Agreement, any holder
of a Warrant Certificate, without the consent of the Warrant Agent, the holder
of any Warrant Securities or the holder of any other Warrant Certificate, may,
in such holder’s own behalf and for such holder’s own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, such holder’s right to exercise
the Warrants evidenced by such holder’s Warrant Certificate in the manner
provided in such holder’s Warrant Certificate and in this Agreement.

     3.4
Adjustments.

          (a) In case the Company shall at any time subdivide its
outstanding shares of [title of Preferred Stock purchasable through exercise of
Warrants] into a greater number of shares, the Warrant Price in effect
immediately prior to such subdivision shall be proportionately reduced and the
number of Warrant Securities purchasable under the Warrants shall be
proportionately increased. Conversely, in case the outstanding shares of [title
of Preferred Stock purchasable through exercise of Warrants] of the Company
shall be combined into a smaller number of shares, the Warrant Price in effect
immediately prior to such combination shall be proportionately increased and the
number of Warrant Securities purchasable under the Warrants shall be
proportionately decreased.

          (b) If at any time or from time to time the holders of
[title of Preferred Stock purchasable through exercise of Warrants] (or any
shares of stock or other securities at the time receivable upon the exercise of
the Warrants) shall have received or become entitled to receive, without payment
therefore,

               (i) [title of Preferred Stock purchasable through
exercise of Warrants] or any shares of stock or other securities which are at
any time directly or indirectly convertible into or exchangeable for [title of
Preferred Stock purchasable through exercise of Warrants], or any rights or
options to subscribe for, purchase or otherwise acquire any of the foregoing by
way of dividend or other distribution;

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               (ii) any cash paid or payable otherwise than in
accordance with the terms of [title of Preferred Stock purchasable through
exercise of Warrants] or otherwise than as a cash dividend paid or payable out
of the Company’s current or retained earnings;

               (iii) any evidence of the Company’s indebtedness or rights
to subscribe for or purchase the Company’s indebtedness; or

               (iv) [title of Preferred Stock purchasable through
exercise of Warrants] or additional stock or other securities or property
(including cash) by way of spinoff, split-up, reclassification, combination of
shares or similar corporate rearrangement (other than shares of [title of
Preferred Stock purchasable through exercise of Warrants] issued as a stock
split or adjustments in respect of which shall be covered by the terms of
Section 3.4(a) above), then and in each such case, the holder of each Warrant
shall, upon the exercise of the Warrant, be entitled to receive, in addition to
the number of Warrant Securities receivable thereupon, and without payment of
any additional consideration therefore, the amount of stock and other securities
and property (including cash and indebtedness or rights to subscribe for or
purchase indebtedness) which such holder would hold on the date of such exercise
had such holder been the holder of record of such Warrant Securities as of the
date on which holders of [title of Preferred Stock purchasable through exercise
of Warrants] received or became entitled to receive such shares or all other
additional stock and other securities and property.

          (c) In case of (i) any reclassification, capital
reorganization, or change in the [title of Preferred Stock purchasable through
the exercise of the Warrants] of the Company (other than as a result of a
subdivision, combination or stock dividend provided for in Section 3.4(a) or
Section 3.4(b) above), (ii) share exchange, merger or similar transaction of the
Company with or into another person or entity (other than a share exchange,
merger or similar transaction in which the Company is the acquiring or surviving
corporation and which does not result in any change in the [title of Preferred
Stock purchasable through the exercise of the Warrants] other than the issuance
of additional shares of [title of Preferred Stock purchasable through the
exercise of the Warrants]) or (iii) the sale, exchange, lease, transfer or other
disposition of all or substantially all of the properties and assets of the
Company as an entirety (in any such case, a “Reorganization Event”), then, as a
condition of such Reorganization Event, lawful provisions shall be made, and
duly executed documents evidencing the same from the Company or its successor
shall be delivered to the holders of the Warrants, so that the holders of the
Warrants shall have the right at any time prior to the expiration of the
Warrants to purchase, at a total price equal to that payable upon the exercise
of the Warrants, the kind and amount of shares of stock and other securities and
property receivable in connection with such Reorganization Event by a holder of
the same number of shares of [title of Preferred Stock purchasable through the
exercise of the Warrants] as were purchasable by the holders of the Warrants
immediately prior to such Reorganization Event. In any such case appropriate
provisions shall be made with respect to the rights and interests of the holders
of the Warrants so that the provisions hereof shall thereafter be applicable
with respect to any shares of stock or other securities and property deliverable
upon exercise the Warrants, and appropriate adjustments shall be made to the
Warrant Price payable hereunder provided the aggregate purchase price shall
remain the same.

7

In the case of any
transaction described in clauses (ii) and (iii) above, the Company shall
thereupon be relieved of any further obligation hereunder or under the Warrants,
and the Company as the predecessor corporation may thereupon or at any time
thereafter be dissolved, wound up or liquidated. Such successor or assuming
entity thereupon may cause to be signed, and may issue either in its own name or
in the name of the Company, any or all of the Warrants issuable hereunder which
heretofore shall not have been signed by the Company, and may execute and
deliver securities in its own name, in fulfillment of its obligations to deliver
Warrant Securities upon exercise of the Warrants. All the Warrants so issued
shall in all respects have the same legal rank and benefit under this Agreement
as the Warrants theretofore or thereafter issued in accordance with the terms of
this Agreement as though all of such Warrants had been issued at the date of the
execution hereof. In any case of any such Reorganization Event, such changes in
phraseology and form (but not in substance) may be made in the Warrants
thereafter to be issued as may be appropriate.

     The Warrant Agent may receive a
written opinion of legal counsel as conclusive evidence that any such
Reorganization Event complies with the provisions of this Section
3.4.

          (d) The Company may, at its option, at any time until
the Expiration Date, reduce the then current Warrant Price to any amount deemed
appropriate by the Board of Directors of the Company for any period not
exceeding twenty consecutive days (as evidenced in a resolution adopted by such
Board of Directors), but only upon giving the notices required by Section 3.5 at
least ten days prior to taking such action.

          (e) Except as herein otherwise expressly provided, no
adjustment in the Warrant Price shall be made by reason of the issuance of any
securities of the Company or for any other reason whatsoever.

          (f) No fractional Warrant Securities shall be issued
upon the exercise of Warrants. If more than one Warrant shall be exercised at
one time by the same holder, the number of full Warrant Securities which shall
be issuable upon such exercise shall be computed on the basis of the aggregate
number of Warrant Securities purchased pursuant to the Warrants so exercised.
Instead of any fractional Warrant Security which would otherwise be issuable
upon exercise of any Warrant, the Company shall pay a cash adjustment in respect
of such fraction in an amount equal to the same fraction of the last sales price
(or bid price if there were no sales) per Warrant Security, in either case as
reported on the New York Stock Exchange Composite Tape on the business day which
next precedes the day of exercise or, if the Warrant Securities are not then
listed or admitted to trading on the New York Stock Exchange, on the principal
national securities exchange on which the Warrant Securities are listed or
admitted to trading or, if not listed or admitted to trading on any national
securities exchange, the average of the closing high bid and low asked prices in
the over-the-counter market, as reported by The Nasdaq Stock Market, Inc. or the
National Association of Securities Dealers, Inc., as applicable (“NASDAQ”), or
such other system then in use, or if on any such date the Warrant Securities are
not quoted by any such organization, an amount equal to the same fraction of the
average of the closing bid and asked prices as furnished by any New York Stock
Exchange firm selected from time to time by the Company for that purpose at the
close of business on the business day which next precedes the day of
exercise.

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          (g) Whenever the Warrant Price then in effect is
adjusted as herein provided, the Company shall mail to each holder of the
Warrants at such holder’s address as it shall appear on the books of the Company
a statement setting forth the adjusted Warrant Price then and thereafter
effective under the provisions hereof, together with the facts, in reasonable
detail, upon which such adjustment is based.

     3.5 Notice to Warrantholders. In case the Company
shall (a) effect any dividend or distribution described in Section 3.4(b), (b)
effect any Reorganization Event, (c) make any distribution on or in respect of
the [title of Preferred Stock purchasable through the exercise of the Warrants]
in connection with the dissolution, liquidation or winding up of the Company, or
(d) reduce the then current Warrant Price pursuant to Section 3.4(d), then the
Company shall mail to each holder of Warrants at such holder’s address as it
shall appear on the books of the Warrant Agent, at least ten days prior to the
applicable date hereinafter specified, a notice stating (x) the record date for
such dividend or distribution, or, if a record is not to be taken, the date as
of which the holders of record of [title of Preferred Stock purchasable through
the exercise of Warrants] that will be entitled to such dividend or distribution
are to be determined, (y) the date on which such Reorganization Event,
dissolution, liquidation or winding up is expected to become effective, and the
date as of which it is expected that holders of [title of Preferred Stock
purchasable through the exercise of the Warrants] of record shall be entitled to
exchange their shares of [title of Preferred Stock purchasable through the
exercise of the Warrants] for securities or other property deliverable upon such
Reorganization Event, dissolution, liquidation or winding up, or (z) the first
date on which the then current Warrant Price shall be reduced pursuant to
Section 3.4(d). No failure to mail such notice nor any defect therein or in the
mailing thereof shall affect any such transaction or any adjustment in the
Warrant Price required by Section 3.4.

     3.6 [IF THE WARRANTS ARE SUBJECT TO ACCELERATION BY
THE COMPANY, INSERT—ACCELERATION OF WARRANTS BY THE COMPANY.

          (a) At any time on or after __________, the Company
shall have the right to accelerate any or all Warrants at any time by causing
them to expire at the close of business on the day next preceding a specified
date (the “ACCELERATION DATE”), if the Market Price (as hereinafter defined) of
the [title of Preferred Stock purchasable through the exercise of the Warrants]
equals or exceeds __________ percent (____%) of the then effective Warrant Price
on any twenty Trading Days (as hereinafter defined) within a period of thirty
consecutive Trading Days ending no more than five Trading Days prior to the date
on which the Company gives notice to the Warrant Agent of its election to
accelerate the Warrants.

          (b) “Market Price” for each Trading Day shall be, if the
[title of Preferred Stock purchasable through the exercise of the Warrants] is
listed or admitted for trading on the New York Stock Exchange, the last reported
sale price, regular way (or, if no such price is reported, the average of the
reported closing bid and asked prices, regular way) of [title of Preferred Stock
purchasable through the exercise of the Warrants], in either case as reported on
the New York Stock Exchange Composite Tape or, if the [title of Preferred Stock
purchasable through the exercise of the Warrants] is not listed or admitted to
trading on the New York Stock Exchange, on the principal national securities
exchange on which the [title of Preferred Stock purchasable through the exercise
of the Warrants] is listed or admitted to trading or, if not listed or admitted
to trading on any national securities exchange, the average of the closing high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ,
or such other system then in use, or if on any such date the shares of [title of
Preferred Stock purchasable through the exercise of the Warrants] are not quoted
by any such organization, the average of the closing bid and asked prices as
furnished by any New York Stock Exchange firm selected from time to time by the
Company for that purpose. “Trading Day” shall be each Monday through Friday,
other than any day on which securities are not traded in the system or on the
exchange that is the principal market for the [title of Preferred Stock
purchasable through the exercise of the Warrants], as determined by the Board of
Directors of the Company.

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          (c) In the event of an acceleration of less than all of
the Warrants, the Warrant Agent shall select the Warrants to be accelerated by
lot, pro rata or in such other manner as it deems, in its discretion, to be fair
and appropriate.

          (d) Notice of an acceleration specifying the
Acceleration Date shall be sent by mail first class, postage prepaid, to each
registered holder of a Warrant Certificate representing a Warrant accelerated at
such holder’s address appearing on the books of the Warrant Agent not more than
sixty days nor less than thirty days before the Acceleration Date. Such notice
of an acceleration also shall be given no more than twenty days, and no less
than ten days, prior to the mailing of notice to registered holders of Warrants
pursuant to this Section 3.6, by publication at least once in a newspaper of
general circulation in the City of New York.

          (e) Any Warrant accelerated may be exercised until
[____] p.m., [City] time, on the business day next preceding the Acceleration
Date. The Warrant Price shall be payable as provided in Section 2.]

ARTICLE
4

EXCHANGE AND
TRANSFER OF WARRANT CERTIFICATES

     4.1 Exchange and Transfer of Warrant
Certificates. [If Other Securities with Warrants which are immediately
detachable—Upon] [If Other Securities with Warrants which are not immediately
detachable—Prior to the Detachable Date, a Warrant Certificate may be exchanged
or transferred only together with the Other Security to which the Warrant
Certificate was initially attached, and only for the purpose of effecting or in
conjunction with an exchange or transfer of such Other Security. Prior to any
Detachable Date, each transfer of the Other Security shall operate also to
transfer the related Warrant Certificates. After the Detachable Date, upon]
surrender at the corporate trust office of the Warrant Agent, Warrant
Certificates evidencing Warrants may be exchanged for Warrant Certificates in
other denominations evidencing such Warrants or the transfer thereof may be
registered in whole or in part; provided that such other Warrant Certificates
evidence Warrants for the same aggregate number of Warrant Securities as the
Warrant Certificates so surrendered. The Warrant Agent shall keep, at its
corporate trust office, books in which, subject to such reasonable regulations
as it may prescribe, it shall register Warrant Certificates and exchanges and
transfers of outstanding Warrant Certificates, upon surrender of the Warrant
Certificates to the Warrant Agent at its corporate trust office for exchange or
registration of transfer, properly endorsed or accompanied by appropriate
instruments of registration of transfer and written instructions for transfer,
all in form satisfactory to the Company and the Warrant Agent.

10

No service charge
shall be made for any exchange or registration of transfer of Warrant
Certificates, but the Company may require payment of a sum sufficient to cover
any stamp or other tax or other governmental charge that may be imposed in
connection with any such exchange or registration of transfer. Whenever any
Warrant Certificates are so surrendered for exchange or registration of
transfer, an authorized officer of the Warrant Agent shall manually countersign
and deliver to the person or persons entitled thereto a Warrant Certificate or
Warrant Certificates duly authorized and executed by the Company, as so
requested. The Warrant Agent shall not be required to effect any exchange or
registration of transfer which will result in the issuance of a Warrant
Certificate evidencing a Warrant for a fraction of a Warrant Security or a
number of Warrants for a whole number of Warrant Securities and a fraction of a
Warrant Security. All Warrant Certificates issued upon any exchange or
registration of transfer of Warrant Certificates shall be the valid obligations
of the Company, evidencing the same obligations and entitled to the same
benefits under this Agreement as the Warrant Certificate surrendered for such
exchange or registration of transfer.

     4.2 Treatment of Holders of Warrant Certificates.
[If Other Securities and Warrants are not immediately detachable—Prior to the
Detachable Date, the Company, the Warrant Agent and all other persons may treat
the owner of the Other Security as the owner of the Warrant Certificates
initially attached thereto for any purpose and as the person entitled to
exercise the rights represented by the Warrants evidenced by such Warrant
Certificates, any notice to the contrary notwithstanding. After the Detachable
Date and prior to due presentment of a Warrant Certificate for registration of
transfer, the] [The] Company, the Warrant Agent and all other persons may treat
the registered holder of a Warrant Certificate as the absolute owner thereof for
any purpose and as the person entitled to exercise the rights represented by the
Warrants evidenced thereby, any notice to the contrary
notwithstanding.

     4.3 Cancellation of Warrant Certificates. Any
Warrant Certificate surrendered for exchange, registration of transfer or
exercise of the Warrants evidenced thereby shall, if surrendered to the Company,
be delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu
thereof. The Warrant Agent shall deliver to the Company from time to time or
otherwise dispose of canceled Warrant Certificates in a manner satisfactory to
the Company.

ARTICLE
5

CONCERNING THE
WARRANT AGENT

     5.1 Warrant Agent. The Company hereby appoints
______________ as Warrant Agent of the Company in respect of the Warrants and the
Warrant Certificates upon the terms and subject to the conditions herein set
forth, and _____________ hereby accepts such appointment. The Warrant Agent shall have the powers
and authority granted to and conferred upon it in the Warrant Certificates and
hereby and such further powers and authority to act on behalf of the Company as
the Company may hereafter grant to or confer upon it. All of the terms and
provisions with respect to such powers and authority contained in the Warrant
Certificates are subject to and governed by the terms and provisions
hereof.

11

     5.2 Conditions of Warrant Agent’s Obligations.
The Warrant Agent accepts its obligations herein set forth upon the terms and
conditions hereof, including the following to all of which the Company agrees
and to all of which the rights hereunder of the holders from time to time of the
Warrant Certificates shall be subject:

          (a) Compensation and Indemnification. The Company
agrees promptly to pay the Warrant Agent the compensation to be agreed upon with
the Company for all services rendered by the Warrant Agent and to reimburse the
Warrant Agent for reasonable out-of-pocket expenses (including reasonable
counsel fees) incurred without negligence, bad faith or willful misconduct by
the Warrant Agent in connection with the services rendered hereunder by the
Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and
to hold it harmless against, any loss, liability or expense incurred without
negligence, bad faith or willful misconduct on the part of the Warrant Agent,
arising out of or in connection with its acting as Warrant Agent hereunder,
including the reasonable costs and expenses of defending against any claim of
such liability.

          (b) Agent for the Company. In acting under this
Warrant Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligations or relationship of agency or trust for or with any of the holders of
Warrant Certificates or beneficial owners of Warrants.

          (c) Counsel. The Warrant Agent may consult with
counsel satisfactory to it, which may include counsel for the Company, and the
written advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with the advice of such counsel.

          (d) Documents. The Warrant Agent shall be
protected and shall incur no liability for or in respect of any action taken or
omitted by it in reliance upon any Warrant Certificate, notice, direction,
consent, certificate, affidavit, statement or other paper or document reasonably
believed by it to be genuine and to have been presented or signed by the proper
parties.

          (e) Certain Transactions. The Warrant Agent, and
its officers, directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have if it
were not the Warrant Agent hereunder, and, to the extent permitted by applicable
law, it or they may engage or be interested in any financial or other
transaction with the Company and may act on, or as depositary, trustee or agent
for, any committee or body of holders of Warrant Securities or other obligations
of the Company as freely as if it were not the Warrant Agent hereunder. Nothing
in this Warrant Agreement shall be deemed to prevent the Warrant Agent from
acting as trustee under any indenture to which the Company is a
party.

          (f) No Liability for Interest. Unless otherwise
agreed with the Company, the Warrant Agent shall have no liability for interest
on any monies at any time received by it pursuant to any of the provisions of
this Agreement or of the Warrant Certificates.

          (g) No Liability for Invalidity. The Warrant Agent shall have
no liability with
respect to any invalidity of this Agreement or any of the Warrant Certificates
(except as to the Warrant Agent’s countersignature
thereon).

12

          (h) No Responsibility for Representations. The
Warrant Agent shall not be responsible for any of the recitals or
representations herein or in the Warrant Certificates (except as to the Warrant
Agent’s countersignature thereon), all of which are made solely by the
Company.

          (i) No Implied Obligations. The Warrant Agent
shall be obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or obligations shall
be read into this Agreement or the Warrant Certificates against the Warrant
Agent. The Warrant Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability, the payment
of which within a reasonable time is not, in its reasonable opinion, assured to
it. The Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant Certificates
authenticated by the Warrant Agent and delivered by it to the Company pursuant
to this Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or responsibility in
case of any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrant Certificates or in the case of the
receipt of any written demand from a holder of a Warrant Certificate with
respect to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.2 hereof, to
make any demand upon the Company.

     5.3
Resignation, Removal and Appointment of Successors.

          (a) The Company agrees, for the benefit of the holders
from time to time of the Warrant Certificates, that there shall at all times be
a Warrant Agent hereunder until all the Warrants have been exercised or are no
longer exercisable.

          (b) The Warrant Agent may at any time resign as agent by
giving written notice to the Company of such intention on its part, specifying
the date on which its desired resignation shall become effective; provided that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the
intended date when it shall become effective. Such resignation or removal shall
take effect upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company authorized under
the laws of the jurisdiction of its organization to exercise corporate trust
powers) and the acceptance of such appointment by such successor Warrant Agent.
The obligation of the Company under Section 5.2(a) shall continue to the extent
set forth therein notwithstanding the resignation or removal of the Warrant
Agent.

13

          (c) In case at any time the Warrant Agent shall resign,
or shall be removed, or shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or shall commence a voluntary case under the Federal
bankruptcy laws, as now or hereafter constituted, or under any other applicable
Federal or state bankruptcy, insolvency or similar law or shall consent to the
appointment of or taking possession by a receiver, custodian, liquidator,
assignee, trustee, sequestrator (or other similar official) of the Warrant Agent
or its property or affairs, or shall make an assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally as
they become due, or shall take corporate action in furtherance of any such
action, or a decree or order for relief by a court having jurisdiction in the
premises shall have been entered in respect of the Warrant Agent in an
involuntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or any other applicable Federal or state bankruptcy, insolvency or
similar law, or a decree or order by a court having jurisdiction in the premises
shall have been entered for the appointment of a receiver, custodian,
liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant
Agent or of its property or affairs, or any public officer shall take charge or
control of the Warrant Agent or of its property or affairs for the purpose of
rehabilitation, conservation, winding up or liquidation, a successor Warrant
Agent, qualified as aforesaid, shall be appointed by the Company by an
instrument in writing, filed with the successor Warrant Agent. Upon the
appointment as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment, the Warrant Agent shall cease to be
Warrant Agent hereunder.

          (d) Any successor Warrant Agent appointed hereunder
shall execute, acknowledge and deliver to its predecessor and to the Company an
instrument accepting such appointment hereunder, and thereupon such successor
Warrant Agent, without any further act, deed or conveyance, shall become vested
with all the authority, rights, powers, trusts, immunities, duties and
obligations of such predecessor with like effect as if originally named as
Warrant Agent hereunder, and such predecessor, upon payment of its charges and
disbursements then unpaid, shall thereupon become obligated to transfer, deliver
and pay over, and such successor Warrant Agent shall be entitled to receive, all
monies, securities and other property on deposit with or held by such
predecessor, as Warrant Agent hereunder.

          (e) Any corporation into which the Warrant Agent
hereunder may be merged or converted or any corporation with which the Warrant
Agent may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Warrant Agent shall be a party, or any
corporation to which the Warrant Agent shall sell or otherwise transfer all or
substantially all the assets and business of the Warrant Agent, provided that it
shall be qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

ARTICLE
6

MISCELLANEOUS

     6.1 Amendment. This Agreement may be amended by
the parties hereto, without the consent of the holder of any Warrant
Certificate, for the purpose of curing any ambiguity, or of curing, correcting
or supplementing any defective provision contained herein, or making any other
provisions with respect to matters or questions arising under this Agreement as
the Company and the Warrant Agent may deem necessary or desirable; provided that
such action shall not materially adversely affect the interests of the holders
of the Warrant Certificates.

14

     6.2
Notices and Demands to the Company and Warrant Agent. If the Warrant Agent
shall receive any notice or demand addressed to the Company by the holder of a
Warrant Certificate pursuant to the provisions of the Warrant Certificates, the
Warrant Agent shall promptly forward such notice or demand to the
Company.

     6.3 Addresses. Any communication from the Company
to the Warrant Agent with respect to this Agreement shall be addressed to
__________, Attention: __________ and any communication from the Warrant Agent
to the Company with respect to this Agreement shall be addressed to Avigen,
Inc., 1301 Harbor Bay Parkway, Alameda, California 94502, Attention: General
Counsel (or such other address as shall be specified in writing by the Warrant
Agent or by the Company).

     6.4 Governing Law. This Agreement and each
Warrant Certificate issued hereunder shall be governed by and construed in
accordance with the laws of the State of New York.

     6.5 Delivery of Prospectus. The Company shall
furnish to the Warrant Agent sufficient copies of a prospectus meeting the
requirements of the Securities Act of 1933, as amended, relating to the Warrant
Securities deliverable upon exercise of the Warrants (the “Prospectus”), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus.

     The Warrant Agent shall not, by
reason of any such delivery, assume any responsibility for the accuracy or
adequacy of such Prospectus.

     6.6 Obtaining of Governmental Approvals. The
Company will from time to time take all action which may be necessary to obtain
and keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities act filings under United States Federal
and state laws (including without limitation a registration statement in respect
of the Warrants and Warrant Securities under the Securities Act of 1933, as
amended), which may be or become requisite in connection with the issuance,
sale, transfer, and delivery of the Warrant Securities issued upon exercise of
the Warrants, the issuance, sale, transfer and delivery of the Warrants or upon
the expiration of the period during which the Warrants are
exercisable.

     6.7 Persons Having Rights Under Warrant
Agreement. Nothing in this Agreement shall give to any person other than the
Company, the Warrant Agent and the holders of the Warrant Certificates any
right, remedy or claim under or by reason of this Agreement.

     6.8 Headings. The descriptive headings of the
several Articles and Sections of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the
provisions hereof.

     6.9 Counterparts. This Agreement may be executed
in any number of counterparts, each of which as so executed shall be deemed to
be an original, but such counterparts shall together constitute but one and the
same instrument.

     6.10 Inspection of
Agreement. A copy of this Agreement shall be available at all reasonable
times at the principal corporate trust office of the Warrant Agent for
inspection by the holder of any Warrant Certificate. The Warrant Agent may
require such holder to submit the Warrant Certificate for inspection by
it.

15

     IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, all as of the day and year first above written.

	 		AVIGEN, INC. 
			 
	 		By 	 
	 		Its 	 
	Attest: 	 	 
	 	 	 
	 	 	 
	 		Warrant Agent 
			 
	 		By 	 
	 		Its 	 
	Attest: 		 
	 		
	 		

 

 

 

 

 

 

 

 

SIGNATURE PAGE TO PREFERRED STOCK WARRANT
AGREEMENT

EXHIBIT
A

FORM OF WARRANT
CERTIFICATE 
[FACE OF WARRANT CERTIFICATE]

	[[Form if Warrants are attached to Other Securities and are not
      immediately detachable.]	 	[Prior to _____________, this Warrant Certificate cannot be transferred or
      exchanged unless attached to a [Title of Other
    Securities].]
	 
      
	[Form of Legend if Warrants are not immediately
      exercisable.]		[Prior to _____________, Warrants evidenced by this Warrant Certificate cannot
      be exercised.]

	EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT AGENT
      AS 
	PROVIDED HEREIN
	 
	VOID AFTER
      [_____] P.M., [CITY] TIME, ON
      __________, 

AVIGEN,
INC.
WARRANT
CERTIFICATE REPRESENTING 
WARRANTS TO PURCHASE
[TITLE OF WARRANT
SECURITIES]

	No. __________	Warrants

     This certifies that __________ or
registered assigns is the registered owner of the above indicated number of
Warrants, each Warrant entitling such owner [if Warrants are attached to Other
Securities and are not immediately detachable—, subject to the registered owner
qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined),]
to purchase, at any time [after [___] p.m., [City] time, on __________ and] on
or before [___] p.m., [City] time, on __________ shares of [Title of Warrant
Securities] (the “Warrant Securities”), of Avigen, Inc. (the “Company”) on the
following basis: during the period from __________, through and including
__________, the exercise price per Warrant Security will be $____, subject
to adjustment as provided in the Warrant Agreement (as hereinafter defined) (the
“Warrant Price”). The Holder may exercise the Warrants evidenced hereby by
providing certain information set forth on the back hereof and by paying in
full, in lawful money of the United States of America, [in cash or by certified
check or official bank check in New York Clearing House funds] [by bank wire
transfer in immediately available funds], the Warrant Price for each Warrant
Security with respect to which this Warrant is exercised to the Warrant Agent
(as hereinafter defined) and by surrendering this Warrant Certificate, with the
purchase form on the back hereof duly executed, at the corporate trust office of
[name of Warrant Agent], or its successor as warrant agent (the “Warrant
Agent”), which is, on the date hereof, at the address specified on the reverse
hereof, and upon compliance with and subject to the conditions set forth herein
and in the Warrant Agreement (as hereinafter defined).

     The term “Holder” as used herein
shall mean [if Warrants are attached to Other Securities and are not immediately
detachable—prior to __________ (the “Detachable Date”), the registered owner of
the Company’s [title of Other Securities] to which this Warrant Certificate was
initially attached, and after such Detachable Date,] the person in whose name at
the time this Warrant Certificate shall be registered upon the books to be
maintained by the Warrant Agent for that purpose pursuant to Section 4 of the
Warrant Agreement.

     The Warrants evidenced by this
Warrant Certificate may be exercised to purchase a whole number of Warrant
Securities in registered form. Upon any exercise of fewer than all of the
Warrants evidenced by this Warrant Certificate, there shall be issued to the
Holder hereof a new Warrant Certificate evidencing Warrants for the number of
Warrant Securities remaining unexercised.

     This Warrant Certificate is issued
under and in accordance with the Warrant Agreement dated as of __________, ____
(the “Warrant Agreement”), between the Company and the Warrant Agent and is
subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate consents by
acceptance hereof. Copies of the Warrant Agreement are on file at the
above-mentioned office of the Warrant Agent.

     [If Warrants are attached to Other
Securities and are not immediately detachable – Prior to the Detachable Date,
this Warrant Certificate may be exchanged or transferred only together with the
[Title of Other Securities] (the “Other Securities”) to which this Warrant
Certificate was initially attached, and only for the purpose of effecting or in
conjunction with, an exchange or transfer of such Other Security. Additionally,
on or prior to the Detachable Date, each transfer of such Other Security on the
register of the Other Securities shall operate also to transfer this Warrant
Certificate. After such date, transfer of this] [If Warrants are attached to
Other Securities and are immediately detachable – Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent by the registered owner or such
owner’s assigns, in the manner and subject to the limitations provided in the
Warrant Agreement.

     [If Other Securities with Warrants
which are not immediately detachable – Except as provided in the immediately
preceding paragraph, after] [If Other Securities with Warrants which are
immediately detachable or Warrants alone – After] countersignature by the
Warrant Agent and prior to the expiration of this Warrant Certificate, this
Warrant Certificate may be exchanged at the corporate trust office of the
Warrant Agent for Warrant Certificates representing Warrants for the same
aggregate number of Warrant Securities.

     This Warrant Certificate shall not
entitle the Holder hereof to any of the rights of a holder of the Warrant
Securities, including, without limitation, the right to receive payments of
dividends or distributions, if any, on the Warrant Securities (except to the
extent set forth in the Warrant Agreement) or to exercise any voting
rights.

     Reference is hereby made to the
further provisions of this Warrant Certificate set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Warrant Certificate shall not
be valid or obligatory for any purpose until countersigned by the Warrant
Agent.

     IN
WITNESS WHEREOF, the
Company has caused this Warrant to be executed in its name and on its behalf by
the facsimile signatures of its duly authorized officers.

	Dated: 	 		 
	 	 	AVIGEN, INC. 
			 
	 		By 	 
	 	 	Its 	 
	Attest: 		 
	 	 	 	  
	 		Countersigned: 
			 
	 	 	 
	 		As Warrant Agent 
	 
	 		By 	 
	 		Authorized
Signature 

[REVERSE OF WARRANT
CERTIFICATE]

(Instructions for
Exercise of Warrant)

     To exercise any Warrants evidenced
hereby for Warrant Securities (as hereinafter defined), the Holder must pay, in
lawful money of the United States of America, [in cash or by certified check or
official bank check in New York Clearing House funds] [by bank wire transfer in
immediately available funds], the Warrant Price in full for Warrants exercised,
to [Warrant Agent] [address of Warrant Agent], Attn: __________, which payment
must specify the name of the Holder and the number of Warrants exercised by such
Holder. In addition, the Holder must complete the information required below and
present this Warrant Certificate in person or by mail (certified or registered
mail is recommended) to the Warrant Agent at the appropriate address set forth
above. This Warrant Certificate, completed and duly executed, must be received
by the Warrant Agent within five business days of the payment.

(To be executed upon
exercise of Warrants)

     The undersigned hereby irrevocably
elects to exercise __________ Warrants, evidenced by this Warrant Certificate,
to purchase __________ shares of the [Title of Warrant Securities] (the “Warrant
Securities”), of Avigen, Inc. and represents that the undersigned has tendered
payment for such Warrant Securities, in lawful money of the United States of
America, [in cash or by certified check or official bank check in New York
Clearing House funds] [by bank wire transfer in immediately available funds], to
the order of Avigen, Inc., c/o [insert name and address of Warrant Agent], in
the amount of $____ in accordance with the terms hereof. The undersigned
requests that said Warrant Securities be in fully registered form in the
authorized denominations, registered in such names and delivered all as
specified in accordance with the instructions set forth below.

     If the number of Warrants exercised
is less than all of the Warrants evidenced hereby, the undersigned requests that
a new Warrant Certificate evidencing the Warrants for the number of Warrant
Securities remaining unexercised be issued and delivered to the undersigned
unless otherwise specified in the instructions below.

	Dated 	      	 		Name 	  
	 	 		Please
      Print 
	Address:	 	 	 	 	 
	 	 			
	 
	 
	  	
	(Insert
      Social Security or Other Identifying Number of Holder)   
	 
	
Signature Guaranteed	 
       		 	 
		Signature 			 

(Signature must
conform in all respects to name of holder as specified on the face of this
Warrant Certificate and must bear a signature guarantee by a bank, trust company
or member broker of the New York, Midwest or Pacific Stock
Exchange).

This Warrant may be
exercised at the following addresses:

	By hand at 	 	
	 	 
	 	 
	 	
	By mail at 	 	
	 	
	 	

[Instructions as to
form and delivery of Warrant Securities and, if applicable, Warrant Certificates
evidencing Warrants for the number of Warrant Securities remaining
unexercised—complete as appropriate.]

ASSIGNMENT

[Form of assignment to
be executed if Warrant Holder desires to transfer Warrant)

FOR VALUE RECEIVED,
__________ hereby sells, assigns and transfers unto:

	 		
	 		
	 	 	 
	(Please print name and address including zip code) 		Please print Social Security or other identifying
      number 

the right represented
by the within Warrant to purchase _______ shares of [Title of Warrant
Securities] of Avigen, Inc. to which the within Warrant relates and appoints
____________ attorney to transfer such right on the books of the Warrant Agent
with full power of substitution in the premises.

	Dated 	 	 	 
	 		Signature 

(Signature must
conform in all respects to name of holder as specified on the face of the
Warrant)

	Signature GuaranteedEXHIBIT 4.10 

 

 

 

 

 

AVIGEN,
INC.

and

________, AS WARRANT AGENT

FORM OF DEBT
SECURITIES 
WARRANT AGREEMENT

DATED AS OF
_______

 

 

 

 

 

AVIGEN, INC.

FORM OF DEBT SECURITIES WARRANT
AGREEMENT

     DEBT
SECURITIES WARRANT
AGREEMENT (this
“Agreement”), dated as of __________ between AVIGEN, INC., a Delaware corporation
(the “Company”) and  __________, a [corporation] [national banking
association] organized and existing under the laws of  __________ and
having a corporate trust office in  __________, as warrant agent (the
“Warrant Agent”). 

     WHEREAS, the Company has entered into an indenture dated as of
[__________ (the “Senior Indenture”), with  __________, as trustee (such
trustee, and any successors to such trustee, herein called the “Senior
Trustee”), providing for the issuance from time to time of its unsubordinated
debt securities, to be issued in one or more series as provided in the Senior
Indenture (the “Debt Securities”);] [__________ (the “Subordinated Indenture”),
with  __________, as trustee (such trustee, and any successors to such
trustee, herein called the “Subordinated Trustee”), providing for the issuance
from time to time of its subordinated debt securities, to be issued in one or
more series as provided in the Subordinated Indenture (the “Debt Securities”);]

     WHEREAS, the Company proposes to sell [If Warrants are sold with other
securities—title of such other Securities being offered (the “Other Securities”)
with] warrant certificates evidencing one or more warrants (the “Warrants” or,
individually, a “Warrant”) representing the right to purchase [title of Debt
Securities purchasable through exercise of Warrants] (the “Warrant Debt
Securities”), such warrant certificates and other warrant certificates issued
pursuant to this Agreement being herein called the “Warrant Certificates”; and

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing so to act, in connection with the
issuance, registration, transfer, exchange, exercise and replacement of the
Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and
conditions on which they may be issued, registered, transferred, exchanged,
exercised and replaced. 

     NOW, THEREFORE, in consideration of the premises and of the mutual agreements
herein contained, the parties hereto agree as follows: 

ARTICLE 1 

ISSUANCE OF WARRANTS AND EXECUTION
AND DELIVERY OF WARRANT CERTIFICATES 

     1.1 Issuance of Warrants. [If Warrants
alone—Upon issuance, each Warrant Certificate shall evidence one or more
Warrants.] [If Other Securities and Warrants—Warrant Certificates shall be
[initially] issued in connection with the issuance of the Other Securities [but
shall be separately transferable on and after ___________ (the “Detachable
Date”)] [and shall not be separately transferable] and each Warrant Certificate
shall evidence one or more Warrants.] Each Warrant evidenced thereby shall
represent the right, subject to the provisions contained herein and therein, to
purchase one Warrant Debt Security. [If Other Securities and Warrants—Warrant
Certificates shall be initially issued in units with the Other Securities and
each Warrant Certificate included in such a unit shall evidence ___________
Warrants for each [$_______ principal amount] [______ shares] of Other
Securities included in such unit].

2 

     1.2 Execution and Delivery of Warrant
Certificates. Each Warrant Certificate, whenever issued, shall be in
registered form substantially in the form set forth in Exhibit A hereto, shall
be dated the date of its countersignature by the Warrant Agent and may have such
letters, numbers, or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the
officers of the Company executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any securities exchange on which the Warrants may be listed, or to conform to
usage. The Warrant Certificates shall be signed on behalf of the Company by any
of its present or future chief executive officers, presidents, senior vice
presidents, vice presidents, chief financial officers, chief legal officers,
treasurers, assistant treasurers, controllers, assistant controllers,
secretaries or assistant secretaries under its corporate seal reproduced
thereon, if applicable. Such signatures may be manual or facsimile signatures of
such authorized officers and may be imprinted or otherwise reproduced on the
Warrant Certificates. The seal of the Company, if applicable, may be in the form
of a facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Warrant Certificates.

     No Warrant Certificate shall be
valid for any purpose, and no Warrant evidenced thereby shall be exercisable,
until such Warrant Certificate has been countersigned by the manual signature of
the Warrant Agent. Such signature by the Warrant Agent upon any Warrant
Certificate executed by the Company shall be conclusive evidence that the
Warrant Certificate so countersigned has been duly issued hereunder.

     In case any officer of the Company
who shall have signed any of the Warrant Certificates either manually or by
facsimile signature shall cease to be such officer before the Warrant
Certificates so signed shall have been countersigned and delivered by the
Warrant Agent, such Warrant Certificates may be countersigned and delivered
notwithstanding that the person who signed Warrant Certificates ceased to be
such officer of the Company; and any Warrant Certificate may be signed on behalf
of the Company by such persons as, at the actual date of the execution of such
Warrant Certificate, shall be the proper officers of the Company, although at
the date of the execution of this Agreement any such person was not such
officer.

     The term “holder” or “holder of a
Warrant Certificate” as used herein shall mean any person in whose name at the
time any Warrant Certificate shall be registered upon the books to be maintained
by the Warrant Agent for that purpose [If Other Securities and Warrants are not
immediately detachable—or upon the registration of the Other Securities prior to
the Detachable Date. Prior to the Detachable Date, the Company will, or will
cause the registrar of the Other Securities to, make available at all times to
the Warrant Agent such information as to holders of the Other Securities as may
be necessary to keep the Warrant Agent’s records up to date].

3

     1.3 Issuance of Warrant Certificates. Warrant
Certificates evidencing the right to purchase Warrant Debt Securities may be
executed by the Company and delivered to the Warrant Agent upon the execution of
this Warrant Agreement or from time to time thereafter. The Warrant Agent shall,
upon receipt of Warrant Certificates duly executed on behalf of the Company,
countersign such Warrant Certificates and shall deliver such Warrant
Certificates to or upon the order of the Company.

ARTICLE
2

WARRANT PRICE,
DURATION AND EXERCISE OF WARRANTS

     2.1 Warrant Price. During the period specified in
Section 2.2, each Warrant shall, subject to the terms of this Warrant Agreement
and the applicable Warrant Certificate, entitle the holder thereof, to purchase
the principal amount of Warrant Debt Securities specified in the applicable
Warrant Certificate at an exercise price of ___________% of the principal amount
thereof [plus accrued amortization, if any, of the original issue discount of
the Warrant Debt Securities] [plus accrued interest, if any, from the most
recent date from which interest shall have been paid on the Warrant Debt
Securities or, if no interest shall have been paid on the Warrant Debt
Securities, from the date of their initial issuance.] [The original issue
discount ($_____ for each $1,000 principal amount of Warrant Debt Securities)
will be amortized at a _____% annual rate, computed on a[n] [semi-] annual basis
[using a 360-day year consisting of twelve 30-day months].] Such purchase price
for the Warrant Debt Securities is referred to in this Agreement as the “Warrant
Price.”

     2.2 Duration of Warrants. Each Warrant may be
exercised in whole or in part at any time, as specified herein, on or after [the
date thereof] [___________] and at or before [___________] p.m., [City] time, on ___________ or such later
date as the Company may designate by notice to the Warrant Agent and the holders
of Warrant Certificates mailed to their addresses as set forth in the record
books of the Warrant Agent (the “Expiration Date”). Each Warrant not exercised
at or before [___] p.m., [City] time, on the Expiration Date shall become void,
and all rights of the holder of the Warrant Certificate evidencing such Warrant
under this Agreement shall cease.

     2.3
Exercise Of Warrants.

          (a) During the period specified in Section 2.2, the
Warrants may be exercised to purchase a whole number of Warrant Debt Securities
in registered form by providing certain information as set forth on the reverse
side of the Warrant Certificate and by paying in full, in lawful money of the
United States of America, [in cash or by certified check or official bank check
in New York Clearing House funds] [by bank wire transfer in immediately
available funds] the Warrant Price for each Warrant Debt Security with respect
to which a Warrant is being exercised to the Warrant Agent at its corporate
trust office, provided that such exercise is subject to receipt within five
business days of such payment by the Warrant Agent of the Warrant Certificate
with the form of election to purchase Warrant Debt Securities set forth on the
reverse side of the Warrant Certificate properly completed and duly executed.
The date on which payment in full of the Warrant Price is received by the
Warrant Agent shall, subject to receipt of the Warrant Certificate as aforesaid,
be deemed to be the date on which the Warrant is exercised;

4

provided, however,
that if, at the date of receipt of such Warrant Certificates and payment in full
of the Warrant Price, the transfer books for the Warrant Debt Securities
purchasable upon the exercise of such Warrants shall be closed, no such receipt
of such Warrant Certificates and no such payment of such Warrant Price shall be
effective to constitute the person so designated to be named as the holder of
record of such Warrant Debt Securities on such date, but shall be effective to
constitute such person as the holder of record of such Warrant Debt Securities
for all purposes at the opening of business on the next succeeding day on which
the transfer books for the Warrant Debt Securities purchasable upon the exercise
of such Warrants shall be opened, and the certificates for the Warrant Debt
Securities in respect of which such Warrants are then exercised shall be
issuable as of the date on such next succeeding day on which the transfer books
shall next be opened, and until such date the Company shall be under no duty to
deliver any certificate for such Warrant Debt Securities. The Warrant Agent
shall deposit all funds received by it in payment of the Warrant Price in an
account of the Company maintained with it and shall advise the Company by
telephone at the end of each day on which a payment for the exercise of Warrants
is received of the amount so deposited to its account. The Warrant Agent shall
promptly confirm such telephone advice to the Company in
writing.

          (b) The Warrant Agent shall, from time to time, as
promptly as practicable, advise the Company of (i) the number of Warrant Debt
Securities with respect to which Warrants were exercised, (ii) the instructions
of each holder of the Warrant Certificates evidencing such Warrants with respect
to delivery of the Warrant Debt Securities to which such holder is entitled upon
such exercise, (iii) delivery of Warrant Certificates evidencing the balance, if
any, of the Warrants for the remaining Warrant Debt Securities after such
exercise, and (iv) such other information as the Company or the [Senior]
[Subordinated] Trustee shall reasonably require.

          (c) As soon as practicable after the exercise of any
Warrant, the Company shall issue, pursuant to the Indenture, in authorized
denominations, to or upon the order of the holder of the Warrant Certificate
evidencing such Warrant, the Warrant Debt Securities to which such holder is
entitled, in fully registered form, registered in such name or names as may be
directed by such holder. If fewer than all of the Warrants evidenced by such
Warrant Certificate were exercised, the Company shall execute, and an authorized
officer of the Warrant Agent shall manually countersign and deliver, a new
Warrant Certificate evidencing Warrants for the number of Warrant Debt
Securities remaining unexercised.

          (d) The Company shall not be required to pay any stamp
or other tax or other governmental charge required to be paid in connection with
any transfer involved in the issue of the Warrant Debt Securities, and in the
event that any such transfer is involved, the Company shall not be required to
issue or deliver any Warrant Debt Securities until such tax or other charge
shall have been paid or it has been established to the Company’s satisfaction
that no such tax or other charge is due.

          (e) Prior to the issuance of any Warrants there shall
have been reserved, and the Company shall at all times through the Expiration
Date keep reserved, out of its authorized but unissued Warrant Debt Securities,
a number of shares sufficient to provide for the exercise of the
Warrants.

5

ARTICLE
3

OTHER PROVISIONS
RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES

     3.1 No Rights As Holders of Warrant Debt Securities
Conferred By Warrants or Warrant Certificates. No Warrant Certificate or
Warrant evidenced thereby shall entitle the holder thereof to any of the rights
of a holder of Warrant Debt Securities, including, without limitation, the right
to receive the payment of principal of (or premium, if any) or interest, if any,
on the Warrant Debt Securities or to enforce any of the covenants in the
Indenture.

     3.2 Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it and the Company of the ownership of and the loss, theft,
destruction or mutilation of any Warrant Certificate and/or indemnity reasonably
satisfactory to the Warrant Agent and the Company and, in the case of
mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing Warrants for a like principal
amount of Warrant Debt Securities. Upon the issuance of any new Warrant
Certificate under this Section 3.2, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Warrant Agent) in connection therewith. Every substitute Warrant Certificate
executed and delivered pursuant to this Section 3.2 in lieu of any lost, stolen
or destroyed Warrant Certificate shall represent an additional contractual
obligation of the Company, whether or not the lost, stolen or destroyed Warrant
Certificate shall be at any time enforceable by anyone, and shall be entitled to
the benefits of this Agreement equally and proportionately with any and all
other Warrant Certificates duly executed and delivered hereunder. The provisions
of this Section 3.2 are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement of mutilated, lost,
stolen or destroyed Warrant Certificates.

     3.3 Holder Of Warrant Certificate May Enforce
Rights. Notwithstanding any of the provisions of this Agreement, any holder
of any Warrant Certificate, without the consent of the Warrant Agent, the
[Senior] [Subordinated] Trustee, the holder of any Warrant Debt Securities or
the holder of any other Warrant Certificate, may, in such holder’s own behalf
and for such holder’s own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company suitable to enforce, or otherwise
in respect of, such holder’s right to exercise the Warrants evidenced by such
holder’s Warrant Certificate in the manner provided in such holder’s Warrant
Certificates and in this Agreement.

6

     3.4 Merger, Sale, Conveyance or Lease. In case of
(a) any share exchange, merger or similar transaction of the Company with or
into another person or entity (other than a share exchange, merger or similar
transaction in which the Company is the acquiring or surviving corporation) or
(b) the sale, exchange, lease, transfer or other disposition of all or
substantially all of the properties and assets of the Company as an entirety (in
any such case, a “REORGANIZATION EVENT”), then, as a condition of such
Reorganization Event, lawful provisions shall be made, and duly executed
documents evidencing the same from the Company’s successor shall be delivered to
the holders of the Warrants, so that such successor shall succeed to and be
substituted for the Company, and assume all the Company’s obligations under,
this Agreement and the Warrants. The Company shall thereupon be relieved of any
further obligation hereunder or under the Warrants, and the Company as the
predecessor corporation may thereupon or at any time thereafter be dissolved,
wound up or liquidated. Such successor or assuming entity thereupon may cause to
be signed, and may issue either in its own name or in the name of the Company,
any or all of the Warrants issuable hereunder which heretofore shall not have
been signed by the Company, and may execute and deliver securities in its own
name, in fulfillment of its obligations to deliver Warrant Debt Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such Reorganization Event, such changes in phraseology and form (but
not in substance) may be made in the Warrants thereafter to be issued as may be
appropriate.

     The Warrant Agent may receive a
written opinion of legal counsel as conclusive evidence that any such
Reorganization Event complies with the provisions of this Section
3.4.

     3.5 Notice To Warrantholders. In case the Company
shall (a) effect any Reorganization Event or (b) make any distribution on or in
respect of the [title of Warrant Debt Securities] in connection with the
dissolution, liquidation or winding up of the Company, then the Company shall
mail to each holder of Warrants at such holder’s address as it shall appear on
the books of the Warrant Agent, at least ten days prior to the applicable date
hereinafter specified, a notice stating the date on which such Reorganization
Event, dissolution, liquidation or winding up is expected to become effective,
and the date as of which it is expected that holders of [title of Warrant Debt
Securities] of record shall be entitled to exchange their shares of [title of
Warrant Debt Securities] for securities or other property deliverable upon such
Reorganization Event, dissolution, liquidation or winding up. No failure to mail
such notice nor any defect therein or in the mailing thereof shall affect any
such transaction.

ARTICLE
4

EXCHANGE AND
TRANSFER OF WARRANT CERTIFICATES

     4.1 Exchange and Transfer of Warrant
Certificates. [If Other Securities with Warrants which are immediately
detachable—Upon] [If Other Securities with Warrants which are not immediately
detachable—Prior to the Detachable Date, a Warrant Certificate may be exchanged
or transferred only together with the Other Security to which the Warrant
Certificate was initially attached, and only for the purpose of effecting or in
conjunction with an exchange or transfer of such Other Security. Prior to any
Detachable Date, each transfer of the Other Security shall operate also to
transfer the related Warrant Certificates. After the Detachable Date, upon]
surrender at the corporate trust office of the Warrant Agent, Warrant
Certificates evidencing Warrants may be exchanged for Warrant Certificates in
other denominations evidencing such Warrants or the transfer thereof may be
registered in whole or in part; provided that such other Warrant Certificates
evidence Warrants for the same aggregate principal amount of Warrant Debt
Securities as the Warrant Certificates so surrendered.

7

The Warrant Agent
shall keep, at its corporate trust office, books in which, subject to such
reasonable regulations as it may prescribe, it shall register Warrant
Certificates and exchanges and transfers of outstanding Warrant Certificates,
upon surrender of the Warrant Certificates to the Warrant Agent at its corporate
trust office for exchange or registration of transfer, properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent. No service charge shall be made for any exchange or registration
of transfer of Warrant Certificates, but the Company may require payment of a
sum sufficient to cover any stamp or other tax or other governmental charge that
may be imposed in connection with any such exchange or registration of transfer.
Whenever any Warrant Certificates are so surrendered for exchange or
registration of transfer, an authorized officer of the Warrant Agent shall
manually countersign and deliver to the person or persons entitled thereto a
Warrant Certificate or Warrant Certificates duly authorized and executed by the
Company, as so requested. The Warrant Agent shall not be required to effect any
exchange or registration of transfer which will result in the issuance of a
Warrant Certificate evidencing a Warrant for a fraction of a Warrant Debt
Security or a number of Warrants for a whole number of Warrant Debt Securities
and a fraction of a Warrant Debt Security. All Warrant Certificates issued upon
any exchange or registration of transfer of Warrant Certificates shall be the
valid obligations of the Company, evidencing the same obligations and entitled
to the same benefits under this Agreement as the Warrant Certificate surrendered
for such exchange or registration of transfer.

     4.2 Treatment of Holders of Warrant Certificates.
[If Other Securities and Warrants are not immediately detachable—Prior to the
Detachable Date, the Company, the Warrant Agent and all other persons may treat
the owner of the Other Security as the owner of the Warrant Certificates
initially attached thereto for any purpose and as the person entitled to
exercise the rights represented by the Warrants evidenced by such Warrant
Certificates, any notice to the contrary notwithstanding. After the Detachable
Date and prior to due presentment of a Warrant Certificate for registration of
transfer, the] [The] Company, the Warrant Agent and all other persons may treat
the registered holder of a Warrant Certificate as the absolute owner thereof for
any purpose and as the person entitled to exercise the rights represented by the
Warrants evidenced thereby, any notice to the contrary
notwithstanding.

     4.3 Cancellation of Warrant Certificates. Any
Warrant Certificate surrendered for exchange, registration of transfer or
exercise of the Warrants evidenced thereby shall, if surrendered to the Company,
be delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu
thereof. The Warrant Agent shall deliver to the Company from time to time or
otherwise dispose of canceled Warrant Certificates in a manner satisfactory to
the Company.

8

ARTICLE 5

CONCERNING THE WARRANT
AGENT

     5.1 Warrant Agent. The Company hereby appoints ___________
as Warrant Agent of the Company in respect of the
Warrants and the Warrant Certificates upon the terms and subject to the
conditions herein set forth, and ___________ hereby accepts such appointment. The Warrant Agent shall have the
powers and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and provisions
hereof.

     5.2 Conditions of Warrant Agent’s Obligations.
The Warrant Agent accepts its obligations herein set forth upon the terms and
conditions hereof, including the following to all of which the Company agrees
and to all of which the rights hereunder of the holders from time to time of the
Warrant Certificates shall be subject:

          (a) Compensation and Indemnification. The Company
agrees promptly to pay the Warrant Agent the compensation to be agreed upon with
the Company for all services rendered by the Warrant Agent and to reimburse the
Warrant Agent for reasonable out-of-pocket expenses (including reasonable
counsel fees) incurred without negligence, bad faith or willful misconduct by
the Warrant Agent in connection with the services rendered hereunder by the
Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and
to hold it harmless against, any loss, liability or expense incurred without
negligence, bad faith or willful misconduct on the part of the Warrant Agent,
arising out of or in connection with its acting as Warrant Agent hereunder,
including the reasonable costs and expenses of defending against any claim of
such liability.

          (b) Agent for the Company. In acting under this
Warrant Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligations or relationship of agency or trust for or with any of the holders of
Warrant Certificates or beneficial owners of Warrants.

          (c) Counsel. The Warrant Agent may consult with
counsel satisfactory to it, which may include counsel for the Company, and the
written advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with the advice of such counsel.

          (d) Documents. The Warrant Agent shall be
protected and shall incur no liability for or in respect of any action taken or
omitted by it in reliance upon any Warrant Certificate, notice, direction,
consent, certificate, affidavit, statement or other paper or document reasonably
believed by it to be genuine and to have been presented or signed by the proper
parties.

          (e) Certain Transactions. The Warrant Agent, and
its officers, directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have if it
were not the Warrant Agent hereunder, and, to the extent permitted by applicable
law, it or they may engage or be interested in any financial or other
transaction with the Company and may act on, or as depositary, trustee or agent
for, any committee or body of holders of Warrant Debt Securities or other
obligations of the Company as freely as if it were not the Warrant Agent
hereunder. Nothing in this Warrant Agreement shall be deemed to prevent the
Warrant Agent from acting as [Senior] [Subordinated] Trustee under the [Senior]
[Subordinated] Indenture.

9

          (f) No Liability for Interest. Unless otherwise
agreed with the Company, the Warrant Agent shall have no liability for interest
on any monies at any time received by it pursuant to any of the provisions of
this Agreement or of the Warrant Certificates.

          (g) No Liability for Invalidity. The Warrant
Agent shall have no liability with respect to any invalidity of this Agreement
or any of the Warrant Certificates (except as to the Warrant Agent’s
countersignature thereon).

          (h) No Responsibility for Representations. The
Warrant Agent shall not be responsible for any of the recitals or
representations herein or in the Warrant Certificates (except as to the Warrant
Agent’s countersignature thereon), all of which are made solely by the
Company.

          (i) No Implied Obligations. The Warrant Agent
shall be obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or obligations shall
be read into this Agreement or the Warrant Certificates against the Warrant
Agent. The Warrant Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability, the payment
of which within a reasonable time is not, in its reasonable opinion, assured to
it. The Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant Certificates
authenticated by the Warrant Agent and delivered by it to the Company pursuant
to this Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or responsibility in
case of any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrant Certificates or in the case of the
receipt of any written demand from a holder of a Warrant Certificate with
respect to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.2 hereof, to
make any demand upon the Company.

     5.3
Resignation , Removal and Appointment of Successors.

          (a) The Company agrees, for the benefit of the holders
from time to time of the Warrant Certificates, that there shall at all times be
a Warrant Agent hereunder until all the Warrants have been exercised or are no
longer exercisable.

          (b) The Warrant Agent may at any time resign as agent by
giving written notice to the Company of such intention on its part, specifying
the date on which its desired resignation shall become effective; provided that
such date shall not be less than three months after the date on which such
notice is given unless the Company otherwise agrees. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the
intended date when it shall become effective. Such resignation or removal shall
take effect upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company authorized under
the laws of the jurisdiction of its organization to exercise corporate trust
powers) and the acceptance of such appointment by such successor Warrant Agent.
The obligation of the Company under Section 5.2(a) shall continue to the extent
set forth therein notwithstanding the resignation or removal of the Warrant
Agent.

10

          (c) In case at any time the Warrant Agent shall resign,
or shall be removed, or shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or shall commence a voluntary case under the Federal
bankruptcy laws, as now or hereafter constituted, or under any other applicable
Federal or state bankruptcy, insolvency or similar law or shall consent to the
appointment of or taking possession by a receiver, custodian, liquidator,
assignee, trustee, sequestrator (or other similar official) of the Warrant Agent
or its property or affairs, or shall make an assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally as
they become due, or shall take corporate action in furtherance of any such
action, or a decree or order for relief by a court having jurisdiction in the
premises shall have been entered in respect of the Warrant Agent in an
involuntary case under the Federal bankruptcy laws, as now or hereafter
constituted, or any other applicable Federal or state bankruptcy, insolvency or
similar law, or a decree or order by a court having jurisdiction in the premises
shall have been entered for the appointment of a receiver, custodian,
liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant
Agent or of its property or affairs, or any public officer shall take charge or
control of the Warrant Agent or of its property or affairs for the purpose of
rehabilitation, conservation, winding up or liquidation, a successor Warrant
Agent, qualified as aforesaid, shall be appointed by the Company by an
instrument in writing, filed with the successor Warrant Agent. Upon the
appointment as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment, the Warrant Agent shall cease to be
Warrant Agent hereunder.

          (d) Any successor Warrant Agent appointed hereunder
shall execute, acknowledge and deliver to its predecessor and to the Company an
instrument accepting such appointment hereunder, and thereupon such successor
Warrant Agent, without any further act, deed or conveyance, shall become vested
with all the authority, rights, powers, trusts, immunities, duties and
obligations of such predecessor with like effect as if originally named as
Warrant Agent hereunder, and such predecessor, upon payment of its charges and
disbursements then unpaid, shall thereupon become obligated to transfer, deliver
and pay over, and such successor Warrant Agent shall be entitled to receive, all
monies, securities and other property on deposit with or held by such
predecessor, as Warrant Agent hereunder.

          (e) Any corporation into which the Warrant Agent
hereunder may be merged or converted or any corporation with which the Warrant
Agent may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Warrant Agent shall be a party, or any
corporation to which the Warrant Agent shall sell or otherwise transfer all or
substantially all the assets and business of the Warrant Agent, provided that it
shall be qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

11

ARTICLE
6

MISCELLANEOUS

     6.1 Amendment. This Agreement may be amended by
the parties hereto, without the consent of the holder of any Warrant
Certificate, for the purpose of curing any ambiguity, or of curing, correcting
or supplementing any defective provision contained herein, or making any other
provisions with respect to matters or questions arising under this Agreement as
the Company and the Warrant Agent may deem necessary or desirable; provided that
such action shall not materially adversely affect the interests of the holders
of the Warrant Certificates.

     6.2 Notices and Demands to the Company and Warrant
Agent. If the Warrant Agent shall receive any notice or demand addressed to
the Company by the holder of a Warrant Certificate pursuant to the provisions of
the Warrant Certificates, the Warrant Agent shall promptly forward such notice
or demand to the Company.

     6.3 Addresses. Any communication from the Company
to the Warrant Agent with respect to this Agreement shall be addressed to
___________, Attention: ____________ and any communication from the Warrant
Agent to the Company with respect to this Agreement shall be addressed to
Avigen, Inc., 1301 Harbor Bay Parkway, Alameda, California 94502, Attention:
General Counsel (or such other address as shall be specified in writing by the
Warrant Agent or by the Company).

     6.4 Governing Law. This Agreement and each
Warrant Certificate issued hereunder shall be governed by and construed in
accordance with the laws of the State of New York.

     6.5 Delivery Of Prospectus. The Company shall
furnish to the Warrant Agent sufficient copies of a prospectus meeting the
requirements of the Securities Act of 1933, as amended, relating to the Warrant
Debt Securities deliverable upon exercise of the Warrants (the “Prospectus”),
and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant
Agent will deliver to the holder of the Warrant Certificate evidencing such
Warrant, prior to or concurrently with the delivery of the Warrant Debt
Securities issued upon such exercise, a Prospectus. The Warrant Agent shall not,
by reason of any such delivery, assume any responsibility for the accuracy or
adequacy of such Prospectus.

     6.6 Obtaining of Governmental Approvals. The
Company will from time to time take all action which may be necessary to obtain
and keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities act filings under United States Federal
and state laws (including without limitation a registration statement in respect
of the Warrants and Warrant Debt Securities under the Securities Act of 1933, as
amended), which may be or become requisite in connection with the issuance,
sale, transfer, and delivery of the Warrant Debt Securities issued upon exercise
of the Warrants, the issuance, sale, transfer and delivery of the Warrants or
upon the expiration of the period during which the Warrants are
exercisable.

12

     6.7 Persons Having Rights Under Warrant
Agreement. Nothing in this Agreement shall give to any person other than the
Company, the Warrant Agent and the holders of the Warrant Certificates any
right, remedy or claim under or by reason of this Agreement.

     6.8 Headings. The descriptive headings of the
several Articles and Sections of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the
provisions hereof.

     6.9 Counterparts. This Agreement may be executed
in any number of counterparts, each of which as so executed shall be deemed to
be an original, but such counterparts shall together constitute but one and the
same instrument.

     6.10 Inspection of Agreement. A copy of this
Agreement shall be available at all reasonable times at the principal corporate
trust office of the Warrant Agent for inspection by the holder of any Warrant
Certificate. The Warrant Agent may require such holder to submit the Warrant
Certificate for inspection by it.

13

     IN
WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed, all as of the day
and year first above written.

	 		AVIGEN, INC. 
			 
	 		By 	 
	 		Its 	 
	Attest: 	 	 
	 	 	 
	 	 	 
	 		Warrant Agent 
			 
	 		By 	 
	 		Its 	 
	Attest: 		 
	 		
	 		

 

 

 

 

 

 

 

 

SIGNATURE PAGE TO DEBT
SECURITIES WARRANT AGREEMENT

EXHIBIT
A

FORM OF WARRANT
CERTIFICATE 
[FACE OF WARRANT CERTIFICATE]

	[[Form if Warrants are attached to Other Securities and are not
      immediately detachable.]	 	[Prior to _____________, this Warrant Certificate cannot be transferred or
      exchanged unless attached to a [Title of Other
    Securities].]
	 
      
	[Form of Legend if Warrants are not immediately
      exercisable.]		[Prior to _____________, Warrants evidenced by this Warrant Certificate cannot
      be exercised.]

EXERCISABLE ONLY IF
COUNTERSIGNED BY THE WARRANT AGENT AS 
PROVIDED HEREIN

VOID AFTER [_____]
P.M., [CITY] TIME, ON _____________,

AVIGEN,
INC.
WARRANT
CERTIFICATE REPRESENTING 
WARRANTS TO PURCHASE 
[TITLE OF WARRANT DEBT
SECURITIES]

	No.__________	Warrants

     This
certifies that ______________ or registered assigns is the registered owner of
the above indicated number of Warrants, each Warrant entitling such owner [If
Warrants are attached to Other Securities and are not immediately detachable —,
subject to the registered owner qualifying as a “Holder” of this Warrant
Certificate, as hereinafter defined)] to purchase, at any time [after [____]
p.m., [City] time, on _____________ and] on or before [____] p.m., [City] time,
on _____________, $_____ principal amount of [Title of Warrant Debt Securities]
(the “Warrant Debt Securities”), of Avigen, Inc. (the “Company”), issued or to
be issued under the Indenture (as hereinafter defined), on the following basis:
during the period from ____________, through and including ________________,
each Warrant shall entitle the Holder thereof, subject to the provisions of this
Agreement, to purchase the principal amount of Warrant Debt Securities stated in
the Warrant Certificate at the warrant price (the “Warrant Price”) of
____________% of the principal amount thereof [plus accrued amortization, if
any, of the original issue discount of the Warrant Debt Securities] [plus
accrued interest, if any, from the most recent date from which interest shall
have been paid on the Warrant Debt Securities or, if no interest shall have been
paid on the Warrant Debt Securities, from the date of their original issuance].
[The original issue discount ($_____ for each $1,000 principal amount of Warrant
Debt Securities) will be amortized at a _____% annual rate, computed on a[n]
[semi-]annual basis [using a 360-day year consisting of twelve 30-day months].
The Holder may exercise the Warrants evidenced hereby by providing certain
information set forth on the back hereof and by paying in full, in lawful money
of the United States of America, [in cash or by certified check or official bank
check in New York Clearing House funds] [by bank wire transfer in immediately
available funds], the Warrant Price for each Warrant Debt Security with respect
to which this Warrant is exercised to the Warrant Agent (as hereinafter defined)
and by surrendering this Warrant Certificate, with the purchase form on the back
hereof duly executed, at the corporate trust office of [name of Warrant Agent],
or its successor as warrant agent (the “Warrant Agent”), which is, on the date
hereof, at the address specified on the reverse hereof, and upon compliance with
and subject to the conditions set forth herein and in the Warrant Agreement (as
hereinafter defined).

     The term “Holder” as used herein
shall mean [If Warrants are attached to Other Securities and are not immediately
detachable—, prior to _____________, _______ (the “Detachable Date”), the
registered owner of the Company’s [title of Other Securities] to which this
Warrant Certificate was initially attached, and after such Detachable Date,] the
person in whose name at the time this Warrant Certificate shall be registered
upon the books to be maintained by the Warrant Agent for that purpose pursuant
to Section 4 of the Warrant Agreement.

     The Warrants evidenced by this
Warrant Certificate may be exercised to purchase Warrant Debt Securities in the
principal amount of $1,000 or any integral multiple thereof in registered form.
Upon any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the Holder hereof a new Warrant
Certificate evidencing Warrants for the aggregate principal amount of Warrant
Debt Securities remaining unexercised.

     This Warrant Certificate is issued
under and in accordance with the Warrant Agreement dated as of ___________, ____
(the “Warrant Agreement”), between the Company and the Warrant Agent and is
subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate consents by
acceptance hereof. Copies of the Warrant Agreement are on file at the
above-mentioned office of the Warrant Agent.

     The Warrant Debt Securities to be
issued and delivered upon the exercise of Warrants evidenced by this Warrant
Certificate will be issued under and in accordance with an Indenture, [dated as
of ___________, ______ (the “Senior Indenture”), between the Company and
_______________, as trustee (such trustee, and any successors to such trustee,
the “Senior Trustee”)] [dated as of ______________, _____________, (the
“Subordinated Indenture”), between the Company and ______________, as trustee
(such trustee, and any successors to such trustee, the “Subordinated Trustee”)]
and will be subject to the terms and provisions contained in the Warrant Debt
Securities and in the Indenture. Copies of the [Senior] [Subordinated]
Indenture, including the form of the Warrant Debt Securities, are on file at the
corporate trust office of the Trustee.

     [If Warrants are attached to Other
Securities and are not immediately detachable—Prior to the Detachable Date, this
Warrant Certificate may be exchanged or transferred only together with the
[Title of Other Securities] (the “OTHER SECURITIES”) to which this Warrant
Certificate was initially attached, and only for the purpose of effecting or in
conjunction with, an exchange or transfer of such Other Security. Additionally,
on or prior to the Detachable Date, each transfer of such Other Security on the
register of the Other Securities shall operate also to transfer this Warrant
Certificate. After such date, transfer of this] [If Warrants are attached to
Other Securities and are immediately detachable—Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent by the registered owner or such
owner’s assigns, in the manner and subject to the limitations provided in the
Warrant Agreement.

     [If Other Securities with Warrants
which are not immediately detachable-Except as provided in the immediately
preceding paragraph, after] [If Other Securities with Warrants which are
immediately detachable or Warrants alone—After] countersignature by the Warrant
Agent and prior to the expiration of this Warrant Certificate, this Warrant
Certificate may be exchanged at the corporate trust office of the Warrant Agent
for Warrant Certificates representing Warrants for the same aggregate principal
amount of Warrant Debt Securities.

     This Warrant Certificate shall not
entitle the Holder hereof to any of the rights of a holder of the Warrant Debt
Securities, including, without limitation, the right to receive payments of
principal of (and premium, if any) or interest, if any, on the Warrant Debt
Securities or to enforce any of the covenants of the Indenture.

     Reference is hereby made to the
further provisions of this Warrant Certificate set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Warrant Certificate shall not
be valid or obligatory for any purpose until countersigned by the Warrant
Agent.

     IN
WITNESS WHEREOF, the
Company has caused this Warrant to be executed in its name and on its behalf by
the facsimile signatures of its duly authorized officers.

	Dated: 	 		 
	 	 	AVIGEN, INC. 
			 
	 		By 	 
	 	 	Its 	 
	Attest: 		 
	 	 	 	  
	 		Countersigned: 
			 
	 	 	 
	 		As Warrant Agent 
	 
	 		By 	 
	 		Authorized
Signature 

[REVERSE OF WARRANT
CERTIFICATE]

(Instructions for
Exercise of Warrant)

     To exercise any Warrants evidenced
hereby for Warrant Debt Securities (as hereinafter defined), the Holder must
pay, in lawful money of the United States of America, [in cash or by certified
check or official bank check in New York Clearing House funds] [by bank wire
transfer in immediately available funds], the Warrant Price in full for Warrants
exercised, to [Warrant Agent] [address of Warrant Agent], Attn: __________,
which payment must specify the name of the Holder and the number of Warrants
exercised by such Holder. In addition, the Holder must complete the information
required below and present this Warrant Certificate in person or by mail
(certified or registered mail is recommended) to the Warrant Agent at the
appropriate address set forth above. This Warrant Certificate, completed and
duly executed, must be received by the Warrant Agent within five business days
of the payment.

(To be executed upon
exercise of Warrants)

     The undersigned hereby irrevocably
elects to exercise ___________ Warrants, represented by this Warrant
Certificate, to purchase $____ principal amount of the [Title of Warrant Debt
Securities] (the “Warrant Debt Securities”) of Avigen, Inc. and represents that
the undersigned has tendered payment for such Warrant Debt Securities, in lawful
money of the United States of America, [in cash or by certified check or
official bank check in New York Clearing House funds] [by bank wire transfer in
immediately available funds], to the order of Avigen, Inc., c/o [insert name and
address of Warrant Agent], in the amount of $_____ in accordance with the terms
hereof. The undersigned requests that said principal amount of Warrant Debt
Securities be in fully registered form in the authorized denominations,
registered in such names and delivered all as specified in accordance with the
instructions set forth below.

     If the number of Warrants exercised
is less than all the Warrants evidenced hereby, the undersigned requests that a
new Warrant Certificate evidencing the Warrants for the aggregate principal
amount of Warrant Debt Securities remaining unexercised be issued and delivered
to the undersigned unless otherwise specified in the instructions
below.

	Dated 	      	 		Name 	  
	 	 		Please
      Print 
	Address:	 	 	 	 	 
	 	 			
	 
	 
	  	
	(Insert
      Social Security or Other Identifying Number of Holder)   
	 
	
Signature Guaranteed	 
       		 	 
		Signature 			 

(Signature must
conform in all respects to name of holder as specified on the face of this
Warrant Certificate and must bear a signature guarantee by a bank, trust company
or member broker of the New York, Midwest or Pacific Stock
Exchange).

This Warrant may be
exercised at the following addresses:

	By hand at 	 	
	 	 
	 	 
	 	
	By mail at 	 	
	 	
	 	

[Instructions as to
form and delivery of Warrant Debt Securities and, if applicable, Warrant
Certificates evidencing Warrants for the number of Warrant Debt Securities
remaining unexercised—complete as appropriate.]

ASSIGNMENT

[Form of assignment to
be executed if Warrant Holder desires to transfer Warrant]

FOR VALUE RECEIVED,
______________ hereby sells, assigns and transfers unto:

	 		
	 		
	 	 	 
	(Please print name and address including zip code) 		Please print Social Security or other identifying
      number 

the right represented
by the within Warrant to purchase $_______ aggregate principal amount of [Title
of Warrant Debt Securities] of Avigen, Inc. to which the within Warrant relates
and appoints ____________ attorney to transfer such right on the books of the
Warrant Agent with full power of substitution in the premises.

	Dated 	 	 	 
	 		Signature 

(Signature must
conform in all respects to name of holder as specified on the face of the
Warrant)

	Signature Guaranteed

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