Document:

Unassociated Document

    Exhibit
      10.1

     

    CHANGE
      IN CONTROL AGREEMENT 

    

    This
      AGREEMENT is entered into by and between Targeted Genetics Corporation
      (“Company”), and David J. Poston (“Executive”), to be effective on the date
      executed by both parties below.

    

    WHEREAS,
      Company employs Executive as its Vice President Finance and Chief Financial
      Officer; and

    

    WHEREAS,
      Company wishes to provide for certain benefits for Executive in the event of
      a
      Change in Control of Company resulting in the termination of Executive’s
      employment; and

    

    NOW,
      THEREFORE, for good and valuable consideration, the sufficiency of which is
      hereby acknowledged, the parties agree as follows:

    

    1. Prior
      Agreement.
      This
      Agreement revokes and supersedes the Employee Change In Control Agreement
      between Executive and Company dated August 9, 1999 which shall be of no further
      force and effect. 

     

    2. Term
      of Agreement and Termination.
      This
      Agreement shall be in force and effect only from its effective date until the
      expiration of twelve months after the occurrence of any Change in Control as
      defined in section 5(A), unless sooner terminated as provided herein. The
      Agreement may be terminated prior to a Change in Control by either party giving
      thirty (30) days’ prior written notice to the other party, provided that such
      notice shall have no force or effect in the event of the occurrence of a Change
      in Control prior to the effective date of such notice. The Agreement will
      automatically terminate upon the death of the Executive.

    

    3. Continued
      Benefits.
      Executive shall be entitled to the following payments and benefits following
      a
      Change in Control, whether or not a Termination occurs:

    

    
      	 	
              A.

            	
              Executive
                shall (i) receive an annual base salary no less than the Executive’s
                annual base salary in effect immediately prior to the date that the
                Change
                in Control occurs, and a bonus equal to at least the aggregate amount
                of
                the bonus, if any paid to Executive in the year prior to the Change
                in
                Control, and (ii) be entitled to participate in all employee expense
                reimbursement, incentive, savings and retirement plans, practices,
                policies and programs (including any Company plan qualified under
                Section 401(k) of the Code) available to other peer employees of the
                Company, but in no event shall the benefits provided to Executive
                under
                this item (ii) be less favorable, in the aggregate, than the most
                favorable of those plans, practices, policies or programs in effect
                immediately prior to the date that the Change in Control
                occurs.

            

    

    

    
      	 	
              B.

            	
              Executive’s
                life, disability, medical, dental and vision benefits, plans or programs
                for him/herself and his/her dependents shall continue to be at the
                Company's expense (except for the amount, if any, of any required
                employee
                contribution which would have been necessary for Executive to contribute
                as an active employee under the plan or program as in effect on the
                date
                of the Change in Control) to cover Executive (and his or her dependents)
                under, or provide Executive (and his or her dependents) with coverage
                under any such plans or programs, no less favorable than, Executive’s
                life, disability, medical, dental and vision benefits, plans or programs,
                as in effect on the date immediately prior of the Change in
                Control.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              C.

            	
              If,
                prior to Termination, Executive’s employment shall be terminated by the
                Company for Cause or upon expiration of this Agreement or by Executive
                other than for Good Reason, Executive shall be entitled to receive
                (i) his
                or her salary at the rate then in effect through the date of such
                termination, as provided under the Company's pay policy, and (ii)
                any
                accrued benefits for the periods of service prior to the date of
                such
                termination. All payments under this Section 3 are subject to
                applicable federal and state payroll withholding or other applicable
                taxes.

            

    

    

    4. Severance
      Benefits.
      If
      Executive’s employment with Company should be involuntarily terminated other
      than For Cause, or if Executive should resign for Good Reason within twelve
      (12)
      months of a Change in Control, Company will pay to Executive the following
      severance benefits, on the condition that Executive signs and does not revoke
      a
      general release of claims satisfactory to the Company that releases Company
      and
      its agents from all of Executive’s actual or potential claims against Company.

    

    A. Executive
      shall be paid severance in a lump sum in the amount of (i) 1.25 times his/her
      annual salary in effect at the time of the Change in Control or on the date
      employment terminates, whichever is higher, plus (ii) a percentage of
      Executive's annual base salary specified in subparagraph (i) above, which
      percentage is equal to the percentage bonus paid to Executive for the fiscal
      year ended immediately prior to the Change in Control; provided,
      however,
      that if
      Termination occurs prior to the determination of such percentage for a fiscal
      year that has ended or if Executive has not received a percentage bonus in
      the
      previous year, such percentage shall be ten percent (10%). All payments under
      this Section 4(A) (the "Termination Payments") shall be less lawfully
      required withholding and, subject to Section 4(C), will be paid within ten
      (10)
      business days following the date of Termination or the date of execution of
      the
      Release of Claims, whichever is later. 

    

    B. Executive’s
      medical, dental and vision benefits for him/herself and his/her dependents
      may
      be continued in accordance with COBRA, on the same terms as the Company provides
      them immediately prior to the termination. Company will pay the premium for
      such
      COBRA continuation for the first year after termination, provided however,
      that
      if Executive obtains comparable coverage through another employer or otherwise,
      s/he will inform the Company promptly and the Company may discontinue COBRA
      coverage.

    

    C. This
      Agreement is not intended to constitute a “nonqualified deferred compensation
      plan” within the meaning of Section 409A of the Internal Revenue Code of 1986,
      as amended (the “Code”). Notwithstanding the foregoing, in the event this
      Agreement or any compensation or benefit paid to Executive hereunder is deemed
      to be subject to Section 409A of the Code, Executive and the Company agree
      to
      negotiate in good faith to adopt such amendments that are necessary to comply
      with Section 409A of the Code or to exempt such compensation or benefits from
      Section 409A of the Code. In addition, to the extent (i) any compensation or
      benefits to which Executive becomes entitled under this agreement, or any
      agreement or plan referenced herein, in connection with Executive’s termination
      of employment with the Company constitute deferred compensation subject to
      Section 409A of the Code and (ii) Executive is deemed at the time of such
      termination of employment to be a “specified employee” under Section 409A of the
      Code, then such compensation or benefits shall not be made or commence until
      the
      earliest of (1) the expiration of the six (6)-month period measured from the
      date of Executive’s “separation from service” (as such term is at the time
      defined in Treasury Regulations under Section 409A of the Code with the Company;
      (2) the date Executive becomes “disabled” (as defined in Section 409A of the
      Code); or (3) the date of Executive’s death following such separation from
      service; provided, however, that such deferral shall only be effected to the
      extent required to avoid adverse tax treatment to Executive, including (without
      limitation) the additional twenty percent (20%) tax for which Executive would
      otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence
      of
      such deferral. During any period compensation or benefits to Executive are
      deferred pursuant to the foregoing, Executive shall be entitled to interest
      on
      such deferral at a per annum rate equal to the highest rate of interest
      applicable to six (6)-month money market accounts offered by the following
      institutions: Citibank N.A., Wells Fargo Bank, N.A. or Bank of America, on
      the
      date of such “separation from service.” Upon the expiration of the applicable
      deferral period, any compensation or benefits which would have otherwise been
      paid during that period (whether in a single sum or in installments) in the
      absence of this section shall be paid to Executive or Executive’s beneficiary,
      if applicable, in one lump sum.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Such
      severance benefits are in lieu of and replace any severance benefits to which
      Executive would otherwise be entitled under the terms of any Company plan or
      policy, or any other Agreement between Executive and Company.

    

    5. Definitions.

     

    A. Change
      in Control
      shall
      mean (i)
      the
      sale of all or substantially all of the assets of the Company to any other
      entity other than an affiliate of the Company, (ii) any merger or consolidation
      of the Company with or into any other entity which is not an affiliate of the
      Company, or (iii) any acquisition after the date of this Agreement by any person
      or group of persons acting together (within the meaning of Rule 13d-5 under
      the
      Securities Exchange Act of 1934, as amended) of beneficial ownership of more
      than fifty percent (50%) of the outstanding voting capital stock of the
      Company.

     

    B. For
      Cause
      shall
      mean Executive’s (i) willful refusal to follow lawful and reasonable corporate
      policy or the Company’s Board of Directors or CEO directives;
      (ii) willful failure, gross neglect or refusal to perform duties; (iii) willful
      act that intentionally or materially injures the reputation or business of
      the
      Company; (iv) willful breach of confidentiality that has a material adverse
      effect on the Company; (v) fraud or embezzlement; or (vi) indictment for
      criminal activity. 

     

    C. Good
      Reason
      shall
      mean (i) the Company requires that Executive relocate to a distance more than
      thirty (30) miles from the Company’s present location in Seattle, Washington or
      such other location where Executive is employed by the Company prior to being
      asked to relocate; or (b) the Company materially reduces Executive’s job duties,
      salary, or the criteria used to determine Executive’s performance bonus without
      Executive’s consent. To have Good Reason to resign, Executive must first notify
      the Company in writing of the reason(s) Executive believes Good Reason exists
      and provide at least thirty (30) days for the Company to cure unless cure is
      impossible.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    6. Limitation
      on Payments.
      In the
      event that it is determined that any payment or distribution of any type to
      or
      for the benefit of the Executive made by the Company, by any of its affiliates,
      by any person who acquires ownership or effective control or ownership of a
      substantial portion of the Company’s assets (within the meaning of Section 280G
      of the Code) or by any affiliate of such person, whether paid or payable or
      distributed or distributable pursuant to the terms of an employment agreement
      or
      otherwise, would be subject to the excise tax imposed by Section 4999 of the
      Code or any interest or penalties with respect to such excise tax (such excise
      tax, together with any such interest or penalties, being collectively referred
      to as the “Excise Tax”), then such payments or distributions or benefits shall
      be payable either:

    

    
      	
            	(i)	
              in
                full; or

            

    

    

    
      	 	
              (ii)

            	
              as
                to such lesser amount that would result in no portion of such payments
                or
                distributions or benefits being subject to the Excise
                Tax;

            

    

    

    whichever
      amount shall, on an after-tax basis, be greater.

    

    Unless
      the Executive and the Company agree otherwise in writing, any determination
      required hereunder this Section 6 shall be made in writing by the Company’s
      independent accountant, or at the Company’s election, another nationally
      recognized public accounting firm acceptable to both the Company and the
      Executive (the “Accountant”), whose determination shall be conclusive and
      binding. The Executive and the Company shall furnish the Accountant such
      documentation and documents as the Accountant may reasonably request in order
      to
      make a determination and to the extent consistent with applicable standards
      and
      practice generally accepted among practitioners (including, without limitation,
      as such standards may be applied to the Company’s own financial reporting and as
      such standards and practice are determined by the Accountant), the Accountant
      shall make such determination in the manner most favorable to the Executive. The
      Company shall bear all costs that the Accountant may reasonably incur in
      connection with performing any calculations contemplated by this
      section.

    

    7. Confidentiality.
      Each
      party shall maintain in confidence and not disclose the existence of or specific
      terms included in this Agreement, or any payment made pursuant to the agreement,
      except to the extent required to obtain tax, accounting or legal advice, to
      the
      extent disclosure is compelled by legal process, or to the extent disclosure
      is
      compelled by applicable law (e.g.,
      complying with securities law disclosure requirements).

    

    8. Binding
      Effect.
      This
      Agreement shall be binding upon, inure to the benefit of, and be enforceable
      by
      the Company and Executive and their respective heirs, legal representatives,
      successors and assigns. No waiver of or forbearance to enforce any right or
      provision hereof shall be binding unless in writing and signed by the party
      to
      be bound, and no such waiver or forbearance in any instance shall apply to
      any
      other instance or to any other right or provision.

    

    9. Governing
      Law; Venue.
      This
      Agreement will be governed by the laws of the State of Washington without regard
      to its conflicts of laws rules to the contrary. 

     

    10. Dispute
      Resolution.
      Any
      claim arising out of or in connection with this Agreement will be subject to
      binding arbitration in Seattle, Washington in accordance with the Employment
      Dispute Resolution Rules of the American Arbitration Association. The parties
      will select an arbitrator from the panel of arbitrators then working for
      Judicial Dispute Resolution, or any other mutually acceptable arbitrator. If
      the
      parties are unable to agree on an arbitrator, then Judicial Dispute Resolution
      will appoint one of their panel members to adjudicate the matter. The prevailing
      party in any such action shall be entitled to reasonable attorney’s fees and
      costs incurred in connection with such arbitration and/or enforcement of
      judgment. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    11. Severability.
      No term
      hereof shall be construed to limit or supersede any other right or remedy of
      the
      Company under applicable law with respect to the protection of trade secrets
      or
      otherwise. If any provision of this Agreement is held to be invalid or
      unenforceable to any extent in any context, it shall nevertheless be enforced
      to
      the fullest extent allowed by law in that and other contexts, and the validity
      and force of the remainder of the Agreement shall not be affected.

    

    12. Notices.
      Any
      notices required under the terms of this Agreement shall be effective when
      mailed, postage prepaid, by certified mail and addressed to, in the case of
      the
      Company:

    

    Targeted
      Genetics Corporation

    1100
      Olive Way, Suite 100

    Seattle
      WA 98101

    Attention:
      Legal Department

    

    And
      to,
      in the case of Executive:

    

    David
      J.
      Poston

    3202
      10th
      Ave
      West

    Seattle,
      WA 98119

    

    

    [Intentionally
      Left Blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXECUTED
      this
      14th day of September, 2006.

    

    

    Targeted
      Genetics Corporation

    

    By:
      /s/
      H.
      Stewart Parker       

    Name: H.
      Stewart Parker       

    Its:
      President
      and CEO          

     

    

    Executive

    

    /s/
      David
      Poston                  

    Name:
      David
      PostonNEITHER  THESE  SECURITIES  NOR THE  SECURITIES  ISSUABLE UPON EXERCISE OF THESE
SECURITIES HAVE BEEN  REGISTERED WITH THE SECURITIES AND EXCHANGE  COMMISSION OR
THE  SECURITIES  COMMISSION  OF ANY STATE IN  RELIANCE  UPON AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THESE  SECURITIES AND THE  SECURITIES  ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.

                                 MEDIAVEST, INC.

                                     WARRANT

Warrant No. |_|                              Date of Original Issuance:   , 2006

      Mediavest,  Inc.,  a  New  Jersey  corporation  (the  "Company"),   hereby
certifies that, for value  received,  ______________  or its registered  assigns
(the  "Holder"),  is entitled to purchase  from the Company up to a total of [ ]
shares of common stock,  $.0001 par value per share (the "Common Stock"), of the
Company (each such share,  a "Warrant  Share" and all such shares,  the "Warrant
Shares") at an exercise price equal to $---- per share (as adjusted from time to
time as provided in Section 9, the "Exercise Price"),  at any time and from time
to time from and after the date hereof and through  and  including  ___________,
2008 (the "Expiration Date"), and subject to the following terms and conditions:

      1.  Definitions.  In  addition  to the  terms  defined  elsewhere  in this
Warrant,  capitalized terms that are not otherwise defined herein shall have the
meanings given to such terms in the Subscription Agreement of even date herewith
to which the Company and the  original  Holder are  parties  (the  "Subscription
Agreement").

      2. Registration of Warrant. The Company shall register this Warrant,  upon
records  to be  maintained  by  the  Company  for  that  purpose  (the  "Warrant
Register"),  in the name of the  record  Holder  hereof  from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise  hereof or any  distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

      3.  Registration of Transfers.  The Company shall register the transfer of
any portion of this  Warrant in the Warrant  Register,  upon  surrender  of this
Warrant,  with the Form of Assignment attached hereto duly completed and signed,
to the Company at its address  specified  herein.  Upon any such registration or
transfer,  a new Warrant to purchase Common Stock, in substantially  the form of
this Warrant (any such new Warrant, a "New Warrant"),  evidencing the portion of
this Warrant so transferred  shall be issued to the transferee and a New Warrant
evidencing  the remaining  portion of this Warrant not so  transferred,  if any,
shall be issued to the transferring Holder. The acceptance of the New Warrant by
the transferee  thereof shall be deemed the acceptance by such transferee of all
of the rights and obligations of a holder of a Warrant.

<PAGE>

      4. Exercise and Duration of Warrants. This Warrant shall be exercisable by
the  registered  Holder  at any time and from  time to time on or after the date
hereof to and including the Expiration Date. At 5:30 p.m., New York City time on
the  Expiration  Date,  the portion of this Warrant not exercised  prior thereto
shall be and become void and of no value.

      5. Delivery of Warrant Shares.

            (a) To effect exercises hereunder,  the Holder shall not be required
to  physically  surrender  this  Warrant  unless the  aggregate  Warrant  Shares
represented  by this Warrant is being  exercised.  Upon delivery of the attached
Exercise  Notice to the Company (with the attached  Warrant Shares Exercise Log)
at its  address  for notice set forth  herein and upon  payment of the  Exercise
Price  multiplied  by the number of Warrant  Shares  that the Holder  intends to
purchase hereunder, the Company shall promptly (but in no event later than three
Trading Days after the Date of Exercise (as defined  herein))  issue and deliver
to the Holder, a certificate for the Warrant Shares issuable upon such exercise,
which, unless otherwise required by the Subscription Agreement, shall be free of
restrictive  legends.  The  Company  shall,  upon  request  of  the  Holder  and
subsequent to the date on which a registration  statement covering the resale of
the Warrant  Shares has been declared  effective by the  Securities and Exchange
Commission,  use  commercially  reasonable  efforts  to deliver  Warrant  Shares
hereunder  electronically  through the Depository  Trust  Corporation or another
established  clearing  corporation  performing similar functions,  if available,
provided, that, the Company may, but will not be required to change its transfer
agent if its current transfer agent cannot deliver Warrant Shares electronically
through the Depository Trust Corporation. A "Date of Exercise" means the date on
which the Holder shall have  delivered to the Company:  (i) the Exercise  Notice
(with the Warrant Exercise Log attached to it), appropriately completed and duly
signed and (ii) if such Holder is not utilizing the cashless exercise provisions
set forth in this  Warrant,  payment  of the  Exercise  Price for the  number of
Warrant Shares so indicated by the Holder to be purchased.

            (b) The Company's obligations to issue and deliver Warrant Shares in
accordance with the terms hereof are absolute and unconditional, irrespective of
any action or inaction by the Holder to enforce the same,  any waiver or consent
with respect to any provision  hereof,  the recovery of any judgment against any
Person  or  any  action  to  enforce  the  same,  or any  setoff,  counterclaim,
recoupment,  limitation or  termination,  or any breach or alleged breach by the
Holder or any other Person of any  obligation to the Company or any violation or
alleged violation of law by the Holder or any other Person,  and irrespective of
any other  circumstance  which  might  otherwise  limit such  obligation  of the
Company to the Holder in connection with the issuance of Warrant Shares. Nothing
herein shall limit a Holder's right to pursue any other remedies available to it
hereunder,  at law or in  equity  including,  without  limitation,  a decree  of
specific  performance  and/or  injunctive  relief with respect to the  Company's
failure to timely deliver certificates  representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

                                       2
<PAGE>

      6. Charges, Taxes and Expenses.  Issuance and delivery of certificates for
shares of Common  Stock upon  exercise  of this  Warrant  shall be made  without
charge to the Holder for any issue or transfer tax,  withholding  tax,  transfer
agent fee or other  incidental tax or expense in respect of the issuance of such
certificates,  all of which  taxes and  expenses  shall be paid by the  Company;
provided,  however,  that the Company shall not be required to pay any tax which
may be payable in respect of any transfer  involved in the  registration  of any
certificates  for  Warrant  Shares or  Warrants in a name other than that of the
Holder.  The Holder shall be  responsible  for all other tax liability  that may
arise as a result of holding or transferring  this Warrant or receiving  Warrant
Shares upon exercise hereof.

      7. Replacement of Warrant.  If this Warrant is mutilated,  lost, stolen or
destroyed,  the  Company  shall  issue or cause to be  issued  in  exchange  and
substitution for and upon  cancellation  hereof,  or in lieu of and substitution
for this Warrant,  a New Warrant,  but only upon receipt of evidence  reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable  indemnity  (which shall not include a surety  bond),  if  requested.
Applicants  for a New Warrant  under such  circumstances  shall also comply with
such other  reasonable  regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as
a result of a mutilation  of this  Warrant,  then the Holder shall  deliver such
mutilated  Warrant to the  Company as a  condition  precedent  to the  Company's
obligation to issue the New Warrant.

      8.  Reservation of Warrant Shares.  The Company  covenants that it will at
all times reserve and keep  available out of the aggregate of its authorized but
unissued  and  otherwise  unreserved  Common  Stock,  solely for the  purpose of
enabling  it to issue  Warrant  Shares upon  exercise of this  Warrant as herein
provided,  the number of Warrant Shares which are then issuable and  deliverable
upon the exercise of this entire  Warrant,  free from  preemptive  rights or any
other  contingent  purchase rights of persons other than the Holder (taking into
account the  adjustments and  restrictions of Section 9). The Company  covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the
payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable.

      9. Certain  Adjustments.  The Exercise  Price and number of Warrant Shares
issuable upon  exercise of this Warrant are subject to  adjustment  from time to
time as set forth in this Section 9.

            (a) Stock  Dividends and Splits.  If the Company,  at any time while
this Warrant is  outstanding,  (i) pays a stock  dividend on its Common Stock or
otherwise  makes a distribution on any class of capital stock that is payable in
shares of Common Stock, (ii) subdivides  outstanding shares of Common Stock into
a larger number of shares, or (iii) combines  outstanding shares of Common Stock
into a smaller number of shares, then in each such case the Exercise Price shall
be multiplied by a fraction of which the numerator shall be the number of shares
of Common  Stock  outstanding  immediately  before  such  event and of which the
denominator   shall  be  the  number  of  shares  of  Common  Stock  outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph  shall  become  effective  immediately  after the record  date for the
determination of stockholders entitled to receive such dividend or distribution,
and any  adjustment  pursuant  to clause (ii) or (iii) of this  paragraph  shall
become  effective  immediately  after the effective date of such  subdivision or
combination.  If any event requiring an adjustment  under this paragraph  occurs
during the period  that an  Exercise  Price is  calculated  hereunder,  then the
calculation  of such Exercise Price shall be adjusted  appropriately  to reflect
such event.

                                       3
<PAGE>

            (b) Fundamental Transactions.  If, at any time while this Warrant is
outstanding,  (1) the Company effects any merger or consolidation of the Company
with  or into  another  Person,  (2)  the  Company  effects  any  sale of all or
substantially all of its assets in one or a series of related transactions,  (3)
any tender offer or exchange offer (whether by the Company or another Person) is
completed  pursuant to which  holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, or (4) the Company
effects  any  reclassification  of the  Common  Stock  or any  compulsory  share
exchange  pursuant to which the Common Stock is  effectively  converted  into or
exchanged  for  other  securities,  cash  or  property  (in  any  such  case,  a
"Fundamental  Transaction"),  then the Holder shall have the right thereafter to
receive,  upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been  entitled to receive upon the  occurrence
of such  Fundamental  Transaction  if it had  been,  immediately  prior  to such
Fundamental  Transaction,  the  holder of the  number  of  Warrant  Shares  then
issuable upon exercise in full of this Warrant (the "Alternate  Consideration").
For purposes of any such exercise, the determination of the Exercise Price shall
be appropriately adjusted to apply to such Alternate  Consideration based on the
amount of  Alternate  Consideration  issuable  in respect of one share of Common
Stock in such  Fundamental  Transaction,  and the Company  shall  apportion  the
Exercise  Price  among  the  Alternate  Consideration  in  a  reasonable  manner
reflecting  the relative  value of any  different  components  of the  Alternate
Consideration.  If  holders  of Common  Stock  are  given  any  choice as to the
securities,  cash or property to be received in a Fundamental Transaction,  then
the Holder shall be given the same choice as to the Alternate  Consideration  it
receives  upon  any  exercise  of  this  Warrant   following  such   Fundamental
Transaction. At the Holder's option and request, any successor to the Company or
surviving entity in such Fundamental  Transaction shall, either (1) issue to the
Holder a new warrant  substantially  in the form of this Warrant and  consistent
with the foregoing  provisions and evidencing the Holder's right to purchase the
Alternate  Consideration for the aggregate Exercise Price upon exercise thereof,
or (2)  purchase the Warrant  from the Holder for a purchase  price,  payable in
cash within five Trading Days after such request (or, if later, on the effective
date of the  Fundamental  Transaction),  equal to the Black Scholes value of the
remaining  unexercised portion of this Warrant on the date of such request.  The
terms of any agreement  pursuant to which a Fundamental  Transaction is effected
shall include terms  requiring any such successor or surviving  entity to comply
with the  provisions of this paragraph (b) and insuring that the Warrant (or any
such  replacement  security)  will be  similarly  adjusted  upon any  subsequent
transaction analogous to a Fundamental Transaction.

                                       4
<PAGE>

            (c) Number of Warrant Shares.  Simultaneously with any adjustment to
the Exercise  Price  pursuant to paragraph  (a) of this  Section,  the number of
Warrant  Shares that may be purchased  upon  exercise of this  Warrant  shall be
increased  or  decreased  proportionately,  so that  after such  adjustment  the
aggregate  Exercise Price payable  hereunder for the adjusted  number of Warrant
Shares shall be the same as the aggregate  Exercise Price in effect  immediately
prior to such adjustment.

            (d)  Calculations.  All  calculations  under this Section 9 shall be
made to the nearest cent or the nearest 1/100th of a share,  as applicable.  The
number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company,  and the  disposition
of any such shares shall be considered an issue or sale of Common Stock.

            (e) Notice of  Adjustments.  Upon the occurrence of each  adjustment
pursuant to this  Section 9, the Company at its expense  will  promptly  compute
such  adjustment  in  accordance  with the terms of this  Warrant  and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities
issuable  upon  exercise  of  this  Warrant  (as  applicable),   describing  the
transactions  giving  rise to such  adjustments  and showing in detail the facts
upon which such  adjustment  is based.  Upon written  request,  the Company will
promptly  deliver  a copy of each  such  certificate  to the  Holder  and to the
Company's Transfer Agent.

            (f)  Notice of  Corporate  Events.  If the  Company  (i)  declares a
dividend or any other  distribution  of cash,  securities  or other  property in
respect of its Common Stock, including without limitation any granting of rights
or warrants to subscribe for or purchase any capital stock of the Company or any
Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating
or  solicits  stockholder  approval  for any  Fundamental  Transaction  or (iii)
authorizes the voluntary  dissolution,  liquidation or winding up of the affairs
of the Company, then the Company shall deliver to the Holder a notice describing
the material terms and conditions of such transaction, at least 10 calendar days
prior to the applicable record or effective date on which a Person would need to
hold  Common  Stock in order to  participate  in or vote  with  respect  to such
transaction,  and the Company will take all steps reasonably  necessary in order
to insure that the Holder is given the  practical  opportunity  to exercise this
Warrant prior to such time so as to  participate in or vote with respect to such
transaction;  provided,  however, that the failure to deliver such notice or any
defect therein shall not affect the validity of the corporate action required to
be described in such notice.

      10.  Payment of Exercise  Price.  The Holder may pay the Exercise Price in
one of the following manners:

            (a) Cash  Exercise.  The Holder may  deliver  immediately  available
funds; or

            (b)  Cashless  Exercise.  The Holder  may  notify the  Company in an
Exercise Notice of its election to utilize cashless exercise, in which event the
Company  shall issue to the Holder the number of Warrant  Shares  determined  as
follows:

            X = Y [(A-B)/A]

                                       5
<PAGE>

      where:

            X = the number of Warrant Shares to be issued to the Holder.

            Y = the number of Warrant  Shares with respect to which this Warrant
            is being exercised.

            A = the  average of the  closing  prices for the five  Trading  Days
            immediately prior to (but not including) the Exercise Date.

            B = the Exercise Price.

For purposes of Rule 144  promulgated  under the Securities Act, it is intended,
understood  and  acknowledged  that the  Warrant  Shares  issued  in a  cashless
exercise  transaction  shall be deemed to have been acquired by the Holder,  and
the holding period for the Warrant Shares shall be deemed to have commenced,  on
the date this Warrant was originally issued.

      11. No Rights as  Stockholder.  Until the  exercise of this  Warrant,  the
Holder shall not have or exercise any rights by virtue  hereof as a  stockholder
of the Company.

      12. No Fractional  Shares.  No fractional shares of Warrant Shares will be
issued  in  connection  with  any  exercise  of  this  Warrant.  In  lieu of any
fractional shares which would, otherwise be issuable, the Company shall pay cash
equal to the product of such  fraction  multiplied  by the closing  price of one
Warrant  Share as  reported  by the  applicable  Trading  Market  on the date of
exercise.

      14.  Notices.  Any and all notices or other  communications  or deliveries
hereunder  (including,  without  limitation,  any Exercise  Notice)  shall be in
writing and shall be deemed given and  effective on the earliest of (i) the date
of  transmission,  if such notice or communication is delivered via facsimile at
the facsimile number specified in this Section prior to 5:30 p.m. (New York City
time)  on  a  Trading  Day,  (ii)  the  next  Trading  Day  after  the  date  of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or
later than 5:30 p.m. (New York City time) on any Trading Day,  (iii) the Trading
Day following the date of mailing,  if sent by nationally  recognized  overnight
courier service, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The addresses for such communications  shall be: (i) if to
the Company,  to  Mediavest,  Inc.,  2121 Avenue of the Stars,  Suite 1650,  Los
Angeles,  CA 90067  Attention:  President,  Facsimile No.:  310-277-2741 or such
other  address  as the  Company  shall so notify the  Holder,  or (ii) if to the
Holder,  to the address or facsimile number appearing on the Warrant Register or
such other address or facsimile  number as the Holder may provide to the Company
in accordance with this Section.

      15.  Warrant  Agent.  The Company  shall serve as warrant agent under this
Warrant.  Upon 10 days'  notice to the  Holder,  the  Company  may appoint a new
warrant agent.  Any corporation  into which the Company or any new warrant agent
may be merged or any corporation  resulting from any  consolidation to which the
Company or any new warrant  agent shall be a party or any  corporation  to which
the  Company  or  any  new  warrant  agent  transfers  substantially  all of its
corporate trust or shareholders  services  business shall be a successor warrant
agent under this Warrant  without any further act.  Any such  successor  warrant
agent shall  promptly  cause  notice of its  succession  as warrant  agent to be
mailed (by first class mail, postage prepaid) to the Holder at the Holder's last
address as shown on the Warrant Register.

                                       6
<PAGE>

      16. Miscellaneous.

            (a) This Warrant shall be binding on and inure to the benefit of the
parties  hereto and their  respective  successors  and  assigns.  Subject to the
preceding  sentence,  nothing in this Warrant  shall be construed to give to any
Person  other than the  Company  and the Holder  any legal or  equitable  right,
remedy or cause of action under this  Warrant.  This Warrant may be amended only
in  writing  signed by the  Company  and the  Holder  and their  successors  and
assigns.

            (b) All questions concerning the construction, validity, enforcement
and  interpretation  of this  Warrant  shall be  governed by and  construed  and
enforced in  accordance  with the internal laws of the State of New York (except
with  respect  to matters  governed  by the  corporate  laws of the State of New
Jersey),  without  regard to the  principles  of conflicts of law thereof.  Each
party  agrees  that  all  legal  proceedings   concerning  the  interpretations,
enforcement and defense of this Warrant and the transactions herein contemplated
("Proceedings")  (whether  brought  against  a party  hereto  or its  respective
Affiliates,  employees or agents) may be commenced  non-exclusively in the state
and federal  courts  sitting in the City of New York,  Borough of Manhattan (the
"New  York  Courts").  Each  party  hereto  hereby  irrevocably  submits  to the
non-exclusive  jurisdiction  of the New York Courts for the  adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein,  and hereby  irrevocably  waives,  and agrees not to
assert in any  Proceeding,  any claim that it is not  personally  subject to the
jurisdiction  of any New York Court,  or that such Proceeding has been commenced
in an improper or  inconvenient  forum.  Each party  hereto  hereby  irrevocably
waives  personal  service of process and consents to process being served in any
such  Proceeding by mailing a copy thereof via  registered or certified  mail or
overnight  delivery  (with evidence of delivery) to such party at the address in
effect for notices to it under this Warrant and agrees that such  service  shall
constitute good and sufficient  service of process and notice  thereof.  Nothing
contained  herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably  waives, to
the fullest  extent  permitted by applicable  law, any and all right to trial by
jury in any legal  proceeding  arising out of or relating to this Warrant or the
transactions contemplated hereby. If either party shall commence a Proceeding to
enforce  any  provisions  of this  Warrant,  then the  prevailing  party in such
Proceeding  shall be reimbursed by the other party for its  attorney's  fees and
other  costs and  expenses  incurred  with the  investigation,  preparation  and
prosecution of such Proceeding.

            (c) The headings herein are for convenience  only, do not constitute
a part of this  Warrant  and shall  not be deemed to limit or affect  any of the
provisions hereof.

            (d) In case any one or more of the  provisions of this Warrant shall
be invalid or unenforceable in any respect,  the validity and  enforceability of
the  remaining  terms and  provisions  of this  Warrant  shall not in any way be
affected or impaired thereby and the parties will attempt in good faith to agree
upon a valid and enforceable provision which shall be a commercially  reasonable
substitute  therefor,  and upon so agreeing,  shall  incorporate such substitute
provision in this Warrant.

                                       7
<PAGE>

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
                             SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its authorized officer as of the date first indicated above.

                                       MEDIAVEST, INC.

                                       By:
                                          ----------------------------------
                                       Name:
                                       Title:

                                       9
<PAGE>

                                 MEDIAVEST, INC.
                    WARRANT ORIGINALLY ISSUED [      ], 2006
                                 WARRANT NO. [ ]

                                 EXERCISE NOTICE

To MEDIAVEST, Inc.:

      The undersigned hereby irrevocably elects to purchase               shares
of Common Stock pursuant to the above captioned Warrant,  and, if such Holder is
not  utilizing  the  cashless  exercise  provisions  set  forth in the  Warrant,
encloses herewith $         in cash,  certified or official bank check or checks
or other  immediately  available  funds,  which  sum  represents  the  aggregate
Exercise  Price (as defined in the  Warrant)  for the number of shares of Common
Stock to which this Exercise Notice relates,  together with any applicable taxes
payable by the undersigned pursuant to the Warrant.

      By its delivery of this Exercise  Notice,  the undersigned  represents and
warrants to the Company that in giving effect to the exercise  evidenced  hereby
the Holder will not beneficially own in excess of the number of shares of Common
Stock  (determined in accordance  with Section 13(d) of the Securities  Exchange
Act of 1934)  permitted  to be owned under  Section 10 of this  Warrant to which
this notice relates.

      The undersigned  requests that certificates for the shares of Common Stock
issuable upon this exercise be issued in the name of

                                       PLEASE INSERT SOCIAL SECURITY OR
                                       TAX IDENTIFICATION NUMBER

                         (Please print name and address)

<PAGE>

                           Warrant Shares Exercise Log

Date         Number of Warrant      Number of Warrant Shares     Number of
             Shares Available to    Exercised                    Warrant Shares
             be Exercised                                        Remaining to
                                                                 be Exercised

<PAGE>

                                 MEDIAVEST, INC.
                   WARRANT ORIGINALLY ISSUED [        ], 2006
                                 WARRANT NO. [ ]

                               FORM OF ASSIGNMENT

      [To be completed and signed only upon transfer of Warrant]

      FOR VALUE RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto                                        the   right   represented   by   the
above-captioned Warrant to purchase              shares of Common Stock to which
such Warrant  relates and appoints                    attorney to transfer  said
right on the  books of the  Company  with  full  power  of  substitution  in the
premises.

Dated:
      ------------------, ---------

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

                                       -------------------------------------
                                       Address of Transferee

                                       -------------------------------------

                                       -------------------------------------

In the presence of:

--------------------------

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