Document:

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                                                                     Exhibit 4.4

THIS NOTE AND THE SECURITIES ISSUABLE UPON EXERCISE OF CONVERSION AND PURCHASE
RIGHTS HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF: (i) A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES UNDER THE SECURITIES ACT; OR
(ii) AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. ANY SUCH TRANSFER MAY ALSO BE SUBJECT TO COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS AND THE LAWS OF OTHER APPLICABLE JURISDICTIONS.

THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, OR ENCUMBRANCE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE, OR ISSUABLE UPON EXERCISE OF CONVERSION AND
PURCHASE RIGHTS HEREUNDER, AND THE RIGHTS OF THE HOLDER OF SUCH SECURITIES, IF
ANY, IN RESPECT OF THE ELECTION OF DIRECTORS ARE SUBJECT TO THE TERMS AND
CONDITIONS OF A STOCKHOLDERS' AGREEMENT DATED AS OF MAY 17, 2000 AMONG NEPHROS,
INC. AND THE HOLDERS OF OUTSTANDING CAPITAL STOCK OF SUCH COMPANY. COPIES OF
SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER
OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF NEPHROS, INC.

                                  NEPHROS, INC.

                                    [FORM OF]

                                                                         No.
                                                                             ---
                     Senior Convertible Bridge Note due 2004

$
  -----------
                                                                   June 26, 2003

          Nephros, Inc., a Delaware corporation, (the "Company"), for value
received, hereby promises to pay to                         (the "Holder"), or
                                    ---------- ------------
registered assigns, the principal amount of             ($         ), with
                                            -----------   ---------
accrued but unpaid interest thereon at a rate equal to six percent (6%) per
annum, on the Maturity Date. Payment shall be made at such place as designated
by the Company upon surrender of this Note (as defined below), and shall be in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts. This Note is
one of a duly authorized issue of Nephros, Inc. Senior Convertible Bridge Notes
due 2004 (individually a "Note" and collectively the "Notes") in an aggregate
principal amount of one million dollars ($1,000,000.00). Certain capitalized
terms used herein are defined in Section 8.

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SECTION 1. Interest.

          The Company shall pay interest in arrears on the Maturity Date.
Interest on this Note will accrue from the date of its issuance set forth above.

SECTION 2. Prepayment.

          Upon 20 days prior written notice to the Holder, this Note (including
interest accrued on the principal hereof) may be prepaid by the Company, at any
time, in whole but not in part, without penalty or premium if the Equity
Financing Option is not exercised by the Committed Investor within 10 days after
the Company notifies the Committed Investor that it has obtained a CE mark in
Europe on its initial product.

SECTION 3. Conversion and Purchase of Extra Equity.

          (a) Conversion and Purchase Right. Promptly after obtaining a CE mark
in Europe on its initial product, the Company shall give the Holder notice
thereof (the "Trigger Notice"). If the Holder is a Qualified Person at such
time, the Holder shall have 10 days from the Trigger Notice in which it may
irrevocably elect (subject to the condition precedent that the Committed
Investor exercises the Equity Financing Option) to convert this entire Note and
all accrued interest hereon, in whole but not in part, into the number of whole
shares of New Preferred that have an aggregate liquidation preference equal to
the principal amount of this Note together with any accrued but unpaid interest
thereon (subject to Section 4); provided that the Holder simultaneously elects
to purchase (which right the Holder is hereby granted, contingent upon the
simultaneous conversion of this Note), for the aggregate liquidation preference
thereof, a number of additional shares of New Preferred (the "Extra Equity")
having an aggregate liquidation preference equal to any amount, at the Holder's
option, between 9 and 11 times the principal amount of this Note (such amount,
the "Extra Equity Subscription Amount").

          (b) Procedures. (i) Any Holder of a Note desiring to convert such Note
into New Preferred shall surrender such Note at the Company's principal
executive office, accompanied by proper instruments of transfer to the Company
or in blank, accompanied by irrevocable written notice (the "Notice of
Conversion and Purchase"), in the form attached hereto as Annex I, to the
Company that the Holder elects so to convert such Note and that the Holder
elects to purchase the Extra Equity and specifying the Extra Equity Subscription
Amount, which must be at least 9 times, and no more than 11 times, the principal
amount of this Note, accompanied by payment by cash or certified check of the
portion of the Extra Equity Subscription Amount equal to 4 times the principal
amount of this Note (the "First Closing Purchase Price") and specifying the name
or names (with address) in which a certificate or certificates evidencing shares
of New Preferred are to be issued. On the last business day of the calendar
month that is two months after the date of the Notice of Conversion and Purchase
(the "Second Closing Date"), the Holder shall deliver to the Company payment, by
cash or certified check, of a portion of the Extra Equity Subscription Amount
that is equal to 3 times the principal amount of this Note (the "Second Closing
Purchase Price"). On the last business day of the calendar month that is three
months after the Second Closing Date (the "Third Closing Date"), the Holder
shall deliver to the Company payment, by cash or certified check, of the unpaid
portion of the Extra Equity Subscription Amount (which, depending on the total
Extra

                                      -2-

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Equity Subscription Amount elected by such Holder, will be at least 2 times, and
no more than 4 times, the principal amount of this Note) (the "Third Closing
Purchase Price").

               (ii) The Company need not deem a Notice of Conversion and
Purchase to be received unless the Holder complies with all the provisions
hereof (including, without limitation, payment of the Extra Equity Subscription
Amount). The Company will make a notation of the date that a Notice of
Conversion and Purchase is received, which date of receipt shall be deemed to be
the date of receipt for purposes hereof.

               (iii) The Company shall, as soon as practicable after such
surrender of any Note accompanied by a Notice of Conversion and Purchase and
compliance with any other conditions herein contained (including, without
limitation, payment of the First Closing Purchase Price), deliver to the person
for whose account this Note was so surrendered certificates evidencing the
number of full shares of New Preferred having an aggregate liquidation
preference equal to the First Closing Purchase Price, subject to Section 4. On
the Second Closing Date, upon compliance with the conditions herein contained
(including, without limitation, payment of the Second Closing Purchase Price),
the Company shall deliver to the person for whose account this Note was
surrendered, certificates evidencing the number of full shares of New Preferred
having an aggregate liquidation preference equal to the Second Closing Purchase
Price, subject to Section 4. On the Third Closing Date, upon compliance with the
conditions herein contained (including, without limitation, payment of the Third
Closing Purchase Price), the Company shall deliver to the person for whose
account this Note was surrendered certificates evidencing the number of full
shares of New Preferred having an aggregate liquidation preference equal to the
Second Closing Purchase Price, subject to Section 4.

               (iv) Subject to the following provisions of this Paragraph
3(b)(iv), such conversion and such purchases shall be deemed to have been made
as of the dates of such surrender of the Note and payment of the respective
portions of the Extra Equity Subscription Amount, and the person or persons
entitled to receive the New Preferred deliverable upon such conversion and
purchases shall be treated for all purposes as the record holder or holders of
such New Preferred on such respective dates, and the Note shall no longer be
deemed outstanding and all rights whatsoever in respect hereof (including the
right to receive interest hereon) shall terminate except the right to receive
the number of full shares of New Preferred to which such person shall be
entitled hereunder; provided, however, that the Holder's obligations to purchase
New Preferred on the Second Closing Date and the Third Closing Date shall
survive the conversion of this Note; and provided, further, that the Company
shall not be required to convert any Note or sell any New Preferred while the
stock transfer books of the Company are closed for any purpose, but the
surrender of a Note for conversion and the tender of any of the Extra Equity
Subscription Amount during any period while such books are so closed shall
become effective for conversion and/or purchase immediately upon the reopening
of such books as if such surrender and/or tender had been made on the date of
such reopening.

          (c) Reservation of Shares; Transfer Taxes; Etc. The Company shall at
all times beginning promptly after the exercise of the Equity Financing Option
reserve and keep available, out of its authorized and unissued shares of New
Preferred, solely for the purpose of effecting the conversion of the Notes, such
number of shares of its New Preferred free of

                                      -3-

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preemptive rights as shall be sufficient to effect the conversion of all Notes
from time to time outstanding.

          The Company shall pay any and all issue or other taxes (other than
income taxes) that may be payable in respect of any issue or delivery of shares
of New Preferred on conversion of the Notes. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer involved
in the issue or delivery of New Preferred (or other securities or assets) in a
name other than that in which the Notes so converted were registered, and no
such issue or delivery shall be made unless and until the person requesting such
issue has paid to the Company the amount of such tax or has established, to the
satisfaction of the Company, that such tax has been paid.

SECTION 4. Fractional Shares.

          No fractional shares or scrip representing fractional shares of New
Preferred shall be issued upon conversion of this Note and exercise of the
purchase rights hereunder. If more than one certificate evidencing Notes shall
be surrendered for conversion and exercise at one time by the same Holder, the
number of full shares issuable upon conversion and exercise thereof shall be
computed on the basis of the aggregate principal amount and Extra Equity
Subscription Amount of the Notes so surrendered. Instead of any fractional share
of New Preferred which would otherwise be issuable at a given time upon
conversion of this Note (or of such aggregate number of Notes) and exercise of
the purchase rights hereunder (or thereunder), the Company may elect, in its
sole discretion, independently for each Holder, whether such number of shares of
New Preferred will be rounded to the nearest whole share (with a .5 of a share
rounded upward) or whether such Holder will be given cash, in lieu of any
fractional share, in an amount equal to the same fraction of the liquidation
preference per share of New Preferred.

SECTION 5. Events of Default Defined.

          The following shall each constitute an "Event of Default" hereunder:

          (a) the failure of the Company to make any payment of principal of or
interest on this Note;

          (b) the Company, pursuant to or within the meaning of any Bankruptcy
Law:

               (i) commences a voluntary case,

               (ii) consents to the entry of an order for relief against it in
an involuntary case,

               (iii) consents to the appointment of a Custodian of it or for all
or substantially all of its property, and such Custodian is not discharged
within 30 days, or

               (iv) makes a general assignment for the benefit of its creditors;

          (c) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that remains unstayed and in effect for 60 consecutive days
and that:

                                      -4-

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               (i) is for relief in any involuntary case against the Company,

               (ii) appoints a Custodian of the Company or for all or
substantially all of the property of the Company, or

               (iii) orders the liquidation of the Company.

          The term "Bankruptcy Law" means Title 11 of the U.S. Code or any
similar federal, foreign or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, examiner or
similar official under any Bankruptcy Law.

SECTION 6. Remedies upon Event of Default.

          (a) If an Event of Default occurs and is continuing for a period of 15
or more consecutive days, the holder or holders of Notes constituting a majority
of the aggregate principal amount of Notes then outstanding (the "Majority
Noteholders"), by notice to the Company, may declare the unpaid principal of and
accrued interest on all the Notes then outstanding to be due and payable (an
"Acceleration"). Upon any such declaration, such principal and accrued interest
shall be due and payable immediately. Majority Noteholders may rescind an
Acceleration and its consequences; provided, however, that no such rescission
shall effect any subsequent Default or impair any right consequent thereto.

          (b) Majority Noteholders may waive an existing Default or Event of
Default and its consequences. Upon any such waiver, such Default shall cease to
exist and any Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Note; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

          (c) To the extent permitted by law, the remedies provided herein shall
be exclusive of any other remedies now or hereafter existing at law or in equity
or by statute or otherwise.

          (d) In any suit for the enforcement of any right or remedy under this
Note, a court in its discretion may require the filing by any party litigant in
the suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant.

SECTION 7. Lost, Mutilated, etc. Note.

          Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Note and of indemnity or
bond reasonably satisfactory to it, and upon reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of
this Note (in case of mutilation) the Company will make and deliver in lieu of
this Note a new Note of like tenor and unpaid principal amount and dated as of
the date to which interest has been paid on the unpaid principal amount of this
Note in lieu of which such new Note is made and delivered.

                                      -5-

<PAGE>

SECTION 8. Certain Definitions.

          (a) "Committed Investor" means Ronald Perelman.

          (b) "Commitment Agreement" means the Commitment Agreement among the
Company and the Committed Investor, dated as of May 30, 2003.

          (c) "Default" means an event which, with notice or the passage of
time, or both, would become an Event of Default.

          (d) The "Equity Financing" means the conversion of Notes into New
Preferred and the sale by the Company, pursuant to the exercise of certain
purchase rights under the Notes, of a minimum of $9.00 and a maximum of $11.00
of New Preferred for every $1.00 principal amount of Bridge Notes being
converted, in each case, at a conversion or purchase price per share equal to
the liquidation preference per share of the New Preferred.

          (e) "Equity Financing Option" means the right but not the obligation
of the Committed Investor, pursuant to the Commitment Agreement, to elect to
proceed with the Equity Financing. The Equity Financing Option is exercisable at
any time prior to the earlier of (i) 10 days after the Company notifies the
Committed Investor that it has obtained a CE mark in Europe on its initial
product and (ii) January 15, 2004.

          (f) "Maturity Date" means January 26, 2004.

          (g) "New Preferred" means the Series D Convertible Preferred Stock of
the Company, par value $.001 per share.

          (h) "Qualified Person" means an "accredited investor," within the
meaning of Regulation D under the Securities Act, that will acquire any
securities obtainable directly or indirectly upon conversion and exercise of
this Note for its own account for investment and not with a view to, or for sale
in connection with, any distribution thereof in violation of the Securities Act.

          (i) "Securities Act" means the United States Securities Act of 1933,
as amended.

SECTION 9. Miscellaneous.

          (a) This Note may be amended only by mutual written agreement of the
Company and the Majority Noteholders, and the Company may take any action herein
prohibited or omit to take any action herein required to be performed by it, and
any breach of any covenant, agreement, warranty or representation may be waived,
only if the Company has obtained the written consent or waiver of the Holder or
the Majority Noteholders. Any amendments approved in compliance with this
Section 9 shall bind the Holder's successors and assigns, as well as executors
and other personal representatives.

          (b) Governing Law. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York, excluding the body of law
relating to conflict of laws. Notwithstanding anything to the contrary contained
herein, in no event may the

                                      -6-

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effective rate of interest collected or received by the Holder exceed that which
may be charged, collected or received by the Holder under applicable law.

          (c) Interpretation. If any term or provision of this Note shall be
held invalid, illegal or unenforceable, the validity of all other terms and
provisions hereof shall in no way be affected thereby.

          (d) Successors and Assigns. This Note shall be binding upon the
Company and its successors and assigns and shall inure to the benefit of the
Holder and its successors and registered assigns.

          (e) Saturdays, Sundays, Holidays. If any date that may at any time be
specified in this Note as a date for the making of any payment of principal or
interest under this Note shall fall on Saturday, Sunday or on a day which in New
York shall be a legal holiday, then the date for the making of that payment
shall be the next subsequent day which is not a Saturday, Sunday or legal
holiday.

                                      -7-

<PAGE>

          IN WITNESS WHEREOF, this Senior Convertible Bridge Note due 2004 has
been executed and delivered on the date first above written by the duly
authorized representative of the Company.

                                         NEPHROS, INC.

                                         By:
                                             -----------------------------------
                                             Name: Norman J. Barta
                                             Title: President & CEO

<PAGE>

                                                                         ANNEX I

                        NOTICE OF CONVERSION AND PURCHASE

To: Nephros, Inc.

          The undersigned, pursuant to the provisions set forth in the Senior
Convertible Bridge Note due 2004, in the principal amount of $
                                                              ----------------
standing in the name of the undersigned (the "Note"), hereby irrevocably elects
both:

          (i) to convert the entire Note and all accrued interest hereon into
the number of whole shares of New Preferred that have an aggregate liquidation
preference equal to the principal amount of the Note together with any accrued
but unpaid interest thereon; and

          (ii) to purchase $               (which amount (the "Extra Equity
                            --------------
Subscription Amount") is at least $            , and no more than
                                   ------------
$               ) aggregate liquidation preference of additional New Preferred
 ---------------
at a purchase price equal to the liquidation preference thereof.

          Enclosed herewith is $             in cash or a certified check for
                                ------------
payment of the First Closing Purchase Price. On         , 2003 [Second Closing
                                                ----- --
Date], the undersigned shall deliver to the Company payment of the Second
Closing Purchase Price, by cash or certified check, of $            . On
                                                        ------------     -----
  , 2003 [Third Closing Date], the undersigned shall deliver to the Company
--
payment, by cash or certified check, of the then-unpaid portion of the Extra
Equity Subscription Amount that the undersigned has selected in clause (ii),
above.

          The certificate or certificates evidencing shares of New Preferred to
be issued upon conversion of the Note and the purchase of additional shares of
New Preferred in accordance with the terms of the Note should be registered in
the following name(s) (if no information is provided, the New Preferred will be
issued in the name of the registered holder of the Note:

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

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

          ------------------------------   -------------------------------------
          [name(s)]                        [address(es)]

          The undersigned represents that it understands that any securities
obtainable upon the conversion and purchase described above have not been
registered for sale under Federal or state securities laws and are being offered
and sold to the undersigned pursuant to one or more exemptions from the
registration requirements of such securities laws. The undersigned is an
"accredited investor" within the meaning of Regulation D under the Securities
Act. In the absence of an effective registration of such securities or an
exemption therefrom, any certificates for such securities shall bear a legend in
substantially the form set forth on the first page of the Note. The undersigned
understands that it must bear the economic risk of its investment in the Company
for an indefinite period of time, as such securities have not been registered
under Federal or state securities laws and therefore cannot be sold unless
subsequently registered under such laws, unless as exemption from such
registration is available.

          Capitalized terms used but not defined herein have the respective
meanings ascribed to them in the Note.

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

                                           Dated:
                                                  ------------------------------

      (Before Signing, Please Make Sure You Have Filled In A Dollar Amount
                           In Paragraph (ii), Above.)<PAGE>

                                                                     EXHIBIT 4.5

NEITHER THIS WARRANT NOR THE SECURITIES FOR WHICH IT IS EXERCISABLE HAVE BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES
UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE SECURITIES ACT. ANY SUCH
TRANSFER MAY ALSO BE SUBJECT TO COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS
AND THE LAWS OF OTHER APPLICABLE JURISDICTIONS.

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF ARE
SUBJECT TO THE TERMS OF THIS CLASS C WARRANT, COPIES OF WHICH ARE AVAILABLE FROM
NEPHROS, INC., INCLUDING, WITHOUT LIMITATION, THE LOCK-UP PROVISIONS OF SECTION
12 HEREOF.

                                  NEPHROS, INC.

                                     Form of

                  Class C Warrant for the Purchase of Shares of
                                  Common Stock

No. C-1                                                       September 22, 2003

                FOR VALUE RECEIVED, NEPHROS, INC., a Delaware corporation (the
"Company"), hereby certifies that Joe Giamanco or his registered assigns (the
"Holder") is entitled to purchase from the Company, subject to the provisions of
this Warrant (the "Warrant"), at any time on or after the date hereof (the
"Initial Exercise Date"), and prior to 11:59 P.M., New York City time, on
September 11, 2006 (the "Termination Date"), 15,627 fully paid and
non-assessable shares of the Common Stock, $.001 par value, of the Company
("Common Stock"), at an exercise price of $2.50 per share of Common Stock for an
aggregate exercise price of thirty-nine thousand sixty-seven dollars and fifty
cents ($39,067.50) (the aggregate purchase price payable for the Warrant Shares
hereunder is hereinafter sometimes referred to as the "Aggregate Exercise
Price"). The number of shares of Common Stock to be received upon exercise of
this Warrant and the price to be paid for each share of Common Stock are subject
to possible adjustment from time to time as hereinafter set forth. The shares of
Common Stock or other securities or property deliverable upon such exercise as
adjusted from time to time is hereinafter sometimes referred to as the "Warrant
Shares." The exercise price of a share of Common Stock in effect at any time and
as adjusted from time to time is hereinafter sometimes referred to as the "Per
Share Exercise Price." The Per Share Exercise Price is

<PAGE>

subject to adjustment as hereinafter provided; in the event of any such
adjustment, the number of Warrant Shares shall also be adjusted, by dividing the
Aggregate Exercise Price by the Per Share Exercise Price in effect immediately
after such adjustment. The Aggregate Exercise Price is not subject to adjustment
except to the extent of any partial exercise of this Warrant. This Warrant may
constitute one in a series of warrants (the "Class C Warrants") which includes
this Warrant and any other Class C Warrant for the Purchase of Shares of Common
Stock of the Company, of like tenor hereto.

                1.      Exercise of Warrant.

                (a)     This Warrant may be exercised in whole or in part, at
any time by its holder commencing on the Initial Exercise Date and prior to the
Termination Date:

                        (i)     by presentation and surrender of this Warrant,
        together with the duly executed subscription form attached at the end
        hereof, at the address set forth in Subsection 8(a) hereof, together
        with payment, by certified or official bank check or wire transfer
        payable to the order of the Company, of the Aggregate Exercise Price or
        the proportionate part thereof if exercised in part; or

                        (ii)    by presentation and surrender of this Warrant,
        together with the duly executed cashless exercise form attached at the
        end hereof (a "Cashless Exercise") at the address set forth in
        Subsection 8(a) hereof. The exchange of Common Stock for the Warrant
        shall take place on the date specified in the Cashless Exercise Form or,
        if later, the date the Cashless Exercise Form is surrendered to the
        Company (the "Exchange Date"). Such presentation and surrender shall be
        deemed a waiver of the Holder's obligation to pay the Aggregate Exercise
        Price, or the proportionate part thereof if this Warrant is exercised in
        part. In the event of a Cashless Exercise, this Warrant shall represent
        the right to subscribe for and to acquire the number of shares of Common
        Stock equal to (x) the number of shares of Common Stock specified by the
        Holder in its Cashless Exercise Form (the "Total Number") (such number
        not to exceed the maximum number of shares of Common Stock subject to
        this Warrant, as may be adjusted from time to time) less (y) the number
        of shares of Common Stock equal to the quotient obtained by dividing (A)
        the product of the Total Number and the existing Per Share Exercise
        Price by (B) the fair market value per share of Common Stock at such
        time, as determined by the Board of Directors of the Company in good
        faith (the "Per Share FMV"). No Cashless Exercise shall be effected
        unless the Per Share FMV is greater than the Per Share Exercise Price as
        of the Exchange Date.

                (b)     If this Warrant is exercised in part only, the Company
shall, upon presentation of this Warrant upon such exercise, execute and deliver
(along with the certificate for the Warrant Shares purchased) a new Warrant
evidencing the rights of the Holder hereof to purchase the balance of the
Warrant Shares purchasable hereunder upon the same terms and conditions as
herein set forth. Upon proper exercise of this Warrant, the Company promptly
shall deliver certificates for the Warrant Shares to the Holder duly legended as
authorized by the subscription form. No fractional shares or scrip representing
fractional shares shall be issued upon exercise of this Warrant; provided that
the Company shall pay to the Holder of the Warrant cash in lieu of such
fractional shares.

                                      - 2 -

<PAGE>

                2.      Reservation of Warrant Shares; Fully Paid Shares; Taxes.
The Company hereby represents that it has, and until expiration of this Warrant
agrees that it shall, reserve for issuance or delivery upon exercise of this
Warrant, such number of shares of the Common Stock as shall be required for
issuance and/or delivery upon exercise of this Warrant in full, and agrees that
all Warrant Shares so issued and/or delivered will be validly issued, fully paid
and non-assessable, and further agrees to pay all taxes (other than income
taxes) and charges that may be imposed upon such issuance and/or delivery. The
Company shall not, however, be required to pay any tax which may be payable in
respect of any transfer involved in the issue or delivery of Common Stock (or
other securities or assets) in a name other than that in which the Warrants so
exercised were registered, and no such issue or delivery shall be made unless
and until the person requesting such issue has paid to the Company the amount of
such tax or has established, to the satisfaction of the Company, that such tax
has been paid.

                3.      Protection Against Dilution.

                (a)     In case the Company shall hereafter (i) pay a dividend
or make a distribution on its capital stock in shares of Common Stock, (ii)
subdivide its outstanding shares of Common Stock into a greater number of
shares, (iii) combine its outstanding shares of Common Stock into a smaller
number of shares or (iv) issue by reclassification of its Common Stock any
shares of capital stock of the Company (each of (i) through (iv) an "Action"),
the Per Share Exercise Price shall be adjusted to be equal to a fraction, the
numerator of which shall be the Aggregate Exercise Price and the denominator of
which shall be the number of shares of Common Stock or other capital stock of
the Company that the Holder would have held (solely as a result of the exercise
of this Warrant and the operation of such Action) immediately following such
Action if this Warrant had been exercised immediately prior to such Action. An
adjustment made pursuant to this Subsection 3(b) shall become effective
immediately after the record date in the case of a dividend or distribution and
shall become effective immediately after the effective date in the case of a
subdivision, combination or reclassification.

                (b)     In the event of any capital reorganization or
reclassification not otherwise covered in this Section 3, or any consolidation
or merger to which the Company is a party other than a merger or consolidation
in which the Company is the continuing corporation, or in case of any sale or
conveyance to another entity of the property of the Company as an entirety or
substantially as an entirety, or in the case of any statutory exchange of
securities with another corporation (including any exchange effected in
connection with a merger of a third corporation into the Company), the Holder of
this Warrant shall have the right thereafter to receive on the exercise of this
Warrant the kind and amount of securities, cash or other property which the
Holder would have owned or have been entitled to receive immediately after such
reorganization, reclassification, consolidation, merger, statutory exchange,
sale or conveyance had this Warrant been exercised immediately prior to the
effective date of such reorganization, reclassification, consolidation, merger,
statutory exchange, sale or conveyance and in any such case, if necessary,
appropriate adjustment shall be made in the application of the provisions set
forth in this Section 3 with respect to the rights and interests thereafter of
the Holder of this Warrant to the end that the provisions set forth in this
Section 3 shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock or other securities or
property thereafter deliverable on the exercise of this Warrant. The above

                                      - 3 -

<PAGE>

provisions of this Subsection 3(b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, statutory
exchanges, sales or conveyances.

                (c)     Whenever the Per Share Exercise Price payable upon
exercise of this Warrant is adjusted pursuant to this Section 3, the number of
shares of Common Stock underlying this Warrant shall simultaneously be adjusted
to equal the number obtained by dividing the Aggregate Exercise Price (as the
same shall be reduced to the extent of any partial exercise of this Warrant) by
the adjusted Per Share Exercise Price.

                (d)     If, as a result of an adjustment made pursuant to this
Section 3, the Holder shall become entitled to receive, upon exercise of the
Warrant, shares of two or more classes of capital stock or shares of Common
Stock and other capital stock of the Company, the Board of Directors (whose
determination shall be conclusive) shall determine the allocation of the
adjusted Per Share Exercise Price between or among shares or such classes of
capital stock or shares of Common Stock and other capital stock.

                4.      Limited Transferability. This Warrant may not be sold,
transferred, assigned or hypothecated by the Holder except in compliance with
the provisions of the Act and the applicable state securities "blue sky" laws,
and is so transferable only upon the books of the Company which it shall cause
to be maintained for such purpose. The Company may treat the registered Holder
of this Warrant as he or it appears on the Company's books at any time as the
Holder for all purposes.

                5.      Loss, etc., of Warrant. Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, and of indemnity reasonably satisfactory to the Company (which may
include a bond), if lost, stolen or destroyed, and upon surrender and
cancellation of this Warrant, if mutilated, the Company shall execute and
deliver to the Holder a new Warrant of like date, tenor and denomination.

                6.      Investment Intent.

                (a)     The Holder represents, by accepting this Warrant, that
it understands that this Warrant and any securities obtainable upon exercise of
this Warrant have not been registered for sale under Federal or state securities
laws and are being offered and sold to the Holder pursuant to one or more
exemptions from the registration requirements of such securities laws. The
Holder is an "accredited investor" within the meaning of Regulation D under the
Securities Act of 1933, as amended (the "Act"). In the absence of an effective
registration of such securities or an exemption therefrom, any certificates for
such securities shall bear the legend set forth on the first page hereof. The
Holder understands that it must bear the economic risk of its investment in this
Warrant and any securities obtainable upon exercise of this Warrant for an
indefinite period of time, as this Warrant and such securities have not been
registered under Federal or state securities laws and therefore cannot be sold
unless subsequently registered under such laws, unless as exemption from such
registration is available.

                (b)     The Holder, by its acceptance of its Warrant, represents
and warrants to the Company that it has sufficient knowledge and experience in
financial and business matters to be capable of evaluating the merits and risks
of the prospective investment in Warrant Shares

                                      - 4 -

<PAGE>

and of making an informed investment decision with respect thereto. The Holder
acknowledges that any disclosure materials it has received from the Company may
not contain all information that is necessary to make an investment decision
with respect to the Company and the Warrant Shares and that it must rely on its
own examination of the Company and the terms and conditions of this Warrant
prior to making any investment decision with respect to the Warrant Shares. The
Holder further represents and warrants that it has been afforded full
opportunity to ask questions and obtain copies of all relevant documents
concerning the Company and the Warrant Shares, and all of its questions and
requests for documents and information have been answered to its complete
satisfaction.

                (c)     The Holder, by its acceptance of its Warrant, represents
to the Company that it is acquiring this Warrant and will acquire any securities
obtainable upon exercise of this Warrant for its own account for investment and
not with a view to, or for sale in connection with, any distribution thereof in
violation of the Act. The Holder agrees that this Warrant and any such
securities will not be sold or otherwise transferred unless (i) a registration
statement with respect to such transfer is effective under the Act and any
applicable state securities laws or (ii) such sale or transfer is made pursuant
to one or more exemptions from the Act.

                7.      Status of Holder. This Warrant does not confer upon the
Holder any right to vote or to consent to or receive notice as a stockholder of
the Company, as such, in respect of any matters whatsoever, or any other rights
or liabilities as a stockholder, prior to the exercise hereof.

                8.      Notices. No notice or other communication under this
Warrant shall be effective unless, but any notice or other communication shall
be effective and shall be deemed to have been given if, the same is in writing
and is mailed by first-class mail, postage prepaid, addressed to:

                (a)     the Company c/o Audubon Business and Technology Center,
        Columbia-Presbyterian Medical Center, 3960 Broadway, 4th Floor, New
        York, NY 10032, Attention: President, or such other address as the
        Company has designated by notice to the Holder; or

                (b)     the Holder at 4 White Rock Terrace, Holmdel, NJ 07733 or
        such other address as the Holder has designated by notice to the
        Company.

                9.      Headings. The headings of this Warrant have been
inserted as a matter of convenience and shall not affect the construction
hereof.

                10.     Applicable Law. This Warrant shall be governed by and
construed in accordance with the law of the State of New York without giving
effect to principles of conflicts of law thereof.

                11.     Amendments. This Warrant may be amended only by mutual
written agreement of the Company and the holder or holders holding Class C
Warrants exercisable for a majority of the shares of Common Stock issuable upon
exercise of all then-outstanding Class C Warrants (the "Majority Holders"), and
the Company may take any action herein prohibited or omit to take any action
herein required to be performed by it, and any breach of any covenant,

                                      - 5 -

<PAGE>

agreement, warranty or representation may be waived, only if the Company has
obtained the written consent or waiver of the Majority Holders.

                12.     Lock-up. (a) General Lock-up. If the Company shall
effect a primary or a secondary public offering of its securities or if at any
time, the Company shall register its shares of Common Stock under the Securities
Act for sale to the public, the holder or holders of Common Stock issued or
issuable upon exercise of this Warrant shall not sell publicly, make any short
sale of, grant any option for the purchase of, or otherwise dispose publicly of,
any shares of Common Stock without the prior written consent of the Company
during the period beginning ten (10) days prior to the effectiveness of the
registration statement pursuant to which such public offering shall be made and
ending on the date 180 days after the effective date of such registration
statement. By acceptance of this Warrant, or the shares of Common Stock issued
or issuable upon exercise hereof, the holder hereof or thereof agrees to be
bound by the terms of this Section 12.

                        (b)     Special IPO Lock-up. In the event of an initial
public offering (the "IPO") of Common Stock (whether such IPO occurs prior to or
after the issuance hereof), the Holder, during the period commencing seven days
prior to the date of the final prospectus relating to the IPO and ending 360
days thereafter (the "Restricted Period"):

                        (i)     agrees not to (x) offer, pledge, sell, contract
        to sell, sell any option or contract to purchase, purchase any option or
        contract to sell, grant any option, right or warrant to purchase, or
        establish or increase a put equivalent position or liquidate or decrease
        a call equivalent position within the meaning of Section 16 of the
        Securities Exchange Act of 1934, as amended, and the rules and
        regulations promulgated thereunder or otherwise transfer or dispose of,
        directly or indirectly, any shares of Common Stock or other capital
        stock of the Company or any securities convertible into or exercisable
        or exchangeable for any shares of Common Stock or other capital stock of
        the Company (collectively, the "Securities") or (y) enter into any swap
        or other arrangement that transfers all or a portion of the economic
        consequences associated with the ownership of any Securities of the
        Company, or publicly announce an intention to effect any such
        transaction (regardless of whether any of the transactions described in
        clause (x) or (y) is to be settled by the delivery of Common Stock, or
        such other Securities, in cash or otherwise), without the prior written
        consent of the lead underwriter for such IPO (the "Underwriter");

                        (ii)    authorizes the Company to cause the transfer
        agent to decline to transfer and/or to note stop transfer restrictions
        on the transfer books and records of the Company with respect to any
        Securities for which the Holder is the record holder and, in the case of
        any such Securities for which the Holder is the beneficial but not the
        record holder, agrees to cause the record holder to authorize the
        Company to cause the transfer agent to decline to transfer and/or to
        note stop transfer restrictions on such books and records with respect
        to such Securities; and

                        (iii)   agrees that the restrictions set forth in this
        Section 12(b) shall apply (A) for 450 days with respect to any
        transaction involving any Securities in excess of one-third (1/3) of the
        Securities held by the Holder on the date of the final prospectus,

                                      - 6 -

<PAGE>

        and (B) for 540 days with respect to any transaction involving any
        Securities in excess of two-thirds (2/3) of the Securities held by the
        Holder on the date of the final prospectus.

                                      - 7 -

<PAGE>

                IN WITNESS WHEREOF, the undersigned, acting for and on behalf of
the Company, has executed this Warrant as of the date first written above.

                                      NEPHROS, INC.

                                      By:  /s/ Norman Barta
                                           -------------------------
                                           Name:  Norman Barta
                                           Title: President and Chief Executive
                                                  Officer

                                      - 8 -

<PAGE>

                                  SUBSCRIPTION

                The undersigned, ____________________________, pursuant to the
provisions of the foregoing Warrant, hereby elects to exercise the within
Warrant to the extent of purchasing _____________________ shares of Common Stock
thereunder and hereby makes payment of $_______________ by certified or official
bank check in payment of the exercise price therefor.

Dated:                                 Signature:
      ------------------                         ----------------------------
                                       Address:
                                               -------------------------------

                                CASHLESS EXERCISE

                The undersigned, ____________________________, pursuant to the
provisions of the foregoing Warrant, hereby elects to exchange the within
Warrant for up to ______________ shares of Common Stock of Nephros, Inc.
pursuant to the cashless exercise provisions of the Warrant. The undersigned
hereby confirms the representations, warranties and covenants made by it in the
Warrant.

Dated:                                 Signature:
      ------------------                         ----------------------------
                                       Address:
                                               -------------------------------

                                      - 9 -

<PAGE>

                                   ASSIGNMENT

                FOR VALUE RECEIVED _______________________________________
hereby sells, assigns and transfers unto _____________________________________
the foregoing Warrant and all rights evidenced thereby, and does irrevocably
constitute and appoint _____________________________, attorney, to transfer said
Warrant on the books of Nephros, Inc.

Dated:                                 Signature:
      ------------------                         ----------------------------
                                       Address:
                                               ------------------------------

                               PARTIAL ASSIGNMENT

                FOR VALUE RECEIVED __________________________ hereby assigns and
transfers unto _________________________ the right to purchase __________ shares
of the Common Stock, $.001 par value per share, of Nephros, Inc. covered by the
foregoing Warrant, and a proportionate part of said Warrant and the rights
evidenced thereby, and does irrevocably constitute and appoint
__________________________, attorney, to transfer that part of said Warrant on
the books of Nephros, Inc.

Dated:                                 Signature:
      ------------------                         ----------------------------
                                       Address:
                                               ------------------------------

                                     - 10 -

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