FORM OF PREFERRED STOCK PURCHASE WARRANT To Purchase [__________] Shares of Series B Preferred Stock of ALTEON INC.

Exhibit
      10.4

NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE 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. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

FORM
      OF PREFERRED STOCK PURCHASE WARRANT

To
      Purchase [__________] Shares of Series B Preferred Stock of
 
ALTEON
      INC.
 
THIS
      PREFERRED STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, [_______________________] (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Alteon Inc., a Delaware
      corporation (the “Company”),
      up to
      ______ shares of the following class of securities of the Company (the
“Warrant
      Shares”):
      initially, Series B Preferred Stock, par value $0.01 per share, of the Company
      (the “Preferred
      Stock”),
      and
      from and after the date that all of the outstanding shares of Preferred Stock
      have been automatically converted by the Company into Common Stock, par value
      $0.01 per share, of the Company (the “Common
      Stock”)
      in
      accordance with the rights and preferences of the Series B Preferred Stock
      set
      forth in Section 5 of Article Fourth of the Company’s Amended and Restated
      Certificate of Incorporation, the Warrant Shares shall be deemed to be Common
      Stock on the same terms as the conversion of the outstanding shares of Preferred
      Stock. The purchase price of one Warrant Share under this Warrant shall be
      equal
      to the Exercise Price, as defined in Section 2(b). 
 
Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Series B Preferred Stock and Warrant Purchase
      Agreement (the “Purchase
      Agreement”),
      dated
      April 5, 2007, between the Company and the purchasers signatory
      thereto.
 

        
1

          
        

        
Section
      2. Exercise.
 
a)  Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); and, within three (3) Trading Days of the date said Notice of Exercise
      is delivered to the Company, the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation within
      three (3) Trading Days of the date the final Notice of Exercise is delivered
      to
      the Company. Partial exercises of this Warrant resulting in purchases of a
      portion of the total number of Warrant Shares available hereunder shall have
      the
      effect of lowering the outstanding number of Warrant Shares purchasable
      hereunder in an amount equal to the applicable number of Warrant Shares
      purchased. The Holder and the Company shall maintain records showing the number
      of Warrant Xxxxxx purchased hereunder and the date of such purchases. The
      Company shall deliver any objection to any Notice of Exercise Form within three
      (3) Business Days of receipt of such notice. The Holder and any assignee, by
      acceptance of this Warrant, acknowledge and agree that, by reason of the
      provisions of this paragraph, following the purchase of a portion of the Warrant
      Shares hereunder, the number of Warrant Shares available for purchase hereunder
      at any given time may be less than the amount stated on the face hereof.
 
b)  Exercise
      Price.
      The
      exercise price per share of the Preferred Stock under this Warrant shall be
      $[____] [NOTE:
      Insert the Initial Purchase Price from Purchase Agreement],
      subject to adjustment hereunder (the “Exercise
      Price”).
 
c)  Cashless
      Exercise.
      This
      Warrant may also be exercised by means of a “cashless exercise” in which the
      Holder shall be entitled to receive a certificate for the number of Warrant
      Shares issuable hereunder equal to the quotient obtained by dividing ((A-B)
      (X))
      by (A), where:
 

      

          
             
            (A)
                = 

            the
                VWAP (as defined below) on the Trading Day immediately preceding
                the date
                of such election;

          

    


      

          
             
            (B)
                = 

            the
                Exercise Price of this Warrant, as adjusted; and
                

          

    


      

          
             
            (X)
                = 

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

          

    

“VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (1) if the Warrant Shares are Preferred Stock, the fair market value
      of
      a share of Preferred Stock as determined by an independent appraiser selected
      in
      good faith by the Holder and reasonably acceptable to the Company, and (2)
      if
      the Warrant Shares are Common Stock, (a) if the Common Stock is then listed
      or
      quoted on the American Stock Exchange or another exchange (the “Trading
      Market”),
      the
      daily volume weighted average price of the Common Stock for such date (or the
      nearest preceding date) on the Trading Market on which the Common Stock is
      then
      listed or quoted for trading as reported by Bloomberg Financial L.P. (based
      on a
      Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
      time); (b) if the OTC Bulletin Board is not a Trading Market, the volume
      weighted average price of the Common Stock for such date (or the nearest
      preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then
      quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
      are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
      similar organization or agency succeeding to its functions of reporting prices),
      the most recent price per share of the Common Stock so reported; or (d) in
      all other cases, the fair market value of a share of Common Stock as determined
      by an independent appraiser selected in good faith by the Holder and reasonably
      acceptable to the Company. 
 

        
2

          
        

        
Except
      in
      connection with the termination of this Warrant as set forth in the final
      sentence of Section 2(a), if the VWAP exceeds the Exercise Price on the
      Termination Date, this Warrant shall be automatically exercised on the
      Termination Date via cashless exercise pursuant to this Section
      2(c).
 
d)  [Reserved].
      
 
e)  Mechanics
      of Exercise.
      
 
i.  Authorization
      of Warrant Shares.
      Subject
      to the Holder’s compliance with the limitations of Section 2(d) hereof, the
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges created
      by the Company in respect of the issue thereof (other than taxes in respect
      of
      any transfer occurring contemporaneously with such issue). 
 
ii.  Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      three (3) Trading Days from the delivery to the Company of the Notice of
      Exercise Form, surrender of this Warrant (if required) and payment of the
      aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be
      paid
      by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance
      of
      such shares, have been paid. 
 

        
3

          
        

        
iii.  Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.
 
iv.  Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the close of business on the third Trading Day after the
      Warrant Share Delivery Date, then the Holder will have the right to rescind
      such
      exercise.
 
v.  Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise by the close of business
      on the third Trading Day after the Warrant Share Delivery Date, and if after
      such date the Holder is required by its broker to purchase (in an open market
      transaction or otherwise) Warrant Shares to deliver in satisfaction of a sale
      by
      the Holder of the Warrant Shares which the Holder anticipated receiving upon
      such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      Warrant Shares so purchased exceeds (y) the amount obtained by multiplying
      (A)
      the number of Warrant Shares that the Company was required to deliver to the
      Holder in connection with the exercise at issue times (B) the price at which
      the
      sell order giving rise to such purchase obligation was executed, and (2) at
      the
      option of the Holder, either reinstate the portion of the Warrant and equivalent
      number of Warrant Shares for which such exercise was not honored or deliver
      to
      the Holder the number of Warrant Shares that would have been issued had the
      Company timely complied with its exercise and Warrant Shares having a total
      purchase price of $11,000 to cover a Buy-In with respect to an attempted
      exercise of Warrant Shares with an aggregate sale price giving rise to such
      purchase obligation of $10,000, under clause (1) of the immediately preceding
      sentence the Company shall be required to pay the Holder $1,000. The Holder
      shall provide the Company written notice indicating the amounts payable to
      the
      Holder in respect of the Buy-In and, upon request of the Company, evidence
      of
      the amount of such loss. Nothing herein shall limit a Xxxxxx’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 Warrant Shares upon exercise of the Warrant as required pursuant
      to
      the terms hereof.
 

        
4

          
        

        
vi.  No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.
 
vii.  Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.
 
viii.  Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.
 

        
5

          
        

        
Section
      3. Certain Adjustments.
      
 
a)  Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on the Warrant Shares
      payable in shares of Common Stock or any other equity or equity equivalent
      securities, (B) subdivides outstanding Warrant Shares into a larger number
      of
      shares, (C) combines (including by way of reverse stock split) outstanding
      Warrant Shares into a smaller number of shares, or (D) issues by
      reclassification of the Warrant Shares any shares of capital stock of the
      Company, then in each case the Exercise Price shall be multiplied by a fraction
      of which the numerator shall be the number of Warrant Shares (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of Warrant Shares outstanding immediately after
      such event and the number of shares issuable upon exercise of this Warrant
      shall
      be proportionately adjusted. Any adjustment made pursuant to this Section 3(a)
      shall become effective immediately after the record date for the determination
      of stockholders entitled to receive such dividend or distribution and shall
      become effective immediately after the effective date in the case of a
      subdivision, combination or re-classification.
 
b)  Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Warrant Shares (and not to Holders)
      entitling them to subscribe for or purchase Warrant Shares at a price per share
      less than the VWAP at the record date mentioned below, then the Exercise Price
      shall be multiplied by a fraction, of which the denominator shall be the number
      of Warrant Shares outstanding on the date of issuance of such rights or warrants
      plus the number of additional Warrant Shares offered for subscription or
      purchase, and of which the numerator shall be the number of Warrant Shares
      outstanding on the date of issuance of such rights or warrants plus the number
      of shares which the aggregate offering price of the total number of shares
      so
      offered (assuming receipt by the Company in full of all consideration payable
      upon exercise of such rights, options or warrants) would purchase at such VWAP.
      Such adjustment shall be made whenever such rights or warrants are issued,
      and
      shall become effective immediately after the record date for the determination
      of stockholders entitled to receive such rights, options or
      warrants.
 
c)  Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Warrant Shares (and not to Holders of the Warrants) evidences of
      its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding Warrant Share as determined by the
      Board of Directors in good faith. In either case the adjustments shall be
      described in a statement provided to the Holder of the portion of assets or
      evidences of indebtedness so distributed or such subscription rights applicable
      to one Warrant Share. Such adjustment shall be made whenever any such
      distribution is made and shall become effective immediately after the record
      date mentioned above.
 

        
6

          
        

        
d)  Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Warrant
      Shares are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Warrant
      Shares or any compulsory share exchange pursuant to which the Warrant Shares
      are
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      stock, or other securities or property of the successor or acquiring corporation
      or of the Company, if it is the surviving corporation, and any additional
      consideration (the “Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder to which the Holder would
      have been entitled if the Holder had exercised its rights pursuant to the
      Warrant immediately prior thereto or (b) if the Company is acquired in an all
      cash transaction, cash equal to the value of this Warrant as determined in
      accordance with the Black-Scholes option pricing formula. 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 Warrant Share 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
      Warrant Shares 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. To the extent necessary to
      effectuate the foregoing provisions, any successor to the Company or surviving
      entity in such Fundamental Transaction shall issue to the Holder a new warrant
      consistent with the foregoing provisions and evidencing the Holder’s right to
      exercise such warrant into Alternate Consideration. 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 Section 3(b) and insuring that this Warrant (or any such replacement
      security) will be similarly adjusted upon any subsequent transaction analogous
      to a Fundamental Transaction. Notwithstanding anything herein to the contrary,
      the Holder shall have the right to exercise this Warrant immediately prior
      to
      any Fundamental Transaction, including any Fundamental Transaction occuring
      on
      or before the Initial Exercise Date.
 

        
7

          
        

        
e)  Dilutive
      Issuances and Other Adjustments to Series B Conversion Price.
      The
      Exercise Price and the number of Warrant Shares issuable upon exercise of this
      Warrant or, if the Warrant Shares are Preferred Stock, the number of shares
      of
      Common Stock issuable upon conversion of the Warrant Shares, shall be subject
      to
      adjustment, from time to time in the manner set forth in Company’s Amended and
      Restated Certificate of Incorporation as if the Warrant Shares were issued
      and
      outstanding on and as of the date of any such required adjustment. The
      provisions set forth for the Warrant Shares in Company’s Certificate of
      Incorporation relating to the above in effect as of the date hereof may not
      be
      amended, modified or waived, without the prior written consent of Holder unless
      such amendment, modification or waiver affects the rights associated with the
      Warrant Shares issuable hereunder in the same manner as such amendment,
      modification or waiver affects the rights associated with all other shares
      of
      the same series and class as the Warrant Shares.
 
f)  Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.
 
g)  Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.
 
h)  Notice
      to Holders.
      
 
i.  Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to each Holder a notice setting
      forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. 
 
ii.  Notice
      to Allow Exercise by Xxxxxx.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice.
 

        
8

          
        

        
Section
      4. Transfer
      of Warrant.
 
a)  Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof, this Warrant and all rights hereunder (including,
      without limitation, any registration rights) are transferable, in whole or
      in
      part, upon surrender of this Warrant at the principal office of the Company
      or
      its designated agent, together with a written assignment of this Warrant
      substantially in the form attached hereto duly executed by the Holder or its
      agent or attorney and funds sufficient to pay any transfer taxes payable upon
      the making of such transfer. Upon such surrender and, if required, such payment,
      the Company shall execute and deliver a new Warrant or Warrants in the name
      of
      the assignee or assignees and in the denomination or denominations specified
      in
      such instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled. A Warrant, if properly assigned, may be exercised by
      a
      new holder for the purchase of Warrant Shares without having a new Warrant
      issued. 
 
b)  New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.
 
c)  Warrant
      Register.
      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.
 

        
9

          
        

        
d)  Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any permitted transfer of
      this
      Warrant, the transfer of this Warrant shall not be registered pursuant to an
      effective registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer (i) that the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, (ii)
      that
      the holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company and (iii) that the transferee
      be
      an “accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) under the Securities Act.
 
Section
      5. Miscellaneous.
 
a)  No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(ii). 
 
b)  Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.
 
c)  Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.
 
d)  Authorized
      Shares.
      
 
The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Preferred Stock a sufficient number
      of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. Upon receipt of notice of exercise of the Warrant,
      the Company will take all such reasonable action as may be necessary to assure
      that such Warrant Shares may be issued as provided herein without violation
      of
      any applicable law or regulation, or of any requirements of the Trading Market
      upon which the Common Stock may be listed. 
 

        
10

          
        

        
Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.
 
Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.
 
e)  Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.
 
f)  Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.
 
g)  Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any damages to the Holder, the Company shall pay to Holder such amounts as
      shall
      be sufficient to cover any costs and expenses including, but not limited to,
      reasonable attorneys’ fees, including those of appellate proceedings, incurred
      by Holder in collecting any amounts due pursuant hereto or in otherwise
      enforcing any of its rights, powers or remedies hereunder. 
 

        
11

          
        

        
h)  Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.
 
i)  Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.
 
j)  Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.
 
k)  Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.
 
l)  Amendment.
      Except
      as otherwise provided herein, the provisions of this Warrant may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, if the Company has obtained the written
      consent of the Holders representing at least fifty percent (50%) of the Warrant
      Shares issuable upon exercise of the Warrant then outstanding.
 
m)  Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.
 
n)  Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.
 

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


        
12

          
        

        



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

Dated:
      [________ ____], 2007
 

      

          
             
 

            ALTEON
              INC.
          

             

            By:__________________________________________
Name:
                Xxxx Xxxxxxxxx
Title:
                President and Chief Executive
                Officer

          

    

 


        
13

          
        

        


 
NOTICE
      OF EXERCISE

TO: ALTEON
      INC.

(1)  The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.
 
(2)  Payment
      shall take the form of (check applicable box):
 
o in
      lawful money of
      the United States; or
 
o the
      cancellation
      of such number of Warrant Shares as is necessary, in accordance with the formula
      set forth in subsection 2(c), to exercise this Warrant with respect to the
      maximum number of Warrant Shares purchasable pursuant to the cashless exercise
      procedure set forth in subsection 2(c).
 
(3)  Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:
 
_______________________________
 

The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

_______________________________
 
_______________________________
 
_______________________________

(4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

[SIGNATURE
      OF HOLDER]
 
Name
      of
      Investing Entity:
      ________________________________________________________________________
Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________
Name
      of
      Authorized Signatory:
      ___________________________________________________________________
Title
      of
      Authorized Signatory:
      ____________________________________________________________________
Date:
      ________________________________________________________________________________________





        

        

          
        

        


 
ASSIGNMENT
      FORM

(To
      assign the foregoing warrant, execute
this
      form
      and supply required information. 
Do
      not
      use this form to exercise the warrant.)



FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to
 

_______________________________________________
      whose address is

_______________________________________________________________.



_______________________________________________________________

 

      

          
             
             Dated: ______________,
              _______
          

             
             
          

             
             Holder’s Signature: _____________________________
          

             
             
          

             
             Holder’s Address: _____________________________
          

             
             
          

             
                                      _____________________________
          

    
 


Signature
      Guaranteed: ___________________________________________


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

 


        

        

          
        

        
Document Metadata

Table of Contents

FORM OF PREFERRED STOCK PURCHASE WARRANT To Purchase [__________] Shares of Series B Preferred Stock of ALTEON INC.

Document Metadata

	ALTEON INC.
	By:__________________________________________ Name: Xxxx Xxxxxxxxx Title: President and Chief Executive Officer
	Dated: ______________, _______

	Holder’s Signature: _____________________________

	Holder’s Address: _____________________________

	_____________________________