GENELABS TECHNOLOGIES INC /CA
EXHIBIT 10.1 - SECURITIES PURCHASE AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10_1spa.htm
<DESCRIPTION>EXHIBIT 10.1 - SECURITIES PURCHASE AGREEMENT
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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit
10.1 </FONT></TD></TR>
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<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES
PURCHASE AGREEMENT </FONT></H1></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Securities Purchase Agreement (this <B>&#147;Agreement&#148;</B>) is dated as of August 1,
2003, among Genelabs Technologies, Inc., a California corporation (the
<B>&#147;Company&#148;</B>), and the purchaser identified on the signature pages hereto
(the <B>&#147;Purchaser&#148;</B>). </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section
4(2) of the Securities Act (as defined below) and Rule 506 promulgated thereunder, the
Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase
from the Company certain securities of the Company, as more fully described in this
Agreement. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and the Purchaser agree as follows: </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE
I.<BR>DEFINITIONS </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1
<U>Definitions</U>. In addition to the terms defined elsewhere in this Agreement, for all
purposes of this Agreement, the following terms shall have the meanings indicated in this
Section 1.1:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Action&#148;</B>means
any action, suit, inquiry, notice of violation, proceeding (including any partial
proceeding such as a deposition) or investigation pending or threatened in writing
against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency, regulatory
authority (federal, state, county, local or foreign), stock market, stock exchange or
trading facility.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Affiliate&#148;</B>means
any Person that, directly or indirectly through one or more intermediaries, controls or
is controlled by or is under common control with a Person, as such terms are used in and
construed under Rule 144.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Business
Day&#148;</B> means any day except Saturday, Sunday and any day which shall be a federal
legal holiday or a day on which banking institutions in the State of New York are
authorized or required by law or other governmental action to close.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Closing&#148;</B>means
the closing of the purchase and sale of the Securities pursuant to <U>Section 2</U>.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Closing
Date&#148;</B> means the date of the Closing.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Commission&#148;</B>means
the Securities and Exchange Commission.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Common
Stock&#148;</B> means the common stock of the Company, no par value per share, and any
securities into which such common stock may hereafter be reclassified.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Common
Stock Equivalents&#148;</B> means any securities of the Company or any Subsidiary which
entitle the holder thereof to acquire Common Stock at any time, including without
limitation, any debt, preferred stock, rights, options, warrants or other instrument that
is at any time convertible into or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock or other securities that entitle the holder to receive,
directly or indirectly, Common Stock.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Company
Counsel&#148;</B> means Skadden, Arps, Slate, Meagher &amp; Flom, LLP, special counsel to
the Company.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Effective
Date&#148;</B> means the date that the initial Registration Statement required by the
Registration Rights Agreement is first declared effective by the Commission.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Exchange
Act&#148;</B> means the Securities Exchange Act of 1934, as amended.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Investment
Amount&#148;</B> means, with respect to the Purchaser, the investment amount indicated
below its name on the signature page of this Agreement for the purchase of the Shares and
the Warrant (Market Value plus $0.125 per each unit: one Share and one Warrant Share).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Lien&#148;</B>means
any lien, charge, encumbrance, security interest, right of first refusal or other
restrictions of any kind.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Market
Value&#148;</B> means either (i) the closing bid price immediately preceding the
execution of this Agreement or (ii) an average of the closing bid prices for the five
Trading Days immediately preceding the execution of this Agreement, each as determined in
accordance with Nasdaq Rule 4200(a)(21)(B) as proposed by SR-NASD-2003-40 ($1.47 per
Share).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Person&#148;</B>means
an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government
(or an agency or subdivision thereof) or other entity of any kind.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Proceeding&#148;</B>means
an action, claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registration
Statement&#148;</B> means a registration statement meeting the requirements set forth in
the Registration Rights Agreement and covering the resale by the Purchaser of the Shares
and the Warrant Shares.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registration
Rights Agreement&#148;</B> means the Registration Rights Agreement, dated as of the date
of this Agreement, between the Company and the Purchaser, in the form of <U>Exhibit B </U>hereto.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Rule
144&#148;</B> means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such rule.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Securities&#148;</B>means
the Shares, the Warrant and the Warrant Shares.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Securities
Act&#148;</B> means the Securities Act of 1933, as amended.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Shares&#148;</B>means
the shares of Common Stock issued or issuable to the Purchaser at the Closing pursuant to
this Agreement, which shall be the quotient of $2,450,000 divided by Market Value.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Subsidiary&#148;</B>means
any subsidiary of the Company that is required to be listed in Section 3.1(a) of the
Disclosure Schedules, it being understood that, for such purposes, Genelabs Asia Pte.
Ltd., a Singapore corporation and a wholly-owned subsidiary of Genelabs Diagnostic, Inc.,
a Delaware corporation, and the subsidiaries of Genelabs Asia are not &#147;Subsidiaries.&#148; </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Trading
Day&#148;</B> means (i) a day on which the Common Stock is traded on a Trading Market, or
(ii) if the Common Stock is not listed on a Trading Market, a day on which the Common
Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or
(iii) if the Common Stock is not quoted on the OTC Bulletin Board, a day on which the
Common Stock is quoted in the over-the-counter market as reported by the National
Quotation Bureau Incorporated (or any similar organization or agency succeeding to its
functions of reporting prices); provided, that in the event that the Common Stock is not
listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean
a Business Day.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Trading
Market&#148;</B> means whichever of the New York Stock Exchange, the American Stock
Exchange, the Nasdaq National Market or the Nasdaq SmallCap Market that the Common Stock
is listed or quoted for trading on the date in question.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Transaction
Documents&#148;</B> means this Agreement, the Warrant, the Registration Rights Agreement,
and any other documents or agreements executed in connection with the transactions
contemplated hereunder.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Warrant&#148;</B>means
the Common Stock purchase warrant, in the form of <U>Exhibit&nbsp;A</U>, which is
issuable to the Purchaser at the Closing.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Warrant
Shares&#148;</B> means the shares of Common Stock issuable upon exercise of the Warrant.  </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE
II.<BR>PURCHASE AND SALE </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
<U>Closing</U>. Subject to the terms and conditions set forth in this Agreement, at the
Closing the Company shall issue and sell to the Purchaser, and the Purchaser shall
purchase from the Company, the Shares and the Warrant representing the Purchaser&#146;s
Investment Amount. The Closing shall take place at the offices of Skadden, Arps, Slate,
Meagher and Flom LLP, 525 University Avenue, Palo Alto, California 94301 on the date this
Agreement is executed and delivered by the parties or at such other location or time as
the parties may agree.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2
&nbsp;<U>Closing Deliveries</U>. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;At the Closing, the Company shall deliver or cause to be delivered to the
          Purchaser the following:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
a certificate evidencing the Shares, registered in the name of the Purchaser, or
          as otherwise directed by the Purchaser;  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
a Warrant, registered in the name of the Purchaser, pursuant to which the
          Purchaser shall have the right to acquire the number of shares of Common Stock
          equal to 100% of the Shares;  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;
the legal opinion of Company Counsel, in agreed form, addressed to the Purchaser;
and   </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;
the Registration Rights Agreement duly executed by the Company.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;At the Closing, the Purchaser shall deliver or cause to be delivered to the
          Company the following: </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
the Purchaser&#146;s Investment Amount, in United States dollars and in
          immediately available funds, by wire transfer to an account designated in
          writing by the Company for such purpose; and  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
 the Registration Rights Agreement duly executed by the Purchaser. </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE
III. <BR>REPRESENTATIONS
AND WARRANTIES  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
<U>Representations and Warranties of the Company</U>. Except as set forth on the
Disclosure Schedules attached hereto (the parties hereto agree that the particular
sections of the Disclosure Schedules qualify only representations and warranties so
specifically mentioned therein), the Company hereby makes the following representations
and warranties to the Purchaser:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;<U>Subsidiaries</U>.
The Company has no direct or indirect Subsidiaries. The Company owns, directly
or indirectly, all of the capital stock of each Subsidiary free and clear of
any and all Liens, and all the issued and outstanding shares of capital stock
of each Subsidiary are validly issued and are fully paid, non-assessable and
free of preemptive and similar rights. The Company&nbsp;has no liability or
obligation in respect of the business or activities of&nbsp; Genelabs Asia Pte.
Ltd., a Singapore corporation, and its subsidiaries,&nbsp;except for such
liabilities&nbsp;and obligations as, individually or in the aggregate,&nbsp;would
not have&nbsp;or&nbsp;would not reasonably be expected to&nbsp;result in, a
Material Adverse Effect (as defined below). </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;<U>Organization
and Qualification</U>. Each of the Company and each Subsidiary is an entity
duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents that could have or could reasonably be
          expected to result in a Material Adverse Effect (as defined below). Each of the
          Company and each Subsidiary is duly qualified to conduct business and is in
good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such
          qualification necessary, except where the failure to be so qualified or in good
standing, as the case may be, could not, individually or in the aggregate, have
          or reasonably be expected to result in (i) an adverse effect on the legality,
validity or enforceability of any Transaction Document, (ii) a material and
          adverse effect on the results of operations, assets, prospects, business or
          condition (financial or otherwise) of the Company and the Subsidiaries, taken
as a whole, or (iii) an adverse impairment to the Company&#146;s ability to
perform on a timely basis its obligations under any Transaction Document (any
of (i), (ii) or (iii), a <B>&#147;Material Adverse Effect&#148;</B>). </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;<U>Authorization; Enforcement</U>. The Company has the requisite corporate power           and authority to
enter into and to consummate the transactions contemplated by each of the
Transaction Documents and otherwise to carry out its obligations thereunder.
The execution and delivery of each of the Transaction Documents by the Company
and the consummation by it of the transactions contemplated thereby have been
duly authorized by all necessary action on the part of the Company and no
further action is required by the Company in connection therewith. Each
Transaction Document has been (or upon delivery will have been) duly executed
by the Company and, when delivered in accordance with the terms hereof, will
          constitute the valid and binding obligation of the Company enforceable against
          the Company in accordance with its terms.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;<U>No
Conflicts</U>. The execution, delivery and performance of the Transaction
          Documents by the Company and the consummation by the Company of the
transactions           contemplated thereby do not: (i) conflict with or violate any
provision of the           Company&#146;s or any Subsidiary&#146;s certificate or
articles of           incorporation, bylaws or other organizational or charter documents,
or (ii)           conflict with, or constitute a default (or an event that with notice or
lapse of           time or both would become a default) under, or give to others any
rights of           termination, amendment, acceleration or cancellation (with or without
notice,           lapse of time or both) of, any agreement, credit facility, debt or
other           instrument (evidencing a Company or Subsidiary debt or otherwise) or
other           understanding to which the Company or any Subsidiary is a party or by
which any           property or asset of the Company or any Subsidiary is bound or
affected, or           (iii) result in a violation of any law, rule, regulation, order,
judgment,           injunction, decree or other restriction of any court or governmental
authority           to which the Company or a Subsidiary is subject (including federal
and state           securities laws and regulations), or by which any property or asset
of the           Company or a Subsidiary is bound or affected; except in the case of each
of           clauses (ii) and (iii), such as could not, individually or in the aggregate,
          have or reasonably be expected to result in a Material Adverse Effect.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;<U>Filings,
Consents and Approvals</U>. The Company is not required to obtain           any consent,
waiver, authorization or order of, give any notice to, or make any           filing or
registration with, any court or other federal, state, local or other
          governmental authority or other Person in connection with the execution,
          delivery and performance by the Company of the Transaction Documents, other
than           (i) the filing with the Commission of one or more Registration Statements
in           accordance with the requirements Registration Rights Agreement and (ii) the
          application(s) to the Nasdaq National Market for the listing of the Shares and
          Warrant Shares for trading thereon in the time and manner required thereby.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;<U>Issuance
of the Securities</U>. The Securities have been duly authorized and, when
issued and paid for in accordance with the terms of the Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear
of all Liens. The Company has reserved from its duly authorized capital stock
the maximum number of shares of Common Stock issuable pursuant to this
Agreement and the Warrant in order to issue the full number of Warrant Shares
as are or may become issuable in accordance with the Warrant.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp;<U>Capitalization</U>.
The number of shares and type of all authorized, issued           and outstanding capital
stock of the Company, including shares of Common Stock           reserved for issuance
under the Company&#146;s various option and incentive           plans, is set forth in
Section 3.1(g) of the Disclosure Schedules. No securities           of the Company are
entitled to preemptive or similar rights, and no Person has           any right of first
refusal, preemptive right, right of participation, or any           similar right to
participate in the transactions contemplated by the Transaction           Documents.
Except as a result of the purchase and sale of the Securities, there           are no
outstanding options, warrants, scrip rights to subscribe to, calls or
          commitments of any character whatsoever relating to, or securities, rights or
          obligations convertible into or exchangeable for, or giving any Person any
right           to subscribe for or acquire, any shares of Common Stock, or contracts,
          commitments, understandings or arrangements by which the Company or any
          Subsidiary is or may become bound to issue additional shares of Common Stock,
or           securities or rights convertible or exchangeable into shares of Common
Stock.           The issue and sale of the Securities will not, immediately or with the
passage           of time, obligate the Company to issue shares of Common Stock or other
          securities to any Person (other than the Purchaser) and will not result in a
          right of any holder of Company securities to adjust the exercise, conversion,
          exchange or reset price under such securities.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp;<U>SEC Reports; Financial Statements</U>. The Company has filed all reports           required
to be filed by it under the Securities Act and the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the
date hereof (or such shorter period as the Company was required by law to file
such reports) (the foregoing materials being collectively referred to herein as
the <B>&#147;SEC Reports&#148;</B> and, together with the Disclosure Schedules
to this Agreement, the <B>&#147;Disclosure Materials&#148;</B>) on a timely
basis or has timely filed an extension of such time of filing and has filed any
such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material           respects with applicable
accounting requirements and the rules and regulations           of the Commission with
respect thereto as in effect at the time of filing. Such           financial statements
have been prepared in accordance with generally accepted           accounting principles
applied on a consistent basis during the periods involved           (<B>&#147;GAAP&#148;</B>),
except as may be otherwise specified in such           financial statements or the notes
thereto, and fairly present in all material           respects the financial position of
the Company and its consolidated Subsidiaries           as of and for the dates thereof
and the results of operations and cash flows for           the periods then ended.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;<U>Press
Releases</U>. The press releases disseminated by the Company during the three
(3) years preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact
          required to be stated therein or necessary in order to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j)&nbsp;&nbsp;&nbsp;<U>Material
Changes</U>. Since the date of the latest audited financial           statements included
within the SEC Reports, except as specifically disclosed in           the SEC Reports,
(i) there has been no event, occurrence or development that has           had or that
could reasonably be expected to result in a Material Adverse Effect,           (ii) the
Company has not incurred any liabilities (contingent or otherwise)           other than
(A) trade payables and accrued expenses incurred in the ordinary           course of
business consistent with past practice and (B) liabilities not           required to be
reflected in the Company&#146;s financial statements pursuant to           GAAP or
required to be disclosed in filings made with the Commission, (iii) the           Company
has not altered its method of accounting or the identity of its           auditors, (iv)
the Company has not declared or made any dividend or distribution           of cash or
other property to its stockholders or purchased, redeemed or made any
          agreements to purchase or redeem any shares of its capital stock, and (v) the
          Company has not issued any equity securities to any officer, director or
          Affiliate, except pursuant to existing Company stock option plans. The Company
          does not have pending before the Commission any request for confidential
          treatment of information.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(k)&nbsp;&nbsp;&nbsp;
<U>Litigation</U>. There is no Action which (i) adversely affects or challenges
          the legality, validity or enforceability of any of the Transaction Documents or
          the Securities or (ii) could, if there were an unfavorable decision,
          individually or in the aggregate, have or reasonably be expected to result in a
          Material Adverse Effect. Neither the Company nor any Subsidiary, nor any
          director or officer thereof, is or has been the subject of any Action involving
          a claim of violation of or liability under federal or state securities laws or
a           claim of breach of fiduciary duty. There has not been, and to the knowledge
of           the Company, there is not pending or contemplated, any investigation by the
          Commission involving the Company or any current or former director or officer
of           the Company. The Commission has not issued any stop order or other order
          suspending the effectiveness of any registration statement filed by the Company
          or any Subsidiary under the Exchange Act or the Securities Act.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(l)&nbsp;&nbsp;&nbsp;<U>Labor
Relations</U>. No material labor dispute exists or, to the knowledge of           the
Company, is imminent with respect to any of the employees of the Company.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(m)&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Neither the Company nor any Subsidiary (i) is in default           under or in violation
of (and no event has occurred that has not been waived           that, with notice or
lapse of time or both, would result in a default by the           Company or any
Subsidiary under), nor has the Company or any Subsidiary received           notice of a
claim that it is in default under or that it is in violation of, any           indenture,
loan or credit agreement or any other agreement or instrument to           which it is a
party or by which it or any of its properties is bound (whether or           not such
default or violation has been waived), (ii) is in violation of any           order of any
court, arbitrator or governmental body, or (iii) is or has been in           violation of
any statute, rule or regulation of any governmental authority,           including
without limitation all foreign, federal, state and local laws relating           to
taxes, environmental protection, occupational health and safety, product
          quality and safety and employment and labor matters, except in each of (i),
(ii)           and (iii) as could not, individually or in the aggregate, have or
reasonably be           expected to result in a Material Adverse Effect. The Company is
in compliance           with the applicable requirements of the Sarbanes-Oxley Act of
2002, and the           applicable rules and regulations promulgated thereunder, except
where such           noncompliance could not have or reasonably be expected to result in
a Material           Adverse Effect. The Company and the manufacture, marketing and sales
of its           products comply with any and all applicable requirements of the Federal
Food,           Drug and Cosmetic Act, 21 U.S.C. &sect; 301, et seq., any applicable
rules and           regulations of the Food and Drug Administration promulgated
thereunder, and any           similar laws outside of the United States to which the
Company is subject,           except where such noncompliance could not have or
reasonably be expected to           result in a Material Adverse Effect.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(n)&nbsp;&nbsp;&nbsp;<U>Regulatory
Permits</U>. The Company and the Subsidiaries possess all           certificates,
authorizations and permits issued by the appropriate federal,           state, local or
foreign regulatory authorities necessary to conduct their           respective businesses
as described in the SEC Reports, except where the failure           to possess such
permits would not, individually or in the aggregate, have or           reasonably be
expected to result in a Material Adverse Effect (<B>&#147;Material           Permits&#148;</B>),
and neither the Company nor any Subsidiary has received any           notice of
proceedings relating to the revocation or modification of any Material           Permit.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(o)&nbsp;&nbsp;&nbsp;<U>Title
to Assets</U>. The Company and the Subsidiaries have good and           marketable title
in fee simple to all real property owned by them that is           material to their
respective businesses and good and marketable title in all           personal property
owned by them that is material to their respective businesses, in each case
free and clear of all Liens, except for Liens as do not materially affect the
value of such property and do not materially interfere with the use           made and
proposed to be made of such property by the Company and the           Subsidiaries. Any
real property and facilities held under lease by the Company           and the
Subsidiaries are held by them under valid, subsisting and enforceable           leases of
which the Company and the Subsidiaries are in compliance.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(p)&nbsp;&nbsp;&nbsp;<U>Patents
and Trademarks</U>. The Company and the Subsidiaries have, or have rights to
use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, copyrights, licenses and other similar rights that
are necessary or material for use in connection with their respective
businesses as described in the SEC Reports and which the failure to so have
would reasonably be expected to result in a Material Adverse Effect
(collectively, the <B>&#147;Intellectual Property Rights&#148;</B>). Except as
disclosed in the Company&#146;s Annual Report on Form 10-K for the fiscal year
          ended December 31, 2002 (the &#147;<B>Form 10-K</B>&#148;), neither the Company
          nor any Subsidiary has received a written notice that the Intellectual Property
          Rights used by the Company or any Subsidiary violates or infringes upon the
          rights of any Person. Except as set forth in the SEC Reports, to the knowledge
          of the Company, all such Intellectual Property Rights are enforceable and there
          is no existing infringement by another Person of any of the Intellectual
          Property Rights.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(q)&nbsp;&nbsp;&nbsp;<U>Insurance</U>.
The Company and the Subsidiaries are insured by insurers of           recognized
financial responsibility against such losses and risks and in such           amounts as
are prudent and customary in the businesses in which the Company and           the
Subsidiaries are engaged. The Company has no reason to believe that it will           not
be able to renew its existing insurance coverage as and when such coverage
          expires or to obtain similar coverage from similar insurers as may be necessary
          to continue its business without a significant increase in cost.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(r)&nbsp;&nbsp;&nbsp;<U>Transactions
With Affiliates and Employees</U>. Except as set forth in the SEC Reports, none
of the officers or directors of the Company and, to the knowledge of the
Company, none of the employees of the Company is a party to any transaction
with the Company or any Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(s)&nbsp;&nbsp;&nbsp;<U>Internal
Accounting Controls</U>. The Company and the Subsidiaries maintain a           system of
internal accounting controls sufficient to provide reasonable           assurance that
(i) transactions are executed in accordance with           management&#146;s general or
specific authorizations, (ii) transactions are           recorded as necessary to permit
preparation of financial statements in           conformity with generally accepted
accounting principles and to maintain asset           accountability, (iii) access to
assets is permitted only in accordance with           management&#146;s general or
specific authorization, and (iv) the recorded           accountability for assets is
compared with the existing assets at reasonable           intervals and appropriate
action is taken with respect to any differences.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(t)&nbsp;&nbsp;&nbsp;<U>Solvency</U>.
Based on the financial condition of the Company as of the           Closing Date and
assuming the Closing has occurred, (i) the Company&#146;s fair           saleable value
of its assets exceeds the amount that will be required to be paid           on or in
respect of the Company&#146;s existing debts and other liabilities           (including
known contingent liabilities) as they mature; (ii) the Company&#146;s           assets do
not constitute unreasonably small capital to carry on its business for           the
current fiscal year as now conducted and as proposed to be conducted as
          disclosed in the Form 10-K including its capital needs taking into account the
          particular capital requirements of the business conducted by the Company, and
          projected capital requirements and capital availability thereof; and (iii) the
          current cash flow of the Company, together with the proceeds the Company would
          receive, were it to liquidate all of its assets, after taking into account all
          anticipated uses of the cash, would be sufficient to pay all amounts on or in
          respect of its debt when such amounts are required to be paid. The Company does
          not intend to incur debts beyond its ability to pay such debts as they mature
          (taking into account the timing and amounts of cash to be payable on or in
          respect of its debt).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(u)&nbsp;&nbsp;&nbsp;<U>Certain
Fees</U>. Except as described in Section 3.1(u) of the Disclosure           Schedules, no
brokerage or finder&#146;s fees or commissions are or will be           payable by the
Company to any broker, financial advisor or consultant, finder,           placement
agent, investment banker, bank or other Person with respect to the           transactions
contemplated by this Agreement. The Purchaser shall have no           obligation with
respect to any fees or with respect to any claims (other than           such fees or
commissions owed by the Purchaser pursuant to written agreements           executed by
the Purchaser which fees or commissions shall be the sole           responsibility of the
Purchaser) made by or on behalf of other Persons for fees           of a type
contemplated in this Section that may be due in connection with the
          transactions contemplated by this Agreement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(v)&nbsp;&nbsp;&nbsp;<U>Certain
Registration Matters</U>. Assuming the accuracy of the           Purchaser&#146;s
representations and warranties set forth in Section 3.2(b)-(e),           no registration
under the Securities Act is required for the offer and sale of           the Shares and
Warrant Shares by the Company to the Purchaser under the           Transaction Documents.
The Company is eligible to register the resale of its           Common Stock for resale
by the Purchaser under Form S-3 promulgated under the           Securities Act. The
Company has not granted or agreed to grant to any Person any           rights (including
&#147;piggy-back&#148; registration rights) to have any           securities of the
Company registered with the Commission or any other           governmental authority that
have not been satisfied.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(w)&nbsp;&nbsp;&nbsp;<U>Listing
and Maintenance Requirements</U>. The Company has not, in the two           years
preceding the date hereof, received notice (written or oral) from the           Nasdaq
National Market to the effect that the Company is not in compliance with           the
listing or maintenance requirements thereof. The Company is, and has no           reason
to believe that it will not in the foreseeable future continue to be, in
          compliance with the listing and maintenance requirements for continued trading
          of the Common Stock on the Nasdaq National Market. The issuance and sale of the
          Securities hereunder does not contravene the rules and regulations of the
Nasdaq           National Market and no approval of the shareholders of the Company is
required           for the Company to issue and deliver to the Purchaser the maximum
number of           Securities contemplated by the Transaction Documents.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(x)&nbsp;&nbsp;&nbsp;<U>Investment
Company</U>. The Company is not, and is not an Affiliate of, an &#147;investment
company&#148; within the meaning of the Investment Company Act of 1940, as
amended. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(y)&nbsp;&nbsp;&nbsp;<U>Application
of Takeover Protections</U>. The Company has taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business
combination, poison pill (including any distribution under a rights           agreement)
or other similar anti-takeover provision under the Company&#146;s Certificate
of Incorporation (or similar charter documents) or the laws of its state of
incorporation that is or could become applicable to the Purchaser as a result
of the Purchaser and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including without limitation the
Company&#146;s issuance of the Securities and the Purchaser&#146;s ownership of
the Securities.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(z)&nbsp;&nbsp;&nbsp;<U>No
Additional Agreements</U>. The Company does not have any agreement or
          understanding with the Purchaser with respect to the transactions contemplated
          by the Transaction Documents other than as specified in this Agreement and the
          other Transaction Documents.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(aa)&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The Company confirms that neither it nor any Person acting on its behalf has
provided the Purchaser or its agents or counsel with any           information that the
Company believes constitutes material, non-public information. The Company
understands and confirms that the Purchaser will rely           on the foregoing
representations and covenants in effecting transactions in securities of the
Company. All disclosure provided to the Purchaser regarding the Company, its
business and the transactions contemplated hereby, furnished by or on behalf of
the Company (including the Company&#146;s representations and warranties set
forth in this Agreement) are true and correct and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.2 &nbsp;&nbsp;<U>Representations and Warranties of the Purchaser</U>. The Purchaser hereby represents
and warrants to the Company as follows:  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;<U>Organization;
Authority</U>. The Purchaser is an entity duly organized,           validly existing and
in good standing under the laws of the jurisdiction of its           organization with
the requisite corporate or partnership power and authority to           enter into and to
consummate the transactions contemplated by the applicable           Transaction
Documents and otherwise to carry out its obligations thereunder. The           execution,
delivery and performance by the Purchaser of the transactions           contemplated by
this Agreement has been duly authorized by all necessary           corporate or, if the
Purchaser is not a corporation, such partnership, limited           liability company or
other applicable like action, on the part of the Purchaser.           Each of this
Agreement and the Registration Rights Agreement has been duly           executed by the
Purchaser, and when delivered by the Purchaser in accordance           with terms hereof,
will constitute the valid and legally binding obligation of           the Purchaser,
enforceable against it in accordance with its terms.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;<U>Investment
Intent</U>. The Purchaser is acquiring the Securities as principal           for its own
account for investment purposes only and not with a view to or for           distributing
or reselling such Securities or any part thereof, without           prejudice, however,
to the Purchaser&#146;s right at all times to sell or           otherwise dispose of all
or any part of such Securities in compliance with           applicable federal and state
securities laws. Subject to the immediately           preceding sentence, nothing
contained herein shall be deemed a representation or           warranty by the Purchaser
to hold the Securities for any period of time. The           Purchaser is acquiring the
Securities hereunder in the ordinary course of its           business. The Purchaser does
not have any agreement or understanding, directly           or indirectly, with any
Person to distribute any of the Securities.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;<U>Purchaser
Status</U>. At the time the Purchaser was offered the Securities, it was, and
at the date hereof it is, and on each date on which it exercises the Warrant it
will be, an &#147;accredited investor&#148; as defined in Rule 501(a) under the
Securities Act. The Purchaser is not a registered broker-dealer under Section
15 of the Exchange Act.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;<U>General
Solicitation</U>. The Purchaser is not purchasing the Securities as a result of
any advertisement, article, notice or other communication regarding the
Securities published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or any other general
solicitation or general advertisement.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;<U>Access
to Information</U>. The Purchaser acknowledges that it has reviewed           the
Disclosure Materials and has been afforded (i) the opportunity to ask such
          questions as it has deemed necessary of, and to receive answers from,
          representatives of the Company concerning the terms and conditions of the
          offering of the Shares and the merits and risks of investing in the Securities;
          (ii) access to information about the Company and the Subsidiaries and their
          respective financial condition, results of operations, business, properties,
          management and prospects sufficient to enable it to evaluate its investment;
and           (iii) the opportunity to obtain such additional information that the
Company           possesses or can acquire without unreasonable effort or expense that is
          necessary to make an informed investment decision with respect to the
          investment. Neither such inquiries nor any other investigation conducted by or
          on behalf of the Purchaser or its representatives or counsel shall modify,
amend           or affect the Purchaser&#146;s right to rely on the truth, accuracy and
          completeness of the Disclosure Materials and the Company&#146;s representations
          and warranties contained in the Transaction Documents.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;The
Company acknowledges and agrees that the Purchaser does not make or has not
          made any representations or warranties with respect to the transactions
          contemplated hereby other than those specifically set forth in this Section
3.2.  </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE
IV.<BR>OTHER AGREEMENTS OF THE PARTIES </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
(a) The Purchaser agrees that it will not effect any disposition of the Securities that
would constitute a sale within the meaning of the Securities Act or pursuant to any
applicable state securities or blue sky laws, except sales effected pursuant to the
Registration Statement or pursuant to Rule 144 (in which case the Purchaser will provide
the Company with reasonable evidence of the Purchaser&#146;s compliance therewith) or
pursuant to a written opinion of legal counsel reasonably satisfactory to the Company and
addressed to the Company to the effect that registration is not required in connection
with the proposed transfer. None of the Securities shall be transferable except upon the
conditions specified in this paragraph, which are intended to ensure compliance with the
provisions of the Securities Act. The Purchaser will cause any transferee of the
Securities held by the Purchaser to agree to take and hold such Securities subject to the
provisions and upon the conditions specified in this paragraph if and to the extent such
Securities continue to be restricted securities in the hands of the transferee.  </FONT></TD></TR>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;The
Purchaser understands and agrees that each certificate or other document
          evidencing any of the Securities shall be endorsed with the legend in the form
          set forth below for so long as is required by Section 4.1(c), and the Purchaser
          covenants that it will not transfer the Securities represented by such
          certificate without complying with the restrictions on transfer described in
the           legend endorsed on such certificate, and understands that the Company will
          refuse to register a transfer of any Securities unless the conditions specified
          in the following legend are satisfied:  </FONT></TD></TR>
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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           [NEITHER] THESE SECURITIES [NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
          HAVE BEEN] HAVE NOT 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 &#147;SECURITIES
          ACT&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
          EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
          AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
          REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
          SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
          SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
          COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
          SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WHERE
          THE PLEDGEE IS AN ACCREDITED INVESTOR. </FONT></TD>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant
to a bona fide margin account where the pledgee is an accredited investor and, if
required under the terms of such account, the Purchaser may transfer possession of the
pledged or secured Securities to the pledgees or secured parties. Such pledge or transfer
would not be subject to approval or consent of the Company and no legal opinion of legal
counsel to the pledgee, secured party or pledgor shall be required in connection with the
pledge, but the legend shall remain on the pledged Securities and such legal opinion may
be required in connection with a subsequent transfer following default by the Purchaser
transferee of the pledge. Further, no notice shall be required of such pledge. At the
Purchaser&#146;s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Securities may reasonably request in
connection with a pledge or transfer of the Securities including the preparation and
filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act
or other applicable provision of the Securities Act to appropriately amend the list of
Selling Stockholders thereunder.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Certificates
evidencing the Shares and Warrant Shares shall not contain any legend
(including the legend set forth in Section 4.1(b)): (i) following the sale of
such Shares or Warrant Shares under the Registration Statement, or (ii)
following any sale of such Shares or Warrant Shares pursuant to Rule 144, or
(iii) if such Shares or Warrant Shares are eligible for sale under Rule 144(k),
or (iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
          the Staff of the Commission). The Company may not make any notation on its
          records or give instructions to any transfer agent of the Company that enlarge
          the restrictions on transfer set forth in this Section 4.1. Upon receipt of a
          notice of sale under Section 4.1(c)(i), (ii) or (iii), the Company shall take
          such action, including without limitation, rendering required legal opinions to
          the transfer agent for the Common Stock, as may be required in order to cause
          the Shares or Warrant Shares (as the case may be) subject to such notice to be
          issued and delivered free of all restrictive and other legends to or as
directed           in the notice of such sale (or if no such direction is therein
provided, to the           Purchaser tendering the same) by the third Trading Day
following the receipt of           such notice.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
&nbsp;&nbsp;&nbsp;<U>Furnishing of Information</U>. As long as the Purchaser owns the Securities and the
Company is subject to the filing requirements of the Exchange Act, the Company covenants
to timely file (or obtain extensions in respect thereof and file within the applicable
grace period) all reports required to be filed by the Company after the date hereof
pursuant to the Exchange Act. Upon the request of any such Person, the Company shall
deliver to such Person a written certification of a duly authorized officer as to whether
it has complied with the preceding sentence. As long as the Purchaser owns Securities, if
the Company is not required to file reports pursuant to such laws, it will prepare and
furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such
information as is required for the Purchaser to sell the Shares and Warrant Shares under
Rule 144. The Company further covenants that it will take such further action as any
holder of Securities may reasonably request, all to the extent required from time to time
to enable such Person to sell such Shares and Warrant Shares without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
&nbsp;&nbsp;&nbsp;<U>Integration</U>. The Company shall not, and shall use its best efforts to ensure that
no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities in a manner that
would require the registration under the Securities Act of the sale of the Securities to
the Purchaser, or that would be integrated with the offer or sale of the Securities for
purposes of the rules and regulations of any Trading Market.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4
&nbsp;&nbsp;&nbsp;<U>Subsequent Registrations</U>. Other than the Registration Statement and post-effective
amendments to the registration statement on Form S-3 filed by the Company in May 2003,
prior to the Effective Date, the Company may not file any registration statement (other
than on Form S-8 or pursuant to the Registration Rights Agreement) with the Commission
with respect to any securities of the Company.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5
&nbsp;&nbsp;&nbsp;<U>Securities Laws Disclosure; Publicity</U>. Within one Business Day following the
Closing Date, the Company shall issue a press release reasonably acceptable to the
Purchaser disclosing the material terms of the transactions contemplated hereby and file
a Current Report on Form 8-K disclosing the transactions contemplated hereby. In
addition, the Company will make such other filings and notices in the manner and time
required by the Commission and the Trading Market on which the Common Stock is listed.
Notwithstanding the foregoing, the Company shall not publicly disclose the name of the
Purchaser, or include the name of the Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of the Purchaser,
except to the extent such disclosure is required by law or Trading Market regulations, in
which case the Company shall provide the Purchaser with prior notice of such disclosure.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6
&nbsp;&nbsp;&nbsp;<U>Indemnification of Purchaser</U>. The Company will indemnify and hold the Purchaser
and its directors, officers, shareholders, partners, employees and agents (each, a <B>&#147;Purchaser
Party&#148;</B>) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts paid in
settlements, court costs and reasonable attorneys&#146; fees and costs of investigation
(collectively, <B>&#147;Losses&#148;</B>) that any such Purchaser Party may suffer or
incur as a result of or relating to any misrepresentation, breach or inaccuracy of any
representation, warranty, covenant or agreement made by the Company in any Transaction
Document. In addition to the indemnity contained herein, the Company will reimburse each
Purchaser Party for its reasonable legal and other expenses (including the cost of any
investigation, preparation and travel in connection therewith) incurred in connection
therewith, as such expenses are incurred.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7
&nbsp;&nbsp;&nbsp;<U>Non-Public Information</U>. The Company covenants and agrees that neither it nor any
other Person acting on its behalf will provide the Purchaser or its agents or counsel
with any information that the Company believes constitutes material non-public
information, unless prior thereto the Purchaser shall have executed a written agreement
regarding the confidentiality and use of such information. The Company understands and
confirms that the Purchaser shall be relying on the foregoing representations in
effecting transactions in securities of the Company.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8
&nbsp;&nbsp;&nbsp;<U>Use of Proceeds</U>. The Company shall use the net proceeds from the sale of the
Securities hereunder for working capital purposes and not for the satisfaction of any
portion of the Company&#146;s debt (other than payment of trade payables and accrued
expenses in the ordinary course of the Company&#146;s business and prior practices), to
redeem any Company equity or equity-equivalent securities, to pay any obligations or
business expenses of Genelabs Asia Pte. Ltd. or any of its subsidiaries, or to settle any
outstanding Action.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9
&nbsp;&nbsp;&nbsp;<U>Nasdaq</U>. The Company shall use commercially reasonable efforts to maintain the
listing of the Shares, Warrant Shares and the Common Stock on the Nasdaq National Market.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10
&nbsp;&nbsp;&nbsp;<U>Limitation on Issuance of Future Priced Securities</U>. During the six months
following the Closing Date, the Company shall not issue any &#147;Future Priced Securities&#148; as
such term is described by NASD IM-4350-1, <U>provided</U>, that the Company may issue
warrants with customary price protection or anti-dilution terms (which shall not include
any type of exercise price resetting or ratchets to match or mirror or inconsequential
issuances).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11
&nbsp;&nbsp;&nbsp;<U>Lock-Up</U>. The Company shall take such actions as are required to ensure that none
of its executive officers shall sell more than five percent (5%) of the total number of
shares of Common Stock that such executive officer beneficially owned as of May 2, 2003
during the period that began on May 2, 2003 and continues for six months following the
date that the Company&#146;s registration statement on Form S-3 (filed on May 19, 2003)
is declared effective by the Commission. The foregoing limitation shall expire with
respect to any officer, upon the termination of employment with the Company.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12
&nbsp;&nbsp;&nbsp;<U>Eligibility to Use Form S-3</U>. The Company shall use commercially reasonable efforts
to continue to meet the &#147;registrant eligibility&#148; requirements for a secondary
offering as set forth in the general instructions in Form S-3 to enable the registration
of the Registrable Securities (as defined in the Registration Rights Agreement).  </FONT></TD></TR>
</TABLE>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE
V. <BR>MISCELLANEOUS</FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1
&nbsp;&nbsp;&nbsp;<U>Fees and Expenses</U>. At the Closing, the Company will reimburse the Purchaser for up
to $5,000 of its actual and documented legal expenses incurred in connection with its
review and negotiation of the Transaction Documents. Except as specified in the
immediately preceding sentence and as contemplated in the Registration Rights Agreement,
each party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The
Company shall pay all stamp and other taxes and duties levied in connection with the
initial sale of the Securities to the Purchaser.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2
&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. The Transaction Documents, together with the Exhibits and
Schedules thereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3
&nbsp;&nbsp;&nbsp;<U>Notices</U>. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in this
Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading
Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that is not a
Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as
follows:  </FONT></TD></TR>
</TABLE>
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<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Company</FONT></TD>
<TD ALIGN=left WIDTH=43%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Genelabs Technologies, Inc.<BR>
505 Penobscot Drive<BR>
Redwood City, California 94063<BR>
Attn: Chief Financial Officer<BR>
Facsimile No.: (650) 368-0709</FONT></TD>
</TR>
</TABLE>
<BR>


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<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With a copy to:</FONT></TD>
<TD ALIGN=left WIDTH=43%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Skadden, Arps, Slate, Meagher &amp; Flom LLP<BR>
525 University Avenue<BR>
Palo Alto, California 94301<BR>
Attn: Gregory C. Smith, Esq.<BR>
Facsimile No.: (650) 470-4570</FONT></TD>
</TR>
</TABLE>
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<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Purchaser: </FONT></TD>
<TD ALIGN=left WIDTH=43%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the address set forth under the Purchaser's name<BR>
on the signature pages hereof;<BR>
</FONT></TD>
</TR>
</TABLE>
<BR>



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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>or
such other address as may be designated in writing hereafter, in the same manner, by such
Person. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4
&nbsp;&nbsp;<U>Amendments; Waivers</U>. Any term of this Agreement may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the Company
and the Purchaser. No waiver of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the future or
a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise any right
hereunder in any manner impair the exercise of any such right.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5
<U>Construction</U>. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions
hereof. The language used in this Agreement will be deemed to be the language chosen by
the parties to express their mutual intent, and no rules of strict construction will be
applied against any party. This Agreement shall be construed as if drafted jointly by the
parties, and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provisions of this Agreement or any of the
Transaction Documents.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6
&nbsp;&nbsp;<U>Successors and Assigns</U>. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns. The Company may
not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Purchaser. The Purchaser may assign any or all of its rights under
this Agreement to any Person to whom the Purchaser assigns or transfers any Securities,
provided such transferee agrees in writing to be bound, with respect to the transferred
Securities, by the provisions hereof that apply to the &#147;Purchaser.&#148; </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7
&nbsp;&nbsp;<U>No Third-Party Beneficiaries</U>. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.6.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8
&nbsp;&nbsp;<U>Governing Law</U>. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all Proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this
Agreement and any other Transaction Documents (whether brought against a party hereto or
its respective Affiliates, employees or agents) shall be commenced exclusively in the
state and federal courts sitting in the City of New York, Borough of Manhattan (the <B>&#147;New
York Courts&#148;</B>). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of the any of the Transaction Documents), and
hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, or that such Proceeding
has been commenced in an improper or inconvenient forum. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in
any such Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law.
Each party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby. If either party
shall commence a Proceeding to enforce any provisions of a Transaction Document, then the
prevailing party in such Proceeding shall be reimbursed by the other party for its
attorney&#146;s fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Proceeding.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9
&nbsp;&nbsp;<U>Survival</U>. The representations, warranties, agreements and covenants contained
herein shall survive the Closing and the delivery of the Shares and Warrant Shares, as
applicable.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10
&nbsp;&nbsp;<U>Execution</U>. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile signature page
were an original thereof.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11
&nbsp;&nbsp;<U>Severability</U>. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and
provisions of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in
this Agreement.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12
<U>Rescission and Withdrawal Right</U>. Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction Documents,
whenever the Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the
periods therein provided, then the Purchaser may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its future actions and
rights.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13
&nbsp;&nbsp;<U>Replacement of Securities</U>. If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause
to be issued in exchange and substitution for and upon cancellation thereof, or in lieu
of and substitution therefor, a new certificate or instrument, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction and
customary and reasonable indemnity, if requested. The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities. If a replacement certificate
or instrument evidencing any Securities is requested due to a mutilation thereof, the
Company may require delivery of such mutilated certificate or instrument as a condition
precedent to any issuance of a replacement.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14
&nbsp;&nbsp;<U>Remedies</U>. In addition to being entitled to exercise all rights provided herein or
granted by law, including recovery of damages, each of the Purchaser and the Company will
be entitled to specific performance under the Transaction Documents. The parties agree
that monetary damages may not be adequate compensation for any loss incurred by reason of
any breach of obligations described in the foregoing sentence and hereby agrees to waive
in any action for specific performance of any such obligation the defense that a remedy
at law would be adequate.  </FONT></TD></TR>
</TABLE>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15
&nbsp;&nbsp;<U>Payment Set Aside</U>. To the extent that the Company makes a payment or payments to
the Purchaser pursuant to any Transaction Document or the Purchaser enforces or exercises
its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded,
repaid or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the
obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.  </FONT></TD></TR>
</TABLE>
<BR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK <BR> SIGNATURE PAGES
FOLLOW] </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated
above. </FONT></TD></TR>
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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><!-- COMPANY -->
GENELABS TECHNOLOGIES, INC. </FONT></TD>
  </TR>
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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
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    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> &nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Irene A. Chow, Ph.D. <!-- NAME --> </FONT></TD>
  </TR>
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<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman and Chief Executive Officer <!-- NAME --> </FONT></TD>
  </TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK <BR> SIGNATURE PAGE FOR THE
PURCHASER FOLLOWS] </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the
date first written above. </FONT></TD></TR>
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    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></TD>
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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
    <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> &nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR SIZE="1" ALIGN="LEFT" WIDTH="85%"> </TD>
</TR>
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  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- NAME --> </FONT></TD>
  </TR>
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  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<!-- NAME --> </FONT></TD>
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    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Address for Notice:<BR><BR>
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]<BR><BR>
Facsimile No:&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]<BR>
Attn:&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
</FONT></TD>
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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NEITHER
THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE 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 &#147;SECURITIES ACT&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE
SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WHERE THE PLEDGEE IS AN ACCREDITED INVESTOR. </FONT></TD></TR></TABLE><BR>

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<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GENELABS
TECHNOLOGIES, INC.  </FONT></H1></TD></TR>
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<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WARRANT </FONT></H1></TD></TR>
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<TD ALIGN=left WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Warrant No. 1 </FONT></TD>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=right WIDTH=43%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Original Issuance: August 1, 2003</FONT></TD>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Genelabs
Technologies, Inc., a California corporation (the <B>&#147;Company&#148;</B>), hereby
certifies that, for value received, [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
 or its registered
assigns (the <B>&#147;Holder&#148;</B>), is entitled to purchase from the Company up to a
total of 1,666,667 shares of common stock, no par value (the <B>&#147;Common
Stock&#148;</B>), of the Company (each such share, a <B>&#147;Warrant Share&#148;</B> and
all such shares, the <B>&#147;Warrant Shares&#148;</B>) at an exercise price equal to
$1.50 per share (as adjusted from time to time as provided in Section&nbsp;9, the
<B>&#147;Exercise Price&#148;</B>), at any time and from time to time from and after the
date hereof and through and including August 1, 2010 (the <B>&#147;Expiration
Date&#148;</B>), and subject to the following terms and conditions: </FONT></TD></TR>
</TABLE>
<BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. In addition to the terms defined elsewhere in this Warrant,
          capitalized terms that are not otherwise defined herein shall have the meanings
          given to such terms in the Securities Purchase Agreement of even date herewith
          to which the Company and the original Holder are parties (the <B>&#147;Purchase
          Agreement&#148;</B>). </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Registration of Warrant. The Company shall register this Warrant, upon records
          to be maintained by the Company for that purpose (the <B>&#147;Warrant
          Register&#148;</B>), 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. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration of Transfers</U>. The Company shall register the transfer of any
          portion of this Warrant in the Warrant Register, upon surrender of this Warrant,
          with the Form of Assignment attached hereto duly completed and signed, to the
          Company at its address specified herein. Upon any such registration or transfer,
          a new Warrant to purchase Common Stock, in substantially the form of this
          Warrant (any such new Warrant, a <B>&#147;New Warrant&#148;</B>), evidencing the
          portion of this Warrant so transferred shall be issued to the transferee and a
          New Warrant evidencing the remaining portion of this Warrant not so transferred,
          if any, shall be issued to the transferring Holder. The acceptance of the New
          Warrant by the transferee thereof shall be deemed the acceptance by such
          transferee of all of the rights and obligations of a holder of a Warrant. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Exercise and Duration of Warrants</U>. This Warrant shall be exercisable by
          the registered Holder at any time and from time to time on or after the date
          hereof to and including the Expiration Date. At 6:30 p.m., New York City time on
          the Expiration Date, the portion of this Warrant not exercised prior thereto
          shall be and become void and of no value, <U>provided</U>, that if the closing
          sales price of the Common Stock on the Expiration Date is greater than 102% of
          the Exercise Price on the Expiration Date, then this Warrant shall be deemed to
          have been exercised in full (to the extent not previously exercised) on a
          &#147;cashless exercise&#148; basis at 6:30 P.M. New York City time on the
          Expiration Date. The Company may not call or redeem all or any portion of this
          Warrant without the prior written consent of the Holder. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Delivery of Warrant Shares</U>. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          To effect conversions hereunder, the Holder shall not be required to physically
          surrender this Warrant unless the aggregate Warrant Shares represented by this
          Warrant is being exercised. Upon delivery of the Exercise Notice to the Company
          (with the attached Warrant Shares Exercise Log) at its address for notice set
          forth herein and upon payment of the Exercise Price multiplied by the number of
          Warrant Shares that the Holder intends to purchase hereunder, the Company shall
          promptly (but in no event later than three Trading Days after the Date of
          Exercise (as defined herein)) issue and deliver to the Holder, a certificate for
          the Warrant Shares issuable upon such exercise, which, unless otherwise required
          by the Purchase Agreement, shall be free of restrictive legends. The Company
          shall, upon request of the Holder and subsequent to the date on which a
          registration statement covering the resale of the Warrant Shares has been
          declared effective by the Securities and Exchange Commission, use its best
          efforts to deliver Warrant Shares hereunder electronically through the
          Depository Trust Corporation or another established clearing corporation
          performing similar functions, if available, provided, that, the Company may, but
          will not be required to change its transfer agent if its current transfer agent
          cannot deliver Warrant Shares electronically through the Depository Trust
          Corporation. A &#147;<B>Date of Exercise</B>&#148; means the date on which the
          Holder shall have delivered to Company: (i) the Exercise Notice (with the
          Warrant Exercise Log attached to it), appropriately completed and duly signed
          and (ii) if such Holder is not utilizing the cashless exercise provisions set
          forth in this Warrant, payment of the Exercise Price for the number of Warrant
          Shares so indicated by the Holder to be purchased. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          If by the third Trading Day after a Date of Exercise the Company fails to
          deliver the required number of Warrant Shares in the manner required pursuant to
          Section 5(a), then the Holder will have the right to rescind such exercise. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          If by the third Trading Day after a Date of Exercise the Company fails to
          deliver the required number of Warrant Shares in the manner required pursuant to
          Section 5(a), and if after such third Trading Day and prior to the receipt of
          such Warrant Shares, the Holder purchases (in an open market transaction or
          otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
          Holder of the Warrant Shares which the Holder anticipated receiving upon such
          exercise (a <B>&#147;Buy-In</B>&#148;), then the Company shall (1) pay in cash
          to the Holder the amount by which (x) the Holder&#146;s total purchase price
          (including brokerage commissions, if any) for the shares of Common Stock 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 by (B) the closing bid price of the Common
          Stock at the time of the obligation giving rise to such purchase obligation 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 shares of Common Stock that would have been
          issued had the Company timely complied with its exercise and delivery
          obligations hereunder. The Holder shall provide the Company written notice
          indicating the amounts payable to the Holder in respect of the Buy-In. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Company&#146;s obligations to issue and deliver Warrant Shares in accordance
          with the terms hereof are absolute and unconditional, irrespective of any action
          or inaction by the Holder to enforce the same, any waiver or consent with
          respect to any provision hereof, the recovery of any judgment against any Person
          or any action to enforce the same, or any setoff, counterclaim, recoupment,
          limitation or termination, or any breach or alleged breach by the Holder or any
          other Person of any obligation to the Company or any violation or alleged
          violation of law by the Holder or any other Person, and irrespective of any
          other circumstance which might otherwise limit such obligation of the Company to
          the Holder in connection with the issuance of Warrant Shares. Nothing herein
          shall limit a Holder&#146;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&#146;s
          failure to timely deliver certificates representing shares of Common Stock upon
          exercise of the Warrant as required pursuant to the terms hereof. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of
          Common Stock upon exercise of this Warrant shall be made without charge to the
          Holder for any issue or transfer tax, withholding tax, transfer agent fee or
          other incidental tax or expense in respect of the issuance of such certificates,
          all of which taxes and expenses shall be paid by the Company; provided, however,
          that the Company shall not be required to pay any tax which may be payable in
          respect of any transfer involved in the registration of any certificates for
          Warrant Shares or Warrants in a name other than that of the Holder. The Holder
          shall be responsible for all other tax liability that may arise as a result of
          holding or transferring this Warrant or receiving Warrant Shares upon exercise
          hereof. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed,
          the Company shall issue or cause to be issued in exchange and substitution for
          and upon cancellation hereof, or in lieu of and substitution for this Warrant, a
          New Warrant, but only upon receipt of evidence reasonably satisfactory to the
          Company of such loss, theft or destruction and customary and reasonable
          indemnity (which shall not include a surety bond), if requested. Applicants for
          a New Warrant under such circumstances shall also comply with such other
          reasonable regulations and procedures and pay such other reasonable third-party
          costs as the Company may prescribe. If a New Warrant is requested as a result of
          a mutilation of this Warrant, then the Holder shall deliver such mutilated
          Warrant to the Company as a condition precedent to the Company&#146;s obligation
          to issue the New Warrant. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Reservation of Warrant Shares</U>. The Company covenants that it will at all
          times reserve and keep available out of the aggregate of its authorized but
          unissued and otherwise unreserved Common Stock, solely for the purpose of
          enabling it to issue Warrant Shares upon exercise of this Warrant as herein
          provided, the number of Warrant Shares which are then issuable and deliverable
          upon the exercise of this entire Warrant, free from preemptive rights or any
          other contingent purchase rights of persons other than the Holder (taking into
          account the adjustments and restrictions of <U>Section 9</U>). The Company
          covenants that all Warrant Shares so issuable and deliverable shall, upon
          issuance and the payment of the applicable Exercise Price in accordance with the
          terms hereof, be duly and validly authorized, issued and fully paid and
          nonassessable. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Certain Adjustments</U>. The Exercise Price and number of Warrant Shares
          issuable upon exercise of this Warrant are subject to adjustment from time to
          time as set forth in this <U>Section 9</U>. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Stock Dividends and Splits</U>. If the Company, at any time while this
          Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
          otherwise makes a distribution on any class of capital stock that is payable in
          shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into
          a larger number of shares, or (iii) combines outstanding shares of Common Stock
          into a smaller number of shares, then in each such case the Exercise Price shall
          be multiplied by a fraction of which the numerator shall be the number of shares
          of Common Stock outstanding immediately before such event and of which the
          denominator shall be the number of shares of Common Stock outstanding
          immediately after such event. Any adjustment made pursuant to clause (i) of this
          paragraph shall become effective immediately after the record date for the
          determination of stockholders entitled to receive such dividend or distribution,
          and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall
          become effective immediately after the effective date of such subdivision or
          combination. If any event requiring an adjustment under this paragraph occurs
          during the period that an Exercise Price is calculated hereunder, then the
          calculation of such Exercise Price shall be adjusted appropriately to reflect
          such event. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Pro Rata Distributions. If the Company, at any time while this Warrant is
          outstanding, distributes to all holders of Common Stock (i) evidences of its
          indebtedness, (ii)&nbsp;any security (other than a distribution of Common Stock
          covered by the preceding paragraph), (iii)&nbsp;rights or warrants to subscribe
          for or purchase any security, or (iv)&nbsp;any other asset (in each case,
          <B>&#147;Distributed Property&#148;</B>), then, at the request of any Holder
          delivered before the 90th day after the record date fixed for determination of
          stockholders entitled to receive such distribution, the Company will deliver to
          such Holder, within five Trading Days after such request (or, if later, on the
          effective date of such distribution), the Distributed Property that such Holder
          would have been entitled to receive in respect of the Warrant Shares for which
          such Holder&#146;s Warrant could have been exercised immediately prior to such
          record date. If such Distributed Property is not delivered to a Holder pursuant
          to the preceding sentence, then upon any exercise of the Warrant that occurs
          after such record date, such Holder shall be entitled to receive, in addition to
          the Warrant Shares otherwise issuable upon such conversion, the Distributed
          Property that such Holder would have been entitled to receive in respect of such
          number of Warrant Shares had the Holder been the record holder of such Warrant
          Shares immediately prior to such record date. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Fundamental Transactions. If, at any time while this Warrant is outstanding, (1)
          the Company effects any merger or consolidation of the Company with or into
          another Person, (2) the Company effects any sale of all or substantially all of
          its assets in one or a series of related transactions, (3) any tender offer or
          exchange offer (whether by the Company or another Person) is completed pursuant
          to which holders of Common Stock are permitted to tender or exchange their
          shares for other securities, cash or property, or (4) the Company effects any
          reclassification of the Common Stock or any compulsory share exchange pursuant
          to which the Common Stock is effectively converted into or exchanged for other
          securities, cash or property (in any such case, a <B>&#147;Fundamental
          Transaction&#148;</B>), then the Holder shall have the right thereafter to
          receive, upon exercise of this Warrant, the same amount and kind of securities,
          cash or property as it would have been entitled to receive upon the occurrence
          of such Fundamental Transaction if it had been, immediately prior to such
          Fundamental Transaction, the holder of the number of Warrant Shares then
          issuable upon exercise in full of this Warrant (the <B>&#147;Alternate
          Consideration&#148;</B>). For purposes of any such exercise, the determination
          of the Exercise Price shall be appropriately adjusted to apply to such Alternate
          Consideration based on the amount of Alternate Consideration issuable in respect
          of one share of Common Stock in such Fundamental Transaction, and the Company
          shall apportion the Exercise Price among the Alternate Consideration in a
          reasonable manner reflecting the relative value of any different components of
          the Alternate Consideration. If holders of Common Stock are given any choice as
          to the securities, cash or property to be received in a Fundamental Transaction,
          then the Holder shall be given the same choice as to the Alternate Consideration
          it receives upon any exercise of this Warrant following such Fundamental
          Transaction. At the Holder&#146;s option and request, any successor to the
          Company or surviving entity in such Fundamental Transaction shall, either (1)
          issue to the Holder a new warrant substantially in the form of this Warrant and
          consistent with the foregoing provisions and evidencing the Holder&#146;s right
          to purchase the Alternate Consideration for the aggregate Exercise Price upon
          exercise thereof, or (2) purchase the Warrant from the Holder for a purchase
          price, payable in cash within five Trading Days after such request (or, if
          later, on the effective date of the Fundamental Transaction), equal to the Black
          Scholes value of the remaining unexercised portion of this Warrant on the date
          of such request. The terms of any agreement pursuant to which a Fundamental
          Transaction is effected shall include terms requiring any such successor or
          surviving entity to comply with the provisions of this paragraph (c) and
          insuring that the Warrant (or any such replacement security) will be similarly
          adjusted upon any subsequent transaction analogous to a Fundamental Transaction. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Number of Warrant Shares</U>. Simultaneously with any adjustment to the
          Exercise Price pursuant to paragraph (a) of this Section, the number of Warrant
          Shares that may be purchased upon exercise of this Warrant shall be increased or
          decreased proportionately, so that after such adjustment the aggregate Exercise
          Price payable hereunder for the adjusted number of Warrant Shares shall be the
          same as the aggregate Exercise Price in effect immediately prior to such
          adjustment. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Calculations</U>. All calculations under this <U>Section 9</U> shall be made
          to the nearest cent or the nearest 1/100<SUP>th</SUP> of a share, as applicable.
          The number of shares of Common Stock outstanding at any given time shall not
          include shares owned or held by or for the account of the Company, and the
          disposition of any such shares shall be considered an issue or sale of Common
          Stock. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notice of Adjustments</U>. Upon the occurrence of each adjustment pursuant to
          this <U>Section 9</U>, the Company at its expense will promptly compute such
          adjustment in accordance with the terms of this Warrant and prepare a
          certificate setting forth such adjustment, including a statement of the adjusted
          Exercise Price and adjusted number or type of Warrant Shares or other securities
          issuable upon exercise of this Warrant (as applicable), describing the
          transactions giving rise to such adjustments and showing in detail the facts
          upon which such adjustment is based. Upon written request, the Company will
          promptly deliver a copy of each such certificate to the Holder and to the
          Company&#146;s Transfer Agent. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notice of Corporate Events</U>. If the Company (i) declares a dividend or any
          other distribution of cash, securities or other property in respect of its
          Common Stock, including without limitation any granting of rights or warrants to
          subscribe for or purchase any capital stock of the Company or any Subsidiary,
          (ii) authorizes or approves, enters into any agreement contemplating or solicits
          stockholder approval for any Fundamental Transaction or (iii) authorizes the
          voluntary dissolution, liquidation or winding up of the affairs of the Company,
          then the Company shall deliver to the Holder a notice describing the material
          terms and conditions of such transaction, at least 20 calendar days prior to the
          applicable record or effective date on which a Person would need to hold Common
          Stock in order to participate in or vote with respect to such transaction, and
          the Company will take all steps reasonably necessary in order to insure that the
          Holder is given the practical opportunity to exercise this Warrant prior to such
          time so as to participate in or vote with respect to such transaction; provided,
          however, that the failure to deliver such notice or any defect therein shall not
          affect the validity of the corporate action required to be described in such
          notice. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Payment of Exercise Price</U>. The Holder may pay the Exercise Price in one
          of the following manners: </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Cash Exercise</U>. The Holder may deliver immediately available funds; or </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Cashless Exercise</U>. The Holder may notify the Company in an Exercise
          Notice of its election to utilize cashless exercise, in which event the Company
          shall issue to the Holder the number of Warrant Shares determined as follows: </FONT></TD></TR></TABLE><BR>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>X = Y [(A-B)/A]</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=right WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>where:</FONT></TD>
<TD ALIGN=CENTER WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>X = the number of Warrant Shares to be issued to the Holder.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Y = the  number of  Warrant  Shares  with  respect  to which this <BR>
Warrant is being exercised.
 </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A = the average of the closing  prices for the five  Trading Days<BR>
immediately prior to (but not including) the Exercise Date.
 </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  B = the Exercise Price.
 </FONT></TD>
</TR>
</TABLE>
<BR>




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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be
deemed to have been acquired by the Holder, and the holding period for the Warrant Shares
shall be deemed to have commenced, on the date this Warrant was originally issued. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Limitation on Exercise</U>. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Notwithstanding anything to the contrary contained herein, the number of shares
          of Common Stock that may be acquired by the Holder upon any exercise of this
          Warrant (or otherwise in respect hereof) shall be limited to the extent
          necessary to insure that, following such exercise (or other issuance), the total
          number of shares of Common Stock then beneficially owned by such Holder and its
          Affiliates and any other Persons whose beneficial ownership of Common Stock
          would be aggregated with the Holder&#146;s for purposes of Section 13(d) of the
          Exchange Act, does not exceed 4.999% of the total number of issued and
          outstanding shares of Common Stock (including for such purpose the shares of
          Common Stock issuable upon such exercise). For such purposes, beneficial
          ownership shall be determined in accordance with Section 13(d) of the Exchange
          Act and the rules and regulations promulgated thereunder. Each delivery of an
          Exercise Notice hereunder will constitute a representation by the Holder that it
          has evaluated the limitation set forth in this paragraph and determined that
          issuance of the full number of Warrant Shares requested in such Exercise Notice
          is permitted under this paragraph. This provision shall not restrict the number
          of shares of Common Stock which a Holder may receive or beneficially own in
          order to determine the amount of securities or other consideration that such
          Holder may receive in the event of a merger or other business combination or
          reclassification involving the Company as contemplated in Section 9 of this
          Warrant. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>No Fractional Shares</U>. No fractional shares of Warrant Shares will be
          issued in connection with any exercise of this Warrant. In lieu of any
          fractional shares which would, otherwise be issuable, the Company shall pay cash
          equal to the product of such fraction multiplied by the closing price of one
          Warrant Share as reported on the Nasdaq National Market on the date of exercise. </FONT></TD></TR></TABLE><BR>

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          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. Any and all notices or other communications or deliveries
          hereunder (including, without limitation, any Exercise Notice) shall be in
          writing and shall be deemed given and effective on the earliest of (i) the date
          of transmission, if such notice or communication is delivered via facsimile at
          the facsimile number specified in this Section prior to 6:30 p.m. (New York City
          time) on a Trading Day, (ii) the next Trading Day after the date of
          transmission, if such notice or communication is delivered via facsimile at the
          facsimile number specified in this Section on a day that is not a Trading Day or
          later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the Trading
          Day following the date of mailing, if sent by nationally recognized overnight
          courier service, or (iv) upon actual receipt by the party to whom such notice is
          required to be given. The addresses for such communications shall be: (i) if to
          the Company, to Genelabs Technologies, Inc., 505 Penobscot Drive, Redwood City,
          California 94063, Facsimile No. (650) 368-0709, Attn: Chief Financial Officer,
          or (ii) if to the Holder, to the address or facsimile number appearing on the
          Warrant Register or such other address or facsimile number as the Holder may
          provide to the Company in accordance with this Section. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Warrant Agent</U>. The Company shall serve as warrant agent under this
          Warrant. Upon 30 days&#146; notice to the Holder, the Company may appoint a new
          warrant agent. Any corporation into which the Company or any new warrant agent
          may be merged or any corporation resulting from any consolidation to which the
          Company or any new warrant agent shall be a party or any corporation to which
          the Company or any new warrant agent transfers substantially all of its
          corporate trust or shareholders services business shall be a successor warrant
          agent under this Warrant without any further act. Any such successor warrant
          agent shall promptly cause notice of its succession as warrant agent to be
          mailed (by first class mail, postage prepaid) to the Holder at the Holder&#146;s
          last address as shown on the Warrant Register. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Miscellaneous</U>. </FONT></TD></TR></TABLE><BR>

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          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          This Warrant shall be binding on and inure to the benefit of the parties hereto
          and their respective successors and assigns. Subject to the preceding sentence,
          nothing in this Warrant shall be construed to give to any Person other than the
          Company and the Holder any legal or equitable right, remedy or cause of action
          under this Warrant. This Warrant may be amended only in writing signed by the
          Company and the Holder and their successors and assigns. </FONT></TD></TR></TABLE><BR>

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          <TR VALIGN=TOP>
          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          All questions concerning the construction, validity, enforcement and
          interpretation of this Warrant shall be governed by and construed and enforced
          in accordance with the internal laws of the State of New York, without regard to
          the principles of conflicts of law thereof. Each party agrees that all legal
          proceedings concerning the interpretations, enforcement and defense of the
          transactions contemplated by this Warrant (whether brought against a party
          hereto or its respective affiliates, directors, officers, shareholders,
          employees or agents) shall be commenced in the state and federal courts sitting
          in the City of New York, Borough of Manhattan (the <B>&#147;New York
          Courts&#148;</B>). Each party hereto hereby irrevocably submits to the exclusive
          jurisdiction of the New York Courts for the adjudication of any dispute
          hereunder or in connection herewith or with any transaction contemplated hereby
          or discussed herein (including with respect to the enforcement of this Warrant),
          and hereby irrevocably waives, and agrees not to assert in any suit, action or
          proceeding, any claim that it is not personally subject to the jurisdiction of
          any such court, that such suit, action or proceeding is improper. Each party
          hereto hereby irrevocably waives personal service of process and consents to
          process being served in any such suit, action or proceeding by mailing a copy
          thereof via registered or certified mail or overnight delivery (with evidence of
          delivery) to such party at the address in effect for notices to it under this
          Warrant and agrees that such service shall constitute good and sufficient
          service of process and notice thereof. Nothing contained herein shall be deemed
          to limit in any way any right to serve process in any manner permitted by law.
          Each party hereto (including its affiliates, agents, officers, directors and
          employees) hereby irrevocably waives, to the fullest extent permitted by
          applicable law, any and all right to trial by jury in any legal proceeding
          arising out of or relating to this Warrant or the transactions contemplated
          hereby. If either party shall commence an action or proceeding to enforce any
          provisions of this Warrant, then the prevailing party in such action or
          proceeding shall be reimbursed by the other party for its attorneys fees and
          other costs and expenses incurred with the investigation, preparation and
          prosecution of such action or proceeding. </FONT></TD></TR></TABLE><BR>

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     <TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The headings herein are for convenience only, do not constitute a part of this
          Warrant and shall not be deemed to limit or affect any of the provisions hereof. </FONT></TD></TR></TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para List Indent" FSL="Project" -->
     <TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          In case any one or more of the provisions of this Warrant shall be invalid or
          unenforceable in any respect, the validity and enforceability of the remaining
          terms and provisions of this Warrant shall not in any way be affected or
          impaired thereby and the parties will attempt in good faith to agree upon a
          valid and enforceable provision which shall be a commercially reasonable
          substitute therefor, and upon so agreeing, shall incorporate such substitute
          provision in this Warrant. </FONT></TD></TR></TABLE><BR>
<br><br>
<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK, <BR>SIGNATURE
PAGE FOLLOWS] </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>


<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officer as of the date first indicated above. </FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><!-- COMPANY -->
GENELABS TECHNOLOGIES, INC. </FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>


<!-- MARKER FORMAT-SHEET="Date By Signature" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> &nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Date By Signature" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Irene A. Chow, Ph.D. <!-- NAME --> </FONT></TD>
  </TR>
</TABLE>


<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman and Chief Executive Officer <!-- NAME --> </FONT></TD>
  </TR>
</TABLE>

<BR>

<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>

<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXERCISE
NOTICE </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
Genelabs Technologies, Inc.: </FONT></P></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby irrevocably elects to purchase _____________ shares of common stock, no
par value per share, of Genelabs Technologies, Inc. (<B>&#147;Common Stock&#148;</B>),
pursuant to Warrant No. 1, originally issued August 1, 2003 (the
<B>&#147;Warrant&#148;</B>), and, if such Holder is not utilizing the cashless exercise
provisions set forth in the Warrant, encloses herewith $________ in cash, certified or
official bank check or checks or other immediately available funds, which sum represents
the aggregate Exercise Price (as defined in the Warrant) for the number of shares of
Common Stock to which this Exercise Notice relates, together with any applicable taxes
payable by the undersigned pursuant to the Warrant. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
its delivery of this Exercise Notice, the undersigned represents and warrants to the
Company that in giving effect to the exercise evidenced hereby the Holder will not
beneficially own in excess of the number of shares of Common Stock (determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be
owned under Section 11 of this Warrant to which this notice relates. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2> PLEASE
INSERT SOCIAL SECURITY OR <BR>TAX IDENTIFICATION NUMBER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp; </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Please
print name and address) </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Warrant
Shares Exercise Log</U> </FONT></TD></TR>
</TABLE>
<BR>

<BR>
<!-- MARKER FORMAT-SHEET="Reg Cover Table 5 Col" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date</FONT></TD>
<TD ALIGN=CENTER WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number of Warrant Shares<BR>
Available to be Exercised</FONT></TD>
<TD ALIGN=CENTER WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number of Warrant <BR>Shares
Exercised</FONT></TD>
<TD ALIGN=CENTER WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number of Warrant<BR>
Shares Remaining to<BR>
be Exercised</FONT></TD>
</TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>

<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT><HR NOSHADE SIZE="1"></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>

</TABLE>
<BR>

<BR>


<BR><BR><BR>




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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>

<BR>


<!-- MARKER FORMAT-SHEET="Head Center 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM
OF ASSIGNMENT </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[To
be completed and signed only upon transfer of Warrant] </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________ the right represented by the within Warrant to purchase
____________ shares of Common Stock of Genelabs Technologies, Inc. to which the within
Warrant relates and appoints ________________ attorney to transfer said right on the books
of Genelabs Technologies, Inc. with full power of substitution in the premises. </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left 2 600" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated:
_______________, ____ </FONT></P></TD></TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
                                  </FONT><HR NOSHADE SIZE="1"></TD>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
(Signature  must  conform  in  all  respects  to
name  of holder as  specified  on the face of the
Warrant)
 </FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
                                  </FONT><HR NOSHADE SIZE="1"></TD>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Address of Transferee
 </FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
                                  </FONT><HR NOSHADE SIZE="1"></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
                                  </FONT><HR NOSHADE SIZE="1"></TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Head Left 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the presence of: </FONT></P></TD></TR>
</TABLE>
<BR>


__________________________



<BR><BR><BR>




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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>

<BR>

<!-- MARKER FORMAT-SHEET="Head Right 2 600" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT
B </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Center Bold 2 600" FSL="Default" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION
RIGHTS AGREEMENT </FONT></H1></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Rights Agreement (this <B>&#147;Agreement&#148;</B>) is made and entered
into as of August 1, 2003, by and between Genelabs Technologies, Inc., a California
corporation (the <B>&#147;Company&#148;</B>), and the investor signatory hereto (the <B>&#147;Purchaser&#148;</B> ).  </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 0" FSL="Project" -->
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date
hereof among the Company and the Purchaser (the <B>&#147;Purchase Agreement&#148;</B>).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and the Purchaser hereby agree as follows:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
Capitalized terms used and not otherwise defined herein that           are defined in the
Purchase Agreement shall have the meanings given such terms           in the Purchase
Agreement. As used in this Agreement, the following terms shall           have the
following meanings:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Effective
Date&#148;</B> means with respect to the Registration Statement, the date that such
Registration Statement is first declared effective by the Commission.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Effectiveness
Date&#148;</B> means the earlier of (1) the 90th day following the Closing Date and (2)
the fifth Trading Day following the date on which the Company is notified by the
Commission that the Registration Statement will not be reviewed or is no longer subject
to further review and comments.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Effectiveness
Period&#148;</B> shall have the meaning set forth in Section 2(a).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Exchange
Act&#148;</B> means the Securities Exchange Act of 1934, as amended.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Filing
Date&#148;</B> means the 30th day following the Closing Date.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Holder&#148;</B>or
<B>&#147;Holders&#148;</B> means the holder or holders, as the case may be, from time to
time of Registrable Securities.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Indemnified
Party&#148;</B> shall have the meaning set forth in Section 5(c).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Indemnifying
Party&#148;</B> shall have the meaning set forth in Section 5(c).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Losses&#148;</B>shall
have the meaning set forth in Section 5(a).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Proceeding&#148;</B>means
an action, claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Prospectus&#148;</B>means
the prospectus included in the Registration Statement (including, without limitation, a
prospectus that includes any information previously omitted from a prospectus filed as
part of an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered
by the Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registrable
Securities&#148;</B> means (i) the Shares, and (ii) the shares of Common Stock issued and
issuable upon exercise of the Warrant.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registration
Statement&#148;</B> means the registration statement required to be filed hereunder,
including the Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre-and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in such
registration statement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Rule
144&#148;</B> means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Rule
415&#148;</B> means Rule 415 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Rule
424&#148;</B> means Rule 424 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Securities
Act&#148;</B> means the Securities Act of 1933, as amended.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Shares&#148;</B>means
the shares of Common Stock issued or issuable to the Purchaser pursuant to the Purchase
Agreement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Warrant&#148;</B>means
the Warrant issued or issuable under the Purchase Agreement (including any New Warrants
(as defined in the Warrant) issuable in replacement or upon transfer thereof).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration</U>.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          On
or prior to the Filing Date, the Company shall prepare and file with the
          Commission a Registration Statement covering the resale of all Registrable
          Securities for an offering to be made on a continuous basis pursuant to Rule
          415. The Registration Statement shall be on Form S-3 (except if the Company is
          not then eligible to register for resale the Registrable Securities on
          Form&nbsp;S-3, in which case such registration shall be on another appropriate
          form in accordance herewith) and shall contain the &#147;Plan of
          Distribution&#148; in the form attached hereto as Annex A, subject to revisions
          required to comply with written comments from the Commission to the
Registration           Statement. The Company shall cause the Registration Statement to
be declared           effective under the Securities Act as soon as possible but, in any
event, no           later than the Effectiveness Date, and shall use its best efforts to
keep the           Registration Statement continuously effective under the Securities Act
until the           date which is two years after the date that it is declared effective
by the           Commission or such earlier date when all Registrable Securities covered
by the           Registration Statement have been sold or may be sold without volume
restrictions           pursuant to Rule 144(k) as determined by the counsel to the
Company pursuant to           an opinion letter to such effect, addressed and acceptable
to the Company&#146;s           transfer agent and the affected Holders (the <B>&#147;Effectiveness
          Period&#148;</B>).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          If:
(i) the Registration Statement is not declared effective by the Commission           on
or prior to the required Effectiveness Date, or (ii) after the Effective           Date,
the Registration Statement ceases to be effective and available to the           Holders
as to all Registrable Securities at any time prior to the expiration of           the
Effectiveness Period for an aggregate of more than twenty Trading Days, or
          (iii) the Common Stock is not listed or quoted, or is suspended from trading on
          the Nasdaq National Market or another Trading Market for a period of three
          Trading Days (which need not be consecutive Trading Days), or (iv) the exercise
          rights of the Holders pursuant to the Warrant are suspended for any reason (any
          such failure or breach being referred to as an <B>&#147;Event,&#148;</B>and for
          purposes of clause (i) or (iv) the date on which such Event occurs, or for
          purposes of clause (ii) the date which such twenty Trading Day-period is
          exceeded, or for purposes of clause (iii) the date on which such three Trading
          Day period is exceeded, being referred to as <B>&#147;Event Date&#148;</B>),
          then, in addition to any other rights available to the Holders: (x) on each
such           Event Date the Company shall pay to each Holder an amount in cash, as
liquidated           damages and not as a penalty, equal to 1% of the aggregate
Investment Amount of           such Holder pursuant to the Purchase Agreement; and (y) on
each monthly           anniversary of each such Event Date thereof (if the applicable
Event shall not           have been cured by such date) until the applicable Event is
cured, the Company           shall pay to each Holder an amount in cash, as liquidated
damages and not as a           penalty, equal to 2% of the aggregate Investment Amount
paid by such Holder           pursuant to the Purchase Agreement; <U>provided</U>, that
the Company shall not           be liable to a Holder on account of multiple Events in a
single monthly period,           except in the first month of any Event (in which case it
will not be liable to a           particular Holder in such monthly period on account of
multiple Events for           damages in excess of 2% of such Holder&#146;s aggregate
Investment Amount). If           the Company fails to pay any liquidated damages pursuant
to this Section in full           within seven days after the date payable, the Company
will pay interest thereon           at a rate of 12% per annum (or such lesser maximum
amount that is permitted to           be paid by applicable law) to the Holder, accruing
daily from the date such           liquidated damages are due until such amounts, plus
all such interest thereon,           are paid in full. The liquidated damages pursuant to
the terms hereof shall           apply on a pro rata basis for any portion of a month
prior to the cure of an           Event.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Notwithstanding
anything herein to the contrary, the Company shall prepare and           file a
supplement to the appropriate Registration Statement (if permitted for           such
purpose under the Securities Act) within five Trading Days following the
          issuance of a New Warrant, or (if such supplement is not permitted for such
          purposes under the Securities Act), a new Registration Statement within fifteen
          Trading Days following the issuance of a New Warrant. Any such new registration
          statement shall be deemed an additional Registration Statement under this
          Agreement, entitled to all of the benefits and subjecting each of the Company
          and the Holder of such New Warrant to the obligations hereunder applicable to a
          Registration Statement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Registration Procedures</U>  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Company&#146;s registration obligations hereunder, the Company shall:  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Not
less than four Trading Days prior to the filing of the Registration           Statement
or any related Prospectus or any amendment or supplement thereto, the           Company
shall, (i) furnish to the Holders copies of the portions of the           Registration
Statement containing the disclosure relating to the Selling           Security holders
and the description of the transactions contemplated by the           Purchase Agreement,
and the Plan of Distribution, which documents will be           subject to the review and
comment of such Holders, and (ii) cause its officers           and directors, counsel and
independent certified public accountants to respond           to such inquiries as shall
be necessary, in the reasonable opinion of respective           counsel to conduct a
reasonable investigation within the meaning of the           Securities Act. The Holders
will use their best efforts to deliver to the           Company any comments they may
have to the disclosure delivered to them under           Section 3(a)(i) within two
Trading Days following the day such disclosure is           received; it being agreed
that the &#147;Effectiveness Date&#148; will be           subject to extension for one
additional day for each Trading Day beyond three           that the Holders fail to
respond to such disclosure. The Company shall not file           the Registration
Statement or any such Prospectus or any amendments or           supplements thereto to
which the Holders of a majority of the Registrable           Securities shall reasonably
object in good faith.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;Prepare and file with the Commission such amendments, including           post-effective
amendments, to the Registration Statement and the Prospectus used           in connection
therewith as may be necessary to keep the Registration Statement           continuously
effective as to the applicable Registrable Securities for the           Effectiveness
Period and prepare and file with the Commission such additional           Registration
Statements in order to register for resale under the Securities Act           all of the
Registrable Securities; (ii) cause the related Prospectus to be           amended or
supplemented by any required Prospectus supplement, and as so           supplemented or
amended to be filed pursuant to Rule 424; (iii) respond as           promptly as
reasonably possible, and in any event within ten days, to any           comments received
from the Commission with respect to the Registration Statement           or any amendment
thereto and, as promptly as reasonably possible provide the           Holders true and
complete copies of all correspondence from and to the           Commission in connection
with the Registration Statement that pertains to a           Holder as a Selling
Stockholder or to the Plan of Distribution (but not other           information which in
the opinion of the Company would constitute material and           nonpublic
information); and (iv) comply in all material respects with the           provisions of
the Securities Act and the Exchange Act with respect to the           disposition of all
Registrable Securities covered by the Registration Statement           during the
applicable period in accordance with the intended methods of           disposition by the
Holders thereof set forth in the Registration Statement as so           amended or in
such Prospectus as so supplemented.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Notify
the Holders of Registrable Securities to be sold as promptly as           reasonably
possible (and, in the case of (i)(A) below, not less than three           Trading Days
prior to such filing) and (if requested by any such Person) confirm           such notice
in writing no later than one Trading Day following the day (i)(A)           when a
Prospectus or any Prospectus supplement or post-effective amendment to           the
Registration Statement is proposed to be filed; (B) when the Commission
          notifies the Company whether there will be a &#147;review&#148; of such
          Registration Statement and whenever the Commission comments in writing on such
          Registration Statement (the Company shall provide copies thereof and the
written           responses thereto to each of the Holders that pertain to such Holder as
a           Selling Stockholder or to the Plan of Distribution, but not other information
          which in the opinion of the Company would constitute material and nonpublic
          information); and (C) with respect to the Registration Statement or any
          post-effective amendment, when the same has become effective; (ii) of any
          request by the Commission or any other Federal or state governmental authority
          for amendments or supplements to the Registration Statement or Prospectus or
for           additional information; (iii) of the issuance by the Commission of any stop
          order suspending the effectiveness of the Registration Statement covering any
or           all of the Registrable Securities or the initiation of any Proceedings for
that           purpose; (iv) of the receipt by the Company of any notification with
respect to           the suspension of the qualification or exemption from qualification
of any of           the Registrable Securities for sale in any jurisdiction, or the
initiation or           threatening of any Proceeding for such purpose; and (v) of the
occurrence of any           event or passage of time that makes the financial statements
included in the           Registration Statement ineligible for inclusion therein or any
statement made in           the Registration Statement or Prospectus or any document
incorporated or deemed           to be incorporated therein by reference untrue in any
material respect or that           requires any revisions to the Registration Statement,
Prospectus or other           documents so that, in the case of the Registration
Statement or the Prospectus,           as the case may be, it will not contain any untrue
statement of a material fact           or omit to state any material fact required to be
stated therein or necessary to           make the statements therein, in light of the
circumstances under which they were           made, not misleading.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Use
its best efforts to avoid the issuance of, or, if issued, obtain the           withdrawal
of (i) any order suspending the effectiveness of the Registration           Statement, or
(ii) any suspension of the qualification (or exemption from           qualification) of
any of the Registrable Securities for sale in any           jurisdiction, at the earliest
practicable moment.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          [Intentionally
Deleted]  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Promptly
deliver to each Holder, without charge, as many copies of the           Prospectus or
Prospectuses (including each form of prospectus) and each           amendment or
supplement thereto as such Persons may reasonably request. The           Company hereby
consents to the use of such Prospectus and each amendment or           supplement thereto
by each of the selling Holders in connection with the           offering and sale of the
Registrable Securities covered by such Prospectus and           any amendment or
supplement thereto.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Prior
to any public offering of Registrable Securities, use its best efforts to
          register or qualify or cooperate with the selling Holders in connection with
the           registration or qualification (or exemption from such registration or
          qualification) of such Registrable Securities for offer and sale under the
          securities or Blue Sky laws of such jurisdictions within the United States as
          any Holder requests in writing, to keep each such registration or qualification
          (or exemption therefrom) effective during the Effectiveness Period and to do
any           and all other acts or things necessary or advisable to enable the
disposition in           such jurisdictions of the Registrable Securities covered by a
Registration           Statement; provided, that the Company shall not be required to
qualify generally           to do business in any jurisdiction where it is not then so
qualified or subject           the Company to any material tax in any such jurisdiction
where it is not then so           subject.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Cooperate
with the Holders to facilitate the timely preparation and delivery of
          certificates representing Registrable Securities to be delivered to a
transferee           pursuant to a Registration Statement, which certificates shall be
free, to the           extent permitted by the Purchase Agreement, of all restrictive
legends, and to           enable such Registrable Securities to be in such denominations
and registered in           such names as any such Holders may request.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Upon
the occurrence of any event contemplated by Section 3(c)(v), as promptly as
          reasonably possible, prepare a supplement or amendment, including a
          post-effective amendment, to the Registration Statement or a supplement to the
          related Prospectus or any document incorporated or deemed to be incorporated
          therein by reference, and file any other required document so that, as
          thereafter delivered, neither the Registration Statement nor such Prospectus
          will contain an untrue statement of a material fact or omit to state a material
          fact required to be stated therein or necessary to make the statements therein,
          in light of the circumstances under which they were made, not misleading.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Comply
with all applicable rules and regulations of the Commission.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company may require each selling Holder to furnish to the Company a           certified
statement as to the number of shares of Common Stock beneficially           owned by such
Holder and, if requested by the Commission, the controlling person           thereof.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Expenses</U>. All fees and expenses incident to the performance           of or
compliance with this Agreement by the Company shall be borne by the           Company
whether or not any Registrable Securities are sold pursuant to the           Registration
Statement. The fees and expenses referred to in the foregoing           sentence shall
include, without limitation, (i) all registration and filing fees           (including,
without limitation, fees and expenses (A) with respect to filings           required to
be made with Nasdaq National Market or any other Trading Market, and           (B) in
compliance with applicable state securities or Blue Sky laws), (ii)           printing
expenses (including, without limitation, expenses of printing           certificates for
Registrable Securities and of printing prospectuses if the           printing of
prospectuses is reasonably requested by the holders of a majority of           the
Registrable Securities included in the Registration Statement), (iii)
          messenger, telephone and delivery expenses, (iv) fees and disbursements of
          counsel for the Company, (v) Securities Act liability insurance, if the Company
          so desires such insurance, and (vi) fees and expenses of all other Persons
          retained by the Company in connection with the consummation of the transactions
          contemplated by this Agreement. In addition, the Company shall be responsible
          for all of its internal expenses incurred in connection with the consummation
of           the transactions contemplated by this Agreement (including, without
limitation,           all salaries and expenses of its officers and employees performing
legal or           accounting duties), the expense of any annual audit and the fees and
expenses           incurred in connection with the listing of the Registrable Securities
on any           securities exchange as required hereunder.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U> </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by the Company</U>. The Company shall, notwithstanding any           termination of this
Agreement, indemnify and hold harmless each Holder, the           officers, directors,
agents, investment advisors and employees of each of them,           each Person who
controls any such Holder (within the meaning of Section 15 of           the Securities
Act or Section 20 of the Exchange Act) and the officers,           directors, agents and
employees of each such controlling Person, to the fullest           extent permitted by
applicable law, from and against any and all losses, claims,           damages,
liabilities, costs (including, without limitation, reasonable costs of
          preparation and reasonable attorneys&#146; fees) and expenses (collectively, <B>&#147;Losses&#148;</B>),
as incurred, arising out of or relating to any           untrue or alleged untrue
statement of a material fact contained in the           Registration Statement, any
Prospectus or any form of prospectus or in any           amendment or supplement thereto
or in any preliminary prospectus, or arising out           of or relating to any omission
or alleged omission of a material fact required           to be stated therein or
necessary to make the statements therein (in the case of           any Prospectus or form
of prospectus or supplement thereto, in light of the           circumstances under which
they were made) not misleading, except to the extent,           but only to the extent,
that (1) such untrue statements or omissions are based           solely upon information
regarding such Holder furnished in writing to the           Company by such Holder
expressly for use therein or (2) in the case of an           occurrence of an event of
the type specified in Section 3(c)(ii)-(v), the use by           such Holder of an
outdated or defective Prospectus after the Company has           notified such Holder in
writing that the Prospectus is outdated or defective and           prior to the receipt
by such Holder of the Advice contemplated in Section 6(d),           but only if and to
the extent that use of the Prospectus (as so amended, if           applicable) upon
receipt of such Advice would have corrected the misstatement or           omission giving
rise to such Loss. The Company shall notify the Holders promptly           of the
institution, threat or assertion of any Proceeding of which the Company           is
aware in connection with the transactions contemplated by this Agreement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by Holders</U>. Each Holder shall, severally and not jointly,           indemnify and
hold harmless the Company, its directors, officers, agents and           employees, each
Person who controls the Company (within the meaning of Section           15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
          officers, agents or employees of such controlling Persons, to the fullest
extent           permitted by applicable law, from and against all Losses, as incurred,
arising           solely out of or based solely upon: (x) such Holder&#146;s failure to
comply           with the prospectus delivery requirements of the Securities Act to the
extent           that delivery of a Prospectus would have corrected the misstatement or
omission           giving rise to such Loss or (y) any untrue statement of a material
fact           contained in any Registration Statement, any Prospectus, or any form of
          prospectus, or in any amendment or supplement thereto, or arising solely out of
          or based solely upon any omission of a material fact required to be stated
          therein or necessary to make the statements therein not misleading to the
          extent, but only to the extent, that (1) such untrue statements or omissions
are           based solely upon information regarding such Holder furnished in writing to
the           Company by such Holder expressly for use therein, or (2) in the case of an
          occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use
by           such Holder of an outdated or defective Prospectus after the Company has
          notified such Holder in writing that the Prospectus is outdated or defective
and           prior to the receipt by such Holder of the Advice contemplated in Section
6(d),           but only if and to the extent that use of the Prospectus (as so amended,
if           applicable) upon receipt of such Advice would have corrected the
misstatement or           omission giving rise to such Loss. In no event shall the
liability of any           selling Holder hereunder be greater in amount than the net
proceeds received by           such Holder upon the sale of the Registrable Securities
giving rise to such           indemnification obligation.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Indemnification Proceedings</U>. If any Proceeding shall be           brought or
asserted against any Person entitled to indemnity hereunder (an <B>&#147;Indemnified Party&#148;</B>),
such Indemnified Party shall promptly           notify the Person from whom indemnity is
sought (the <B>&#147;Indemnifying           Party&#148;</B>) in writing, and the
Indemnifying Party shall assume the defense           thereof, including the employment
of counsel reasonably satisfactory to the           Indemnified Party and the payment of
all fees and expenses incurred in           connection with defense thereof; provided,
that the failure of any Indemnified           Party to give such notice shall not relieve
the Indemnifying Party of its           obligations or liabilities pursuant to this
Agreement, except (and only) to the           extent that it shall be finally determined
by a court of competent jurisdiction           (which determination is not subject to
appeal or further review) that such           failure shall have proximately and
materially adversely prejudiced the           Indemnifying Party.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party
shall have failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the
named parties to any such Proceeding (including any impleaded parties) include both such
Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been
advised by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnified Party and the Indemnifying Party (in which case, if
such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party
shall not have the right to assume the defense thereof and such counsel shall be at the
expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent
shall not be unreasonably withheld. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending Proceeding
in respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the
extent incurred in connection with investigating or preparing to defend such Proceeding
in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party
(regardless of whether it is ultimately determined that an Indemnified Party is not
entitled to indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to the extent
it is finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contribution</U>.
If a claim for indemnification under Section 5(a) or 5(b)           is unavailable to an
Indemnified Party (by reason of public policy or           otherwise), then each
Indemnifying Party, in lieu of indemnifying such           Indemnified Party, shall
contribute to the amount paid or payable by such           Indemnified Party as a result
of such Losses, in such proportion as is           appropriate to reflect the relative
fault of the Indemnifying Party and           Indemnified Party in connection with the
actions, statements or omissions that           resulted in such Losses as well as any
other relevant equitable considerations.           The relative fault of such
Indemnifying Party and Indemnified Party shall be           determined by reference to,
among other things, whether any action in question,           including any untrue or
alleged untrue statement of a material fact or omission           or alleged omission of
a material fact, has been taken or made by, or relates to           information supplied
by, such Indemnifying Party or Indemnified Party, and the           parties&#146; relative
intent, knowledge, access to information and opportunity           to correct or prevent
such action, statement or omission. The amount paid or           payable by a party as a
result of any Losses shall be deemed to include, subject           to the limitations set
forth in Section 5(c), any reasonable attorneys&#146; or           other reasonable fees
or expenses incurred by such party in connection with any           Proceeding to the
extent such party would have been indemnified for such fees or           expenses if the
indemnification provided for in this Section was available to           such party in
accordance with its terms.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in
the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d),
no Holder shall be required to contribute, in the aggregate, any amount in excess of the
amount by which the proceeds actually received by such Holder from the sale of the
Registrable Securities subject to the Proceeding exceeds the amount of any damages that
such Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indemnity and contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U> </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
In the event of a breach by the Company or by a Holder, of any           of their
obligations under this Agreement, each Holder or the Company, as the           case may
be, in addition to being entitled to exercise all rights granted by law           and
under this Agreement, including recovery of damages, will be entitled to
          specific performance of its rights under this Agreement. The Company and each
          Holder agree that monetary damages would not provide adequate compensation for
          any losses incurred by reason of a breach by it of any of the provisions of
this           Agreement and hereby further agrees that, in the event of any action for
          specific performance in respect of such breach, it shall waive the defense that
          a remedy at law would be adequate.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Piggyback on Registrations</U>. Except as and to the extent specified in
          Section 3.1(v) to the Disclosure Schedule of the Purchase Agreement, neither
the           Company nor any of its security holders (other than the Holders in such
capacity           pursuant hereto) may include securities of the Company in the
Registration           Statement other than the Registrable Securities, and the Company
shall not after           the date hereof enter into any agreement providing any such
right to any of its           security holders. Except as and to the extent specified in
Section 3.1(v) to the           Disclosure Schedule of the Purchase Agreement, the
Company has not previously           entered into any agreement granting any registration
rights with respect to any           of its securities to any Person which have not been
fully satisfied.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Each Holder covenants and agrees that it will comply with the           prospectus
delivery requirements of the Securities Act as applicable to it in           connection
with sales of Registrable Securities pursuant to the Registration           Statement.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinued
Disposition</U>. Each Holder agrees by its acquisition of such           Registrable
Securities that, upon receipt of a notice from the Company of the           occurrence of
any event of the kind described in Section 3(c), such Holder will           forthwith
discontinue disposition of such Registrable Securities under the           Registration
Statement until such Holder&#146;s receipt of the copies of the           supplemented
Prospectus and/or amended Registration Statement or until it is           advised in
writing (the <B>&#147;Advice&#148;</B>) by the Company that the use           of the
applicable Prospectus may be resumed, and, in either case, has received           copies
of any additional or supplemental filings that are incorporated or deemed           to be
incorporated by reference in such Prospectus or Registration Statement.           The
Company may provide appropriate stop orders to enforce the provisions of           this
paragraph.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Piggy-Back
Registrations</U>. If at any time during the Effectiveness Period           there is not
an effective Registration Statement covering all of the Registrable           Securities
and the Company shall determine to prepare and file with the           Commission a
registration statement relating to an offering for its own account           or the
account of others under the Securities Act of any of its equity           securities,
other than on Form S-4 or Form S-8 (each as promulgated under the           Securities
Act) or their then equivalents relating to equity securities to be           issued
solely in connection with any acquisition of any entity or business or           equity
securities issuable in connection with stock option or other employee           benefit
plans, then the Company shall send to each Holder written notice of such
          determination and, if within fifteen days after receipt of such notice, any
such           Holder shall so request in writing, the Company shall include in such
          registration statement all or any part of such Registrable Securities such
          holder requests to be registered, subject to customary underwriter cutbacks
          applicable to all holders of registration rights.  </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
and Waivers</U>. Any term of this Agreement may be amended and the           observance
of any term of this Agreement may be waived (either generally or in a
          particular instance and either retroactively or prospectively), only with the
          written consent of the Company and the Purchaser.  </FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any and all notices or other communications or deliveries           required or permitted
to be provided hereunder shall be in writing and shall be           deemed given and
effective on the earliest of (i) the date of transmission, if           such notice or
communication is delivered via facsimile at the facsimile           telephone number
specified in this Section prior to 6:30 p.m. (New York City           time) on a Trading
Day, (ii) the Trading Day after the date of transmission, if           such notice or
communication is delivered via facsimile at the facsimile           telephone number
specified in this Agreement later than 6:30 p.m. (New York City           time) on any
date and earlier than 11:59 p.m. (New York City time) on such date,           (iii) the
Trading Day following the date of mailing, if sent by nationally           recognized
overnight courier service, or (iv) upon actual receipt by the party           to whom
such notice is required to be given. The address for such notices and
          communications shall be as follows:  </FONT></TD></TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>

<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Company: </FONT></TD>
<TD ALIGN=LEFT WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Genelabs Technologies, Inc.<BR>505 Penobscot Drive<BR>Redwood City, CA
94063<BR>Attn:&nbsp;&nbsp; Chief Financial Officer<BR>Fax No.:&nbsp;&nbsp; (650) 368-0709
</FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>

<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With a copy to:   </FONT></TD>
<TD ALIGN=LEFT WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Skadden, Arps, Slate, Meagher &amp; Flom LLP<BR>
               525 University Avenue, <BR>
               Palo Alto, CA  93301  <BR>
               Attn: &nbsp;&nbsp; Gregory C. Smith, Esq.<BR>
               Facsimile No.:&nbsp;&nbsp; (650) 470-4570 <BR>
 </FONT></TD>
 </TR>
</TABLE>
<BR>


<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to the Purchaser:  </FONT></TD>
<TD ALIGN=LEFT WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To the address set forth under the Purchaser&#146;s name on the
signature pages hereto.
</FONT></TD>
</TR>
</TABLE>
<BR>




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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to any other Person who is then the registered Holder:  </FONT></TD></TR>
</TABLE>
<BR>


<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
<TD ALIGN=LEFT WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To the address of such Holder as it appears in the stock transfer books of the Company

 </FONT></TD>
 </TR>
</TABLE>
<BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>or
such other address as may be designated in writing hereafter, in the same manner, by such
Person. </FONT></TD></TR></TABLE><BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. This Agreement shall inure to the benefit of and           be binding
upon the successors and permitted assigns of each of the parties and           shall
inure to the benefit of each Holder. The Company may not assign its rights           or
obligations hereunder without the prior written consent of each Holder,           except
an assignment by operation of law upon the consummation of a sale of all           or
substantially all of the assets of the Company or a business combination in
          which the Company will not be the surviving entity; <U>provided</U>, that as a
          condition to such transaction, the successor entity or purchaser to such
          transaction shall provide a written undertaking to be bound by all of the
          obligations formerly binding upon the Company under this Agreement, as if
          initially a party hereto. Each Holder may assign their respective rights
          hereunder in the manner and to the Persons as permitted under the Purchase
          Agreement.  </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
and Counterparts</U>. This Agreement may be executed in any number           of
counterparts, each of which when so executed shall be deemed to be an           original
and, all of which taken together shall constitute one and the same           Agreement.
In the event that any signature is delivered by facsimile           transmission, such
signature shall create a valid binding obligation of the           party executing (or on
whose behalf such signature is executed) the same with           the same force and
effect as if such facsimile signature were the original           thereof.  </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. All questions concerning the construction, validity,           enforcement and
interpretation of this Agreement shall be governed by and           construed and
enforced in accordance with the internal laws of the State of New           York, without
regard to the principles of conflicts of law thereof. Each party           agrees that
all Proceedings concerning the interpretations, enforcement and           defense of the
transactions contemplated by this Agreement (whether brought           against a party
hereto or its respective Affiliates, officers, shareholders,           employees or
agents) shall be commenced and heard in the state and federal           courts sitting in
the City of New York, Borough of Manhattan (the <B>&#147;New           York Courts&#148;</B>).
Each party hereto hereby irrevocably submits to the           exclusive jurisdiction of
the New York Courts for all such Proceedings, and           hereby irrevocably waives,
and agrees not to assert in any Proceeding, any claim           that it is not personally
subject to the jurisdiction of any such court, that           such Proceeding has been
commenced in an inconvenient or improper forum. Each           party hereto (including
its affiliates, agents, officers, directors and           employees) hereby irrevocably
waives, to the fullest extent permitted by           applicable law, any and all right to
trial by jury in any Proceeding arising out           of or relating to this Agreement or
the transactions contemplated hereby. If           either party shall commence an action
or Proceeding to enforce any provisions of           this Agreement, then the prevailing
party in such action or Proceeding shall be           reimbursed by the other party for
its attorneys fees and other costs and           expenses incurred with the
investigation, preparation and prosecution of such           action or Proceeding.  </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cumulative
Remedies</U>. The remedies provided herein are cumulative and not           exclusive of
any remedies provided by law.  </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any term, provision, covenant or restriction of this           Agreement is held by a
court of competent jurisdiction to be invalid, illegal,           void or unenforceable,
the remainder of the terms, provisions, covenants and           restrictions set forth
herein shall remain in full force and effect and shall in           no way be affected,
impaired or invalidated, and the parties hereto shall use           their reasonable
efforts to find and employ an alternative means to achieve the           same or
substantially the same result as that contemplated by such term,           provision,
covenant or restriction. It is hereby stipulated and declared to be           the
intention of the parties that they would have executed the remaining terms,
          provisions, covenants and restrictions without including any of such that may
be           hereafter declared invalid, illegal, void or unenforceable.  </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings in this Agreement are for convenience of reference           only and shall
not limit or otherwise affect the meaning hereof.  </FONT></TD></TR>
</TABLE>
<BR>
<BR>
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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK<BR>
SIGNATURE PAGES TO FOLLOW]  </FONT></TD></TR>
</TABLE>
<BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.  </FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Company Right" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><!-- COMPANY -->
GENELABS TECHNOLOGIES, INC. </FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>


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<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> &nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Date By Signature" FSL="Project" -->
<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Irene A. Chow, Ph.D. <!-- NAME --> </FONT></TD>
  </TR>
</TABLE>


<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman and Chief Executive Officer <!-- NAME --> </FONT></TD>
  </TR>
</TABLE>

<BR><BR><BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK<BR>
SIGNATURE PAGES OF PURCHASER TO FOLLOW] </FONT></TD></TR>
</TABLE>
<BR>

<BR>
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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>
<BR>
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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.  </FONT></TD></TR>
</TABLE>
<BR>



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<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </FONT></TD>
  </TR>
</TABLE>
<BR>

<BR>


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<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
    <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> &nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR SIZE="1" ALIGN="LEFT" WIDTH="85%"> </TD>
</TR>
</TABLE>


<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- NAME --> </FONT></TD>
  </TR>
</TABLE>


<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="33"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
    <TD WIDTH="231"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<!-- NAME --> </FONT></TD>
  </TR>
</TABLE>
<BR>


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<TABLE WIDTH="600" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="BOTTOM">
    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Address for Notice:<BR><BR>
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]<BR><BR>
Facsimile No:&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]<BR>
Attn:&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
</FONT></TD>
  </TR>
</TABLE>
<BR>

<BR>


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<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR></TD></TR></TABLE>
<BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Annex
A </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Plan of Distribution </FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of Common Stock on any stock exchange,
market or trading facility on which the shares are traded or in private transactions.
These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one
or more of the following methods when selling shares: </FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;</FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149; </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
block trades in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the transaction;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>an
exchange distribution in accordance with the rules of the applicable exchange;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>privately
negotiated transactions;</FONT></TD>
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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>short
sales;</FONT></TD>
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<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>broker-dealers
 may agree with the Selling  Stockholders  to sell a  specified  number of such shares at
a          stipulated price per share;</FONT></TD>
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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a
combination of any such methods of sale; and</FONT></TD>
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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&#149;  </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
other method permitted pursuant to applicable law.</FONT></TD>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders may also sell shares under Rule 144 under the Securities Act, if
available, rather than under this prospectus. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate
in sales. Broker-dealers may receive commissions or discounts from the Selling
Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated. The Selling Stockholders do not expect these
commissions and discounts to exceed what is customary in the types of transactions
involved. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholder may from time to time pledge or grant a security interest in some or
all of the Shares or common stock or Warrant owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may offer and
sell the shares of common stock from time to time under this prospectus, or under an
amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act of 1933 amending the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this prospectus. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders also may transfer the shares of common stock in other circumstances,
in which case the transferees, pledgees or other successors in interest will be the
selling beneficial owners for purposes of this prospectus. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the Company being notified in writing by a Selling Stockholder that any material
arrangement has been entered into with a broker-dealer for the sale of Common Stock
through a block trade, special offering, exchange distribution or secondary distribution
or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if
required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of
each such Selling Stockholder and of the participating broker-dealer(s), (ii) the number
of shares involved, (iii) the price at which such the shares of Common Stock were sold,
(iv)the commissions paid or discounts or concessions allowed to such broker-dealer(s),
where applicable, (v) that such broker-dealer(s) did not conduct any investigation to
verify the information set out or incorporated by reference in this prospectus, and (vi)
other facts material to the transaction. In addition, upon the Company being notified in
writing by a Selling Stockholder that a donee or pledge intends to sell more than 500
shares of Common Stock, a supplement to this prospectus will be filed if then required in
accordance with applicable securities law. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders and any broker-dealers or agents that are involved in selling the
shares may be deemed to be &#147;underwriters&#148; within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such
broker-dealers or agents and any profit on the resale of the shares purchased by them may
be deemed to be underwriting commissions or discounts under the Securities Act. Each
Selling Stockholder has represented and warranted to the Company that it does not have any
agreement or understanding, directly or indirectly, with any person to distribute the
Common Stock. </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is required to pay all fees and expenses incident to the registration of the
shares. The Company has agreed to indemnify the Selling Stockholders against certain
losses, claims, damages and liabilities, including liabilities under the Securities Act. </FONT></TD></TR>
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