Document:

SUBSCRIPTION AGREEMENT

 

This SUBSCRIPTION
AGREEMENT (this “Agreement”) is dated as of October 4, 2012, between Vringo, Inc., a Delaware corporation (the
“Company”), and the purchaser identified on the signature page hereto (the “Purchaser”).

 

WHEREAS, the Purchaser desires to subscribe
for, and the Company desires to issue, shares of the Company’s common stock, $0.01 par value per share (the “Common
Stock”), to the Purchaser pursuant to the terms and conditions of this Agreement;

 

NOW, THEREFORE, upon the execution and delivery
of this Agreement, the Company and the Purchaser agree as follows:

 

1.            
Subscription.  The Purchaser, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase
the number of shares of Common Stock (the “Shares”) at the per share purchase price and aggregate purchase price
(the “Purchase Price”) as set forth on the signature page hereto, and the Company, intending to be legally bound,
hereby agrees to issue and sell the Shares to the Purchaser, provided, however, that the Company reserves the right
to accept or reject this subscription for Shares, in whole or in part. If the Company elects to accept this subscription for Shares
in part, it shall promptly notify such Purchaser by delivery to the Purchaser by email of the signature page countersigned by the
Company and reflecting the amount of the subscription accepted.

 

2.            
Registration of Shares.  The offering and sale of the Shares (the “Offering”) are being made pursuant
to (a) an effective Registration Statement on Form S-3 (File No. 333-182823) (the “Registration Statement”)
filed by the Company with the Securities and Exchange Commission (the “Commission”) under the Securities Act
of 1933, as amended (the “Securities Act”), including the prospectus contained therein (the “Base Prospectus”),
which relates, among other things, to the Shares and the sale thereof from time to time in accordance with Rule 415 under
the Securities Act, and (b) a prospectus supplement (the “Prospectus Supplement” and, together with the
Base Prospectus, the “Prospectus”) containing certain supplemental information regarding the Shares and terms
of the Offering that will be filed with the Commission and delivered to the Purchaser (or made available to the Purchaser by the
filing by the Company of an electronic version thereof with the Commission) no later than the second business day following the
date of this Agreement.

 

3.            
Purchase and Sale of Shares.  The Company agrees to issue and sell to the Purchaser and the Purchaser agrees to purchase
the Shares at a closing to take place at the offices of the Company, or such other place as the Purchaser and the Company shall
mutually agree, including by way of the exchange of facsimile or “pdf” copies of signatures (the “Closing”),
no later than the third Trading Day (as such term is defined below) following the date hereof (the “Closing Date”). 
At the Closing, the Company shall deliver instructions to the Company’s transfer agent to issue the Shares as of the Closing
Date and deliver via the Depository Trust Company Deposit Withdrawal Agent Commission System (“DWAC”) the Shares,
registered in the name of the Purchaser, against delivery of the Purchase Price, which shall be paid by the Purchaser at the Closing
by wire transfer of immediately available funds to the account set forth on Schedule I hereto. The term “Trading
Day” means a day on which the principal NYSE MKT is open for trading.

 

Prior to Closing, the Purchaser shall direct
the broker-dealer at which the account or accounts to be credited with the Shares being purchased by such Purchaser are maintained,
which broker/dealer shall be a DTC participant, to set up a DWAC instructing the Company’s transfer agent, to credit such
account or accounts with the Shares by means of an electronic book-entry delivery. Simultaneously with the delivery to the Company
by the Purchaser of the Purchase Price at Closing, the Company shall direct its transfer agent to credit the Purchaser’s
account or accounts with the Shares pursuant to the information contained in the DWAC (as specified by such Purchaser on the Investor
Questionnaire annexed hereto as Exhibit A).

 

4.            
Closing Conditions.

 

(a)          
The obligations of the Company hereunder are subject to the following conditions being met:

 

    	 

    	 

    

(i)           
the accuracy in all material respects as of the date hereof of the representations and warranties by the Purchaser contained herein;
and

 

(ii)          
the delivery by the Purchaser of the Purchase Price to the Company for the Shares as set forth herein on the Closing Date.

 

(b)          
The obligations of the Purchaser hereunder are subject to the following conditions being met:

 

(i)the accuracy in all material respects
as of the date hereof of the representations and warranties by the Company contained herein;

 

(ii)the delivery by the Company to the
Purchaser of the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities
Act); and

 

(iii)   the delivery by
the Company to the Purchaser of a copy of the irrevocable instructions to the Company’s transfer agent instructing the transfer
agent to deliver on an expedited basis via DWAC the number of Shares subscribed for that was accepted by the Company, registered
in the name of such Purchaser.

 

6.            
Representations and Warranties of the Company.  As of the date hereof, the Company hereby represents and warrants to
the Purchaser that:

 

(a)          
Organization.  The Company is a corporation, duly organized, validly existing and in good standing under the laws of
the State of Delaware.

 

(b)          
Authority and Validity.  The Company has all requisite corporate power and authority to execute, deliver and perform
its obligations under this Agreement and to consummate the transactions contemplated hereby.  The execution, delivery and
performance by the Company of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action required on the part of the Company, and no other proceedings on the part of the Company are
necessary to authorize this Agreement or for the Company to perform its obligations under this Agreement.  This Agreement
constitutes the lawful, valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and general equitable principles regardless of whether such enforceability is considered in
a proceeding at law or in equity.

 

(c)          
Valid Issuance of Common Stock.  The Shares, when issued, sold and delivered in accordance with the terms hereof for
the Purchase Price, will be duly and validly authorized and issued, fully paid and nonassessable and free of restrictions on transfer
other than the applicable state and federal securities laws.

 

(d)          
Registration Statement.  The Registration Statement is in full force and effect and no cease and desist order or other
suspension of the Registration Statement exists, has been imposed or, to the knowledge of the Company is threatened by the Commission.

 

(e)          
No Violation or Conflict.  The execution, delivery and performance of this Agreement and the transactions contemplated
hereby do not (i) violate, conflict with or result in the breach of any provision of the Company’s Certificate of Incorporation
or Bylaws, (ii) conflict with or violate any law, rule, regulation, order, judgment or decree applicable the Company or any
of its assets, properties or businesses, or (iii) conflict with, result in any breach of, constitute a default (or event that
with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others
any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any
encumbrance on any of the assets or properties of the Company, pursuant to any note, bond, mortgage or indenture, contract, agreement,
lease, sublease, license, permit, franchise or other instrument or arrangement to which the Company is a party except, in the case
of clauses (ii) and (iii), to the extent that such conflicts, breaches, defaults or other matters would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the Company.

 

    	 

    	 

    

(f)           
Governmental/Regulatory Consents and Approvals.  Except for filings under federal securities laws and, if required,
NYSE MKT rules and regulations, the execution, delivery and performance of this Agreement by the Company do not, and the consummation
of the transactions contemplated hereby do not and will not, require any permits, consents, approvals, orders, authorizations of,
or declarations to or filings with any federal, state, local or foreign government or regulatory authority, which has not already
been obtained, effected or provided.

 

7.            
Representations, Warranties and Covenants of the Purchaser.  As of the date hereof, the Purchaser hereby represents
and warrants to the Company that:

 

(a)          
The Purchaser has received (or otherwise had made available to him by the filing by the Company of an electronic version thereof
with the Commission) the Base Prospectus which is a part of the Registration Statement, and the documents incorporated by reference
therein (collectively, the “Disclosure Package”), prior to or in connection with the execution of this Agreement.
The Purchaser acknowledges that, prior to the delivery of this Agreement to the Company, the Purchaser will receive certain additional
information regarding the Offering, including pricing information (the “Offering Information”). Such information
may be provided to the Purchaser by any means permitted under the Act, including the Prospectus Supplement, a free writing prospectus
and oral communications.

 

(b)          
The Purchaser (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect
to, investments in shares presenting an investment decision like that involved in the purchase of the Shares, including investments
in securities issued by the Company and investments in comparable companies and has reviewed such information and made such inquiries
regarding the Company and the purchase of the Shares as he has deemed appropriate and (b) in connection with his decision
to purchase the Shares, has received (or had full access to) and is relying only upon the Disclosure Package and the documents
incorporated by reference therein.

 

(c)          
The Purchaser understands that nothing in this Agreement, the Disclosure Package or any other materials presented to the Purchaser
in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice.  The Purchaser has consulted
such legal, tax and investment advisors and made such investigations as he, it his sole discretion, has deemed necessary or appropriate
in connection with his purchase of the Shares.

 

(d)          
No person or entity acting on behalf of, or under the authority of, the Purchaser is or will be entitled to any broker’s,
finder’s, or similar fees or commission payable by the Company.

 

(e)           
Since the time listed on the signature page hereto, October 4, 2012 (the "Restriction Time"), the Purchaser has
not disclosed any information regarding the Offering to any third parties (other than its legal, accounting and other advisors)
and has not engaged in any purchases or sales of the securities of the Company (including, without limitation, any Short Sales
(as defined herein) involving the Company’s securities). The Purchaser agrees that it will not use any of the Shares acquired
pursuant to this Agreement to cover any short position in the Common Stock if doing so would be in violation of applicable securities
laws. For purposes hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and
indirect stock pledges, forward sales contracts, options, puts, calls, short sales, swaps, ”put equivalent positions”
(as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales
and other transactions through non-U.S. broker dealers or foreign regulated brokers.

 

(f)No offer by the Purchaser to buy the
Shares will be accepted and no part of the Purchase Price will be delivered to the Company until the Purchaser has received the
Offering Information and the Company has accepted such offer by countersigning a copy of this Agreement, and any such offer may
be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the Company sending (orally, in writing
or by electronic mail) notice of its acceptance of such offer. An indication of interest will involve no obligation or commitment
of any kind until the Purchaser has been delivered the Offering Information and this Agreement is accepted and countersigned by
or on behalf of the Company. The Purchaser understands and agrees that the Company, in its sole discretion, reserves the right
to accept or reject this subscription for Shares, in whole or in part.

 

    	 

    	 

    

8.Public Announcement. The Company
and the Purchaser agree that the Company shall, prior to the opening of the financial markets in New York City on the business
day immediately after the date hereof: (a) issue a press release announcing the Offering and disclosing all material information
regarding the Offering and (b) file a Current Report on Form 8-K with the Securities and Exchange Commission, including a form
of this Agreement as an exhibit thereto, which discloses all material non-public information disclosed to the Purchaser.

 

9.            
Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware,
without regard to its conflicts of laws principles.

 

10.            
Entire Agreement.  This Agreement constitutes the entire agreement between the Company and the Purchaser with respect
to the matters covered hereby and supersedes all prior agreements and understanding with respect to such matters between the Company
and the Purchaser.

 

11.          
Severability.  In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected
or impaired thereby.

 

12.          
Counterparts; Facsimile or “pdf” Copies.  This Agreement may be executed in counterparts, each of which,
when executed, shall be deemed an original but all of which, taken together, shall constitute one and the same Agreement. 
Delivery of an executed copy of a signature page to this Agreement by facsimile or “pdf” transmission shall be
as effective as delivery of a manually executed copy of this Agreement and shall be as effective and enforceable as the original.

 

[SIGNATURES FOLLOW ON
NEXT PAGE]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the undersigned has caused
this Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

 

 

	 	 	PURCHASER:	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	
        By:

        Name:

        Title:
	 	 
	 	 	 	 	 	 

 

 

 

	
        Subscription Amount: $_________________

         

        Purchase Price per Share: $______________

         
	 
	
        No. of Shares: ________________________

         

        Restriction Time: ____________________
	 

 

 

	 	 	VRINGO, INC.
	
        Agreed and Accepted this 4th day of October, 2012:

         

         
	 	 
	 	 	
        By: _____________________________________

        Name: ____________________________________

        Title: _____________________________________

         
	 
	 	 	 
	
         

         

        Subscription Amount Accepted: $__________________

         

        No. of Shares Accepted:

___________________

         
	 	
        Address for Notice:

        780 Third Avenue, 15th Floor

        New York, NY 10017

        Telephone: (646) 525-4319

        Facsimile: (509) 271-5246

        E-mail: andrew.perlman@vringo.com

        Attention: Chief Executive Officer

         

        With a copy to:

        Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

        Chrysler Center

        666 Third Avenue

        New York, NY 10017

        Telephone: (212) 935-3000

        Facsimile: (212) 983-3115

        E-mail: KRKoch@mintz.com

        Attention: Kenneth R. Koch, Esq.

 

    	 

    	 

    

EXHIBIT A

 

INVESTOR QUESTIONNAIRE 

 

 1.           The
exact name that your Shares are to be registered in.  You may use a nominee name if appropriate:

 

_____________________________________________________________________

 

2.           The
relationship between the Purchaser and the registered holder listed in response to item 1 above:

 

_____________________________________________________________________

 

3.           The
mailing address of the registered holder listed in response to item 1 above:

 

____________________________________________________

____________________________________________________

____________________________________________________

____________________________________________________

Fax: ________________________________________________

 

 

4.           The
Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:

 

_____________________________________________________________

 

 

5.           Name
of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained):

 

______________________________________________________________

 

 

6.           DTC
Participant Number: _________________________________________________________________________

 

 

7.           Name
of Account at DTC Participant being credited with the Shares: _______________________________________

 

 

8.           Account
Number at DTC Participant being credited with the Shares: ________________________________________Warrant to Purchase Shares of Series B-2 Preferred Stock

 Exhibit 4.3 
 THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

WARRANT TO PURCHASE STOCK 
  

			
	Corporation:	  	KALOBIOS PHARMACEUTICALS, INC, a Delaware Corporation
	Number of Shares:	  	55,556 (subject to Section 1.8)
	Class of Stock:	  	Series B-2 Preferred
	Initial Exercise Price:	  	$1.44 per share
	Issue Date:	  	October 31, 2005
	Expiration Date:	  	October 31, 2015

 THIS WARRANT CERTIFIES THAT, for good and valuable consideration, the receipt of which is hereby
acknowledged, COMERICA BANK or its assignee (“Holder”) is entitled to purchase the number of fully paid and nonassessable shares of Series B-2 Preferred Stock (the “Shares”) of KaloBios Pharmaceuticals, Inc. (the
“Company”) at $1.44 per share (the “Warrant Price”) all as set forth above and as adjusted pursuant to Article 2 of this warrant, subject to the provisions and upon the terms and conditions set forth in this warrant. 

 

	ARTICLE 1.	EXERCISE. 

 1.1 Method
of Exercise. Holder may exercise this warrant by delivering this warrant and a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion
right set forth in Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. 
 1.2 Conversion Right. In lieu of exercising this warrant as specified in Section 1.1, Holder may from time to time convert this warrant, in whole or in part, into a number of Shares determined
by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this warrant minus the aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market
value of the Shares shall be determined pursuant to Section 1.4. Such conversion shall be effected by surrendering this warrant and delivering a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company. 
 1.3 Intentionally Omitted. 

1.4 Fair Market Value. So long as the Shares are listed on a national securities exchange, the NASDAQ National Market or another
nationally recognized trading system, the fair market value of the Shares shall be the closing price of the Shares (or the closing price of the Company’s stock into which the Shares are then convertible) reported for the trading day immediately
before the day Holder delivers its Notice of Exercise to the Company. If the Shares are not so listed, the Board of Directors of the Company shall determine the fair market value of the Shares in its reasonable good faith judgment. 

1.5 Delivery of Certificate and New Warrant. Promptly after Holder exercises or converts this warrant and, if applicable, the
Company receives payment of the aggregate Warrant Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this warrant has not been fully exercised or converted and has not expired, a new warrant representing the
Shares not so acquired. 
 1.6 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender
and cancellation of this warrant, the Company at its expense shall execute and deliver, in lieu of this warrant, a new warrant of like tenor. 

 1.7 Repurchase on Sale, Merger, or Consolidation of the Company. 

1.7.1 “Acquisition.” For the purpose of this warrant, “Acquisition” means (a) any sale, license, or other
disposition of all or substantially all of the assets (including intellectual property) of the Company, or (b) any reorganization, consolidation, merger or sale of the voting securities of the Company or any other transaction where the holders
of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 
 1.7.2 “Assumption of Warrant”. If upon the closing of any Acquisition, the successor entity assumes the obligations of this warrant, then this warrant shall be exercisable for the same
securities, cash, and property of the successor as would be payable for the Shares issuable upon exercise of the unexercised portion of this warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing.
The Warrant Price shall be adjusted accordingly. The Company shall use reasonable efforts to cause the surviving corporation to assume the obligations of this warrant. 
 1.7.3 “Nonassumption.” If upon the closing of any Acquisition wherein the successor entity does not assume the obligations of this warrant and Holder has not otherwise exercised this
warrant in full, then this warrant shall be deemed to have been automatically converted pursuant to Section 1.2 and thereafter Holder shall participate in the Acquisition on the same terms as other holders of the same class of securities of the
Company. 
 1.8 Adjustment to Number of Shares. If, at any time, the Company has requested and Holder has made a Growth
Capital Advance to the Company pursuant to that certain Loan and Security Agreement between the Company and Holder dated as of October 31, 2005, this warrant shall automatically be adjusted to instead be exercisable for a Number of Shares equal
to One Hundred Thirty Eight Thousand Eight Hundred Eighty Nine (138,889). 
  

	ARTICLE 2.	ADJUSTMENTS TO THE SHARES. 

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its common stock payable in common stock, or other
securities, or subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which
Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

2.2 Reclassification, Exchange or Substitution. Upon any reclassification, exchange, substitution, or other event that results in
a change of the number and/or class of the securities issuable upon exercise or conversion of this warrant, Holder shall be entitled to receive, upon exercise or conversion of this warrant, the number and kind of securities and property that Holder
would have received for the Shares if this warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of
the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Certificate of Incorporation. The Company or its successor shall promptly issue to Holder a new warrant for such new securities or
other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the
number of securities or property issuable upon exercise of the new warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 

2.3 Adjustments for Combinations, Etc. If the outstanding Shares are combined or consolidated, by reclassification or otherwise,
into a lesser number of shares, the Warrant Price shall be proportionately increased. If the outstanding Shares are combined or consolidated, by reclassification or otherwise, into a greater number of shares, the Warrant Price shall be
proportionately decreased. 
 2.4 Adjustments for Diluting Issuances. In the event of the Company’s issuance of
Dilutive Stock (as defined in the Company’s Certificate of Incorporation, as amended from time to time) that causes a conversion price adjustment to the Company’s Series B-2 Preferred Stock (or other securities for which this warrant
becomes 

 
exercisable) pursuant to the Company’s Certificate of Incorporation after the Issue Date (a “Conversion Price Adjustment”), the number of shares of common stock issuable upon
conversion of the Shares issued upon exercise of this Warrant shall be adjusted in accordance with such Conversion Price Adjustment. Under no circumstances shall the aggregate Warrant Price payable by Holder upon exercise of the warrant increase as
a result of any adjustment arising from an issuance of Dilutive Stock. 
 2.5 No Impairment. The Company shall not, by
amendment of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed under this warrant by the Company, but shall at all times in good faith assist in carrying out all the provisions of this Article 2 and in taking all such action as may be necessary or appropriate to
protect Holder’s rights under this Article against impairment. Notwithstanding the foregoing, the Company shall not have been deemed to have impaired Holder’s rights hereunder if it amends its Certificate of Incorporation, or the holders
of Series B-2 Preferred Stock waive rights thereunder, in a manner that does not affect Holder differently than the other holders of the Series B-2 Preferred Stock. 
 2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief
Financial Officer or other authorized officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the
date thereof and the series of adjustments leading to such Warrant Price. 
 2.7 Fractional Shares. No fractional Shares
shall be issuable upon exercise or conversion of the Warrant and the Number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company
shall eliminate such fractional share interest by paying Holder amount computed by multiplying the fractional interest by the fair market value of a full Share. 
  

	ARTICLE 3.	REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

 3.1 Representations and Warranties. The Company hereby represents and warrants to Holder as follows: 
 (a) The initial Warrant Price referenced on the first page of this warrant is the price at which the Company has sold shares of Series B-2 Preferred Stock. 

(b) All Shares which may be issued upon the exercise of the purchase right represented by this warrant, and all securities, if any,
issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable
federal and state securities laws. 
 (c) The Company’s capitalization table attached to this warrant is true and complete
as of the Issue Date. 
 3.2 Notice of Certain Events. If the Company proposes at any time on or before the Expiration
Date (a) to declare any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of any class or
series of its stock any additional shares of stock of any class or series or other rights, but only to the extent Holder would be entitled to such subscription rights as a stockholder of the Company (assuming exercise of the warrant for all of the
Shares); (c) to effect any reclassification or recapitalization of common stock; or (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up, then, in connection with each such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and
specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and (2) in the case of the

 
matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and specifying the date on which the holders of common stock
will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event). 
 3.3 Information Rights. So long as this warrant is exercisable for any Shares, upon the written request to the Company and for a purpose that is reasonably related to Holder’s determination of
the fair market value of the Shares, the Company shall deliver to Holder the Company’s most recent annual audited financial statements and the Company’s most recent quarterly, unaudited financial statements (the “Financial
Statements”), and Holder shall be entitled to discuss the Financial Statements with the Company’s management (the “Information Rights”). Notwithstanding the foregoing, Holder shall have the right to request such Information
Rights no more than once per year. 
 3.4 Registration Under Securities Act of 1933, as amended. The Company agrees that
within One hundred twenty (120) days of the Issue Date, the Company shall amend its Amended & Restated Investor Rights Agreement, dated January 27, 2005, and such amendment will add Holder as a party thereto and that the common
stock into which the Shares are convertible shall then have certain registration rights pursuant to and as set forth in such Investors Rights Agreement. 
  

	ARTICLE 4.	MARKET STANDOFF PERIOD. 

4.1 Market Standoff Period. Holder hereby agrees that it will not, without the prior written consent of the managing underwriter,
during the period commencing on the date of the final prospectus relating to the Company’s initial public offering and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty
(180) days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, any shares of the Company’s common stock (“Common Stock”) or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or any such securities are then owned by Holder or are
thereafter acquired), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause
(i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing provisions of this Section 4.1 shall apply only to the Company’s initial public offering of equity
securities, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to Holder if all officers and directors and greater than one percent (1%) stockholders of the Company
enter into similar agreements. The underwriters in connection with the Company’s initial public offering are intended third party beneficiaries of this Section 4.1 and shall have the right, power and authority to enforce the provisions
hereof as though they were a party hereto. 
  

	ARTICLE 5.	MISCELLANEOUS. 

 5.1
Term: Exercise Upon Expiration. This warrant is exercisable in whole or in part, at any time and from time to time on or before the Expiration Date set forth above. If this warrant has not been exercised prior to the Expiration Date, this
warrant shall be deemed to have been automatically exercised on the Expiration Date by “cashless” conversion pursuant to Section 1.2. 
 5.2 Legends. This warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following
form: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

 5.3 Compliance with Securities Laws on Transfer. This warrant and the Shares issuable
upon exercise of this warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by
the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company). The Company shall not require Holder to provide an opinion of counsel if,
subject to the terms hereof, the transfer is to an affiliate of Holder or if there is no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and
(e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. 

5.4 Transfer Procedure. Subject to the provisions of Section 5.3, Holder may transfer all or part of this warrant or the
Shares issuable upon exercise of this warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company written notice of the portion of the warrant being transferred setting forth the name,
address and taxpayer identification number of the transferee and surrendering this warrant to the Company for reissuance to the transferee(s) (and Holder, if applicable); provided, however, that Holder may transfer all or part of this warrant to its
affiliates, including, without limitation, Comerica Incorporated, at any time with either prior or subsequent written notice to the Company (such notice to be provided to the Company no later than ten (10) business days of the consummation of
such transfer), and such affiliate shall then be entitled to all the rights of Holder under this warrant and any related agreements, and the Company shall cooperate fully in ensuring that any stock issued upon exercise of this warrant is issued in
the name of the affiliate that exercises the warrant. The terms and conditions of this warrant shall inure to the benefit of, and be binding upon, the Company and the holders hereof and their respective permitted successors and assigns. Unless the
Company’s stock is publicly traded, the Company shall have the right to refuse to transfer any portion of this warrant to any person who directly competes with the Company. 

5.5 Notices. All notices and other communications from the Company to Holder, or vice versa, shall be deemed delivered and
effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to
time. All notices to Holder shall be addressed as follows: 
 Comerica Bank 

Attn: Warrant Administrator 
 500 Woodward Avenue, 32nd Floor, MC 3379 
 Detroit, MI 48226 

5.6 Amendments and Waivers. This warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

5.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this warrant, the
party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 
 5.8 Governing Law. This warrant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law.

  

			
	KALOBIOS PHARMACEUTICALS, INC.
		
	By:	 	 

		
	Name:	 	 G. T. YARRANTON

		
	Title:	 	 CEO

 Authorized signatories under Corporate Resolutions to Borrow or an authorized signer(s) under a resolution covering
warrants must sign the warrant. 

 APPENDIX 1 
 NOTICE OF EXERCISE 
 1. The undersigned hereby elects to purchase
                 shares of the                  stock of KALOBIOS PHARMACEUTICALS,
INC. pursuant to the terms of the attached warrant, and tenders herewith payment of the purchase price of such shares in full. 
 2. The
undersigned hereby elects to convert the attached warrant into shares in the manner specified in the warrant. This conversion is exercised with respect to
                 of the shares covered by the warrant. 
 [Strike paragraph that does not apply.] 
 3. Please issue a certificate or certificates
representing said shares in the name of the undersigned or in such other name as is specified below: 
 Comerica Bank

 Attn: Warrant Administrator 
 500 Woodward Avenue, 32nd Floor, MC 3379 
 Detroit, MI 48226 

4. The undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward
the resale or distribution thereof except in compliance with applicable securities laws. 
  

	
	COMERICA BANK or Registered Assignee
	
	  

(Signature)

	
	  
 (Date)

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