Document:

ex4-4.htm

    Exhibit
4.4

     

    Warrant
No.
____                                                                                                                                ______
__, 2008

     

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES
LAWS.  THIS WARRANT AND ANY OF SUCH SHARES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
REGISTRATION UNDER SAID ACT AND ALL OTHER APPLICABLE SECURITIES LAWS UNLESS AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.

    

    WARRANT
TO PURCHASE SHARES OF

    COMMON
STOCK OF OMNIMMUNE CORP.

     

    1.           Grant of
Warrant.  Omnimmune Corp., a Texas corporation (the “Company”),
hereby agrees that [__________________] (the “Holder”) is entitled, subject to
the provisions of this Warrant, to purchase from the Company, up to [____]
([______]) shares of fully paid and non-assessable shares of Common Stock (the
“Warrant Stock”) at a price as provided in Section 4 below (the “Exercise
Price”). The term “Holder” as used herein shall include any transferee to whom
this Warrant has been transferred in accordance with this Warrant.

     

    The term
“Common Stock” means the Common Stock, $0.01 value per share, of the Company as
constituted on the date hereof, together with any other equity securities that
may be issued by the Company in substitution therefor.  The number of
shares of Common Stock to be received upon the exercise of this Warrant may be
adjusted from time to time as hereinafter set forth.  The term
“Company” means and includes the Company as well as any successor corporation
resulting from the merger or consolidation of such corporation with another
corporation.

     

    2.           Exercise of
Warrant.  This Warrant may be exercised, as to the whole or any
lesser number of whole shares of Warrant Stock,  at any time during
the period commencing on the earlier of (i) six (6) months after the date on
which the Company or any successor thereto becomes subject to the reporting
requirements of Section 13 or Section 15(d) of the Securities Exchange Act of
1934, as amended, or (ii) two (2) years from the date of issuance, and expiring
at 5:00 p.m., Houston, Texas time, upon and coincident with the fifth (5th)
anniversary of the date the Warrant becomes exercisable (such date referred to
herein as the “Expiration Date”). This Warrant shall
expire if not properly exercised in full by the Expiration Date.

     

    The
Holder may exercise this Warrant by presentation and surrender of this Warrant
to the Company prior to the Expiration Date at its principal office in Houston,
Texas, or at the office of its stock transfer agent, if any, with the Warrant
Exercise Form attached hereto duly executed and accompanied by payment (either
in cash or by certified or official bank check, payable to the order of the
Company) of the aggregate Exercise Price for the number of shares of Warrant
Stock specified in such form.

     

    Upon
receipt by the Company of this Warrant, together with payment in the amount of
the Exercise Price, at its principal office in Houston, Texas, or by the stock
transfer agent of the Company at such agent’s office, in proper form for
exercise, the Holder shall be deemed to be the holder of record of the shares of
Common Stock issuable upon such exercise, notwithstanding that the stock
transfer books of the Company shall then be closed or that certificates
representing such shares of Common Stock shall not then be actually delivered to
the Holder.  As soon as practicable after each such exercise of this
Warrant, the Company shall issue and deliver to the Holder a certificate or
certificates for the Warrant Stock issuable upon such exercise, registered in
the name of the Holder.  If this Warrant should be exercised in part
only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the right of the Holder to purchase
the balance of the Warrant Stock subject to purchase hereunder.

     

    3.           Transfer of
Warrant.  Any Warrants issued upon the transfer or exercise in
part of this Warrant shall be numbered and shall be registered in a warrant
register (the “Warrant Register”) as they are issued.  The Company
shall be entitled to treat the registered holder of any Warrant on the Warrant
Register as the owner in fact thereof for all purposes and shall not be bound to
recognize any equitable or other claim to or interest in such Warrant on the
part of any other person.  This Warrant shall be transferable on the
books of the Company only upon delivery hereof with the Form of Assignment at
the attached duly completed and executed by the Holder or by his or its duly
authorized attorney or representative, or accompanied by proper evidence of
succession, assignment or authority to transfer.  In all cases of
transfer by an attorney, executor, administrator, guardian or other legal
representative, duly authenticated evidence of his or its authority shall be
produced.  Upon any registration of transfer, the Company shall
deliver a new Warrant to the person entitled thereto.  This Warrant
may be exchanged, at the option of the Holder hereof, for another Warrant, or
other Warrants of different denominations, of like tenor and representing in the
aggregate the right to purchase a like number of shares of Warrant Stock, upon
surrender to the Company or its duly authorized agent. Notwithstanding the
foregoing, the Company shall have no obligation to cause this Warrant to be
transferred on its books to any person, or Warrant Stock to be issued, if, in
the opinion of counsel to the Company, such transfer or issuance does not comply
with the provisions of the Act and the rules and regulations thereunder, and any
applicable state securities laws (“Blue Sky Laws”).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Exercise
Price.  Subject to adjustment as set forth in Section 6 hereof,
the exercise price per share of Warrant Stock (the “Exercise Price”) shall be
$0.50.

     

    5.           Reservation of
Shares.  The Company will at all times reserve for issuance and
delivery all shares of Common Stock issuable upon exercise of this
Warrant.  All such shares shall be duly authorized and, if issued in
compliance with the terms of this Agreement, shall be validly issued, fully paid
and non-assessable.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this
Warrant.  In lieu of any fractional shares or scrip, the Company shall
pay the Holder an amount equal to the applicable Exercise Price multiplied by
such fraction of a share otherwise called for upon any exercise of this
Warrant.

     

    6.           Adjustments.

     

    
      	
              (a)  
      

            	
              Capital
      Adjustments.  In case the Company shall at any time after
      the date this Warrant is issued: (i) declare a dividend on the outstanding
      Common Stock payable in shares of its capital stock, (ii) subdivide the
      outstanding Common Stock, or (iii) combine the outstanding Common Stock
      into a smaller number of shares, then, in each case, the Exercise Price in
      effect, and the number of shares of Warrant Stock, at the time of the
      record date for such dividend or of the effective date of such subdivision
      or combination, shall be proportionately adjusted so that the holders of
      the Warrant shall be entitled to receive the aggregate number and kind of
      shares, for the same aggregate Exercise Price as in effect immediately
      prior to such dividend, subdivision or combination, which, if such
      Warrants had been exercised immediately prior to such time, such holders
      would have owned upon such exercise and been entitled to receive by virtue
      of such dividend, subdivision, or combination.  Such adjustment
      shall be made successively whenever any event listed above shall
      occur.  Any adjustment under this paragraph shall become
      effective at the close of business on the date the dividend, subdivision
      or combination becomes effective.

            

    

     

    
      	
              (b)  

            	
              Mergers,
      Consolidations or Sale of Assets.  If the Company is a
      party to a reorganization (other than as provided for herein), or a merger
      or consolidation with or into another corporation, or the sale of the
      Company’s properties and assets as, or substantially as, an entirety to
      any other person, then, as a part of such transaction, lawful provision
      shall be made so that this Warrant shall pertain and apply to the
      securities and/or other property to which the holder of the number of
      shares of Common Stock of the Company then covered by this Warrant would
      have been entitled had this Warrant been exercised in whole immediately
      prior to the effective date of such reorganization, merger, consolidation
      or sale.  In any such case, appropriate adjustment shall be made
      in the application of the provisions of this Warrant with respect to the
      rights and interests of the Holder after the reorganization, merger,
      consolidation or sale to the end that the provisions of this Warrant shall
      be applicable after that event, as near as reasonably may be, in relation
      to any securities or other property deliverable after that event upon
      exercise of this Warrant. Any such adjustment shall be made by and set
      forth in a supplemental agreement between the Company, or any successor
      thereto, and the Holder and shall for all purposes hereof conclusively be
      deemed to be an appropriate adjustment.  The Company shall not
      effect any such reorganization, merger, consolidation or sale unless upon
      or prior to the consummation thereof the successor corporation, or if the
      Company shall be the surviving corporation and is not the issuer of the
      shares of stock or other securities or property to be delivered to holders
      of shares of the Common Stock outstanding at the effective time thereof,
      then such issuer, shall assume by written instrument the obligation to
      deliver to the Holder such shares of stock, securities, cash or other
      property as the Holder shall be entitled to purchase in accordance with
      the foregoing provisions.

            

    

     

    
      	
              (c)  

            	
              Notice to Holder of
      Adjustment.  Whenever the number of shares of Warrant
      Stock or the Exercise Price is adjusted as herein provided, the Company
      shall cause to be mailed to the Holder a notice (i) stating that the
      number of shares of Warrant Stock have been adjusted, (ii) setting forth
      the adjusted number of shares of Warrant Stock, (iii) the Exercise Price,
      as adjusted, and (iv) showing in reasonable detail the computations and
      the facts, including the amount of consideration received or deemed to
      have been received by the Company, upon which such adjustments are
      based.

            

    

     

    
      	
              (d)  

            	
              All
      calculations under this Section 6 shall be made to the nearest cent or to
      the nearest share, as the case may be; provided, however that, no
      adjustment in the Exercise Price shall be required if such adjustment is
      less than $.01; and provided, further, that any adjustments which by
      reason of this Section 6 are not required to be made shall be carried
      forward and taken into account in any subsequent
    adjustment.

            

    

     

    7.           Securities
Law Matters; Restrictions on Transfer.

     

    
      	
              (a)  

            	
              Investment Intent
      Only. This Warrant will
      be acquired for Holder’s own account, for investment and not with a view
      to, or for resale in connection with, any distribution or public offering
      thereof within the meaning of the Securities Act of 1933, as amended (the
      “Securities Act”).  Holder has no present intention of selling,
      granting any participation or interest in, or otherwise distributing,
      transferring or disposing of this
Warrant.

            

    

     

    
      	
              (b)  

            	
              Accredited
      Holder.  Holder (a) is an “Accredited Investor” as that
      term is defined in Rule 501 of Regulation D promulgated under the
      Securities Act, and has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of
      such Holder’s prospective investment in the Warrant; (b) has the ability
      to bear the economic risks of such Holder’s prospective investment,
      including a complete loss of Holder’s investment in the Warrant; (c) has
      not been offered the Warrant by any form of advertisement, article, notice
      or other communication published in any newspaper, magazine, or similar
      media or broadcast over television or radio, or any seminar or meeting
      whose attendees have been invited by any such media; (d) has had an
      opportunity to ask questions and receive answers from representatives of
      the Company regarding the terms and conditions of the Warrant and the
      condition of the Company’s business, including, without limitation, its
      financial condition; and (e) acknowledges that Holder has conducted its
      own due diligence with respect to the Company, the Warrant and any other
      matter which Holder believes to be material to a decision to lend and
      further acknowledges that Holder is making its investment decision based
      on this due diligence.

            

    

     

    
      	
              (c)  

            	
              Compliance with
      Laws.  Holder acknowledges compliance with the Uniting
      and Strengthening America by Providing Appropriate Tools Required to
      Intercept and Obstruct Terrorism Act of 2001, also known as the “USA
      PATRIOT Act.”  Additionally, Holder represents that neither it
      nor any of its principal owners, partners, members, directors or officers
      are included on: (i) the Office of Foreign Assets Control list of foreign
      nations, organizations and individuals subject to economic and trade
      sanctions, based on United States foreign policy and national security
      goals; (ii) Executive Order 13224, which sets forth a list of individuals
      and groups with whom United States persons are prohibited from doing
      business because such individuals and groups have been identified as
      terrorists or persons who support terrorism or (iii) any other watch list
      issued by any governmental authority, including the Securities and
      Exchange Commission.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)  

            	
              No Registration;
      Legend.  Holder acknowledges that (a) neither the Warrant
      nor any securities obtainable upon conversion or payment thereof have been
      registered under the Securities Act or the securities laws of any state or
      other jurisdiction in reliance upon exemptions from such registration
      requirements for non-public offerings and (b) the Company is under no
      obligation to register the Warrant or securities obtainable upon exercise
      hereof under the Securities Act or any securities laws of any state or
      take any action to make any exemption from such registration provisions
      available.  Such Holder acknowledges the Warrant and any
      securities obtainable upon exercise hereof must be held indefinitely
      unless subsequently registered under the Securities Act or an exemption
      from such registration is available.  Holder understands that no
      public market now exists for any of the securities issued by the Company
      hereunder and that there is no assurance that a public market will ever
      exist for such securities.  Holder agrees to the imprinting, so
      long as required by law, of a legend on this Warrant and the Warrant Stock
      should the Warrant be exercised in the following form or one similar to
      it.

            

    

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE
PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ACQUIRED BY
THE REGISTERED HOLDER HEREOF FOR PURPOSES OF INVESTMENT AND IN RELIANCE ON
STATUTORY EXEMPTIONS UNDER THE SECURITIES ACT, AND STATUTORY EXEMPTIONS UNDER
APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE SOLD,
PLEDGED, TRANSFERRED OR ASSIGNED, EXCEPT IN A TRANSACTION WHICH IS EXEMPT FROM
REGISTRATION UNDER PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT THEREUNDER;
AND IN THE CASE OF AN EXEMPTION, ONLY IF THE CORPORATION HAS RECEIVED AN OPINION
OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH TRANSACTION DOES NOT
REQUIRE REGISTRATION OF ANY SUCH SECURITIES.

     

    8.           Notices.   All
notices required hereunder must be in writing and shall be deemed given when
sent by facsimile, delivered by nationally recognized overnight courier service,
delivered personally or within three days after mailing when mailed by certified
or registered mail, return receipt requested, if to the Company, at Omnimmune
Corp., 4600 Post Oak Place, Suite 352, Houston, Texas  77027,
Attention:  Harris A. Lichtenstein, Ph.D., Esq., President, and if to
the Holder, at the address for the registered Holder as it appears on the books
of the Company, or at such other address of which the Company or Holder has been
advised by notice hereunder.

     

    9.          Rights as a
Shareholder.   The Holder shall have no rights as a
shareholder with respect to any shares covered by this Warrant until the date of
issuance of such shares.

     

    10.        Lost or Destroyed
Warrant.   Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, and upon surrender and cancellation of this
Warrant, if mutilated, the Company shall execute and deliver a new Warrant of
like tenor and date.  The Holder agrees with the Company that this
Warrant is issued, and all the rights hereunder shall be held subject to, all of
the conditions, limitations and provisions set forth herein.

     

    11.        Applicable Law.  The
Warrant is issued under and shall for all purposes be governed by and construed
in accordance with the laws of the State of Texas, without regard to conflicts
of law principles.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed by the duly authorized undersigned
officer, in the name and on behalf of the Company, as of the day and year first
above written.

    

    COMPANY:

    

    Omnimmune
Corp.

    

     

    By:           _______________________________

     

    Name:  Harris A.
Lichtenstein, Ph.D.

    Title:  President

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    FORM OF
NOTICE OF EXERCISE

    

    (To be
signed only on exercise of Warrant)

    

    

    TO:  OMNIMMUNE
CORP.

    

    

    The undersigned, the holder of the a
Warrant dated _______ to purchase _________ shares of common stock of Omnimmune
Corp., hereby irrevocably elects to exercise such Warrant for, and to receive
thereunder _________* shares of common stock of Omnimmune Corp., and requests
that the certificates for such shares be issued in the name of
_________________________, and delivered to ____________________ whose address
is __________________________________________________.

    

    

    Dated:                                                      

    

    

    __________________________

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

    

    

    

    

    *Insert
the number of shares of Warrant Stock as to which the Warrant is being
exercised.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    FORM
OF ASSIGNMENT

     

    (To be
executed by the registered holder if such holder desires to transfer the
attached Warrant).

     

    FOR VALUE
RECEIVED, ___________ hereby sells, assigns and transfers unto:

     

    Name:                                

     

    Address:                __________________________________________

     

    __________________________________________

     

    __________________________________________

     

    Social
Security or Tax Identification Number ____________________

     

    

     

    a Warrant
to purchase ______ shares of Common Stock of Omnimmune Corp. (the “Company”),
together with all right, title, and interest therein, and does hereby
irrevocably constitute and appoint _______________ attorney to transfer such
Warrant on the books of the Company, with full power of
substitution.

     

    Dated:
___________________

     

    Name:       
__________________________________________

     

    Address: 
__________________________________________

     

    

     

    

     

    Social
Security or Tax Identification Number

     

    __________________________________________

     

    Signature:
__________________________________________

     

    NOTE:  The
above signature should correspond exactly with the name on the first page of
this Warrant.ex4-5.htm

    Exhibit
4.5

     

     No.
2

    

    THE
SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THE
SECURITIES REPRESENTED BY THIS WARRANT MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE
TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY OTHER APPLICABLE SECURITIES LAWS.

    

    WARRANTS

    

    to
Purchase Common Stock of

    

    OMNIMMUNE
CORP.

    

    Expiring
on November 1, 2008

    

    This
Warrant to Purchase Common Stock (the "Warrant") certifies that for value
received, Phillip B. Costa, Jr. (the "Holder"), or his heirs, successors or
assigns, is entitled to subscribe for and purchase from the Company (as
hereinafter defined), in whole or in part, 82,500 shares of duly authorized,
validly issued, fully paid and nonassessable shares of Common Stock (as
hereinafter defined) at an initial Exercise Price (as hereinafter defined),
subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. The number of shares of Common Stock purchasable
hereunder and the Exercise Price therefor are subject to adjustment as
hereinafter set forth. This Warrant and all rights hereunder shall expire at
5:00 p.m., Houston, Texas time, on November 1, 2008.

    

    As used
herein, the following terms shall have the meanings set forth
below:

    

    "Company" shall
mean Omnimmune Corp., a Texas corporation, and shall also include any successor
thereto with respect to the obligations hereunder, by merger, consolidation or
otherwise.

    

    "Common Stock" shall
mean and include the Company's Common Stock, par value $0.01 per share,
authorized on the date of the original issue of this Warrant and shall also
include (i) in case of any reorganization, reclassification, consolidation,
merger, share exchange or sale, transfer or other disposition of assets of the
character referred to in Section 3.5 hereof, the stock, securities provided for
in such Section 3.5, and (ii) any other shares of common stock of the Company
into which such shares of Common Stock may be converted.

    

    "Exercise Price" The
initial purchase price for each share of Common Stock payable upon exercise of
the Warrants shall be $.01. The Exercise Price shall be adjusted from time to
time pursuant to the provisions hereof.

    

    "Market Price" for
any day, when used with reference to Common Stock, shall mean the price of said
Common Stock determined as follows. (i) the last reported sale price for the
Common Stock on such day on the principal securities exchange on which the
Common Stock is listed or admitted to trading or if no such sale takes place on
such date, the average of the closing hid and asked prices thereof as officially
reported, or, if not so listed or admitted to trading on any securities
exchange, the last sale price for the Common Stock on the National Association
of Securities Dealers National Market System or SmallCap Market on such date,
or, if there shall have been no trading on such date or if the Common Stock
shall not be listed on such system, the average of the closing hid and asked
prices in the over-the-counter market as furnished by any NASD member firm
selected from time to time by the Company for such purpose, in each such case,
unless otherwise provided herein, averaged over a period of ten (10) consecutive
Trading Days prior to the date as of which the determination is to be made; or
(ii) if the Common Stock shall not be listed or admitted to trading or the
closing hid and asked prices are unable to be furnished by an NASD member firm,
as provided in clause (i) above, the fair market value of the Common Stock as
determined in good faith by the Board of Directors of the Company.

    

    "Note" shall
mean any Subordinated Reimbursement Note of the Company issued to Holder
pursuant to the terms and conditions of the Reimbursement Agreement, as
hereinafter defined.

    

    "Outstanding," when
used with reference to Common Stock, shall mean (except as otherwise expressly
provided herein) at any date as of which the number of shares thereof is to he
determined, all issued shares of Common Stock, except shares then owned or held
by or for the account of the Company.

    

    "Person" means
any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

    

    "Securities Act" means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

    

    "Trading Days" shall
mean any days during the course of which the principal securities exchange on
which the Common Stock is listed or admitted to trading is open for the exchange
of securities.

    

    "Warrant Shares" shall
mean the shares of Common Stock purchased or purchasable by the holder hereof
upon the exercise of the Warrants.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
I

    

    EXERCISE
OF WARRANTS

    

    1.1 Method of Exercise.
The Warrants represented hereby may be exercised by the holder hereof, in whole
or in part, at any time and from time to time on or after the date hereof until
5:00 p.m., Houston, Texas time, on November 1, 2008. To exercise the Warrants,
the holder hereof shall deliver to the Company, at the Warrant Office designated
in Section2.1 hereof, (i) a written notice in the form of the Subscription
Notice attached as an exhibit hereto, stating therein the election of such
holder to exercise the Warrants in the manner provided in the Subscription
Notice; (ii) payment in full of the Exercise Price (A) in cash or by bank check
for all Warrant Shares purchased hereunder, or (B) through a "cashless" or
"net-issue" exercise of each such Warrant ("Cashless Exercise"); the holder
shall exchange each Warrant subject to a Cashless Exercise for that number of
Warrant Shares determined by multiplying the number of Warrant Shares issuable
hereunder by a fraction, the numerator of which shall be the difference between
(x) the Market Price and (y) the Exercise Price for each such Warrant, and the
denominator of which shall be the Market Price; the Subscription Notice shall
set forth the calculation upon which the Cashless Exercise is based, or (C) a
combination of (A) and (B) above and (iii) this Warrant. The Warrants shall be
deemed to be exercised on the date of receipt by the Company of the Subscription
Notice, accompanied by payment for the Warrant Shares and surrender of this
Warrant, as aforesaid, and such date is referred to herein as the "Exercise
Date". Upon such exercise, the Company shall, as promptly as practicable and in
any event within ten (10) business days, issue and deliver to such holder a
certificate or certificates for the full number of the Warrant Shares purchased
by such holder hereunder, and shall, unless the Warrants have expired, deliver
to the holder hereof a new Warrant representing the number of Warrants, if any,
that shall not have been exercised, in all other respects identical to this
Warrant. As permitted by applicable law, the Person in whose name the
certificates for Common Stock are to be issued shall be deemed to have become a
holder of record of such Common Stock on the Exercise Date and shall be entitled
to all of the benefits of such holder on the Exercise Date, including without
limitation, the right to receive dividends and other distributions for which the
record date falls on or after the Exercise Date and the right to exercise voting
rights.

    

    1.2 Expenses and Taxes.
The Company shall pay all expenses and taxes (including, without limitation, all
documentary, stamp, transfer or other transactional taxes) other than income
taxes attributable to the preparation, issuance or delivery of the Warrants and
of the shares of Common Stock issuable upon exercise of the
Warrants.

    

    1.3 Reservation of
Shares. The Company shall reserve at all times so long as the Warrants
remain outstanding, free from preemptive rights, out of its treasury Common
Stock or its authorized but unissued shares of Common Stock, or both, solely for
the purpose of effecting the exercise of the Warrants, a sufficient number of
shares of Common Stock to provide for the exercise of the Warrants.

    

    1.4 Valid Issuance. All
shares of Common Stock that may be issued upon exercise of the Warrants will,
upon issuance by the Company, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issuance thereof and, without limiting the generality of the foregoing, the
Company shall take no action or fail to take any action which will cause a
contrary result (including, without limitation, any action that would cause the
Exercise Price to be less than the par value, if any, of the Common
Stock).

    

    1.5 Registration Rights.
The holder hereof shall be entitled to registration rights with respect to the
underlying shares of Common Stock under the Securities Act and any applicable
state securities or blue sky laws to the extent set forth in the Registration
Rights Agreement among Holder and the Company dated as of even date herewith
(the "Registration Rights Agreement"), as amended or modified.

    

    1.6 Acknowledgment of
Rights At the time of the exercise of the Warrants in accordance with the
terms hereof and upon the written request of the holder hereof, the Company will
acknowledge in writing its continuing obligation to afford to such holder any
rights (including, without limitation, any right to registration of the Warrant
Shares) to which such holder shall continue to he entitled after such exercise
in accordance with the provisions of this Warrant; provided, however, that if
the holder hereof shall fail to make any such request, such failure shall not
affect the continuing obligation of the Company to afford to such holder any
such rights.

    

    1.7 No Fractional Shares.
The Company shall not be required to issue fractional shares of Common Stock on
the exercise of this Warrant. If more than one Warrant shall be presented for
exercise at the same time by the same holder, the number of full shares of
Common Stock which shall be issuable upon such exercise shall be computed on the
basis of the aggregate number of whole shares of Common Stock purchasable on
exercise of the Warrants so presented. If any fraction of a share of Common
Stock would, except for the provisions of this Section 1.7, he issuable on the
exercise of this Warrant, the Company shall pay an amount in cash calculated by
it to be equal to the Market Price of one share of Common Stock at the time of
such exercise multiplied by such fraction computed to the nearest whole
cent.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
I1

    

    TRANSFER

    

    2.1 Warrant Office. The
Company shall maintain an office for certain purposes specified herein (the
"Warrant Office"), which office shall initially be the Company's offices at 4600
Post Oak Place, Suite 152, Houston, Texas 77027 and may subsequently be such
other office of the Company or of any transfer agent of the Common Stock in the
continental United States as to which written notice has previously been given
to the holder hereof. The Company shall maintain, at the Warrant Office, a
register for the Warrants in which the Company shall record the name and address
of the Person in whose name this Warrant has been issued, as well as the name
and address of each permitted assignee of the rights of the registered owner
hereof.

    

    2.2 Ownership of
Warrants. The Company may deem and treat the Person in whose name the
Warrants are registered as the holder and owner hereof (notwithstanding any
notations of ownership or writing hereon made by anyone other than the Company)
for all purposes and shall not be affected by any notice to the contrary until
presentation of this Warrant for registration of transfer as provided in this
Article 11. Notwithstanding the foregoing, the Warrants represented hereby, if
properly assigned in compliance with this Article 11, may be exercised by an
assignee for the purchase of Warrant Shares without having a new Warrant
issued.

    

    2.3 Restrictions on Transfer of
Warrants. The Company agrees to maintain at the Warrant Office books for
the registration and transfer of the Warrants. Subject to the restrictions on
transfer of the Warrants in this Section 2.3, the Company, from time to time,
shall register the transfer of the Warrants in such books upon surrender of this
Warrant at the Warrant Office properly endorsed or accompanied by appropriate
instruments of transfer and written instructions for transfer satisfactory to
the Company. Upon any such transfer and upon payment by the holder or its
transferee of any applicable transfer taxes, new Warrants shall be issued to the
transferee and the transferor (as their respective interests may appear) and the
surrendered Warrants shall be canceled by the Company. The Company shall pay all
taxes (other than securities transfer taxes or income taxes) and all other
expenses and charges payable in connection with the transfer of the Warrants
pursuant to this Section 2.3.

    

    2.3.1
Restrictions in
General. The holder of the Warrants agrees that it will not transfer the
Warrants unless registration of such Warrant Shares under the Securities Act and
any applicable state securities or blue sky laws has become effective or the
holder has provided to the Company an opinion of counsel acceptable to the
Company that such registration is not required. Prior to any transfer (other
than the grant of a security interest) as provided herein, the transferor shall
provide written notice to the Company and an opinion of counsel to the effect
that the proposed transfer is exempt from registration under all applicable
securities laws, all in form and substance reasonably satisfactory to the
Company. Any lender or lenders to which the Holder grants a security interest in
the Warrants shall be entitled to exercise all remedies to which it is entitled
by contract or by law, including (without limitation) transferring the Warrants
into its own name or into the name of any purchaser at any sale undertaken in
connection with enforcement by such lender of its remedies.

    

    2.4 Compliance with Securities
Laws. Subject to the terms of the Registration Rights Agreement, and
notwithstanding any other provisions contained in this Warrant except Section
2.3.1, the holder hereof understands and agrees that the following restrictions
and limitations shall be applicable to all Warrant Shares and to all resales or
other transfers thereof pursuant to the Securities Act:

    

    2.4.1 The
holder hereof agrees that the Warrant Shares shall not be sold or otherwise
transferred unless the Warrant Shares are registered under the Securities Act
and applicable state securities or blue sky laws or are exempt
therefrom.

    

    2.4.2 A
legend in substantially the following form will be placed on the certificate(s)
evidencing the Warrant Shares:

    

    "THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER
APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
OTHER APPLICABLE SECURITIES LAWS."

    

    2.4.3
Stop transfer instructions may be imposed with respect to the Warrant Shares so
as to restrict resale or other transfer thereof, subject to this Section
2.4.

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
III

    

    ANTI-DILUTION

    

    3.1
Anti-Dilution Provisions. The Exercise Price shall be subject to adjustment from
time to time as hereinafter provided.

    

    3.2
Adjustment of Exercise Price Upon Issuance of Common Stock

    

    3.2.1 If
and whenever after the date hereof the Company shall issue or sell any Common
Stock for no consideration or for a consideration per share less than the
Exercise Price, issue convertible securities other than this Warrant, including
other warrants, grant stock options, or issue any other common stock equivalent
(other than shares reserved for issuance to officers, employees, directors,
consultants or advisors of the Company pursuant to existing stock option or
restricted stock purchase plans), then, forthwith upon such issue or sale, the
Exercise Price shall be reduced (but not increased), to the lower price per
share (calculated pursuant to this Section 3.2 to the nearest one-ten thousandth
of a cent) but in any event not less than $.001 per share.

    

    3.2.2 For
purposes of this Section 3.2, the following Sections 3.2.2(A) to 3.2.2(E)
inclusive, shall be applicable:

    

    (A) Issuance of Rights or
Options. In case at any time after the date hereof the Company shall in
any manner grant (whether directly or by assumption in a merger or otherwise)
any rights to subscribe for or to purchase, or any options for the purchase of,
Common Stock or any stock or securities convertible into or exchangeable for
Common Stock (such convertible or exchangeable stock or securities being herein
called "Convertible Securities") (other than warrants, options or convertible
securities issued as consideration for or assumed in conjunction with an
acquisition or to officers, directors or employees of the acquired entity in
conjunction therewith), whether or not such rights or options or the right to
convert or exchange any such Convertible Securities are immediately exercisable,
and the price per share for which shares of Common Stock are issuable upon the
exercise of such rights or options or upon conversion or exchange of such
Convertible Securities (determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the granting of such
rights or options, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the exercise of such rights
or options, or plus, in the case of such rights or options that relate to
Convertible Securities, the minimum aggregate amount of additional
consideration, if any, payable upon the issue or sale of such Convertible
Securities and upon the conversion or exchange thereof, by (ii) the total
maximum number of shares of Common Stock issuable upon the exercise of such
rights or options or upon the conversion or exchange of all such Convertible
Securities issuable upon the exercise of such rights or options) shall be less
than the Exercise Price in effect as of the date of granting such rights or
options, then the total maximum number of shares of Common Stock issuable upon
the exercise of such rights or options or upon conversion or exchange of all
such Convertible Securities issuable upon the exercise of such rights or options
shall be deemed to be outstanding as of the date of the granting of such rights
or options and to have been issued for such price per share, with the effect on
the Exercise Price specified in Section 3.2.1 hereof Except as provided in
Section 3.2.2 hereof, no further adjustment of the Exercise Price shall be made
upon the actual issuance of such Common Stock or of such Convertible Securities
upon exercise of such rights or options or upon the actual issuance of such
Common Stock upon conversion or exchange of such Convertible
Securities.

    

    (B) Change in Option Price or
Conversion Rate. If (i) the purchase price provided for in any right or
option, (ii) the additional consideration, if any, payable upon the conversion
or exchange of any Convertible Securities, or (iii) the rate at which any
Convertible Securities are convertible into or exchangeable for Common Stock
shall be decreased (other than under or by reason of provisions designed to
protect against dilution), the Exercise Price then in effect hereunder shall
forthwith be decreased to the Exercise Price that would have been in effect at
such time had such rights, options or Convertible Securities provided for such
changed purchase price, additional consideration or conversion rate, at the time
initially issued.

    

    (C) Consideration for
Stock. In case at any time Common Stock or Convertible Securities or any
rights or options to purchase any such Common Stock or Convertible Securities
shall be issued or sold for cash, the consideration therefor shall be deemed to
be the amount received by the Company therefor. In case at any time any Common
Stock, Convertible Securities or any rights or options to purchase any such
Common Stock or Convertible Securities shall be issued or sold for consideration
other than cash, the amount of the consideration other than cash received by the
Company shall be deemed to be the fair value of such consideration, as
determined reasonably and in good faith by the Board of Directors of the
Company. In case at any time any Common Stock, Convertible Securities or any
rights or options to purchase any Common Stock or Convertible Securities shall
be issued in connection with any merger or consolidation in which the Company is
the surviving corporation, the amount of consideration received therefor shall
be deemed to be the fair value, as determined reasonably and in good faith by
the Board of Directors of the Company, of such portion of the assets and
business of the nonsurviving corporation as such Board of Directors may
determine to be attributable to such Common Stock, Convertible Securities,
rights or options as the case may be. In case at any time any rights or options
to purchase any shares of Common Stock or Convertible Securities shall be issued
in connection with the issuance and sale of other securities of the Company,
together consisting of one integral transaction in which no consideration is
allocated to such rights or options by the parties, such rights or options shall
be deemed to have been issued with consideration.

    

    (D) Record Date. In the
case the Company shall take a record of the holders of its Common Stock for the
purpose of entitling them (i) to receive a dividend or other distribution
payable in Common Stock or Convertible Securities, or (ii) to subscribe for or
purchase Common Stock or Convertible Securities, then such record date shall be
deemed to be the date of the issuance or sale of the Common Stock or Convertible
Securities deemed to have been issued or sold as a result of the declaration of
such dividend or the making of such other distribution or the date of the
granting of such right of subscription or purchase, as the case may
be.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (E) Treasury Shares. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned directly by the Company in treasury, and the disposition of any
such shares shall be considered an issuance or sale of Common Stock for the
purpose of this Section 3.2.

    

    3.3 Stock Dividends. In
case the Company shall declare a dividend or make any other distribution upon
any shares of the Company, payable in Common Stock or Convertible Securities,
any Common Stock or Convertible Securities, as the case may be, issuable in
payment of such dividend or distribution shall be deemed to have been issued or
sold without consideration.

    

    3.4 Stock Splits and Reverse
Splits In the event that the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares or declare a
dividend upon any shares of the Company payable in Common Stock or Convertible
Securities, the Exercise Price in effect immediately prior to such subdivision
shall be proportionately reduced and the number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to such subdivision shall be
proportionately increased, and conversely, in the event that the outstanding
shares of Common Stock shall at any time be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of Warrant Shares purchasable upon
the exercise of this Warrant immediately prior to such combination shall be
proportionately reduced. Except as provided in this Section 3.4, no adjustment
in the Exercise Price and no change in the number of Warrant Shares purchasable
shall be made under this Article I11 as a result of, or by reason of, any such
subdivision or combination.

    

    3.5 Reorganizations and Asset
Sales. If any capital reorganization or reclassification of the capital
stock of the Company, or any consolidation, merger or share exchange of the
Company with another person, or the sale, transfer or other disposition of all
or substantially all of its assets to another Person shall be effected in such a
way that a holder of Common Stock of the Company shall be entitled to receive
capital stock, securities or assets with respect to or in exchange for their
shares, then the following provisions shall apply:

    

    3.5.1 As
a condition of such reorganization, reclassification, consolidation, merger,
share exchange, sale, transfer or other disposition (except as otherwise
provided below in this Section 3.5), lawful and adequate provisions shall be
made whereby the holder of Warrants shall thereafter have the right to purchase
and receive upon the terms and conditions specified in this Warrant and in lieu
of the Warrant Shares immediately theretofore receivable upon the exercise of
the rights represented hereby, such shares of capital stock, securities or
assets as may be issued or payable with respect to or in exchange for a number
of outstanding shares of such Common Stock equal to the number of Warrant Shares
immediately theretofore so receivable had such reorganization, reclassification,
consolidation, merger, share exchange or sale not taken place, and in any such
case appropriate provision reasonably satisfactory to such holder shall be made
with respect to the rights and interests of such holder to the end that the
provisions hereof (including, without limitation, provisions for adjustments of
the Exercise Price and of the number of Warrant Shares receivable upon the
exercise) shall thereafter be applicable, as nearly as possible, in relation to
any shares of capital stock, securities or assets thereafter deliverable upon
the exercise of Warrants.

    

    3.5.2 In
the event of a merger, share exchange or consolidation of the Company with or
into another Person as a result of which a number of shares of Common Stock or
its equivalent of the successor Person greater or lesser than the number of
shares of Common Stock outstanding immediately prior to such merger, share
exchange or consolidation are issuable to holders of Common Stock, then the
Exercise Price in effect immediately prior to such merger, share exchange or
consolidation shall be adjusted in the same manner as though there were a
subdivision or combination of the outstanding shares of Common
Stock.

    

    3.5.3 The
Company shall not effect any such consolidation, merger, share exchange, sale,
transfer or other disposition unless prior to or simultaneously with the
consummation thereof the successor Person (if other than the Company) resulting
from such consolidation, share exchange or merger of the Person purchasing or
otherwise acquiring such assets shall have assumed by written instrument
executed and mailed or delivered to the holder hereof at the last address of
such holder appearing on the books of the Company the obligation to deliver to
such holder such shares of capital stock, securities or assets as, in accordance
with the foregoing provisions, such holder may be entitled to receive, and all
other liabilities and obligations of the Company hereunder. Upon written request
by the holder hereof, such successor Person will issue a new warrant revised to
reflect the modifications in this Warrant effected pursuant to this Section
3.5.

    

    3.5.4 If
a purchase, tender or exchange offer is made to and accepted by the holders of
50% or more of the outstanding shares of Common Stock, the Company shall not
effect any consolidation, merger, share exchange or sale, transfer or other
disposition of all or substantially all of the Company's assets with the Person
having made such offer or with any affiliate of such Person, unless prior to the
consummation of such consolidation, merger, share exchange, sale, transfer or
other disposition the holder hereof shall have been given a reasonable
opportunity to then elect to receive upon the exercise of the Warrants either
the capital stock, securities or assets then issuable with respect to the Common
Stock or the capital stock, securities or assets, or the equivalent, issued to
previous holders of the Common Stock in accordance with such offer.

    

    3.6 Adjustment for Asset
Distribution. If the Company declares a dividend or other distribution
payable to all holders of shares of Common Stock in evidences of indebtedness of
the Company or other assets of the Company (including, cash (other than regular
cash dividends declared by the Board of Directors), capital stock (other than
Common Stock, Convertible Securities or options or rights thereto) or other
property), the Exercise Price in effect immediately prior to such declaration of
such dividend or other distribution shall be reduced by an amount equal to the
amount of such dividend or distribution payable per share of Common Stock, in
the case of a cash dividend or distribution, or by the fair value of such
dividend or distribution per share of Common Stock (as reasonably determined in
good faith by the Board of Directors of the Company), in the case of any other
dividend or distribution. Such reduction shall be made whenever any such
dividend or distribution is made and shall be effective as of the date as of
which a record is taken for the purpose of such dividend or distribution or, if
a record is not taken, the date as of which holders of record of Common Stock
entitled to such dividend or distribution are determined.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.7 De Minimis Adjustments. No
adjustment in the number of shares of Common Stock purchasable hereunder shall
he required unless such adjustment would require an increase or decrease of at
least one share of Common Stock purchasable upon an exercise of each Warrant and
no adjustment in the Exercise Price shall be required unless such adjustment
would require an increase or decrease of at least $0.01 in the Exercise Price;
provided, however, that any adjustments which by reason of this Section 3.7 are
not required to be made shall he carried forward and taken into account in any
subsequent adjustment. All calculations shall be made to the nearest full share
or nearest one hundredth of a dollar, as applicable.

    

    3.8 Notice of Adjustment.
Whenever the Exercise Price or the number of Warrant Shares issuable upon the
exercise of the Warrants shall he adjusted as herein provided, or the rights of
the holder hereof shall change by reason of other events specified herein, the
Company shall compute the adjusted Exercise Price and the adjusted number of
Warrant Shares in accordance with the provisions hereof and shall prepare an
Officer's Certificate setting forth the adjusted Exercise Price and the adjusted
number of Warrant Shares issuable upon the exercise of the Warrants or
specifying the other shares of stock, securities or assets receivable as a
result of such change in rights, and showing in reasonable detail the facts and
calculations upon which such adjustments or other changes are based and shall
obtain an opinion of the Company's independent accountants as to the correctness
of such adjustments and calculations and to the effect that such adjustments and
calculations have been made in accordance with the terms hereof. The Company
shall cause to he mailed to the holder hereof copies of such Officer's
Certificate and its independent accountants' opinion together with a notice
stating that the Exercise Price and the number of Warrant Shares purchasable
upon exercise of the Warrants have been adjusted and setting forth the adjusted
Exercise Price and the adjusted number of Warrant Shares purchasable upon the
exercise of the Warrants

    

    3.9 Notifications to
Holders. In case at any time the Company proposes:

    

    (i) to
declare any dividend upon its Common Stock payable in capital stock or make any
special dividend or other distribution (other than cash dividends) to the
holders of its Common Stock;

    

    (ii) to
offer for subscription pro rata to all of the holders of its Common Stock any
additional shares of capital stock of any class or other rights;

    

    (iii) to
effect any capital reorganization, or reclassification of the capital stock of
the Company, or consolidation, merger or share exchange of the Company with
another Person, or sale, transfer or other disposition of all or substantially
all of its assets; or

    

    (iv) to
effect a voluntary or involuntary dissolution, liquidation or winding up of the
Company, then, in any one or more of such cases, the Company shall give the
holder hereof (a) at least 10 days' (but not more than 90 days') prior written
notice of the date on which the books of the Company shall close or a record
shall be taken for such dividend, distribution or subscription rights or for
determining rights to vote in respect of such issuance, reorganization,
reclassification, consolidation, merger, share exchange, sale, transfer,
disposition, dissolution, liquidation or winding up, and (b) in the case of any
such issuance, reorganization, reclassification, consolidation, merger, share
exchange, sale, transfer, disposition, dissolution, liquidation or winding up,
at least 10 days' (but not more than 90 days') prior written notice of the date
when the same shall take place. Such notice in accordance with the foregoing
clause (a) shall also specify, in the case of any such dividend, distribution or
subscription rights, the date on which the holders of Common Stock shall be
entitled thereto, and such notice in accordance with the foregoing clause (b)
shall also specify the date on which the holders of Common Stock shall be
entitled to exchange their Common Stock, as the case may be, for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, share exchange, sale, transfer, disposition, dissolution,
liquidation or winding up, as the case may be.

    

    3.10
Company to Prevent
Dilution. If any event or condition occurs as to which other provisions
of this Article I11 are not strictly applicable or if strictly applicable would
not fairly protect the exercise or purchase rights of the Warrants evidenced
hereby in accordance with the essential intent and principles of such
provisions, or that might materially and adversely affect the exercise or
purchase rights of the holder hereof under any provisions of this Warrant, then
the Company shall make such adjustments in the application of such provisions,
in accordance with such essential intent and principles, so as to protect such
exercise and purchase rights as aforesaid, and any adjustments necessary with
respect to the Exercise Price and the number of Warrant Shares purchasable
hereunder so as to preserve the rights of the holder hereunder. In no event
shall any such adjustment have the effect of increasing the Exercise Price as
otherwise determined pursuant to this Article 111 except in the event of a
combination of shares of the type contemplated in Section 3.4 hereof, and then
in no event to an amount greater than the Exercise Price as adjusted pursuant to
Section 3.4 hereof

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
IV

    

    MISCELLANEOUS

    

    4.1 Entire Agreement.
This Warrant, together with the Agreement and the Registration Rights Agreement,
contains the entire agreement between the holder hereof and the Company with
respect to the Warrant Shares purchasable upon exercise hereof and the related
transactions and supersedes all prior arrangements or understandings with
respect thereto.

    

    4.2 Governing Law. This
warrant shall be governed by and construed in accordance with the laws of the
State of Texas.

    

    4.3 Waiver and Amendment.
Any term or provision of this Warrant may be waived at any time by the party
which is entitled to the benefits thereof and any term or provision of this
Warrant may be amended or supplemented at any time by agreement of the holder
hereof and the Company, except that any waiver of any term or condition, or any
amendment or supplementation, of this Warrant shall be in writing. A waiver of
any breach or failure to enforce any of the terms or conditions of this Warrant
shall not in any way effect, limit or waive a party's rights hereunder at any
time to enforce strict compliance thereafter with every term or condition of
this Warrant.

    

    4.4 Illegality. In the
event that any one or more of the provisions contained in this Warrant shall be
determined to be invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in any
other respect and the remaining provisions of this Warrant shall not, at the
election of the party for whom the benefit of the provision exists, be in any
way impaired.

    

    4.5 Copy of Warrant. A
copy of this Warrant shall be filed among the records of the
Company.

    

    4.6 Notice. Any notice or
other document required or permitted to be given or delivered to the holder
hereof shall be in writing and delivered at, or sent by certified or registered
mail to such holder at, the last address shown on the books of the Company
maintained at the Warrant Office for the registration of this Warrant or at any
more recent address of which the holder hereof shall have notified the Company
in writing. Any notice or other document required or permitted to be given or
delivered to the Company, other than such notice or documents required to be
delivered to the Warrant Office, shall be delivered at, or sent by certified or
registered mail to, the offices of the Company at 4600 Post Oak Place, Suite
152, Houston, Texas 77027, or such other address within the continental United
States of America as shall have been furnished by the Company to the holder of
this Warrant.

    

    4.7 Limitation of
Liability: Not Stockholders. No provision of this Warrant shall be
construed as conferring upon the holder hereof the right to vote, consent,
receive dividends or receive notices (other than as herein expressly provided)
in respect of meetings of stockholders for the election of directors of the
Company or any other matter whatsoever as a stockholder of the Company. No
provision hereof, in the absence of affirmative action by the holder hereof to
purchase shares of Common Stock, and no mere enumeration herein of the rights or
privileges of the holder hereof, shall give rise to any liability of such holder
for the purchase price of any shares of Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

    

    4.8 Exchange Loss.
Destruction. etc. of Warrant. Upon receipt of evidence satisfactory to the
Company of the loss, theft, mutilation or destruction of this Warrant, and in
the case of any such loss, theft or destruction upon delivery of a bond of
indemnity or such other security in such form and amount as shall be reasonably
satisfactory to the Company, or in the event of such mutilation upon surrender
and cancellation of this Warrant, the Company will make and deliver a new
warrant of like tenor, in lieu of such lost, stolen, destroyed or mutilated
Warrant. Any warrant issued under the provisions of this Section 4.8 in lieu of
any Warrant alleged to be lost, destroyed or stolen, or in lieu of any mutilated
Warrant, shall constitute an original contractual obligation on the part of the
Company. This Warrant shall be promptly canceled by the Company upon the
surrender hereof in connection with any exchange or replacement. The Company
shall pay all taxes (other than securities transfer taxes or income taxes) and
all other expenses and charges payable in connection with the preparation,
execution and delivery of warrants pursuant to this Section 4.8.

    

    4.9 Registration Rights.
The Warrant Shares shall be entitled to such registration rights under the
Securities Act and under applicable state securities laws as are specified in
the Registration Rights Agreement.

    

    4.10
Headings. The
Article and Section and other headings herein are for convenience only and are
not a part of this Warrant and shall not affect the interpretation
thereof. IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed in its name.

    

    Dated as
of___________________

    

    OMNIMMUNE
CORP.

    

    By:
_________________________________

    Harris A.
Lichtenstein

    President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SUBSCRIPTION
NOTICE

    

    The
undersigned, the holder of the foregoing Warrant, hereby elects to exercise
purchase rights represented thereby for, and to purchase thereunder, shares of
the Common Stock covered by such Warrant through a "cashless" or "net issue"
exercise of such Warrant ("Cashless Exercise") pursuant to Section 1.1 of such
Warrant, and requests that certificates for such shares (and any other
securities or other property issuable upon such exercise) be issued in the name
of, and delivered to

    

    The
calculation upon which the Cashless Exercise is based is as follows: (No. of
Warrants) ((Market Price - Exercise Price)/Market Price) = No. of shares of
Common Stock

    

    -OR
-

    

    The
undersigned, the holder of the foregoing Warrant, hereby elects to exercise
purchase rights represented thereby for, and to purchase thereunder, shares of
the Common Stock covered by such Warrant, and herewith makes payment in full for
such shares, and requests (a) that certificates for such shares (and any other
securities or other property issuable upon such exercise) be issued in the name
of, and delivered to , and (b) if such shares shall not include all of the
shares issuable as provided in such Warrant, that a new Warrant of like tenor
and date for the balance of the shares issuable thereunder be delivered to the
undersigned.

    

    Signature:_______________

    

    Date:___________________

     

    

    ASSIGNMENT

    

    For value
received, hereby sells, assigns, and transfers unto the within Warrant, together
with all right, title and interest therein, and does hereby irrevocably
constitute and appoint attorney, to transfer such Warrant on the books of
Omnimmune Corp., a Texas corporation, with full power of
substitution.

    

     Date:_____________________

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
       No.
1

      

      THE
SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THE
SECURITIES REPRESENTED BY THIS WARRANT MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE
TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY OTHER APPLICABLE SECURITIES LAWS.

      

      WARRANTS

      

      to
Purchase Common Stock of

      

      OMNIMMUNE
CORP.

      

      Expiring
on November 1, 2008

      

      This
Warrant to Purchase Common Stock (the "Warrant") certifies that for value
received, Alejandro A. Romero (the "Holder"), or his heirs, successors or
assigns, is entitled to subscribe for and purchase from the Company (as
hereinafter defined), in whole or in part, 82,500 shares of duly authorized,
validly issued, fully paid and nonassessable shares of Common Stock (as
hereinafter defined) at an initial Exercise Price (as hereinafter defined),
subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. The number of shares of Common Stock purchasable
hereunder and the Exercise Price therefor are subject to adjustment as
hereinafter set forth. This Warrant and all rights hereunder shall expire at
5:00 p.m., Houston, Texas time, on November 1, 2008.

      

      As used
herein, the following terms shall have the meanings set forth
below:

      

      "Company" shall
mean Omnimmune Corp., a Texas corporation, and shall also include any successor
thereto with respect to the obligations hereunder, by merger, consolidation or
otherwise.

      

      "Common Stock" shall
mean and include the Company's Common Stock, par value $0.01 per share,
authorized on the date of the original issue of this Warrant and shall also
include (i) in case of any reorganization, reclassification, consolidation,
merger, share exchange or sale, transfer or other disposition of assets of the
character referred to in Section 3.5 hereof, the stock, securities provided for
in such Section 3.5, and (ii) any other shares of common stock of the Company
into which such shares of Common Stock may be converted.

      

      "Exercise Price" The
initial purchase price for each share of Common Stock payable upon exercise of
the Warrants shall be $.01. The Exercise Price shall be adjusted from time to
time pursuant to the provisions hereof.

      

      "Market Price" for
any day, when used with reference to Common Stock, shall mean the price of said
Common Stock determined as follows. (i) the last reported sale price for the
Common Stock on such day on the principal securities exchange on which the
Common Stock is listed or admitted to trading or if no such sale takes place on
such date, the average of the closing hid and asked prices thereof as officially
reported, or, if not so listed or admitted to trading on any securities
exchange, the last sale price for the Common Stock on the National Association
of Securities Dealers National Market System or SmallCap Market on such date,
or, if there shall have been no trading on such date or if the Common Stock
shall not be listed on such system, the average of the closing hid and asked
prices in the over-the-counter market as furnished by any NASD member firm
selected from time to time by the Company for such purpose, in each such case,
unless otherwise provided herein, averaged over a period of ten (10) consecutive
Trading Days prior to the date as of which the determination is to be made; or
(ii) if the Common Stock shall not be listed or admitted to trading or the
closing hid and asked prices are unable to be furnished by an NASD member firm,
as provided in clause (i) above, the fair market value of the Common Stock as
determined in good faith by the Board of Directors of the Company.

      

      "Note" shall
mean any Subordinated Reimbursement Note of the Company issued to Holder
pursuant to the terms and conditions of the Reimbursement Agreement, as
hereinafter defined.

      

      "Outstanding," when
used with reference to Common Stock, shall mean (except as otherwise expressly
provided herein) at any date as of which the number of shares thereof is to he
determined, all issued shares of Common Stock, except shares then owned or held
by or for the account of the Company.

      

      "Person" means
any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

      

      "Securities Act" means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

      

      "Trading Days" shall
mean any days during the course of which the principal securities exchange on
which the Common Stock is listed or admitted to trading is open for the exchange
of securities.

      

      "Warrant Shares" shall
mean the shares of Common Stock purchased or purchasable by the holder hereof
upon the exercise of the Warrants.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      ARTICLE
I

      

      EXERCISE
OF WARRANTS

      

      1.1 Method of Exercise.
The Warrants represented hereby may be exercised by the holder hereof, in whole
or in part, at any time and from time to time on or after the date hereof until
5:00 p.m., Houston, Texas time, on November 1, 2008. To exercise the Warrants,
the holder hereof shall deliver to the Company, at the Warrant Office designated
in Section2.1 hereof, (i) a written notice in the form of the Subscription
Notice attached as an exhibit hereto, stating therein the election of such
holder to exercise the Warrants in the manner provided in the Subscription
Notice; (ii) payment in full of the Exercise Price (A) in cash or by bank check
for all Warrant Shares purchased hereunder, or (B) through a "cashless" or
"net-issue" exercise of each such Warrant ("Cashless Exercise"); the holder
shall exchange each Warrant subject to a Cashless Exercise for that number of
Warrant Shares determined by multiplying the number of Warrant Shares issuable
hereunder by a fraction, the numerator of which shall be the difference between
(x) the Market Price and (y) the Exercise Price for each such Warrant, and the
denominator of which shall be the Market Price; the Subscription Notice shall
set forth the calculation upon which the Cashless Exercise is based, or (C) a
combination of (A) and (B) above and (iii) this Warrant. The Warrants shall be
deemed to be exercised on the date of receipt by the Company of the Subscription
Notice, accompanied by payment for the Warrant Shares and surrender of this
Warrant, as aforesaid, and such date is referred to herein as the "Exercise
Date". Upon such exercise, the Company shall, as promptly as practicable and in
any event within ten (10) business days, issue and deliver to such holder a
certificate or certificates for the full number of the Warrant Shares purchased
by such holder hereunder, and shall, unless the Warrants have expired, deliver
to the holder hereof a new Warrant representing the number of Warrants, if any,
that shall not have been exercised, in all other respects identical to this
Warrant. As permitted by applicable law, the Person in whose name the
certificates for Common Stock are to be issued shall be deemed to have become a
holder of record of such Common Stock on the Exercise Date and shall be entitled
to all of the benefits of such holder on the Exercise Date, including without
limitation, the right to receive dividends and other distributions for which the
record date falls on or after the Exercise Date and the right to exercise voting
rights.

      

      1.2 Expenses and Taxes.
The Company shall pay all expenses and taxes (including, without limitation, all
documentary, stamp, transfer or other transactional taxes) other than income
taxes attributable to the preparation, issuance or delivery of the Warrants and
of the shares of Common Stock issuable upon exercise of the
Warrants.

      

      1.3 Reservation of
Shares. The Company shall reserve at all times so long as the Warrants
remain outstanding, free from preemptive rights, out of its treasury Common
Stock or its authorized but unissued shares of Common Stock, or both, solely for
the purpose of effecting the exercise of the Warrants, a sufficient number of
shares of Common Stock to provide for the exercise of the Warrants.

      

      1.4 Valid Issuance. All
shares of Common Stock that may be issued upon exercise of the Warrants will,
upon issuance by the Company, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issuance thereof and, without limiting the generality of the foregoing, the
Company shall take no action or fail to take any action which will cause a
contrary result (including, without limitation, any action that would cause the
Exercise Price to be less than the par value, if any, of the Common
Stock).

      

      1.5 Registration Rights.
The holder hereof shall be entitled to registration rights with respect to the
underlying shares of Common Stock under the Securities Act and any applicable
state securities or blue sky laws to the extent set forth in the Registration
Rights Agreement among Holder and the Company dated as of even date herewith
(the "Registration Rights Agreement"), as amended or modified.

      

      1.6 Acknowledgment of
Rights At the time of the exercise of the Warrants in accordance with the
terms hereof and upon the written request of the holder hereof, the Company will
acknowledge in writing its continuing obligation to afford to such holder any
rights (including, without limitation, any right to registration of the Warrant
Shares) to which such holder shall continue to he entitled after such exercise
in accordance with the provisions of this Warrant; provided, however, that if
the holder hereof shall fail to make any such request, such failure shall not
affect the continuing obligation of the Company to afford to such holder any
such rights.

      

      1.7 No Fractional Shares.
The Company shall not be required to issue fractional shares of Common Stock on
the exercise of this Warrant. If more than one Warrant shall be presented for
exercise at the same time by the same holder, the number of full shares of
Common Stock which shall be issuable upon such exercise shall be computed on the
basis of the aggregate number of whole shares of Common Stock purchasable on
exercise of the Warrants so presented. If any fraction of a share of Common
Stock would, except for the provisions of this Section 1.7, he issuable on the
exercise of this Warrant, the Company shall pay an amount in cash calculated by
it to be equal to the Market Price of one share of Common Stock at the time of
such exercise multiplied by such fraction computed to the nearest whole
cent.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
I1

      

      TRANSFER

      

      2.1 Warrant Office. The
Company shall maintain an office for certain purposes specified herein (the
"Warrant Office"), which office shall initially be the Company's offices at 4600
Post Oak Place, Suite 152, Houston, Texas 77027 and may subsequently be such
other office of the Company or of any transfer agent of the Common Stock in the
continental United States as to which written notice has previously been given
to the holder hereof. The Company shall maintain, at the Warrant Office, a
register for the Warrants in which the Company shall record the name and address
of the Person in whose name this Warrant has been issued, as well as the name
and address of each permitted assignee of the rights of the registered owner
hereof.

      

      2.2 Ownership of
Warrants. The Company may deem and treat the Person in whose name the
Warrants are registered as the holder and owner hereof (notwithstanding any
notations of ownership or writing hereon made by anyone other than the Company)
for all purposes and shall not be affected by any notice to the contrary until
presentation of this Warrant for registration of transfer as provided in this
Article 11. Notwithstanding the foregoing, the Warrants represented hereby, if
properly assigned in compliance with this Article 11, may be exercised by an
assignee for the purchase of Warrant Shares without having a new Warrant
issued.

      

      2.3 Restrictions on Transfer of
Warrants. The Company agrees to maintain at the Warrant Office books for
the registration and transfer of the Warrants. Subject to the restrictions on
transfer of the Warrants in this Section 2.3, the Company, from time to time,
shall register the transfer of the Warrants in such books upon surrender of this
Warrant at the Warrant Office properly endorsed or accompanied by appropriate
instruments of transfer and written instructions for transfer satisfactory to
the Company. Upon any such transfer and upon payment by the holder or its
transferee of any applicable transfer taxes, new Warrants shall be issued to the
transferee and the transferor (as their respective interests may appear) and the
surrendered Warrants shall be canceled by the Company. The Company shall pay all
taxes (other than securities transfer taxes or income taxes) and all other
expenses and charges payable in connection with the transfer of the Warrants
pursuant to this Section 2.3.

      

      2.3.1
Restrictions in
General. The holder of the Warrants agrees that it will not transfer the
Warrants unless registration of such Warrant Shares under the Securities Act and
any applicable state securities or blue sky laws has become effective or the
holder has provided to the Company an opinion of counsel acceptable to the
Company that such registration is not required. Prior to any transfer (other
than the grant of a security interest) as provided herein, the transferor shall
provide written notice to the Company and an opinion of counsel to the effect
that the proposed transfer is exempt from registration under all applicable
securities laws, all in form and substance reasonably satisfactory to the
Company. Any lender or lenders to which the Holder grants a security interest in
the Warrants shall be entitled to exercise all remedies to which it is entitled
by contract or by law, including (without limitation) transferring the Warrants
into its own name or into the name of any purchaser at any sale undertaken in
connection with enforcement by such lender of its remedies.

      

      2.4 Compliance with Securities
Laws. Subject to the terms of the Registration Rights Agreement, and
notwithstanding any other provisions contained in this Warrant except Section
2.3.1, the holder hereof understands and agrees that the following restrictions
and limitations shall be applicable to all Warrant Shares and to all resales or
other transfers thereof pursuant to the Securities Act:

      

      2.4.1 The
holder hereof agrees that the Warrant Shares shall not be sold or otherwise
transferred unless the Warrant Shares are registered under the Securities Act
and applicable state securities or blue sky laws or are exempt
therefrom.

      

      2.4.2 A
legend in substantially the following form will be placed on the certificate(s)
evidencing the Warrant Shares:

      

      "THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER
APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
OTHER APPLICABLE SECURITIES LAWS."

      

      2.4.3
Stop transfer instructions may be imposed with respect to the Warrant Shares so
as to restrict resale or other transfer thereof, subject to this Section
2.4.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
III

      

      ANTI-DILUTION

      

      3.1
Anti-Dilution Provisions. The Exercise Price shall be subject to adjustment from
time to time as hereinafter provided.

      

      3.2
Adjustment of Exercise Price Upon Issuance of Common Stock

      

      3.2.1 If
and whenever after the date hereof the Company shall issue or sell any Common
Stock for no consideration or for a consideration per share less than the
Exercise Price, issue convertible securities other than this Warrant, including
other warrants, grant stock options, or issue any other common stock equivalent
(other than shares reserved for issuance to officers, employees, directors,
consultants or advisors of the Company pursuant to existing stock option or
restricted stock purchase plans), then, forthwith upon such issue or sale, the
Exercise Price shall be reduced (but not increased), to the lower price per
share (calculated pursuant to this Section 3.2 to the nearest one-ten thousandth
of a cent) but in any event not less than $.001 per share.

      

      3.2.2 For
purposes of this Section 3.2, the following Sections 3.2.2(A) to 3.2.2(E)
inclusive, shall be applicable:

      

      (A) Issuance of Rights or
Options. In case at any time after the date hereof the Company shall in
any manner grant (whether directly or by assumption in a merger or otherwise)
any rights to subscribe for or to purchase, or any options for the purchase of,
Common Stock or any stock or securities convertible into or exchangeable for
Common Stock (such convertible or exchangeable stock or securities being herein
called "Convertible Securities") (other than warrants, options or convertible
securities issued as consideration for or assumed in conjunction with an
acquisition or to officers, directors or employees of the acquired entity in
conjunction therewith), whether or not such rights or options or the right to
convert or exchange any such Convertible Securities are immediately exercisable,
and the price per share for which shares of Common Stock are issuable upon the
exercise of such rights or options or upon conversion or exchange of such
Convertible Securities (determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the granting of such
rights or options, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the exercise of such rights
or options, or plus, in the case of such rights or options that relate to
Convertible Securities, the minimum aggregate amount of additional
consideration, if any, payable upon the issue or sale of such Convertible
Securities and upon the conversion or exchange thereof, by (ii) the total
maximum number of shares of Common Stock issuable upon the exercise of such
rights or options or upon the conversion or exchange of all such Convertible
Securities issuable upon the exercise of such rights or options) shall be less
than the Exercise Price in effect as of the date of granting such rights or
options, then the total maximum number of shares of Common Stock issuable upon
the exercise of such rights or options or upon conversion or exchange of all
such Convertible Securities issuable upon the exercise of such rights or options
shall be deemed to be outstanding as of the date of the granting of such rights
or options and to have been issued for such price per share, with the effect on
the Exercise Price specified in Section 3.2.1 hereof Except as provided in
Section 3.2.2 hereof, no further adjustment of the Exercise Price shall be made
upon the actual issuance of such Common Stock or of such Convertible Securities
upon exercise of such rights or options or upon the actual issuance of such
Common Stock upon conversion or exchange of such Convertible
Securities.

      

      (B) Change in Option Price or
Conversion Rate. If (i) the purchase price provided for in any right or
option, (ii) the additional consideration, if any, payable upon the conversion
or exchange of any Convertible Securities, or (iii) the rate at which any
Convertible Securities are convertible into or exchangeable for Common Stock
shall be decreased (other than under or by reason of provisions designed to
protect against dilution), the Exercise Price then in effect hereunder shall
forthwith be decreased to the Exercise Price that would have been in effect at
such time had such rights, options or Convertible Securities provided for such
changed purchase price, additional consideration or conversion rate, at the time
initially issued.

      

      (C) Consideration for
Stock. In case at any time Common Stock or Convertible Securities or any
rights or options to purchase any such Common Stock or Convertible Securities
shall be issued or sold for cash, the consideration therefor shall be deemed to
be the amount received by the Company therefor. In case at any time any Common
Stock, Convertible Securities or any rights or options to purchase any such
Common Stock or Convertible Securities shall be issued or sold for consideration
other than cash, the amount of the consideration other than cash received by the
Company shall be deemed to be the fair value of such consideration, as
determined reasonably and in good faith by the Board of Directors of the
Company. In case at any time any Common Stock, Convertible Securities or any
rights or options to purchase any Common Stock or Convertible Securities shall
be issued in connection with any merger or consolidation in which the Company is
the surviving corporation, the amount of consideration received therefor shall
be deemed to be the fair value, as determined reasonably and in good faith by
the Board of Directors of the Company, of such portion of the assets and
business of the nonsurviving corporation as such Board of Directors may
determine to be attributable to such Common Stock, Convertible Securities,
rights or options as the case may be. In case at any time any rights or options
to purchase any shares of Common Stock or Convertible Securities shall be issued
in connection with the issuance and sale of other securities of the Company,
together consisting of one integral transaction in which no consideration is
allocated to such rights or options by the parties, such rights or options shall
be deemed to have been issued with consideration.

      

      (D) Record Date. In the
case the Company shall take a record of the holders of its Common Stock for the
purpose of entitling them (i) to receive a dividend or other distribution
payable in Common Stock or Convertible Securities, or (ii) to subscribe for or
purchase Common Stock or Convertible Securities, then such record date shall be
deemed to be the date of the issuance or sale of the Common Stock or Convertible
Securities deemed to have been issued or sold as a result of the declaration of
such dividend or the making of such other distribution or the date of the
granting of such right of subscription or purchase, as the case may
be.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      (E) Treasury Shares. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned directly by the Company in treasury, and the disposition of any
such shares shall be considered an issuance or sale of Common Stock for the
purpose of this Section 3.2.

      

      3.3 Stock Dividends. In
case the Company shall declare a dividend or make any other distribution upon
any shares of the Company, payable in Common Stock or Convertible Securities,
any Common Stock or Convertible Securities, as the case may be, issuable in
payment of such dividend or distribution shall be deemed to have been issued or
sold without consideration.

      

      3.4 Stock Splits and Reverse
Splits In the event that the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares or declare a
dividend upon any shares of the Company payable in Common Stock or Convertible
Securities, the Exercise Price in effect immediately prior to such subdivision
shall be proportionately reduced and the number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to such subdivision shall be
proportionately increased, and conversely, in the event that the outstanding
shares of Common Stock shall at any time be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased and the number of Warrant Shares purchasable upon
the exercise of this Warrant immediately prior to such combination shall be
proportionately reduced. Except as provided in this Section 3.4, no adjustment
in the Exercise Price and no change in the number of Warrant Shares purchasable
shall be made under this Article I11 as a result of, or by reason of, any such
subdivision or combination.

      

      3.5 Reorganizations and Asset
Sales. If any capital reorganization or reclassification of the capital
stock of the Company, or any consolidation, merger or share exchange of the
Company with another person, or the sale, transfer or other disposition of all
or substantially all of its assets to another Person shall be effected in such a
way that a holder of Common Stock of the Company shall be entitled to receive
capital stock, securities or assets with respect to or in exchange for their
shares, then the following provisions shall apply:

      

      3.5.1 As
a condition of such reorganization, reclassification, consolidation, merger,
share exchange, sale, transfer or other disposition (except as otherwise
provided below in this Section 3.5), lawful and adequate provisions shall be
made whereby the holder of Warrants shall thereafter have the right to purchase
and receive upon the terms and conditions specified in this Warrant and in lieu
of the Warrant Shares immediately theretofore receivable upon the exercise of
the rights represented hereby, such shares of capital stock, securities or
assets as may be issued or payable with respect to or in exchange for a number
of outstanding shares of such Common Stock equal to the number of Warrant Shares
immediately theretofore so receivable had such reorganization, reclassification,
consolidation, merger, share exchange or sale not taken place, and in any such
case appropriate provision reasonably satisfactory to such holder shall be made
with respect to the rights and interests of such holder to the end that the
provisions hereof (including, without limitation, provisions for adjustments of
the Exercise Price and of the number of Warrant Shares receivable upon the
exercise) shall thereafter be applicable, as nearly as possible, in relation to
any shares of capital stock, securities or assets thereafter deliverable upon
the exercise of Warrants.

      

      3.5.2 In
the event of a merger, share exchange or consolidation of the Company with or
into another Person as a result of which a number of shares of Common Stock or
its equivalent of the successor Person greater or lesser than the number of
shares of Common Stock outstanding immediately prior to such merger, share
exchange or consolidation are issuable to holders of Common Stock, then the
Exercise Price in effect immediately prior to such merger, share exchange or
consolidation shall be adjusted in the same manner as though there were a
subdivision or combination of the outstanding shares of Common
Stock.

      

      3.5.3 The
Company shall not effect any such consolidation, merger, share exchange, sale,
transfer or other disposition unless prior to or simultaneously with the
consummation thereof the successor Person (if other than the Company) resulting
from such consolidation, share exchange or merger of the Person purchasing or
otherwise acquiring such assets shall have assumed by written instrument
executed and mailed or delivered to the holder hereof at the last address of
such holder appearing on the books of the Company the obligation to deliver to
such holder such shares of capital stock, securities or assets as, in accordance
with the foregoing provisions, such holder may be entitled to receive, and all
other liabilities and obligations of the Company hereunder. Upon written request
by the holder hereof, such successor Person will issue a new warrant revised to
reflect the modifications in this Warrant effected pursuant to this Section
3.5.

      

      3.5.4 If
a purchase, tender or exchange offer is made to and accepted by the holders of
50% or more of the outstanding shares of Common Stock, the Company shall not
effect any consolidation, merger, share exchange or sale, transfer or other
disposition of all or substantially all of the Company's assets with the Person
having made such offer or with any affiliate of such Person, unless prior to the
consummation of such consolidation, merger, share exchange, sale, transfer or
other disposition the holder hereof shall have been given a reasonable
opportunity to then elect to receive upon the exercise of the Warrants either
the capital stock, securities or assets then issuable with respect to the Common
Stock or the capital stock, securities or assets, or the equivalent, issued to
previous holders of the Common Stock in accordance with such offer.

      

      3.6 Adjustment for Asset
Distribution. If the Company declares a dividend or other distribution
payable to all holders of shares of Common Stock in evidences of indebtedness of
the Company or other assets of the Company (including, cash (other than regular
cash dividends declared by the Board of Directors), capital stock (other than
Common Stock, Convertible Securities or options or rights thereto) or other
property), the Exercise Price in effect immediately prior to such declaration of
such dividend or other distribution shall be reduced by an amount equal to the
amount of such dividend or distribution payable per share of Common Stock, in
the case of a cash dividend or distribution, or by the fair value of such
dividend or distribution per share of Common Stock (as reasonably determined in
good faith by the Board of Directors of the Company), in the case of any other
dividend or distribution. Such reduction shall be made whenever any such
dividend or distribution is made and shall be effective as of the date as of
which a record is taken for the purpose of such dividend or distribution or, if
a record is not taken, the date as of which holders of record of Common Stock
entitled to such dividend or distribution are determined.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3.7 De Minimis Adjustments. No
adjustment in the number of shares of Common Stock purchasable hereunder shall
he required unless such adjustment would require an increase or decrease of at
least one share of Common Stock purchasable upon an exercise of each Warrant and
no adjustment in the Exercise Price shall be required unless such adjustment
would require an increase or decrease of at least $0.01 in the Exercise Price;
provided, however, that any adjustments which by reason of this Section 3.7 are
not required to be made shall he carried forward and taken into account in any
subsequent adjustment. All calculations shall be made to the nearest full share
or nearest one hundredth of a dollar, as applicable.

      

      3.8 Notice of Adjustment.
Whenever the Exercise Price or the number of Warrant Shares issuable upon the
exercise of the Warrants shall he adjusted as herein provided, or the rights of
the holder hereof shall change by reason of other events specified herein, the
Company shall compute the adjusted Exercise Price and the adjusted number of
Warrant Shares in accordance with the provisions hereof and shall prepare an
Officer's Certificate setting forth the adjusted Exercise Price and the adjusted
number of Warrant Shares issuable upon the exercise of the Warrants or
specifying the other shares of stock, securities or assets receivable as a
result of such change in rights, and showing in reasonable detail the facts and
calculations upon which such adjustments or other changes are based and shall
obtain an opinion of the Company's independent accountants as to the correctness
of such adjustments and calculations and to the effect that such adjustments and
calculations have been made in accordance with the terms hereof. The Company
shall cause to he mailed to the holder hereof copies of such Officer's
Certificate and its independent accountants' opinion together with a notice
stating that the Exercise Price and the number of Warrant Shares purchasable
upon exercise of the Warrants have been adjusted and setting forth the adjusted
Exercise Price and the adjusted number of Warrant Shares purchasable upon the
exercise of the Warrants

      

      3.9 Notifications to
Holders. In case at any time the Company proposes:

      

      (i) to
declare any dividend upon its Common Stock payable in capital stock or make any
special dividend or other distribution (other than cash dividends) to the
holders of its Common Stock;

      

      (ii) to
offer for subscription pro rata to all of the holders of its Common Stock any
additional shares of capital stock of any class or other rights;

      

      (iii) to
effect any capital reorganization, or reclassification of the capital stock of
the Company, or consolidation, merger or share exchange of the Company with
another Person, or sale, transfer or other disposition of all or substantially
all of its assets; or

      

      (iv) to
effect a voluntary or involuntary dissolution, liquidation or winding up of the
Company, then, in any one or more of such cases, the Company shall give the
holder hereof (a) at least 10 days' (but not more than 90 days') prior written
notice of the date on which the books of the Company shall close or a record
shall be taken for such dividend, distribution or subscription rights or for
determining rights to vote in respect of such issuance, reorganization,
reclassification, consolidation, merger, share exchange, sale, transfer,
disposition, dissolution, liquidation or winding up, and (b) in the case of any
such issuance, reorganization, reclassification, consolidation, merger, share
exchange, sale, transfer, disposition, dissolution, liquidation or winding up,
at least 10 days' (but not more than 90 days') prior written notice of the date
when the same shall take place. Such notice in accordance with the foregoing
clause (a) shall also specify, in the case of any such dividend, distribution or
subscription rights, the date on which the holders of Common Stock shall be
entitled thereto, and such notice in accordance with the foregoing clause (b)
shall also specify the date on which the holders of Common Stock shall be
entitled to exchange their Common Stock, as the case may be, for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, share exchange, sale, transfer, disposition, dissolution,
liquidation or winding up, as the case may be.

      

      3.10
Company to Prevent
Dilution. If any event or condition occurs as to which other provisions
of this Article I11 are not strictly applicable or if strictly applicable would
not fairly protect the exercise or purchase rights of the Warrants evidenced
hereby in accordance with the essential intent and principles of such
provisions, or that might materially and adversely affect the exercise or
purchase rights of the holder hereof under any provisions of this Warrant, then
the Company shall make such adjustments in the application of such provisions,
in accordance with such essential intent and principles, so as to protect such
exercise and purchase rights as aforesaid, and any adjustments necessary with
respect to the Exercise Price and the number of Warrant Shares purchasable
hereunder so as to preserve the rights of the holder hereunder. In no event
shall any such adjustment have the effect of increasing the Exercise Price as
otherwise determined pursuant to this Article 111 except in the event of a
combination of shares of the type contemplated in Section 3.4 hereof, and then
in no event to an amount greater than the Exercise Price as adjusted pursuant to
Section 3.4 hereof

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      ARTICLE
IV

      

      MISCELLANEOUS

      

      4.1 Entire Agreement.
This Warrant, together with the Agreement and the Registration Rights Agreement,
contains the entire agreement between the holder hereof and the Company with
respect to the Warrant Shares purchasable upon exercise hereof and the related
transactions and supersedes all prior arrangements or understandings with
respect thereto.

      

      4.2 Governing Law. This
warrant shall be governed by and construed in accordance with the laws of the
State of Texas.

      

      4.3 Waiver and Amendment.
Any term or provision of this Warrant may be waived at any time by the party
which is entitled to the benefits thereof and any term or provision of this
Warrant may be amended or supplemented at any time by agreement of the holder
hereof and the Company, except that any waiver of any term or condition, or any
amendment or supplementation, of this Warrant shall be in writing. A waiver of
any breach or failure to enforce any of the terms or conditions of this Warrant
shall not in any way effect, limit or waive a party's rights hereunder at any
time to enforce strict compliance thereafter with every term or condition of
this Warrant.

      

      4.4 Illegality. In the
event that any one or more of the provisions contained in this Warrant shall be
determined to be invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in any
other respect and the remaining provisions of this Warrant shall not, at the
election of the party for whom the benefit of the provision exists, be in any
way impaired.

      

      4.5 Copy of Warrant. A
copy of this Warrant shall be filed among the records of the
Company.

      

      4.6 Notice. Any notice or
other document required or permitted to be given or delivered to the holder
hereof shall be in writing and delivered at, or sent by certified or registered
mail to such holder at, the last address shown on the books of the Company
maintained at the Warrant Office for the registration of this Warrant or at any
more recent address of which the holder hereof shall have notified the Company
in writing. Any notice or other document required or permitted to be given or
delivered to the Company, other than such notice or documents required to be
delivered to the Warrant Office, shall be delivered at, or sent by certified or
registered mail to, the offices of the Company at 4600 Post Oak Place, Suite
152, Houston, Texas 77027, or such other address within the continental United
States of America as shall have been furnished by the Company to the holder of
this Warrant.

      

      4.7 Limitation of
Liability: Not Stockholders. No provision of this Warrant shall be
construed as conferring upon the holder hereof the right to vote, consent,
receive dividends or receive notices (other than as herein expressly provided)
in respect of meetings of stockholders for the election of directors of the
Company or any other matter whatsoever as a stockholder of the Company. No
provision hereof, in the absence of affirmative action by the holder hereof to
purchase shares of Common Stock, and no mere enumeration herein of the rights or
privileges of the holder hereof, shall give rise to any liability of such holder
for the purchase price of any shares of Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

      

      4.8 Exchange Loss.
Destruction. etc. of Warrant. Upon receipt of evidence satisfactory to the
Company of the loss, theft, mutilation or destruction of this Warrant, and in
the case of any such loss, theft or destruction upon delivery of a bond of
indemnity or such other security in such form and amount as shall be reasonably
satisfactory to the Company, or in the event of such mutilation upon surrender
and cancellation of this Warrant, the Company will make and deliver a new
warrant of like tenor, in lieu of such lost, stolen, destroyed or mutilated
Warrant. Any warrant issued under the provisions of this Section 4.8 in lieu of
any Warrant alleged to be lost, destroyed or stolen, or in lieu of any mutilated
Warrant, shall constitute an original contractual obligation on the part of the
Company. This Warrant shall be promptly canceled by the Company upon the
surrender hereof in connection with any exchange or replacement. The Company
shall pay all taxes (other than securities transfer taxes or income taxes) and
all other expenses and charges payable in connection with the preparation,
execution and delivery of warrants pursuant to this Section 4.8.

      

      4.9 Registration Rights.
The Warrant Shares shall be entitled to such registration rights under the
Securities Act and under applicable state securities laws as are specified in
the Registration Rights Agreement.

      

      4.10
Headings. The
Article and Section and other headings herein are for convenience only and are
not a part of this Warrant and shall not affect the interpretation
thereof. IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed in its name.

      

      Dated as
of___________________

      

      OMNIMMUNE
CORP.

      

      By:
_________________________________

      Harris A.
Lichtenstein

      President

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SUBSCRIPTION
NOTICE

      

      The
undersigned, the holder of the foregoing Warrant, hereby elects to exercise
purchase rights represented thereby for, and to purchase thereunder, shares of
the Common Stock covered by such Warrant through a "cashless" or "net issue"
exercise of such Warrant ("Cashless Exercise") pursuant to Section 1.1 of such
Warrant, and requests that certificates for such shares (and any other
securities or other property issuable upon such exercise) be issued in the name
of, and delivered to

      

      The
calculation upon which the Cashless Exercise is based is as follows: (No. of
Warrants) ((Market Price - Exercise Price)/Market Price) = No. of shares of
Common Stock

      

      -OR
-

      

      The
undersigned, the holder of the foregoing Warrant, hereby elects to exercise
purchase rights represented thereby for, and to purchase thereunder, shares of
the Common Stock covered by such Warrant, and herewith makes payment in full for
such shares, and requests (a) that certificates for such shares (and any other
securities or other property issuable upon such exercise) be issued in the name
of, and delivered to , and (b) if such shares shall not include all of the
shares issuable as provided in such Warrant, that a new Warrant of like tenor
and date for the balance of the shares issuable thereunder be delivered to the
undersigned.

      

      Signature:_______________

      

      Date:___________________

       

      

      ASSIGNMENT

      

      For value
received, hereby sells, assigns, and transfers unto the within Warrant, together
with all right, title and interest therein, and does hereby irrevocably
constitute and appoint attorney, to transfer such Warrant on the books of
Omnimmune Corp., a Texas corporation, with full power of
substitution.

      

       Date:_____________________

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