Document:

exhibit_4-1.htm

Exhibit 4.1

BIOLINERX LTD.

 

Warrant To Purchase American Depositary Shares

Warrant No.: _______________

	
Number of American Depositary Shares:  ______________

Date of Issuance:  ____________, 20__ (“Issuance Date”)

 

BioLineRx Ltd., an Israeli company (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, _____________, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, pursuant to this Warrant to Purchase American Depositary Shares (“ADSs”) (including any Warrants to Purchase ADSs issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), up to ______________ ADSs (the “Warrant ADSs”).  For purposes of clarification, each ADS represents one ordinary share, par value NIS 0.10 per share (the “Ordinary Shares”), of the Company.  Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 17.  This Warrant is one of a series of similar warrants to purchase ADSs issued pursuant to (i) that certain Warrant Purchase Agreement (the “Warrant Purchase Agreement”) dated as of ______________, 20__ (the “Subscription Date”), and (ii) the Company’s Registration Statement on Form F-3 (File Number _____________) (the “Registration Statement”) .

 

1.   EXERCISE OF WARRANT.

 

(a)  Mechanics of Exercise.  Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the Issuance Date, in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant ADSs available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant ADSs available hereunder shall have the effect of lowering the outstanding number of Warrant ADSs purchasable hereunder in an amount equal to the applicable number of Warrant ADSs purchased.  The Holder and the Company shall maintain records showing the number of Warrant ADSs purchased and the date of such purchases.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant ADSs hereunder, the number of Warrant ADSs available for purchase hereunder at any given time may be less than the amount stated on the face hereof.  On or before the first (1st) Business Day following the date on which the Company has received the Exercise Notice, the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and The Bank of New York Mellon, the Depositary (“Depositary”) for the ADSs.  On or before the third (3rd) Business Day following the date on which the Company has received the Exercise Notice (the “Share Delivery Date”), the Company shall (X) issue and deposit with the Depositary a number of Ordinary Shares that will be represented by the number of Warrant ADSs to which the Holder is entitled in respect of that exercise, (Y) pay the fee of the Depositary for the issuance of that number of ADSs and (Z) instruct the Depositary to execute and deliver to that Holder an American Depositary Receipt (“ADR”) evidencing that number of Warrant ADSs.  No fractional ADSs are to be issued upon the exercise of this Warrant.  If any fractional share of an ADS would, except for the provisions of the prior sentence, be deliverable upon such exercise, the Company, in lieu of delivering such fractional share, shall pay to the exercising Holder an amount in cash equal to the Closing Sale Price on the Principal Market of such fractional ADS on the date of exercise.  The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant ADSs upon exercise of this Warrant.

 

 

 

 

 

                                (b)  Exercise Price.  For purposes of this Warrant, “Exercise Price” means $______, subject to adjustment as provided herein.

 

(c)  Payment of Exercise Price.  The Company shall promptly, and in no case later than the Business Day immediately following such receipt, confirm receipt of an Exercise Notice via facsimile to the number specified in such Exercise Notice.  Within two (2) Trading Days of the date of the Exercise Notice, the Holder shall make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant ADSs as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or by wire transfer of immediately available funds.

 

(d)  Cashless Exercise. Notwithstanding anything contained herein to the contrary, if at any time prior to the Expiration Date, the Registration Statement covering the Warrant ADSs that are the subject of the Exercise Notice (the “Unavailable Warrant ADSs”), or an exemption from registration, is not available for the resale of such Unavailable Warrant ADSs as of the date the Company receives an Exercise Notice with respect to such Unavailable Warrant ADSs, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price pursuant to paragraph (d) above, elect instead to receive upon such exercise the “Net Number” of ADSs determined according to the following formula (a “Cashless Exercise”):

 

	
 

	
X = Y [(A-B)/A]

	
where:

	
 

	
 

	
X = the Net Number of Warrant ADSs to be issued to the Holder.

	
 

	
 

	
 

	
Y = the number of Warrant ADSs with respect to which this Warrant is being exercised.

	
 

	
 

	
 

	
A = the Closing Sale Price of the ADSs on the Principal Market immediately prior to (but no including) the Exercise Date.

	
 

	
 

	
 

	
B = the Exercise Price.

 

For the avoidance of doubt, if the Registration Statement is available at the time this Warrant is exercised, the Holder shall have no rights under this paragraph (e) to cashless exercise and the Warrant shall only be exercisable for the Exercise Price payable in cash.

 

(e)  Disputes.  In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant ADSs, the Company shall promptly issue to the Holder the number of Warrant ADSs that are not disputed.

2.   ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.  The Exercise Price and the number of Warrant ADSs shall be adjusted from time to time as follows:

 

(a)  Adjustment upon Subdivision or Combination of Ordinary Shares or ADSs.  If the Company at any time on or after the Subscription Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant ADSs will be proportionately increased.  If the Company at any time on or after the Subscription Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant ADSs will be proportionately decreased.  Any adjustment under this Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

 

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(b) Other Events.  If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions, then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant ADSs so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(b) will increase the Exercise Price or decrease the number of Warrant ADSs as otherwise determined pursuant to this Section 2.

 

3.    RIGHTS UPON DISTRIBUTION OF ASSETS.  If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares or ADSs, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, stock split, spin off, subdivision, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case:

 

(a ) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of Ordinary Shares entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the Closing Bid Price of the Ordinary Shares or ADSs, as applicable, on the Trading Day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one Ordinary Share or ADS, as applicable, and (ii) the denominator shall be the Closing Bid Price of the Ordinary Shares or ADSs, as applicable on the Trading Day immediately preceding such record date; and

 

(b) the number of Warrant ADSs shall be increased or decreased to a number equal to the number of ADSs obtainable immediately prior to the close of business on the record date fixed for the determination of holders of Ordinary Shares or ADSs, as applicable, entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding paragraph (a); provided that in the event that the Distribution is of shares of common stock (“Other Shares of Common Stock”) of a company whose common shares are traded on a national securities exchange or a national automated quotation system, then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an adjustment in the number of Warrant ADSs, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of the immediately preceding paragraph (a) and the number of Warrant ADSs calculated in accordance with the first part of this paragraph (b).

 

4.    PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)  Purchase Rights.  In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any rights to purchase stock, warrants, securities or other property pro rata to the record holders of Ordinary Shares or ADSs (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of Ordinary Shares or ADSs acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary Shares or ADSs are to be determined for the grant, issue or sale of such Purchase Rights.

 

[(b) In connection with any Fundamental Transaction, the Company shall make appropriate provision so that this Warrant shall thereafter be exercisable for shares of the Successor Entity based upon the conversion ratio or other consideration payable in the Fundamental Transaction. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the exercise of this Warrant.]

 

 

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In the event that any person becomes a Parent Entity of the Company, such person shall assume all of the obligations of the Company under this Warrant with the same effect as if such person had been named as the Company herein.

 

5.    NONCIRCUMVENTION.  The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder.  Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any Ordinary Shares underlying the ADSs receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable ADSs upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Ordinary Shares, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of Ordinary Shares issuable upon exercise of this Warrant then outstanding (without regard to any limitations on exercise).

 

6.    WARRANT HOLDER NOT DEEMED A SHAREHOLDER.  Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company or a holder of ADSs for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant ADSs which such Person is then entitled to receive upon the due exercise of this Warrant.  In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

 

7.    REISSUANCE OF WARRANTS.

 

(a)  Transfer of Warrant.  If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant ADSs being transferred by the Holder and, if less then the total number of Warrant ADSs then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant ADSs not being transferred.

 

(b)  Lost, Stolen or Mutilated Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant ADSs then underlying this Warrant.

 

(c)  Exchangeable for Multiple Warrants.  This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant ADSs then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant ADSs as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional ADSs will be given.

 

(d)  Issuance of New Warrants.  Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant ADSs then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant ADSs designated by the Holder which, when added to the number of ADSs underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant ADSs then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

 

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8.    NOTICES.  Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with the notice provisions of that certain [Warrant Purchase Agreement.]  The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefore.

 

9.    AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder.

 

10.  GOVERNING LAW.  This Warrant shall be governed by and construed and enforced in accor­dance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

 

11.  CONSTRUCTION; HEADINGS.  This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof.  The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

 

12.  REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant.

 

13.  TRANSFER.  This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

 

[14. WARRANT AGENT.  The Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.]

 

15.  RESTRICTIONS.  The Holder acknowledges that the Warrant ADSs acquired upon the exercise of this Warrant, if not registered, and if not acquired by cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

16.  SEVERABILITY. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

17.  CERTAIN DEFINITIONS.  For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)  “Bloomberg” means Bloomberg Financial Markets.

 

 

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(b)  “Business Day” means any day on which both the Principal Market and the Tel Aviv Stock Exchange are open for trading during their full customary business hours.

 

(c)  “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).  If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.  All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

(d)  “Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., the NYSE MKT or The NASDAQ Capital Market.

 

(e)  “Expiration Date” means the date _____________ after the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

[(f)  “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Ordinary Shares, or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Ordinary Shares.]

 

(g)  “Ordinary Shares” means (i) the Company’s Ordinary Shares, par value NIS 0.10 per share, and (ii) any share capital into which such Ordinary Shares shall have been changed or any share capital resulting from a reclassification of such Ordinary Shares.

 

(h)  “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(i)   “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

 

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(j)   “Principal Market” means The NASDAQ Capital Market.

 

(k ) “Securities Act” means the Securities Act of 1933, as amended.

 

(l)   “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

(m) “Trading Day” means any day on which the ADSs are traded on the Principal Market, or, if the Principal Market is not the principal trading market for the ADSs, then on the principal securities exchange or securities market on which the ADSs are then traded; provided that “Trading Day” shall not include any day on which the ADSs are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the ADSs are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time).

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase American Depositary Shares to be duly executed as of the Issuance Date set out above.

 

	
 

	
BIOLINERX LTD.

	  	

 

By:_________________________________

Name:

Title:

 

8

 

EXHIBIT A

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE AMERICAN DEPOSITARY SHARES

BIOLINERX, LTD.

 

The undersigned holder hereby exercises the right to purchase _________________ American Depositary Shares (“Warrant ADSs”) of BiolineRx Ltd., an Israeli company (the “Company”), evidenced by the attached Warrant to American Depositary Shares (the “Warrant”).  Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

1.  Form of Exercise Price.  The Holder’s payment of the Exercise Price shall be made as:

	
 

	
_________________

	
a “Cash Exercise” with respect to _________________ Warrant ADSs; and/or

	
 

	
_________________

	
a “Cashless Exercise” with respect to _______________ Warrant ADSs (only if permitted pursuant to Section 1(e) of the Warrant).

2.  Payment of Exercise Price.  In the event that the Holder conducted a Cash Exercise with respect to some or all of the Warrant ADSs to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

3.  Delivery of Warrant ADSs.  The Company shall deliver to the Holder __________ Warrant ADSs in accordance with the terms of the Warrant.

4.  Confirmation.  Please send confirmation of receipt of this Exercise Notice to the following facsimile number: ______________________.

Date: _______________ __, ______

 

   Name of Registered Holder

 

By:

Name:

Title:

 

 

 

ACKNOWLEDGMENT

The Company hereby acknowledges this Exercise Notice and hereby directs The Bank of New York Mellon to issue the above indicated number of American Depositary Shares in accordance with the Depositary Instructions dated _____, 20__ from the Company and acknowledged and agreed to by The Bank of New York Mellon Trust Company.

BIOLINERX, LTD.

 

By:    _________________________

Name:

Title:Exhibit 10.1

 

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT (the “Agreement”) is entered into this 30th day of June, 2015 (the “Execution Date”),
by and among ENERJEX KANSAS, INC., a Nevada corporation (“EnerJex”) and WORKING INTEREST, LLC, a Kansas Limited Liability
Company (“WI”), and HAAS PETROLEUM, LLC, a Kansas limited liability company (“Haas”), BAM Petroleum, LLC,
a Kansas limited liability company (“BAM”), and MORMEG, LLC, a Kansas limited liability company (“MorMeg”).
EnerJex and WI are collectively referred to herein as “Seller” and Haas, BAM and MorMeg are collectively referred to
herein as “Buyer”. EnerJex, WI, Haas, BAM and MorMeg are referred to herein individually as a “Party” and
collectively as the “Parties”.

 

Recitals

 

A.Seller owns certain assets described
in paragraph 1 below, which assets are hereinafter described as “the Assets.”

 

B.Seller desires to sell the Assets
to Buyer, and Buyer desires to purchase the Assets from Seller, on the terms set forth herein.

 

Agreement

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, the Parties agree to the following:

 

1.Purchase and Sale of
Assets. Seller hereby agrees to sell the Assets to Buyer, and Buyer hereby agrees to purchase the Assets from Seller, on the
terms set forth herein. The terms "Closing," "Closing Date," and "Effective Date" are specifically
defined in Section 9 of this Agreement. The Assets consist of the following:

 

		a.	The oil and gas leases described on Exhibit A attached
hereto (“the Leases”), covering approximately 8,347 gross acres located in the State of Kansas. The Assets shall also
include any and all production wells, injection wells and water supply wells located on the Leases (“the Wells”).
Any Leases that expire after the Execution Date and prior to the Closing Date shall be excluded from this Agreement. Haas shall
have the right to pay the extension option on any Leases after the Execution Date, and EnerJex shall be obligated to assign at
Closing any Leases that have been extended by such extension payment.

 

		b.	All oil and gas equipment located on and used in the
operation of the Leases and the Wells, including all surface and sub-surface equipment associated with the Wells.

 

		c.	All personal property, vehicles and maintenance equipment
as described on Exhibit B attached hereto.

 

		d.	All of Sellers’ rights-of-way, easements, surface
leases, surface use agreements, joint operating agreements, other agreements associated with the Assets, and contracts associated
with the ownership and operation of the Leases and the Wells. Specific contracts associated with the operation of the Leases are
listed on Exhibit C attached hereto.

 

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2.Purchase Price, Earnest
Money, and Other Consideration. In full consideration for the conveyance of the Assets to Buyer, Buyer agrees to pay to Sellers
total cash proceeds in the amount of Two Million Eight Hundred Thousand Dollars ($2,800,000) (“the Purchase Price”),
payable in full at Closing by wire transfer in accordance with instructions to be furnished to Buyer by Seller. Upon execution
of this Agreement, Buyer shall immediately deposit One Hundred Forty Thousand Dollars ($140,000) with Sellers in earnest money
(the “Earnest Money”), as a guarantee of Buyer’s performance under this Agreement. At Closing, the Earnest Money
shall be applied as a Buyer’s credit to the Purchase Price. In the event Buyer fails to consummate Closing as defined herein,
then Sellers may cancel this Agreement and such Earnest Money shall become the property of Sellers, not as a penalty but as liquidated
damages.

 

		a.	Contract Management Services: As additional consideration for entering into this Agreement,
Haas agrees to assume responsibility for the day to day operations of the Assets on July 1, 2015 (the “Management Services”).
Haas agrees to provide the Management Services at cost to working interest owners of the Leases. As part of the Management Services,
Haas agrees to pay all invoices for expenses required for the operation of the Assets, and Haas agrees to provide detailed joint
interest billing statements to working interest owners per the terms of the joint operating agreements listed on Exhibit C (the
“JOAs”). Haas’ obligation to provide the Management Services shall terminate on the Closing Date. In the event
that Buyer fails to purchase the Assets on or before the Closing Date and Seller elects to cancel this Agreement as provided herein,
then Haas’ obligation to provide the Management Services shall extend until February 15, 2016, provided however, that EnerJex
shall be obligated to pay for actual operating expenses incurred after the Effective Date. Seller shall have the right to terminate
the Management Services at any time prior to February 15, 2016.

 

		b.	Joint Development Agreement Deadline Extensions: Reference is hereby made to that certain
Joint Development Agreement (the “JDA”) dated effective as of December 31, 2010 by and among EnerJex Resources, Inc.
(“ENRJ”), Haas, and MorMeg. As additional consideration for Seller entering into this Agreement, Haas and MorMeg agree
that the end of the term of the JDA is hereby extended from December 31, 2015 to December 31, 2016, and agree to execute a formal
amendment to the JDA to reflect that extension. For the purpose of clarity, this extension includes Section 3.3(c) of the JDA,
pursuant to which ENRJ must assign to MorMeg a reversionary working interest of up to 5.0% (8/8ths) in its “Black Oaks”
project if ENRJ has not funded at least Five Million Dollars ($5,000,000) of gross capital expenditures in such project by the
end of the term of the JDA. Such reversionary working interest shall be ratably reduced to the extent that ENRJ funds such amount
during the term of the JDA, of which ENRJ had funded approximately $2.92 million as of May 31, 2015.

 

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		c.	Purchase Price Adjustments for Revenues and Expenses: At Closing, the Purchase Price shall
be adjusted to account for expenses and revenues per terms of this provision. All oil, gas, and other hydrocarbons produced from
the Leases and Wells prior to the Effective Date, and the proceeds from the sale thereof, shall be the property of Sellers, and
all oil, gas, and other hydrocarbons produced from the Leases and Wells after the Effective Date, and the proceeds from the sale
thereof, shall be the property of Buyer. All expenses for the operation of the Assets (including payroll expenses) that are incurred
prior to the Effective Date shall be the obligation of Seller. All expenses incurred for the operation of the Assets (including
payroll expenses) incurred after to the Effective Date shall be the obligation of Buyer. The Parties agree to provide a schedule
that summarizes the Purchase Price Adjustment at Closing.

 

		d.	Purchase Price Adjustments for Oil Inventory:  The Parties agree that some of the Leases
subject to this Agreement will contain saleable oil in the storage tanks (“Inventory Oil”) as of the Effective Date,
and Buyer agrees to compensate the Seller for the transfer of Inventory Oil as of the Effective Date. The Purchase Price will be
adjusted in the favor of Seller in an amount equal to the number of barrels of Inventory Oil multiplied by the average per barrel
sales price of oil received by Seller for the month of July 2015. The Inventory Oil will be based upon tank battery measurements
conducted in the morning of July 1, 2015. Seller will provide Buyer with a schedule of tank battery measurements and the calculation
of Inventory Oil at Closing.

 

		e.	Purchase Price Adjustments for Non-Operated Working Interest Owner Debt: The Purchase Price
shall be adjusted in favor of Seller at Closing in an amount equal to the outstanding indebtedness (the “Debt”) owed
to Seller by Viking Energy Partners, LLC (“Viking”). The Debt shall include all unpaid joint interest billings covering
operations through the Effective Date. In the event that Closing occurs prior to finalizing the joint interest billing through
the Effective Date, then the Parties agree to estimate the amount of the Debt through the Effective Date and adjust the Purchase
Price according to the estimated Debt. Seller shall assign its claims for the Debt to Buyer at Closing, and Buyer shall exercise
its remedies to collect the Debt as defined in the JOAs at its election.

 

3.Title
to Assets. Sellers make no warranty concerning title to the Assets, except that Sellers warrant that the Assets shall be transferred
and conveyed to Buyer free and clear of all liens and encumbrances created by or arising through Sellers. Buyer shall be responsible
to investigate and satisfy itself concerning title to the Assets prior to the Execution Date.

 

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4.Condition of the Assets.
Sellers do not warrant, either expressly or impliedly, the condition or fitness of the Assets, including environmental fitness
and condition. As part of its due diligence, Buyer has conducted inspection and investigation of the Assets including, without
limitation, the physical and environmental features of the Assets. Buyer acknowledges that it will acquire the Assets “AS
IS, WHERE IS” in their current state, including without limitation their current physical and environmental condition, subject
to normal wear and tear between the Execution Date and the Closing Date. It is expressly understood and agreed that the willingness
of Buyer to purchase the Assets on an “AS IS, WHERE IS” basis in accordance herewith is a material inducement to Sellers’
agreement to sell the Assets to Buyer. Buyer hereby waives any and all claims which it may now or hereafter have against Sellers
arising out of or in connection with the condition of the Assets, including but not limited to the extent of their compliance with
environmental laws (including without limitation any such claims under the Federal Comprehensive Environmental Response, Compensation,
and Liability Act, 42 U.S.C. Section 9601-9659 (“CERCLA”)), and any claims under state common law, relating to the
emission, discharge or release of any hazardous substance, as that term is defined under CERCLA at 42 U.S.C. Section 9601(14),
or petroleum product or other pollutant or contaminant. This provision shall survive Closing.

 

5.Taxes. The ad valorem
taxes, real property taxes, personal property taxes and similar tax obligations (“Taxes”) levied and assessed against
the Assets for the calendar year 2015 shall be prorated as of Closing. If the Taxes for such year are not available at the Closing
Date, then the Parties agree to split the Taxes per the terms of this provision at the time the Taxes are due. All severance, production,
conservation, excise, windfall profit and other taxes or fees relating to production of oil, gas, and other hydrocarbons attributable
to the Assets assessed prior to the Effective Date shall be paid by Sellers. All severance, production, conservation, excise, windfall
profit and other taxes or fees relating to production of oil, gas, and other hydrocarbons attributable to the Assets assessed on
or after the Effective Date shall be paid by Buyer, regardless of the method or basis used for calculating the tax.

 

6.Representations and Warranties
of Sellers. Each Party comprising "Seller" hereby represents and warrants on its own behalf that:

 

		a.	This Agreement is a valid and binding obligation of Seller
enforceable in accordance with its terms.

 

		b.	Seller is not a party to any agreement that in any manner
restricts its right to enter into this Agreement and carry out the transactions contemplated hereby.

 

		c.	The execution and delivery of this Agreement and performance
of its obligations hereunder and the transactions contemplated hereby will not result in a breach of, or constitute a default
of, any agreement to which Seller is a party.

 

		d.	To the best of Seller’s knowledge, there exists
no violation of laws, rules, orders, or regulations of any governmental body with jurisdiction over the Assets.

 

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		e.	The purchasers of production from producing wells on
the Leases are paying to Seller, without suspense, the net revenue interests in such wells being sold and assigned to Buyer pursuant
to this Agreement.

 

		f.	Seller has paid all ad valorem property taxes assessed against the Assets for tax year 2014, 2013,
2012 and 2011.

 

		g.	Seller represents and warrants that it will maintain existing insurance policies that are currently
in place covering the Assets until Closing occurs.

 

7.Representations and
Warranties of Buyer. Buyer hereby represents and warrants that:

 

		a.	This Agreement is a valid and binding obligation of Buyer
enforceable in accordance with its terms.

 

		b.	Buyer is not a party to any agreement that in any manner
restricts its right to enter into this Agreement and carry out the transactions contemplated hereby.

 

		c.	The execution and delivery of this Agreement and performance
of its obligations hereunder and the transactions contemplated hereby will not result in a breach of, or constitute a default
of, any agreement to which Buyer is a party.

 

		d.	Buyer will take such action as necessary to qualify as
an oil and gas operator with the Kansas Corporation Commission, Conservation Division (“KCC”), or will designate as
new operator a party currently qualified as an oil and gas operator with the KCC, and will execute and deliver to EnerJex at Closing
such forms as necessary for the transfer of operation of the Leases and Wells from EnerJex to Buyer or Buyer’s new operator,
as the case may be.

 

8.Indemnification.
Seller hereby indemnifies Buyer from any and all claims arising from or related to Seller’s ownership of the Assets
arising prior to the Closing Date, including the cost of defense of any such claims, except claims arising from or related to
the environmental condition of the Assets. EnerJex hereby indemnifies Buyer from any and all claims arising from or related to
EnerJex’s operation of the Assets arising prior to the Closing Date, including the cost of defense of any such claims, except
claims arising from or related to the environmental condition of the Assets. Buyer hereby indemnifies Seller from any and all
claims arising from or related to Buyer’s ownership and operation of the Assets arising after the Closing Date, including
the cost of defense of any such claims, and further indemnifies Sellers from any and all claims arising from or related to the
environmental condition of the Assets, whether arising before or after the Closing Date. Buyer hereby indemnifies EnerJex from
any and all claims arising from or related to EnerJex’s operation of the Assets arising after the Closing Date, including
the cost of defense of any such claims, and further indemnifies EnerJex from any and all claims arising from or related to the
environmental condition of the Assets, whether arising before or after the Closing Date. Buyer shall assume all obligations and
liabilities for the proper plugging of the Wells and any other unplugged wells located on the Leases. The Parties’ obligations
under this paragraph 9 shall survive Closing of this Agreement.

 

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9.Conditions,
Closing and Effective Date.

 

a.Conditions.

 

(i)Seller.
The obligation of Seller to close the purchase and sale of the Assets hereunder is subject to the satisfaction or waiver by Seller
of the following conditions:

 

(A)Seller
shall have obtained from Texas Capital Bank, N.A. ("Lender"), on or before August 15, 2015, the written consent of Lender
to such changes in the terms of Seller's existing credit facilities with Lender as Seller determines, in its discretion, to be
necessary to enable Seller to complete, on or before June 30, 2016, such asset purchase, asset sale, recapitalization, or other
strategic transaction as the Board of Directors of Seller determines to be strategically appropriate.

 

(B)The representations
and warranties of Buyer hereunder shall be true and correct in all material respects as of the Closing.

 

(C)Buyer shall
have performed all of its obligations hereunder that are required to be performed at or prior to the Closing.

 

(D)Prior to
the Closing Date and for a period of sixty (60) days after the Closing Date, Seller shall not sell the Assets to a third party,
and shall not solicit bids for the Assets from any third party.

 

(ii)Buyer.
The obligation of Buyer to close the purchase and sale of the Assets hereunder is subject to the satisfaction or waiver by Buyer
of the following conditions:

 

(A)The representations
and warranties of Seller hereunder shall be true and correct in all material respects as of the Closing.

 

(B)Seller
shall have performed all of its obligations hereunder that are required to be performed at or prior to the Closing.

 

b.Closing.
The transfer of the Assets by Seller to Buyer shall occur on or before August 15, 2015 (the “Closing”), unless the
Parties agree in writing to extend the Closing. The date that Closing occurs is referred to herein as the “Closing Date”.
The transfer of the Assets shall be effective as of 12:01 a.m. on July 1, 2015 (“the Effective Date”). Buyer shall
pay the Purchase Price to Seller at Closing as provided in paragraph 2 above. Seller shall deliver to Buyer at Closing:

 

(i)Assignments
in recordable form executed by Seller, assigning 100% of Seller’s right, title, and interest in the Leases and Wells to Buyer;
and

 

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(ii)Bill of Sale
and such other documents of transfer as are necessary to transfer title and ownership of the Assets to Buyer.

 

10.Operations. EnerJex
shall continue to operate Leases and Wells currently operated by EnerJex until the Effective Date. At Closing, EnerJex shall withdraw
from any Joint Operating Agreements related to the Assets under which EnerJex is “Operator” as of the Effective Date,
and EnerJex and Buyer or, if Buyer will not be the new operator, the new operator designated by Buyer, shall execute a Form T-1
and such other forms as necessary for transfer of operations in the records of the KCC, and EnerJex shall file such Form T-1 and
any other forms as are necessary for transfer of operations with the KCC.

 

11.Notices. All notices permitted
or required by this Agreement shall be in writing, and shall be deemed to have been delivered and received (a) when personally
delivered, (b) on the third (3rd) business day after the date on which deposited in the United States mail, postage
prepaid, certified or registered mail, return receipt requested, or (c) on the date on which transmitted by facsimile or
other electronic means producing a tangible receipt evidencing a successful transmission, or (d) on the next business day after
the date on which deposited with a regulated public carrier or nationally recognized overnight commercial delivery service (e.g.,
Federal Express, DHL, etc.), addressed to the party for whom intended at the mailing address, email address, or facsimile
number set forth on the signature page of this Agreement for such party, or such other mailing address, email address, or facsimile
number, notice of which has been delivered in a manner permitted by this Section 11.

 

12.Complete
Agreement.  This Agreement, together with the Exhibits hereto and the documents to be signed and delivered at Closing, contains
the entire agreement of the Parties with respect to the transactions contemplated hereby and may be amended, modified or supplemented
only by a written instrument duly signed by the Party against which such amendment, modification or supplement is sought to be
enforced.

 

13.Governing Law. This Agreement
shall be construed in accordance with the laws of the state of Texas.

 

14.Attorneys' Fees. If any
action or proceeding is commenced to construe this Agreement or enforce the rights and duties set forth herein, then the party
prevailing in that action shall be entitled to recover its costs and attorneys' fees in that action, as well as the costs and attorneys'
fees of enforcing any judgment entered therein.

 

15.Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of Buyer and its successors and assigns and
shall also be binding upon and shall inure to the benefit of Seller and its successors and assigns.

 

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16.Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original, which shall be deemed to constitute one
and the same instrument. The counterparts may be executed and delivered by facsimile or other electronic signature by any of the
Parties to any other Party and the receiving Party may relay on the receipt of such document so executed and delivered as if the
original had been received.

 

(Remainder of page intentionally left
blank)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first written above.

 

	"Seller:"	 	"Buyer:"	 
	 	 	 	 	 	 
	ENERJEX KANSAS, INC.	 	HAAS PETROLEUM, LLC	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By	 	 	By	 	 
	 	Robert Watson, Jr., President	 	 	Mark Haas, Manager	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	WORKING INTEREST, LLC	 	BAM PETROLEUM, LLC	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By	 	 	By		 
	 	Robert Watson, Jr., President	 	 	Mark Haas, Manager	 
	 	 	 	 	 	 
	Address, Facsimile & Email for Notices:	 	MORMEG, LLC	 
	 	 	 	 	 	 
	EnerJex Resources, Inc.	 	By	 	 
	4040 Broadway, Suite 508	 	 	Mark Haas, Manager	 
	San Antonio, Texas 78209	 	 	 	 
	 	 	 	 	 	 
	Facsimile No.:  (210) 829-1224	 	Address, Facsimile & Email for Notices:	 
	Email:  rwatson@enerjexresources.com
    	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Facsimile No.:  (___)
                                                                     	 
	 	 	 	Email:                                                         	 
	 	 	 	 	 	 

 

 

    	9

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