Document:

Distribution Agreement between ArthroCare and Medical Device Alliance, Inc.

 Exhibit 10.1 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information
subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
  
 DISTRIBUTION AGREEMENT 
  
 This DISTRIBUTION AGREEMENT (this “Agreement”) is made and entered into as of November 15, 2003 (the “Effective Date”)
between ArthroCare Corporation, a Delaware corporation (“ArthroCare”), and Medical Device Alliance Inc., a Nevada corporation (“MDA”). 
  
 RECITALS 
  
 A.    WHEREAS, MDA is the manufacturer and distributor of certain medical device products; and 
  
 B.    WHEREAS, MDA and ArthroCare desire to enter into an
agreement whereby ArthroCare will be the exclusive sales representative of MDA’s products throughout the world. 
  
 NOW THEREFORE, in consideration of the above recitals and in consideration of the mutual agreements and undertakings set forth below, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 AGREEMENT 
  
 1.    Certain Definitions. 
  
 1.1    “Contingent Value Rights Agreement” shall mean the Contingent Value Rights Agreement by and among ArthroCare, MDA, the Rights Agent, and Frank Bumstead, as the Stockholders’ Agent, the form
of which is attached to the Merger Agreement as Attachment A. 
  
 1.2    “MDA Trademarks” shall mean the trademarks that are listed on Exhibit B hereto, as the same may be amended from time to time during the Term of this Agreement. 
  
 1.3    “Merger Agreement” shall mean the
Merger Agreement by and among ArthroCare, MDA and Alpha Merger Sub Corporation, dated October 23, 2003. 
  
 1.4    “Net Sales” shall mean the amount invoiced the customer less any (a) ordinary and customary trade, quantity or
cash discounts actually allowed; (b) credits, rebates and returns (including, but not limited to, wholesaler and retailer returns); (c) freight, postage, insurance, transportation and duties paid for and separately identified by the invoice or other
documentation maintained in the ordinary course of business; and (d) sales, use, tariff and other excise taxes, other consumption taxes, customs duties and compulsory payments to governmental authorities actually paid and separately identified on
the invoice or other documentation maintained in the ordinary course of business. 
  
 1.5    “Products” shall mean the products set forth on Exhibit A hereto. 
  
 1.6    “Territory” shall mean the entire world. 

 2.    Grant of Right. MDA hereby grants to ArthroCare, and ArthroCare hereby accepts, an
exclusive (even as to MDA), worldwide right to promote, market and sell the Products in the Territory during the Term of this Agreement. 
  
 3.    Obligations. 
  
 3.1    MDA will be responsible for all aspects of the Products other than out of pocket marketing expenses and sales, including,
without limitation, the design, manufacture, assembly, billing, collections, documentation of sales, and delivery of the Products. 
  
 3.2    MDA will provide ArthroCare, at no cost, all technical assistance, and existing marketing, sales and training materials as may
be reasonably requested. 
  
 3.3    To the
extent MDA receives sales inquiries relating to the purchase of Products, MDA will direct such inquiries to ArthroCare. 
  
 3.4    MDA will provide, prepare and deliver to ArthroCare existing promotional and marketing materials pertaining to the Products as
used by MDA prior to the Effective Date and, at ArthroCare’s expense, shall prepare and deliver additional promotional and marketing materials as may be reasonably requested by ArthroCare for distribution to prospective purchasers of the
Products. Any meeting, exhibit, travel, or other out-of-pocket expenses pursuant to ArthroCare’s request shall be at ArthroCare’s expense with ArthroCare pre-approval of such expenses. 
  
 3.5    MDA shall continue to manufacture the Products
throughout the Term of this Agreement and shall maintain in inventory sufficient Products to meet the reasonably foreseeable demand for the Products. 
  
 4.    Sales.    ArthroCare shall deliver all purchase orders for Products to MDA for its approval and acceptance. MDA shall
make best efforts to approve and accept all orders, and shall approve and accept all orders within two (2) business days of receipt. Following MDA’s acceptance of an order, ArthroCare shall have no further obligation with respect to such order.
Pursuant to ArthroCare stocking orders, customary rolling forecasts and lead times will apply. 
  
 5.    Covenants.    During the Term of this Agreement, MDA agrees that, except as set forth herein, it will not (a) appoint or permit any other party to solicit or book
orders for the Products, or (b) accept orders for the Products directly from any party other than ArthroCare, including, without limitation, any customer. 
  
 6.    Compensation. 
  
 6.1    During the Term of this Agreement, MDA will pay to ArthroCare commissions on sales of Products of [*] percent [*] of all Net
Sales of all Products sold worldwide. The Commission shall apply to all orders from the Territory that have been accepted by MDA and for which shipment has occurred, whether or not such orders were solicited by ArthroCare. Commissions shall be
computed on the net sales amount directly invoiced by MDA to the customer, provided no commission shall be paid with respect to charges for handling, freight, taxes, C.O.D. charges, insurance, tariffs and duties, cash and trade discounts, rebates,
amounts allowed or credited for returns, uncollected or uncollectable amounts, services, and the like. 
  
 [*] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  

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 6.2    No later than thirty (30) days from the end of each month, MDA shall provide
ArthroCare (a) a report detailing the sales of all Products worldwide during such month, and (b) payment for commissions earned during such month. The statement shall include an accounting of all orders, including the customer’s name, invoice
number and information, and shall document any allowed discounts or deductions included in the accounting (in accordance with the definition of Net Sales in this Agreement). It is expressly understood by ArthroCare that full responsibility for all
collection rests with MDA, provided, at MDA’s request, ArthroCare will assist in collection of any accounts receivable. 
  
 6.3    MDA has existing distribution agreements with two international companies and a number of U.S. companies. ArthroCare shall
undertake MDA’s obligations under these agreements during the term of this Agreement. ArthroCare shall receive as compensation for such undertaking, [*] of all Net Sales of all Products to such distributors. 
  
 7.    Audit. 
  
 7.1    MDA shall keep accurate books and records of
MDA’s Net Sales of the Products, and of all payments due ArthroCare hereunder and shall not destroy such books and records for a period of one (1) year following the termination of this Agreement. 
  
 7.2    ArthroCare shall have the right at its own
expense, after thirty (30) days advance written notice to MDA, to perform or have performed an audit of MDA’s books and records related to this Agreement. ArthroCare or its appointee shall have access to MDA’s books and records during
reasonable business hours for the sole purposes of auditing the commission reports (and supporting books and records) and verifying the commissions payable as provided for in this Agreement. MDA shall promptly pay to ArthroCare all underpayments
disclosed by an audit. Although the fees and expenses of such inspection/audit shall initially be borne by ArthroCare, if an underpayment in commissions of more than five (5%) of the total commissions due to ArthroCare hereunder for any calendar
month is discovered, then such fees and expenses shall be borne by MDA, and MDA shall promptly pay ArthroCare any such delinquent royalty amounts with interest thereon at the prime rate reported by the Bank of America, San Francisco, plus one
percent (1%), computed from the date such royalty amounts were due until the date MDA pays such royalty amounts. 
  
 8.    Intellectual Property. 
  
 8.1    Intellectual Property Rights.  Except as provided herein, each party shall retain sole ownership of, and all
rights to, any intellectual property of any kind previously owned by that party. 
  
 8.2    MDA Trademarks. 
  
 (a)    License.  MDA grants to ArthroCare a non-exclusive license to use the MDA Trademarks on and in
connection with the marketing, promotion and sale of the Products. ArthroCare shall have no obligation to market, promote or sell the Products. 
  
 (b)    ArthroCare hereby agrees that (a) it shall not use the MDA Trademarks in a manner likely to diminish the MDA
Trademarks’ commercial value; (b) it shall not knowingly permit any third party to use the MDA Trademarks unless authorized to do so in writing by MDA; (c) it shall not knowingly use or permit the use of any mark, name, or image likely to cause

  
 [*] Certain information on this page
has been omitted and filed separately with the Securities and Exchange Commission. 
 Confidential treatment has been requested with respect to the
omitted portions. 
  

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confusion with the MDA Trademarks; and (d) all goodwill associated with ArthroCare’s use of the MDA Trademarks shall inure to MDA. ArthroCare shall
comply with all MDA’s reasonable requests regarding its use of the MDA Trademarks. 
  

	9.    Confidential	Information. 

  
 9.1    The terms of this Agreement and any non-public, proprietary information disclosed by one party to the other shall constitute
confidential information (“Confidential Information”). Neither party will disclose or disseminate either the terms of this Agreement or any of the other party’s Confidential Information without the prior written consent of the
other party. Each party acknowledges that any unauthorized use, misappropriation or disclosure of the other party’s Confidential Information will cause irreparable harm and will entitle such other party to injunctive relief, as well as any
other available remedy at law or in equity. 
  
 9.2    Confidential Information shall not include any information which is (a) in the public domain or becomes public knowledge, through no fault or breach by the recipient; (b) obtained from a third party lawfully in
possession of such information, other than by breach of an obligation of confidentiality; (c) previously known or independently developed by the recipient; (d) released for disclosure by either party; or (e) required by court order, law or
regulation to be disclosed, but only to the extent and for the purposes of the required disclosure. 
  
 10.    Representations and Warranties. 
  
 10.1    Representations and Warranties of ArthroCare.  ArthroCare hereby represents and warrants to MDA that,
as of the Effective Date: (a) it has the full corporate right, power, and authority to enter into this Agreement and perform the acts required of it hereunder; (b) its execution and delivery of this Agreement, and its performance of its obligations
and duties hereunder, do not and will not violate any agreement to which it is a party or by which it is otherwise bound; and (c) when executed and delivered by it, this Agreement will constitute a legal, valid and binding obligation of it,
enforceable against it in accordance with its terms. 
  
 10.2    Representations and Warranties of MDA.  MDA hereby represents and warrants to ArthroCare that, as of the Effective Date: (a) it has the full corporate right, power, and authority to enter into
this Agreement, grant all Intellectual Property rights, including all licenses, granted hereunder and perform the acts required of it hereunder; (b) its execution and delivery of this Agreement, and its performance of its obligations and duties
hereunder, do not and will not violate any agreement to which it is a party or by which it is otherwise bound; and (c) when executed and delivered by it, this Agreement will constitute a legal, valid and binding obligation of it, enforceable against
it in accordance with its terms. Any warranty for the Products shall run directly from MDA to the customer, and pursuant to the warranty the customer shall return any allegedly defective Products to MDA. ArthroCare shall have no authority to accept
any returned Products. MDA warrants that, at the time of shipment, the Products subject to this Agreement (i) shall conform to the Specifications; (ii) shall be free of defects in materials and workmanship from the date of shipment for the
applicable period (the “Warranty Period”) set forth on the MDA invoice for such Products; and (iii) shall be manufactured in accordance with GMP. ArthroCare shall pass this limited warranty on to ArthroCare’s customers.

  
 11.    MDA Sales Force.  Upon the
Effective Date, MDA shall terminate the employment of the following MDA sales representatives (“MDA Sales Reps”): [*]. ArthroCare shall immediately offer employment to the MDA Sales Reps. During the Term, MDA shall not hire any
sales 
  
 [*] Certain information on this page has been omitted and filed
separately with the Securities and Exchange Commission. 
 Confidential treatment has been requested with respect to the omitted portions.

  

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 representatives or represent, promote or otherwise try to sell any lines or products that, in ArthroCare’s judgment,
compete with the Products covered by this Agreement. If this Agreement is terminated for any reason, MDA would have the right to rehire the MDA Sales Reps. 
  
 12.    Research and Development.  Upon the Effective Date, ArthroCare shall be provided access and shall participate in the planning
and direction of all research and development efforts at MDA. If ArthroCare requests MDA to undertake additional research and development projects beyond those contemplated at the Effective Date, MDA shall undertake such projects at
ArthroCare’s expense. MDA shall not discontinue or change any pending research and development projects without the express approval of ArthroCare. 
  
 13.    Conversion to Stocking Distributor.  At ArthroCare’s election and MDA’s approval, based on operational and
regulatory reviews that will not be unreasonably withheld, and in no event shall be withheld beyond January 1, 2004, and with 15 days notice to MDA, ArthroCare may elect to convert this agreement from a sale agency agreement to a stocking
distribution agreement. In such event, ArthroCare shall solely manage all billing, collections, documentation of sales, and delivery of the Products and shall be the sole customer contact. MDA shall refer all customer requests or questions to
ArthroCare. In addition, MDA shall no longer be responsible for paying a commission to ArthroCare. ArthroCare shall purchase the Products at [*] off the US list price indicated in Exhibit A. 
  
 14.    [*] 
  
 15.    Indemnification and Limitation of Liability. 
  
 15.1    Mutual Indemnity.  Each party agrees to indemnify, defend and hold harmless the
other party and its officers, directors, employees and agents from and against any and all losses, liabilities, claims, obligations, costs, expenses (including, without limitation, reasonable attorneys’ fees) which result from, arise in
connection with or are related in any way to claims by third parties arising out of or in connection with (a) the indemnifying party’s breach of this Agreement or a representation or warranty under this Agreement; (b) the indemnifying
party’s gross negligence or willful misconduct; and (c) any violations of applicable laws or regulations by the indemnifying party. 
  
 15.2    Product Indemnification.  MDA agrees to indemnify, defend and hold harmless ArthroCare and its officers,
directors, employees and agents from and against any and all losses, liabilities, claims, obligations, costs, expenses (including, without limitation, reasonable attorneys’ fees) which result from, arise out of or in connection with (a) any
claim alleging that any Product infringes or misappropriates any Intellectual Property right of any third party, or (b) any product liability or similar claim including, without limitation, any claim for personal injury or injury to property
relating to the development, testing, manufacture, promotion, distribution, use or other commercialization of any Product. 
  
 15.3    No Other Liability.  NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NEITHER PARTY NOR ITS AGENT(S),
REPRESENTATIVE(S) OR EMPLOYEE(S) SHALL BE LIABLE TO THE OTHER PURSUANT TO THIS AGREEMENT FOR AMOUNTS REPRESENTING LOSS OF REVENUES, LOSS OF PROFITS, LOSS OF BUSINESS OR INDIRECT, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF THE OTHER PARTY, HOWEVER
CAUSED AND ON ANY THEORY OF LIABILITY, EVEN IF THE OTHER PARTY 
  
 [*] Certain
information on this page has been omitted and filed separately with the Securities and Exchange Commission. 
 Confidential treatment has been
requested with respect to the omitted portions. 
  

 5 

 HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE LIABILITY OF ARTHROCARE, ITS AGENT(S), REPRESENTATIVE(S) AND
EMPLOYEE(S) TO MDA FOR DAMAGES OR ALLEGED DAMAGES WHETHER IN CONTRACT OR TORT (INCLUDING STRICT LIABILITY AND NEGLIGENCE) WITH RESPECT TO THIS AGREEMENT IS LIMITED TO AND SHALL NOT EXCEED THE AMOUNTS PAID BY MDA TO ARTHROCARE UNDER THIS AGREEMENT.

  
 16.    Term; Termination and Effects of
Termination. 
  
 16.1    Term.  This Agreement shall become effective as of the Effective Date and shall continue until the effective date of the Merger, unless terminated earlier pursuant to this Section 16 or
terminated automatically upon termination of the Merger Agreement or extended by mutual agreement of the parties (the “Term”). 
  
 16.2    Termination for Convenience.  ArthroCare may immediately terminate this Agreement, with or without cause,
upon thirty (30) calendar days written notice of its intention to terminate to MDA. 
  
 16.3    Termination for Cause.  Either party may immediately cancel this Agreement at any time if the other party breaches any term hereof and fails to cure such breach within
thirty (30) calendar days after notice of such breach or if the other party shall be or becomes insolvent, or if either party makes an assignment for the benefit of creditors, or if there are instituted by or against either party proceedings in
bankruptcy or under any insolvency or similar law or for reorganization, receivership or dissolution. 
  
 16.4    Effects of Termination.  In the event of termination or expiration of this Agreement, 
  
 (a)    Sections 6 (with regards to
amounts due ArthroCare), 7, 15, 16.4 and 17 shall survive the termination of this Agreement; and 
  
 (b)    MDA shall immediately pay to ArthroCare all amounts payable by MDA to ArthroCare under this Agreement.

  
 17.    Miscellaneous. 
  
 17.1    Assignment.  Neither party may
not assign, delegate, sublicense, pledge, or otherwise transfer any of its rights or obligations under this Agreement without the express written consent of the other party. Except as set forth in this Section 17, this Agreement will be binding upon
and inure to the benefit of the parties hereto, and their employees, officers, directors, partners, and their successors, heirs and assigns. 
  
 17.2    Independent Contractors.  The relationship of ArthroCare and MDA established by this Agreement is that of
independent contractors, and nothing contained in this Agreement will be construed: (a) to give either party the power to direct and control the day-to-day activities of the other; (b) to constitute the parties as partners, joint venturers,
co-owners or otherwise as participants in a joint or common undertaking; or (c) to allow either party to create or assume any obligation on behalf of the other for any purpose whatsoever. 
  
 17.3    Severability.  If one or more provisions of this Agreement are held to be
unenforceable under applicable law: (a) such provision shall be excluded from this Agreement; 
  

 6 

 (b) the balance of the Agreement shall be interpreted as if such provision were so excluded; and (c) the balance of the
Agreement shall be enforceable in accordance with its terms. 
  
 17.4    Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 17.5    Counterparts.  This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 
  
 17.6    Entire Agreement; Enforcement of Rights.  This Agreement sets forth the entire agreement and understanding of
the parties relating to the subject matter herein and merges all prior discussions between them. No modification, amendment, or any waiver of any rights under this Agreement shall be effective unless in writing signed by the party to be charged. The
failure by either party to enforce any rights hereunder shall not be construed as a waiver of any rights of such party. Notwithstanding the foregoing, the parties acknowledge that they are entering into the Merger Agreement concurrently herewith and
will enter into the Contingent Value Rights Agreement in connection therewith. Nothing in this Agreement, or resulting from this Agreement, shall in any way modify, amend or waive any rights under the Merger Agreement or the Contingent Value Rights
Agreement. 
  
 17.7    Governing Law and
Forum.  The validity, construction and enforceability of this Agreement shall be governed in all respects by the law of California without reference to conflict of laws principles. With respect to any litigation arising out of or
related to this Agreement, the parties agree that it shall be filed in and heard by the sate and federal courts with jurisdiction to hear such suits located in Santa Clara County, California. MDA and ArthroCare consent to personal jurisdiction of
the state and federal courts of the State of California and waive any objection to venue in any court located in Santa Clara County, California. 
  
 17.8    Notices and Other Communications.  Notice by any party under this Agreement shall be in writing, addressed to
the other party at its respective address given below (or at any such other address as may be communicated to the notifying party in writing), and (a) personally delivered, (b) given by registered mail, (c) delivered by overnight courier, or (d)
sent via telecopy confirmed by registered mail, telefax or prepaid cable. Any notice delivered in accordance with this Section 17.8 shall be deemed to have been served when delivered or, if delivery is not accomplished by reason of some fault of the
addressee, when tendered: 
  
 If to MDA:

  
 Medical Device Alliance Inc. 
 5851 West Charleston Blvd. 
 Las Vegas, Nevada 89146 
 Attn: Jeffrey Barber, CEO 
  

 7 

 If to ArthroCare: 
  
 ArthroCare Corporation 
 680 Vaqueros Ave. 
 Sunnyvale, California 94085-3523 
 Attn: Michael A. Baker, CEO 
  
 [Signature Page Follows] 
  
  

 8 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
representatives as of the Effective Date. 
  

	 ArthroCare Corporation
	 	 	 	 Medical Device Alliance Inc.

					
	By:	 	/s/    MICHAEL A. BAKER 	 	 	 	By:	 	/s/    JEFFREY BARBER
	 	
	 	 	 	 	

					
	Name:	 	Michael A. Baker	 	 	 	Name:	 	Jeffrey Barber
	 	
	 	 	 	 	

	 	 	(print)	 	 	 	 	 	(print)
					
	Title:	 	President and CEO	 	 	 	Title:	 	CEO
	 	
	 	 	 	 	

					
	Date:	 	10/23/03	 	 	 	Date:	 	10/23/03
	 	
	 	 	 	 	

  
  
  
  
  
 SIGNATURE PAGE TO DISTRIBUTION AGREEMENT 

 EXHIBIT A 
  
 PRODUCTS 
  

	 EZflow Cement Delivery Systems including Clear-View Needles
	  	 
	 Catalog #
	  	Unit price	  	10-pack price
	 CDS-110
	  	$335	  	$2,845
	 CDS-112
	  	$335	  	$2,845
	 CDS-120
	  	$375	  	$3,185
	 CDS-122
	  	$375	  	$3,185
	 CDS-132
	  	$375	  	$3,185
	 CDS-2210
	  	$520	  	$4,420
	 CDS-2212
	  	$520	  	$4,420
	 EZflow Cement Delivery Systems including T-Grip Needles

	 CDS-112T
	  	$335	  	$2,845
	 CDS-122T
	  	$375	  	$3,185
	 CDS-132T
	  	$375	  	$3,185
	 CDS-2212T
	  	$520	  	$4,420
	 Clear-View Bone and Vertebral Body Biopsy Needles

	 BPS-1100
	  	NA	  	$475
	 BPS-1101
	  	NA	  	$475
	 BPS-1102
	  	NA	  	$475
	 BPS-1301
	  	NA	  	$475
	 BPS-1302
	  	NA	  	$475
	 Core-Assure Bone and Vertebral Body Biopsy Needles

	 CA-1100
	  	NA	  	$820
	 CA-1101
	  	NA	  	$820
	 CA-1102
	  	NA	  	$820
	 CA-11ACC
	  	NA	  	$520
	 Spine Procedures Prep Kit

	 PPK-100
	  	$98	  	$835
	 TRACERS Bone Cement Opacifier

	 TCR-105
	  	NA	  	$845
	 Secour Acrylic Resin PMMA

	 SAR-901
	  	$135	  	$1,145
	 Mallet and Forceps Set

	 19-0019WL
	  	$95	  	 
	 28-0148WL
	  	 	  	 
	 Extension Tube Clip

	 CDS-CLP
	  	$0	  	$0

 EXHIBIT B 
  
 TRADEMARKS 
  

	 TRADEMARK
	  	     Serial No. or
 Registration No.

		
	 VIS
	  	    76/377,195
		
	 VX
	  	    76/378,180
		
	 Secour Vx
	  	    76/377,255
		
	 Clear-View
	  	    76/377,268
		
	 Secour
	  	    76/152,788
		
	 Tracers
	  	    2492472
		
	 Tracers (European Community)
	  	    002137024
		
	 Osteocath
	  	    76/408,225
		
	 CDS
	  	    76/408,207
		
	 Parallax
	  	    2621627

 EXHIBIT C 
  
 [*] 
  
 [*] Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. 
 Confidential treatment has been requested with respect to the omitted portions.Form of Warrant

 Exhibit 4.2 
  
 [FORM OF CLASS A WARRANT] 
  
 THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES OR BLUE SKY LAWS OF ANY STATE. NEITHER SUCH WARRANTS NOR SUCH SECURITIES MAY BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT SUCH REGISTRATION, EXCEPT UPON DELIVERY TO THE COMPANY OF SUCH EVIDENCE AS MAY BE REASONABLY
SATISFACTORY TO COUNSEL FOR THE COMPANY TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933 OR APPLICABLE STATE SECURITIES OR BLUE SKY LAWS OR ANY RULE OR REGULATION PROMULGATED THEREUNDER. 
  
 Warrant No.
             
  
 APHTON CORPORATION 
  
 Class A Investor Warrant for the Purchase 
 of Shares of Common Stock 

 
 FOR VALUE RECEIVED, APHTON CORPORATION, a Delaware corporation (the
“Company”), hereby certifies that [            ] (the “Holder”), its designee or its permitted assigns is entitled to purchase from the Company, at any
time or from time to time commencing on December 18, 2003 and prior to 5:00 P.M., New York City time, on September 18, 2008 up to [                ]
([                ]) fully paid and non-assessable shares of Common Stock (subject to adjustment), $.001 par value per share, of the Company for $8.12 per share (subject
to adjustment as provided herein) and an aggregate purchase price of [                        ]. (Hereinafter, (i) said common
stock, $.001 par value per share, of the Company, is referred to as the “Common Stock,” (ii) the shares of the Common Stock purchasable hereunder or under any other Warrant (as hereinafter defined) are referred to as the
“Warrant Shares,” (iii) the aggregate purchase price payable for the Warrant Shares purchasable hereunder is referred to as the “Aggregate Warrant Price,” (iv) the price payable for each of the Warrant Shares is
referred to as the “Per Share Warrant Price,” (v) this detachable Warrant, all similar Warrants issued on the date hereof and all warrants hereafter issued in exchange or substitution for this Warrant or such similar Warrants are
referred to as the “Warrants,” and (vi) the holder of this Warrant is referred to as the “Holder” and the holder of this Warrant and all other Warrants and Warrant Shares are referred to as the
“Holders” and Holders of more than 50% of the outstanding Warrants and Warrant Shares are referred to as the “Majority of the Holders”). The Aggregate Warrant Price is not subject to adjustment. 
  
 By acceptance of this Warrant, the Holder agrees to comply with all
applicable provisions of this Warrant and the Common Stock and Warrant Purchase Agreement, dated as of September 16, 2003, entered into between Holder and the Company (the “Purchase Agreement”) to the same extent as if it were a
party thereto. 
  

 1. Exercise of Warrant. (a) This Warrant may be exercised in whole at any time, or in part
from time to time, commencing on December 18, 2003 and prior to 5:00 P.M., New York City time, on September 18, 2008, by the Holder by: 
  
 (i) the surrender of this Warrant (with the subscription form at the end hereof duly executed) at the address set forth in Section 10(a)
hereof, together with proper payment of the Aggregate Warrant Price, or the proportionate part thereof if this Warrant is exercised in part, with payment for the Warrant Shares, to the extent applicable, made by wire transfer of immediately
available funds in accordance with the Company’s instructions, which such instructions the Company shall furnish promptly upon request of the Holder; or 
  
 (ii) the surrender of this Warrant (with the cashless exercise form at the end hereof duly executed) (a “Cashless
Exercise”) at the address set forth in Section 10(a) hereof; provided, that a Cashless Exercise may only be effected during such time after December 18, 2003, that the prospectus used in connection with the disposition of the Warrant
Shares pursuant to the Registration Statement (as defined in the Purchase Agreement) may not be used by the Holder for the resale of the Warrant Shares either (A) because of the exercise by the Company of its rights under Section 5.1(e) of the
Purchase Agreement or (B) because the Registration Statement is not effective. Such surrender shall be deemed a waiver of Holder’s obligation to pay the Aggregate Exercise Price, or the proportionate part thereof if this Warrant is exercised in
part. In the event of a Cashless Exercise, Holder shall exchange this Warrant for that number of Warrant Shares subject to such Cashless Exercise multiplied by a fraction, the numerator of which shall be the difference between (A) the
“Current Market Price,” which is defined as the closing sale price of the Common Stock on the trading day prior to the date of such surrender or, in case no such reported sales take place on such day, the average of the last
reported bid and asked prices of the Common Stock on such day, in either case on the principal national securities exchange on which the Common Stock is admitted to trading or listed, or if not listed or admitted to trading on any such exchange, the
representative closing sale price of the Common Stock as reported by Nasdaq, or other similar organization if Nasdaq is no longer reporting such information, or, if the Common Stock is not reported on Nasdaq, the high per share sale price for the
Common Stock in the over-the-counter market as reported by the National Quotation Bureau or similar organization, or if not so available, the fair market value of the Common Stock as determined in good faith by the Board of Directors of the Company
(the “Board”) and (B) the Per Share Exercise Price, and the denominator of which shall be the Current Market Price. For purposes of any computation under this Section 1(a), the Current Market Price shall be based on the trading day
immediately prior to the Cashless Exercise. The “Closing Sales Price” shall be the reported per share closing sales price, of the Common Stock on the Nasdaq National Market (or on the Nasdaq SmallCap Market or a national securities
exchange, as the case may be) at 4:00 PM New York Time on the applicable trading day. 
  
 (b) If this Warrant is exercised in part, this Warrant must be exercised for a number of whole shares of the Common Stock and the Holder is entitled to receive a new Warrant covering the Warrant Shares that have not
been exercised and setting forth the proportionate part of the Aggregate Warrant Price applicable to such Warrant Shares. 
  
  

 -2- 

 (c) Upon surrender of this Warrant, and receipt by the Company of the Aggregate Warrant Price or the
applicable portion thereof, or upon surrender of this Warrant pursuant to a Cashless Exercise, the Company will (i) issue a certificate or certificates in the name of the Holder, or its nominee, for the largest number of whole shares of the Common
Stock to which the Holder shall be entitled and, if this Warrant is exercised in whole, in lieu of any fractional share of the Common Stock to which the Holder shall be entitled, pay to the Holder cash in an amount equal to the fair value of such
fractional share (determined in such reasonable manner as the Company shall determine), and (ii) deliver the other securities and properties receivable upon the exercise of this Warrant, or the proportionate part thereof if this Warrant is exercised
in part, pursuant to the provisions of this Warrant. 
  
 2.
Reservation of Warrant Shares; Listing. The Company agrees and covenants that, prior to the expiration of this Warrant, the Company shall at all times (i) have authorized and in reserve, and shall keep available, solely for issuance and
delivery upon the exercise of this Warrant, the shares of the Common Stock and other securities and properties receivable upon the exercise of this Warrant and all Warrant Shares so issuable and deliverable shall upon issuance and payment of the
Aggregate Warrant Price, or the appropriate portion thereof, be duly and validly authorized, issued, fully-paid and non-assessable, free and clear of all restrictions on sale or transfer, other than under Federal or state securities or blue sky
laws, and free and clear of all preemptive rights and rights of first refusal and (ii) use its best efforts to keep the Warrant Shares authorized for listing on the Nasdaq National Market, the SmallCap Market or any national securities exchange or
over-the-counter market on which the Company’s Common Stock is traded. 
  
 3. Protection Against Dilution. (a) If the Company shall at any time after the date of this Warrant (i) declare a dividend, or make a distribution, on the outstanding Common Stock in shares of its Common
Stock, (ii) subdivide the outstanding Common Stock, (iii) combine the outstanding Common Stock into a smaller number of shares, or (iv) issue any shares of its capital stock by reclassification of the Common Stock (including any such
reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), then, in each case, the Per Share Warrant Price, and the number and kind of shares of Common Stock receivable upon exercise of this
Warrant, in effect as the time of the record date for such dividend or distribution or of the effective date of such subdivision, combination, or reclassification, shall be proportionately adjusted so that the Holder after such time shall be
entitled to receive the aggregate number and kind of shares which if such Warrant had been exercised immediately prior to such time, it would have owned upon such exercise and been entitled to receive by virtue of such dividend, distribution,
subdivision, combination or reclassification. 
  
 (b) In case of
any capital reorganization (including, but not limited to, any spinoff) or reclassification, or any consolidation or merger to which the Company is a party, other than a merger or consolidation in which the Company is the continuing corporation, or
in case of any sale or conveyance to another entity of all or substantially all of the property and assets of the Company, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection
with a merger of a third corporation into the Company), or in case of any other transaction pursuant to which holders of Common 
  

 -3- 

 Stock of the Company are entitled to receive (either directly or upon subsequent liquidation) stock, securities, cash or
other assets with respect to or in exchange for such shares of Common Stock (other than regular cash distributions out of earned surplus), the Holder of this Warrant shall have the right thereafter to receive upon the exercise of this Warrant the
kind and amount of securities, cash or other property which the Holder would have owned or have been entitled to receive immediately after such reorganization, reclassification, consolidation, merger, statutory exchange, sale, conveyance or other
transaction had this Warrant been exercised immediately prior to the effective date of such reorganization, reclassification, consolidation, merger, statutory exchange, sale, conveyance or other transaction and in any such case, if necessary,
appropriate adjustment shall be made in the application of the provisions set forth in this Section 3 with respect to the rights and interests thereafter of the Holder of this Warrant to the end that the provisions set forth in this Section 3 shall
thereafter correspondingly be made applicable, as nearly as may reasonably be, in relation to any shares of stock or other securities or property thereafter deliverable on the exercise of this Warrant. The above provisions of this Section 3(b) shall
similarly apply to successive reorganizations, reclassifications, consolidations, mergers, statutory exchanges, sales, conveyances or other transactions. Prior to the consummation of any such reorganization, reclassification, consolidation, merger,
statutory exchange, sale, conveyance or other transaction, the Company shall make appropriate provisions (in form and substance reasonably satisfactory to the Holders) to require the issuer of any shares of stock or other securities or property
thereafter deliverable on the exercise of this Warrant to be responsible for all of the agreements and obligations of the Company hereunder. A sale of all or substantially all of the assets of the Company for consideration consisting primarily of
securities shall be deemed a consolidation or merger for the foregoing purposes. 
  
 (c) No adjustment in the Per Share Warrant Price shall be required unless such adjustment would require an increase or decrease of at least $0.01 per share of Common Stock; provided, however, that any adjustments
which by reason of this Section 3(c) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 3 shall be made to the nearest cent or to the nearest 1/100th of a
share, as the case may be. Anything in this Section 3 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Per Share Warrant Price, in addition to those required by this Section 3, as it in its discretion
shall deem to be advisable in order that any stock dividend, subdivision of shares or distribution of rights to purchase stock or securities convertible or exchangeable for stock hereafter made by the Company to its stockholders shall not be
taxable. 
  
 (d) Whenever the Per Share Warrant Price is adjusted
as provided in this Section 3 and upon any modification of the rights of a Holder of Warrants in accordance with this Section 3, the Company shall as promptly as practicable prepare a brief statement of the facts requiring such adjustment or
modification and the manner of computing the same and cause copies of such certificate to be mailed to the Holders of the Warrants, provided that the failure to deliver such statement or any defect therein shall not affect the validity of the
corporate action required to be described in such statement. 
  
 (e) If the Board of Directors of the Company shall declare any dividend or other distribution with respect to the Common Stock other than an ordinary cash distribution out 
  

 -4- 

 of earned surplus, the Company shall mail notice thereof to the Holders of the Warrants not less than ten (10) days prior
to the record date fixed for determining stockholders entitled to participate in such dividend or other distribution. 
  
 (f) If, as a result of an adjustment made pursuant to this Section 3, the Holder of any Warrant thereafter surrendered for exercise shall become entitled
to receive shares of two or more classes of capital stock or shares of Common Stock and other capital stock of the Company, the Board (whose determination shall be conclusive absent manifest error and shall be described in a written notice to the
Holder of any Warrant promptly after such adjustment) shall, in good faith, determine the allocation of the adjusted Per Share Warrant Price between or among shares or such classes of capital stock or shares of Common Stock and other capital stock.

  
 (g) Upon the expiration of any rights, options, warrants or
conversion privileges with respect to the issuance of which an adjustment to the Per Share Warrant Price had been made, if such shall not have been exercised, the number of Warrant Shares purchasable upon exercise of this Warrant, to the extent this
Warrant has not then been exercised, shall, upon such expiration, be readjusted and shall thereafter be such as they would have been had they been originally adjusted (or had the original adjustment not been required, as the case may be) on the
basis of (A) the fact that Common Stock, if any, actually issued or sold upon the exercise of such rights, options, warrants or conversion privileges, and (B) the fact that such shares of Common Stock, if any, were issued or sold for the
consideration actually received by the Company upon such exercise plus the consideration, if any, actually received by the Company for the issuance, sale or grant of all such rights, options, warrants or conversion privileges whether or not
exercised; provided, however, that no such readjustment shall have the effect of decreasing the number of Warrant Shares purchasable upon exercise of this Warrant by an amount in excess of the amount of the adjustment initially made in respect of
the issuance, sale or grant of such rights, options, warrants or conversion privileges. 
  
 (h) Except as may be set forth in this Section 3, no adjustment in the Per Share Warrant Price or the number and kind of shares of Common Stock receivable upon exercise of this Warrant shall be required in the case of
the issuance by the Company of any shares of Common Stock, including, without limitation, pursuant to the exercise of any stock options or warrants.  
  
 4. Fully Paid Stock; Taxes. The Warrant Shares delivered upon the exercise of this Warrant shall at the time of such delivery, and upon
payment therefor, be duly authorized, validly issued, fully paid and non-assessable, and not subject to preemptive rights or rights of first refusal, and the Company will take all such actions as may be necessary to assure that the par value, if
any, per Warrant Shares is at all times equal to or less than the then Per Share Warrant Price. The Company shall pay all documentary, stamp or similar taxes and other similar governmental charges that may be imposed with respect to the issuance or
delivery of any Warrant Shares (other than income taxes); provided, however, that if the Warrant Shares are to be delivered in a name other than the name of the Holder, no such delivery shall be made unless the person requesting the same has paid to
the Company the amount of transfer taxes or charges incident thereto, if any. 
  
  

 -5- 

 5. Registration under the Securities Act of 1933. (a) The Holder shall have the right to
participate in the registration rights granted to Holders of Registrable Securities (as defined in the Purchase Agreement) with respect to the Warrant Shares. 
  

(b) The Company will observe its obligations set forth in Section 5.1(d) of the Purchase Agreement, to the extent set forth therein. 
  
 6. Investment Intent; Limited Transferability. (a) The Holder
represents, by accepting this Warrant, that it understands that this Warrant and any securities obtainable upon exercise of this Warrant have not been registered for sale under Federal or state securities or blue sky laws and are being offered and
sold to the Holder pursuant to one or more exemptions from the registration requirements of such securities laws. In the absence of an effective registration of such securities or an exemption therefrom, any certificates for such securities shall
bear the legend set forth on the first page hereof. The Holder understands that it must bear the economic risk of its investment in this Warrant and any securities obtainable upon exercise of this Warrant for an indefinite period of time, as this
Warrant and such securities have not been registered under Federal or state securities or blue sky laws and therefore cannot be sold unless subsequently registered under such laws, unless an exemption from such registration is available. 

 
 (b) The Holder agrees and acknowledges that this Warrant, or any portion
thereof, and any such securities issuable upon the exercise of this Warrant will not be sold or otherwise transferred unless (i) a registration statement with respect to such transfer is effective under the Act and any applicable state securities or
blue sky laws or (ii) such sale or transfer is made pursuant to one or more exemptions from the Act and such other laws. 
  
 (c) The Holder agrees and acknowledges that in addition to the limitations set forth in the Purchase Agreement with respect to Registrable Securities,
this Warrant may not be sold, transferred, assigned or hypothecated by the Holder except in compliance with the provisions of the Act and the applicable state securities or blue sky laws, and is so transferable only upon the books of the Company
which it shall cause to be maintained for such purpose. The Company may treat the registered Holder of this Warrant as it appears on the Company’s books at any time as the Holder for all purposes. All Warrants issued upon the transfer or
assignment of this Warrant will be dated the same date as this Warrant, and all rights of the holder thereof shall be identical to those of the Holder. 
  
 (d) The Holder represents that it has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the Warrants or the exercise of the Warrants and the finance operations and business of the Company; and (ii) the opportunity to request such additional information which the
Company possesses or can acquire without unreasonable effort or expense. Nothing contained in this Section 6(d) shall alter, amend or change Holder’s reliance on the representations, covenants or warranties contained herein. 
  
 (e) The Holder represents that it did not, with respect to this Warrant or
the Warrant Shares, (i) receive or review any advertisement, article, notice or other communication 
  

 -6- 

 published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or
generally available; or (ii) attend any seminar, meeting or investor or other conference whose attendees were, to such Holder’s knowledge, invited by any general solicitation or general advertising. 
  
 (f) The Holder represents that it is an “accredited investor”
within the meaning of Regulation D promulgated under the Act. Such Holder is acquiring the Warrants for its own account and not with a present view to, or for sale in connection with, any distribution thereof in violation of the registration
requirements of the Act, without prejudice, however, to such Holder’s right, subject to the provisions of the Purchase Agreement and this Warrant, at all times to sell or otherwise dispose of all or any part of the Warrants and Warrant Shares
in a manner permitted by applicable laws and regulations. 
  
 (g)
The Holder represents that it, either by reason of such Holder’s business or financial experience or the business or financial experience of its professional advisors (who are unaffiliated with and who are not compensated by the Company or any
affiliate, finder or selling agent of the Company, directly or indirectly), has such sophistication, knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Company and
the capacity to protect such Holder’s interests in connection with the transactions contemplated by this Warrant and the Purchase Agreement. 
  
 (h) The Holder represents that it has the ability to bear the economic risks of its investment for an indefinite period of time and could afford a
complete loss of its investment. 
  
 (i) The Holder agrees and
acknowledges that the representations made by the Holder in this Section 6 are conditions to the exercise of the Warrant. 
  
 7. Loss, etc., of Warrant. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall execute and deliver to the Holder a new Warrant of like date, tenor
and denomination. 
  
 8. Warrant Holder Not
Stockholder. This Warrant does not confer upon the Holder any right to vote on, receive dividends, or consent to or receive notice as a stockholder of the Company, as such, in respect of any matters whatsoever, nor any other rights or
liabilities as a stockholder, prior to the exercise hereof; this Warrant does, however, require certain notices to Holders as set forth herein. 
  
 9. Notices of Record Date, Etc. In addition to the notice requirements set forth in Section 3 hereof, in the event that the Company shall
propose at any time to effect or to establish (i) a record date for the holders of its Common Stock for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any
shares or stock of any class or any other securities or to receive any other right; or (ii) any voluntary or involuntary dissolution, liquidation or dissolution of the Company, then 
  

 -7- 

 notice of any such proposed action shall be mailed to the Holders of the Warrants not less than ten (10) days prior to
such event. 
  
 10. Communication. No notice or
other communication under this Warrant shall be effective unless, but any notice or other communication shall be effective and shall be deemed to have been given if, the same is in writing and is mailed by first-class mail, postage prepaid,
addressed to: 
  
 (a) the Company at Aphton
Corporation, 80 S.W. Eighth Street, Miami, Florida 33130, Attention: Patrick T. Mooney, M.D., Chief Medical Officer, or such other address as the Company has designated in writing to the Holder, with a copy to Akerman Senterfitt, One Southeast Third
Avenue, 28th Floor, Miami, FL 33131, Attention: Kara L. MacCullough, Esq. (provided that a failure or delay to deliver a copy of a notice of exercise of this Warrant to such counsel shall not effect the validity of such exercise), or 
  
 (b) the Holder at
[                                        
    ] Attn: [                        ] or other such address as the Holder has designated in writing to the
Company. 
  
 The Company will give written notice to the Holder at
least seven days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock generally, (B) with respect to any grants, issues or sales of any options, convertible
securities or rights to purchase stock, warrants, securities or other property to holders of Common Stock generally or (C) for determining rights to vote with respect to any change of control of the Company, dissolution or liquidation, provided in
each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to such Holder. Nothing set forth in this paragraph shall require the Company to provide any notice to the Holder prior to
the time that the information to be set forth therein has been made generally available to the public. 
  
 11. Headings. The headings of this Warrant have been inserted as a matter of convenience and shall not affect the construction hereof.

  
 12. Applicable Law. This Warrant shall be
governed by and construed in accordance with the laws of the State of New York without giving effect to the principles of conflicts of law thereof. 
  
 13. Amendment, Waiver, etc. Except as expressly provided herein, neither this Warrant nor any term hereof may be amended, waived, discharged
or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought. 
  

 

 -8- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed this
         day of September, 2003. 
  
  

	APHTON CORPORATION
		
	By:	 	 
	 	

	 Name:
	 	 
	 Title:
	 	 

 SUBSCRIPTION 
  
 The undersigned,
                                        
    , pursuant to the provisions of the foregoing Warrant, hereby elects to exercise such Warrant by agreeing to subscribe for and purchase
                        
                 shares (the “Warrant Shares”) of Common Stock, par value $.001 per share, of Aphton Corporation (the “Company”), and hereby
makes payment of $                 by certified or official bank check in payment of the exercise price therefor. 
  
 As a condition to this subscription, the undersigned hereby represents and
warrants to the Company that the representations and warranties of Section 6 of the Warrant are true and correct as of the date hereof as if they had been made on such date with respect to the Warrant Shares. The undersigned further acknowledges
that the sale, transfer, assignment or hypothecation of the Warrant Shares to be issued upon exercise of this Warrant is subject to the terms and conditions contained in Sections 1 and 6 of this Warrant. 
  

					
	 Dated:
	 	 	 	 	 	 Signature:
	 	 
	 	
	 	 	 	 	

					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	

 CASHLESS EXERCISE 
  
 The undersigned,
                                    , pursuant to the
provisions of the foregoing Warrant, hereby elects to exercise such Warrant by agreeing to subscribe for and purchase
                            
                 shares (the “Warrant Shares”) of Common Stock, par value $.001 per share, of Aphton Corporation (the “Company”), pursuant to
the Cashless Exercise provisions of the Warrant. 
  
 As a
condition to this subscription, the undersigned hereby represents and warrants to the Company that the representations and warranties of Section 6 of the Warrant are true and correct as of the date hereof as if they had been made on such date with
respect to the Warrant Shares. The undersigned further acknowledges that the sale, transfer, assignment or hypothecation of the Warrant Shares to be issued upon exercise of this Warrant is subject to the terms and conditions contained in Sections 1
and 6 of this Warrant. 
  

					
	 Dated:
	 	 	 	 	 	 Signature:
	 	 
	 	
	 	 	 	 	

					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	

 ASSIGNMENT 
  

FOR VALUE RECEIVED
                                 hereby sells, assigns and transfers unto
                            
                 the foregoing Warrant and all rights evidenced thereby, and does irrevocably constitute and appoint
                                        
        , attorney, to transfer said Warrant on the books of Aphton Corporation (the “Company”). As a condition to this assignment, the Holder acknowledges that its assignee must deliver a written
instrument to the Company that the representations and warranties of Section 6 of the Warrant are true and correct as of the date hereof as if they had been made by such assignee on such date with respect to the Warrants. 
  

					
	 Dated:
	 	 	 	 	 	 Signature:
	 	 
	 	
	 	 	 	 	

					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	

 PARTIAL ASSIGNMENT 
  
 FOR VALUE RECEIVED
                                        
hereby assigns and transfers unto                              the right to purchase
             shares of the Common Stock, par value $.001 per share, of Aphton Corporation (the “Company”), as set forth in the foregoing Warrant, and a proportionate part
of said Warrant and the rights evidenced thereby, and does irrevocably constitute and appoint     
                            , attorney, to transfer that part of said Warrant on the books of the
Company. As a condition to this assignment, the Holder acknowledges that its assignee must deliver a written instrument to the Company that the representations and warranties of Section 6 of the Warrant are true and correct as of the date hereof as
if they had been made by such assignee on such date with respect to the Warrants. 
  

					
	 Dated:
	 	 	 	 	 	 Signature:
	 	 
	 	
	 	 	 	 	

					
	 	 	 	 	 	 	 Address:

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