Document:

exv4w14

Exhibit 4.14

Kansas City Southern de México, S.A. de C.V.

121/2% Senior Notes due 2016

			
	 	 	 
	 
	 	CUSIP P6052A AC8
	 
	 	ISIN USP6052AAC82
	 	 	 
	     No. 1
	 	U.S.$0

          Kansas City Southern de México, S.A. de C.V., a corporation (sociedad anónima de capital
variable) organized under the laws of Mexico (the “Company,” which term includes any successor
under the Indenture hereinafter referred to), for value received, promises to pay to Cede & Co., or
its registered assigns, the principal sum of U.S.$0 on April 1, 2016.

          Interest Payment Dates: April 1 and October 1, commencing October 1, 2009.

          Regular Record Dates: March 15 and September 15.

          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

A-1

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 
	Date: March 30, 2009 	Kansas City Southern de México, S.A. de C.V.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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Trustee’s Certificate of Authentication

          This is one of the 121/2% Senior Notes due 2016 described in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. Bank National Association, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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[REVERSE SIDE OF NOTE]

Kansas City Southern de México, S.A. de C.V.

121/2% Senior Notes due 2016

1. Principal and Interest.

          The Company will pay the principal of this Note on April 1, 2016.

          The Company promises to pay interest on the principal amount of this Note on each Interest
Payment Date, as set forth below, at the rate per annum shown above.

          Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on March 15 or September 15 immediately preceding the Interest Payment Date) on each
Interest Payment Date, commencing October 1, 2009.

          Interest on the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from March 30, 2009; provided that, if there is no existing
default in the payment of interest and this Note is authenticated between a Regular Record Date
referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue
from such Interest Payment Date. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

          The Company shall pay interest on overdue principal and premium, if any, and interest on
overdue installments of interest, to the extent lawful, at a rate per annum that is 2.0% in excess
of the rate otherwise payable.

2. Method of Payment.

          The Company will pay principal as provided above and interest (except defaulted interest) on
the principal amount of the Notes as provided above on each April 1 and October 1 to the persons
who are Holders (as reflected in the Note Register at the close of business on March 15 and
September 15 immediately preceding the Interest Payment Date), in each case, even if the Note is
cancelled on registration of transfer or registration of exchange after such record date; provided
that, with respect to the payment of principal, the Company will not make payment to the Holder
unless this Note is surrendered to a Paying Agent.

          The Company will pay principal, premium, if any, and, as provided above, interest (and
Additional Amounts, if any) in money of the United States that at the time of payment is legal
tender for payment of public and private debts. However, the Company may pay principal, premium,
if any, and interest by its check payable in such money. It may mail an interest check to a
Holder’s registered address (as reflected in the Note Register). If a payment date is a date other
than a Business Day at a place of payment, payment may be made at that place on the next succeeding
day that is a Business Day and no interest shall accrue for the intervening period.

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3. Paying Agent and Registrar.

          Initially, the Trustee will act as authenticating agent, Paying Agent in New York and
Registrar. The Company may appoint or change any authenticating agent, Paying Agent or Registrar
without notice. The Company, any Subsidiary or any Affiliate of any of them may act as Paying
Agent, Registrar or co-Registrar.

4. Indenture; Limitations.

          The Company issued the Notes under an Indenture dated as of March 30, 2009 (the “Indenture”),
between the Company and the U.S. Bank National Association, as trustee (the “Trustee”) and as
paying agent (“Paying Agent”). Capitalized terms herein are used as defined in the Indenture
unless otherwise indicated. The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all
such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement
of all such terms. To the extent permitted by applicable law, in the event of any inconsistency
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

          The Notes are general unsecured obligations of the Company. The Indenture limits the
aggregate principal amount of the Notes to U.S.$200,000,000 plus any Add On Notes or Exchange Notes
that may be issued in exchange for Notes pursuant to the Registration Rights Agreement.

5. Optional Redemption.

          The Notes will be redeemable, at the Company’s option, in whole at any time or in part from
time to time, on or after April 1, 2013 and prior to maturity, upon not less than 30 nor more than
60 days’ prior notice mailed by first class mail to each Holders’ last address as it appears in the
Note Register, at the following Redemption Prices (expressed in percentages of principal amount),
plus accrued and unpaid interest, liquidated damages, if any, and any Additional Amounts (as
defined in Section 4.20 of the Indenture) to the Redemption Date (subject to the right of Holders
of record on the relevant Regular Record Date that is on or prior to the Redemption Date to receive
interest due on an Interest Payment Date), if redeemed during the 12-month period commencing April
1, of the years set forth below:

	 	 	 	 	 
	Year	 	Redemption Price
	2013
	 	 	106.250	%
	2014
	 	 	103.125	%
	2015
	 	 	100.000	%

          In addition, at any time prior to April 1, 2012, the Company may redeem up to 35.0% of the
principal amount of the Notes with the Net Cash Proceeds of one or more Equity Offerings by the
Company or KCS, to the extent the Net Cash Proceeds thereof are contributed to the Company or used
to purchase Capital Stock (other than Disqualified Stock) of the Company from the Company, at a
Redemption Price equal to 112.500% of the principal amount thereof, plus accrued interest,
liquidated damages, if any, and any Additional Amounts to the Redemption Date; provided, however,
that after giving effect to any such redemption:

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	 	(1)	 	at least 65.0% of the original aggregate principal amount of
the Notes remains outstanding; and
	 
	 	(2)	 	any such redemption must be made within 60 days of such Equity
Offering and must be made in accordance with certain procedures set forth in
the Indenture.

          Upon completion of the Exchange Offer, the Company may also redeem any Notes which were not
surrendered in the Exchange Offer in an amount up to 2.0% of the original aggregate principal
amount of the Notes issued at a redemption price of 100.0% of their principal amount plus accrued
interest, if any, and any Additional Amounts to the Redemption Date.

6. Redemption for Changes in Withholding Taxes.

          The Notes will be subject to redemption, in whole but not in part, at the option of the
Company at any time at 100.0% of their principal amount together with accrued interest, liquidated
damages, if any, and any Additional Amounts thereon, if any, to the Redemption Date, in the event
the Company has become or would become obligated to pay, on the next date on which any amount would
be payable with respect to the Notes, any Additional Amounts in excess of those attributable to a
withholding tax rate of 4.9% as a result of a change in or amendment to the laws (including any
regulations or general rules promulgated thereunder) of Mexico (or any political subdivision or
taxing authority thereof or therein), or any change in or amendment to any official position
regarding the application, administration or interpretation of such laws, regulations or general
rules, including a holding of a court of competent jurisdiction, which change or amendment is
announced or becomes effective on or after March 30, 2009. The Company shall not, however, have
the right to redeem Notes from a Holder pursuant to this Section except to the extent that it is
obligated to pay Additional Amounts to such Holder that are greater than the Additional Amounts
that would be payable based on a Mexican Withholding Tax rate of 4.9%.

7. Partial Redemption.

          In the case of any partial redemption, selection of the Notes for redemption will be made by
the Trustee in compliance with the requirements, as certified to it by the Company, of the
principal national securities exchange, if any, on which such Notes are listed or, if such Notes
are not listed on a national securities exchange, by lot or by such other method as such Trustee in
its sole discretion shall deem to be fair and appropriate; provided that no Note of U.S.$100,000 in
principal amount or less shall be redeemed in part. If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the principal amount
thereof to be redeemed. A Note in principal amount equal to the unredeemed portion thereof will be
issued in the name of the Holder thereof upon cancellation of the original Note.

8. Notice of Redemption.

          Notice of any redemption pursuant to Section 5 hereof will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at his or her
last address as it appears in the Note Register. Notice of any redemption

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pursuant to Section 6 hereof will be mailed at least six days before the Redemption Date to
each Holder of Notes to be redeemed at his or her last address as it appears in the Note Register.
Notes in original denominations larger than U.S.$100,000 may be redeemed in part. On and after the
Redemption Date, interest ceases to accrue and the principal amount shall remain constant (using
the principal amount as of the Redemption Date) on Notes or portions of Notes called for
redemption, unless the Company defaults in the payment of the Redemption Price.

9. Repurchase upon Change of Control.

          Upon the occurrence of any Change of Control, each Holder shall have the right to require the
repurchase of its Notes by the Company in cash pursuant to the offer described in the Indenture at
a purchase price equal to 101.0% of the principal amount thereof on the date of repurchase plus
accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Payment”).

          A notice of such Change of Control will be mailed within 30 days after any Change of Control
occurs to each Holder at his last address as it appears in the Note Register. Notes in original
denominations larger than U.S.$100,000 may be sold to the Company in part. On and after the Change
of Control Payment Date, interest ceases to accrue on Notes or portions of Notes surrendered for
purchase by the Company, unless the Company defaults in the payment of the Change of Control
Payment.

10. Denominations; Transfer; Exchange.

          The Notes are in registered form without coupons in minimum denominations of U.S.$100,000 of
principal amount and multiples of U.S.$1,000 in excess thereof. A Holder may register the transfer
or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not register the transfer
or exchange of any Notes selected for redemption. Also, it need not register the transfer or
exchange of any Notes for a period of 15 days before a selection of Notes to be redeemed is made.

11. Persons Deemed Owners.

          A Holder shall be treated as the owner of a Note for all purposes.

12. Unclaimed Money.

          If money for the payment of principal, premium, if any, or interest remains unclaimed for two
years, the Trustee and the Paying Agent will pay the money back to the Company at its request.
After that, Holders entitled to the money must look to the Company for payment, unless an abandoned
property law designates another Person, and all liability of the Trustee and such Paying Agent with
respect to such money shall cease.

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13. Discharge Prior to Redemption or Maturity.

          The Company’s obligations pursuant to the Indenture will be discharged, except for obligations
pursuant to certain sections thereof, subject to the terms of the Indenture, upon the payment of
all the Notes or upon the irrevocable deposit with the Trustee of U.S. Dollars or Government
Securities sufficient to pay when due principal of and interest on the Notes to maturity or
redemption, as the case may be.

14. Amendment; Supplement; Waiver.

          Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the Notes then
outstanding, and any existing default or compliance with any provision may be waived with the
consent of the Holders of at least a majority in principal amount of the Notes then outstanding.
Without notice to or the consent of any Holder, the parties thereto may amend or supplement the
Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency and make
any change that does not materially and adversely affect the rights of any Holder.

15. Restrictive Covenants.

          The Indenture imposes certain limitations on the ability of the Company and its Restricted
Subsidiaries, among other things, to incur additional Indebtedness, make Restricted Payments, use
the proceeds from Asset Sales, enter into sale-leaseback transactions, engage in transactions with
Affiliates or, with respect to the Company, merge, consolidate or transfer substantially all of
their assets. Within 90 days after the end of each fiscal year, the Company must report to the
Trustee on compliance with such limitations.

16. Successor Persons.

          When a successor person or other entity assumes all the obligations of its predecessor under
the Notes and the Indenture, the predecessor person will be released from those obligations.

17. Defaults and Remedies.

          The following events constitute “Events of Default” under the Indenture: (a) default in the
payment of principal of (or premium, if any, on) any Note when the same becomes due and payable at
maturity, upon acceleration, redemption or otherwise; (b) default in the payment of interest on any
Note when the same becomes due and payable, and such default continues for a period of 30 days;
(c) the Company defaults in the performance of or breaches the provisions of Article Five of the
Indenture or fails to make or consummate an Offer to Purchase in accordance with Section 4.11 or
Section 4.12 of the Indenture; (d) the Company defaults in the performance of or breaches any other
covenant or agreement of the Company in the Indenture or under this Note (other than a default
specified in clause (a), (b) or (c) above), and such default or breach continues for a period of 60
consecutive days after written notice by the Trustee or the Holders of 25.0% or more in aggregate
principal amount of the Notes; (e) there occurs with respect to any issue or issues of Indebtedness
of the Company or any of its

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Significant Subsidiaries having an outstanding principal amount of U.S.$20.0 million or more
in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or
shall hereafter be created, (I) an event of default that has caused the holder thereof to declare
such Indebtedness to be due and payable prior to its Stated Maturity and such Indebtedness has not
been discharged in full or such acceleration has not been rescinded or annulled within 30 days of
such acceleration and/or (II) the failure to make a principal payment at the final (but not any
interim) fixed maturity and such defaulted payment shall not have been made, waived or extended
within 30 days of such payment default; (f) [intentionally omitted]; (g) any final judgment or
order (not covered by insurance) for the payment of money in excess of U.S.$25.0 million in the
aggregate for all such final judgments or orders against all such Persons (treating any
deductibles, self-insurance or retention as not so covered) shall be rendered against the Company
or any of its Significant Subsidiaries and shall not be paid or discharged, and there shall be any
period of 30 consecutive days following entry of the final judgment or order that causes the
aggregate amount for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed U.S.$25.0 million during which a stay of enforcement of such
final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; (h) a
court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the
Company or any of its Significant Subsidiaries in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment of a
receiver, liquidator, assignee, síndico, custodian, trustee, sequestrator or similar official of
the Company or any of its Significant Subsidiaries or for all or substantially all of the property
and assets of the Company or any of its Significant Subsidiaries or (C) the winding up or
liquidation of the affairs of the Company or any of its Significant Subsidiaries and, in each case,
such decree or order shall remain unstayed and in effect for a period of 30 consecutive days;
(i) the Company or any of its Significant Subsidiaries (A) commences a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to
the entry of an order for relief in an involuntary case under any such law, (B) consents to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Company or any of its Significant Subsidiaries or for all
or substantially all of the property and assets of the Company or any of its Significant
Subsidiaries or (C) effects any general assignment for the benefit of creditors; or (j) (A) the
Concession Title shall cease to grant to the Company the rights (including exclusive
rights) currently provided therein and such cessation has had a material adverse effect on its
Restricted Subsidiaries taken as a whole; (B) (x) the Concession Title shall for any reason be
terminated and not reinstated within 30 days or (y) rights provided therein which were originally
exclusive to the Company shall become nonexclusive and the cessation of such exclusivity has had a
material adverse effect on the Company and its Restricted Subsidiaries, taken as a whole; or
(C) the operations of the Northeast Rail Lines shall be commandeered or repossessed (a requisa) for
a period of 90 days or more. If an Event of Default (other than an Event of Default specified in
clause (h), (i) or (j)(B)(x) above that occurs with respect to the Company) occurs and is
continuing under the Indenture, the Trustee or the Holders of at least 25.0% in aggregate principal
amount of the Notes then outstanding, by written notice to the Company (and to the Trustee if such
notice is given by the Holders), may, and the Trustee at the request of such Holders shall, declare
the principal of, premium, if any, and accrued interest on the Notes to be immediately due and
payable.

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          If an Event of Default specified in clause (h)(i) or (j)(B)(x) above occurs with respect to
the Company and is continuing, the Notes automatically become due and payable. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain
limitations, Holders of at least a majority in principal amount of the Notes then outstanding may
direct the Trustee in its exercise of any trust or power.

18. Additional Amounts.

          Any payments by the Company under or with respect to the Notes may require the payment of
Additional Amounts as may become payable under Section 4.20 of the Indenture.

19. Trustee Dealings with Company.

          The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from and perform services for the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates as if it were not the Trustee.

20. No Recourse Against Others.

          No incorporator or any past, present or future partner, shareholder, other equity holder,
officer, director, employee or controlling person as such, of the Company or of any successor
Person shall have any liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Notes.

21. Authentication.

          This Note shall not be valid until the Trustee or authenticating agent signs the certificate
of authentication on the other side of this Note.

22. Abbreviations.

          Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to
Minors Act).

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to Kansas City Southern de México, S.A. de C.V., Montes Urales No.
625, Col. Lomas de Chapultepec, Delegación Miguel Hidalgo, 11000, México D.F., Attention: Chief
Financial Officer.

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[FORM OF TRANSFER NOTICE]

          FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and
transfer(s) unto

Insert Taxpayer Identification No.

___________________________________________________________________________________

Please print or typewrite name and address including zip code of assignee

__________________________________________________________________________________

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

                                                                    
             attorney to transfer said Note on the books of the
Company with full power of substitution in the premises.

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL NOTES OTHER THAN EXCHANGE NOTES,

OFFSHORE GLOBAL NOTES AND

OFFSHORE PHYSICAL NOTES]

          In connection with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of an effective registration statement or (ii) the end of the period referred to in
Rule 144 under the Securities Act, the undersigned confirms that without utilizing any general
solicitation or general advertising:

[Check One]

	 	 	 
	[   ] (a)

	 	this Note is being transferred in compliance with the exemption from registration
under the Securities Act of 1933, as amended, provided by
Rule 144A thereunder.
	 
	 	 
	or

	 
	 	 
	[   ] (b)

	 	this Note is being transferred other than in accordance with (a) above and documents
are being furnished which comply with the conditions of transfer set forth in this Note and
the Indenture.

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If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be obligated to
register this Note in the name of any Person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in Section 2.08 of the
Indenture shall have been satisfied.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 

	 	 

NOTICE: The signature to this assignment must
correspond with the name as written upon the face of the
within-mentioned instrument in every particular,
without alteration or any change whatsoever.
	 	 

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 

	 	 

NOTICE: To be executed by an executive officer
	 	 

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OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to have this Note purchased by the Company pursuant to Section 4.11 or Section
4.12 of the Indenture, check the Box: o

          If you wish to have a portion of this Note purchased by the Company pursuant to Section 4.11
or Section 4.12 of the Indenture, state the amount: U.S.$                    

Date:

Your Signature: ___________________________________________________________________________________________________

(Sign exactly as your name appears on the other side of this Note)

Signature Guarantee: ____________________________

13Exhibit 4.1

Exhibit 4.1

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE
WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

REGENERX BIOPHARMACEUTICALS, INC.

WARRANT TO PURCHASE COMMON STOCK

October ____, 2009

Void After September 30, 2014

THIS CERTIFIES THAT, for value received, CHAUMIERE-CONSULTADORIA & SERVICOS SDC UNIPESSOAL
LDA, or its permitted registered assigns (the “Holder”), is entitled to subscribe for and purchase
at the Exercise Price (defined below) from REGENERX BIOPHARMACEUTICALS, INC., a Delaware
corporation (the “Company”) up to 609,756 shares of the common stock of the Company, par value
$0.001 per share (the “Common Stock”). This Warrant has been issued pursuant to that certain
Securities Purchase Agreement between the Company and the Holder dated as of September 30, 2009
(the “Purchase Agreement”).

1. DEFINITIONS.

Capitalized terms used herein but not otherwise defined herein shall have their respective
meanings as set forth in the Purchase Agreement. As used herein, the following terms shall have
the following respective meanings:

(a) “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York
City are open for the general transaction of business.

(b) “Exercise Period” shall mean the period commencing with the date that is six months after
the date hereof and ending at 5:30 p.m. New York City time on September 30, 2014.

(c) “Exercise Price” shall mean $1.12 per share, subject to adjustment pursuant to Section 5
below.

(d) “Exercise Date” shall have the meaning set forth in Section 3.1(b) hereof.

(e) “Exercise Shares” shall mean the shares of Common Stock issuable upon exercise of this
Warrant.

 

 

 

(f) “Expiration Date” shall mean 5:30 p.m. New York City time on September 30, 2014.

(g) “Trading Day” shall mean (i) any day on which the Common Stock is listed or quoted and
traded on its primary Trading Market, (ii) if the Common Stock is not then listed or quoted and
traded on any Trading Market, then a day on which trading occurs on the OTC Bulletin Board (or any
successor thereto), or (iii) if trading does not occur on the OTC Bulletin Board (or any successor
thereto), any Business Day.

(h) “Trading Market” means whichever of the New York Stock Exchange, the NYSE Amex, the NASDAQ
Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTC Bulletin Board
on which the Common Stock is listed or quoted for trading on the date in question.

2. Reserved.

3. EXERCISE OF WARRANT.

3.1. Exercise of Warrant.

(a) The rights represented by this Warrant may be exercised in whole or in part at any time
during the Exercise Period upon (i) delivery of an executed Notice of Exercise in the form attached
hereto to the Company at its address set forth on the signature page hereto (or at such other
address as it may designate by notice in writing to the Holder), (ii) surrender of this Warrant and
(iii) payment of the Exercise Price for the number of Exercise Shares as to which this Warrant is
being exercised. The delivery by (or on behalf of) the Holder of the Exercise Notice and the
applicable Exercise Price as provided above shall constitute the Holder’s certification to the
Company that its representations contained in Section 4.2(b), (c) and (d) of the Purchase Agreement
are true and correct as of the Exercise Date as if remade in their entirety (or, in the case of any
transferee Holder that is not a party to the Purchase Agreement, such transferee Holder’s
certification to the Company that such representations are true and correct as to such assignee
Holder as of the Exercise Date).

(b) With respect to each exercise of this Warrant pursuant to Section 3.1(a) above, the
Exercise Date shall be deemed to be the date the Exercise Price is received by the Company. The
Exercise Shares shall be deemed to have been issued, and Holder or any other person so designated
to be named therein shall be deemed to have become a holder of record of such shares for all
purposes, as of the Exercise Date. The person in whose name any certificate or certificates for
Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the
holder of record of such shares on the Exercise Date, irrespective of the date of delivery of such
certificate or certificates, except that, if the date of such surrender and payment is a date when
the stock transfer books of the Company are closed, such person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open.

(c) Certificates for shares purchased hereunder shall be transmitted by the transfer agent of
the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository
Trust Company through its Deposit Withdrawal Agent Commission
system if the Company is a participant in such system, and otherwise by physical delivery to
the address specified by the Holder in the Notice of Exercise within three business days from the
delivery to the Company of the Notice of Exercise, surrender of this Warrant and payment of the
aggregate Exercise Price as set forth above.

 

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3.2. Issuance of New Warrants. Upon any partial exercise of this Warrant, the Company, at
its expense, will forthwith and, in any event within five business days, issue and deliver to the
Holder a new warrant or warrants of like tenor, registered in the name of the Holder, exercisable,
in the aggregate, for the balance of the number of shares of Common Stock remaining available for
purchase under the Warrant.

3.3. Payment of Taxes and Expenses. The Company shall pay any recording, filing, stamp or
similar tax which may be payable in respect of any transfer involved in the issuance of, and the
preparation and delivery of certificates (if applicable) representing, (i) any Exercise Shares
purchased upon exercise of this Warrant and/or (ii) new or replacement warrants in the Holder’s
name or the name of any transferee of all or any portion of this Warrant.

4. COVENANTS OF THE COMPANY.

4.1. Covenants as to Exercise Shares. The Company covenants and agrees that all Exercise
Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon
issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes,
liens and charges with respect to the issuance thereof. The Company further covenants and agrees
that the Company will at all times during the Exercise Period, have authorized and reserved, free
from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise
of the rights represented by this Warrant. If at any time during the Exercise Period the number
of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise of
this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Common Stock to such number of shares
as shall be sufficient for such purposes.

4.2. No Impairment. Except to the extent as waived or consented to by the Holder, the
Company will not, by amendment of its Certificate of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good faith assist in the
carrying out of all the provisions of this Warrant and in the taking of all such action as may be
necessary or appropriate in order to protect the exercise rights of the Holder against impairment.

4.3. Notices of Record Date and Certain Other Events. In the event of any taking by the
Company of a record of the holders of any class of securities for the purpose of determining the
holders thereof who are entitled to receive any dividend (other than a cash dividend which is the
same as cash dividends paid in previous quarters) or other distribution, the Company shall mail to
the Holder, at least 10 days prior to the date on which any such record is to be taken for the
purpose of such dividend or distribution, a notice specifying such date.

 

3

 

5. ADJUSTMENT OF EXERCISE PRICE AND EXERCISE SHARES.

(a) In the event of changes in the outstanding Common Stock of the Company by reason of stock
dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, consolidation, acquisition of the Company, or the like,
the number, class and type of shares available under the Warrant in the aggregate and the Exercise
Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same
aggregate Exercise Price, the total number, class, and type of shares or other property as the
Holder would have owned had the Warrant been exercised prior to the event and had the Holder
continued to hold such shares until the event requiring adjustment. The form of this Warrant need
not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant.

(b) If at any time following delivery by Holder to the Company of a Notice of Exercise but
prior to issuance of the applicable Exercise Shares, the holders of Common Stock of the Company (or
any shares of stock or other securities at the time receivable upon the exercise of this Warrant)
shall have received or become entitled to receive, without payment therefor:

(i) Common Stock or any shares of stock or other securities which are at any time
directly or indirectly convertible into or exchangeable for Common Stock, or any rights or
options to subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution (other than a dividend or distribution covered in Section
5(a) above),

(ii) any cash paid or payable otherwise than as a cash dividend, or

(iii) Common Stock or additional stock or other securities or property (including cash)
by way of spinoff, split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock pursuant to Section 5(a) above),

then and in each such case, the Holder hereof will be entitled to receive, in addition to the
number of shares of Common Stock receivable pursuant to the Notice of Exercise, and without payment
of any additional consideration therefor, the amount of stock and other securities and property
(including cash in the cases referred to in clauses (ii) and (iii) above) which such Holder would
hold on the date of such exercise had such Holder been the holder of record of such Common Stock as
of the date on which holders of Common Stock received or became entitled to receive such shares or
all other additional stock and other securities and property.

(c) Upon the occurrence of each adjustment pursuant to this Section 5, the Company at its
expense will, at the written request of the Holder, promptly compute such adjustment in accordance
with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Exercise Shares or other
securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is
based. Upon written request, the Company will promptly deliver a copy of each such certificate to
the Holder and to the Company’s transfer agent.

 

4

 

6. FRACTIONAL SHARES.

No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any
adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of
this Warrant may be aggregated for purposes of determining whether the exercise would result in the
issuance of any fractional share. If, after aggregation, the exercise would result in the
issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay
the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from
multiplying the then current fair market value of an Exercise Share by such fraction.

7. NO STOCKHOLDER RIGHTS.

Other than as provided in Section 3.1(a) or otherwise herein, this Warrant in and of itself
shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company.

8. TRANSFER OF WARRANT.

Subject to applicable laws and the restrictions on transfer set forth on the first page of
this Warrant and set forth in the Purchase Agreement, including, without limitation, Section 5
thereof, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly
authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to
any transferee designated by Holder. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company and its counsel.

9. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.

If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the
Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an
original contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated or destroyed Warrant shall be at any time enforceable by anyone.

10. NOTICES, ETC.

All notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on
the next business day, (c) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the Company at the address listed on the signature page hereto and
to Holder at the applicable address set forth on the applicable signature page to the Purchase
Agreement or at such other address as the Company or Holder may designate by 10 days advance
written notice to the other parties hereto.

 

5

 

11. ACCEPTANCE.

Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of
the terms and conditions contained herein.

12. GOVERNING LAW.

This Warrant and all rights, obligations and liabilities hereunder shall be governed by the
laws of the State of Delaware.

13. AMENDMENT OR WAIVER.

Any term of this Warrant may be amended or waived (either generally or in a particular
instance and either retroactively or prospectively) with the written consent of the Company and the
Holder. No waivers of any term, condition or provision of this Warrant, in any one or more
instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term,
condition or provision.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

6

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
officer as of October  _____, 2009.

	 	 	 	 	 
	 	REGENERX BIOPHARMACEUTICALS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	J.J. Finkelstein 	 
	 	 	Title:  	President and Chief Executive Officer 	 

 

7

 

	 	 	 	 	 

NOTICE OF EXERCISE

TO: REGENERX BIOPHARMACEUTICALS, INC.

(1) The undersigned hereby elects to purchase shares of the Common Stock of REGENERX
BIOPHARMACEUTICALS, INC. (the “Company”) pursuant to the terms of the attached Warrant, and
tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

(2) Please issue a certificate or certificates representing said shares of Common Stock of the
Company in the name of the undersigned or in such other name as is specified below:

(Name)

(Address)

(3) The undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned and not with a view to, or for resale in connection
with, the distribution thereof and that the undersigned has no present intention of distributing or
reselling such shares; (ii) the undersigned is aware of the Company’s business affairs and
financial condition and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is
experienced in making investments of this type and has such knowledge and background in financial
and business matters that the undersigned is capable of evaluating the merits and risks of this
investment and protecting the undersigned’s own interests; (iv) the undersigned understands that
the shares of Common Stock issuable upon exercise of this Warrant have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption
from the registration provisions of the Securities Act, which exemption depends upon, among other
things, the bona fide nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such registration is
available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold
pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until
the undersigned has held the shares for the number of years prescribed by Rule 144, that among the
conditions for use of the Rule is the availability of current information to the public about the
Company; and (vi) the undersigned agrees not to make any disposition of all or any part of the
aforesaid shares of Common Stock unless and until there is then in effect a registration statement
under the Securities Act covering such proposed disposition and such disposition is made in
accordance with said registration statement, or the undersigned has provided upon the Company’s
reasonable request, an opinion of counsel satisfactory to the Company, stating that such
registration is not required.

	 	 	 
	(Date)

	 	(Signature)
	 
	 	 
	 

	 	(Print name)

 

8

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information.

Do not use this form to purchase shares.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned
to

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	Dated:                     , 20
	 	 	 	 
	 
	 	 	 	 
	Holder’s Signature:
	 	 	 	 
	 
	 	 	 	 
	Holder’s Address:
	 	 	 	 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face
of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations
and those acting in a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

 

9

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