Document:

exv10w3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”), dated as of March 27, 2002,
between Michael Altenburger (the “Executive”) and Oxford Finance Corporation, a
Maryland corporation (the “Company”), recites and provides as follows:

     WHEREAS, the Board of Directors of the Company (the “Board”) expects that
the Executive will make substantial contributions to the growth and prospects
of the Company; and

     WHEREAS, the Board desires that the Company employ the services of the
Executive, and the Executive is willing to provide such services to the
Company, both on the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained, the Company and the Executive agree as follows:

     1.     Employment Period. The Company hereby agrees to employ the Executive,
and the Executive hereby agrees to work for the Company, in accordance with the
terms and provisions of this Agreement, for the period commencing on the date
of this Agreement (the “Effective Date”) and ending on December 31, 2003 (the
“Employment Period”). The Executive’s Employment Period may thereafter be
extended by mutual agreement.

     2.     Terms of Employment.

		
	 	        (a) Position and Duties.

                     (i) During
the Employment Period, (A) the Executive shall serve as the
Chief Financial Officer, Executive Vice President, and Treasurer and shall have
the duties and responsibilities that are normally associated with that office
and such other powers and duties as may, from time to time, be prescribed by
the Board of Directors of the Company, provided that such duties are generally
consistent with the duties described above and applicable law and (B) the
Executive’s services shall be performed at the Company’s headquarters in
Alexandria, Virginia or at any office designated by the Board of Directors that
is less than thirty-five (35) miles from such location.

                     (ii) During
the Employment Period, and excluding any periods of vacation
and leave to which the Executive is entitled, the Executive agrees to devote
substantially all of his business attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the duties assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic, charitable
or professional association boards of committees (provided the Executive
obtains prior approval from the Board of Directors of the Company), (B) deliver
lectures, fulfill speaking engagements or teach at educational institutions and
(C) manage personal investments, so long as such activities do not unreasonably
interfere with the performance of the Executive’s responsibilities as an
employee of the Company in accordance with this Agreement.

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     (b) 
Compensation.

                     (i)
Base Salary. During the Employment Period, the Executive shall
receive an annual base salary (“Annual Base Salary”), which shall be paid in
equal installments in accordance with the Company’s payroll schedule, as in
effect during the term, but not less frequently than on a monthly basis, at the
annual rate of not less than One Hundred Seventy Five Thousand Dollars
($175,000) per year. During the Employment Period, the Annual Base salary
shall be reviewed at least annually and shall be increased at any time and from
time to time as shall be substantially consistent with increases in base salary
generally awarded in the ordinary course of business to other senior executives
of the Company and its affiliated companies. Any increase in Annual Base
Salary shall not serve to limit or reduce any other obligation to the Executive
under this Agreement. Annual Base Salary shall not be reduced at any time
during the Employment Period or after any such increase, and the term “Annual
Base Salary” as utilized in this Agreement shall refer to Annual Base Salary as
so increased. As used in this Agreement, the term “affiliated companies” shall
include any company controlled by, controlling or under common control with the
Company.

                     (ii)
Annual Bonus. In addition to Annual Base Salary, the Executive shall
participate in, for each fiscal year ending during the Employment Period, the
Company’s Annual Performance-Based Bonus Plan or, if more favorable to the
Executive, under any plans, practices, programs and policies of the Company and
its affiliates in effect generally at any time after the Effective Date with
respect to other senior executives of the Company. The bonus paid to the
Executive under this paragraph shall be the “Annual Bonus” for purposes of this
Agreement.

                     (iii)
Incentive, Savings and Retirement Plans. During the Employment
Period, the Executive shall be entitled to participate in all incentive
(including, without limitation, stock incentive), savings and retirement plans,
practices, policies and programs applicable generally to other senior
executives of the Company, including without limitation the 2002 Equity
Incentive Plan, approved and adopted by the Board of Directors and by the
Shareholders on March 25, 2002, but in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities
(measured with respect to both regular and special incentive opportunities, to
the extent, if any, that such distinction is applicable), savings opportunities
and retirement benefit opportunities, in each case, that are less favorable, in
the aggregate, than those provided generally from time to time after the
Effective Date to other senior executives of the Company.

                     (iv)
Welfare Benefit Plans. During the Employment Period, the Executive
and/or the Executive’s family, as the case may be, shall be eligible for
participation in, and shall receive all benefits under, welfare benefit plans,
practices, policies and programs provided by the Company (including, without
limitation, medical, prescription, dental, disability, salary continuance,
employee life, group life, accidental death and travel accident insurance plans
and programs) (collectively, the “Other Benefits”) to the extent applicable
generally to other senior executives of the Company, and under terms generally
applicable to other senior executives of the Company, but in no event shall
such plans, practices, policies and programs provide the Executive with
benefits that are less favorable, in the aggregate, than

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those provided generally from time to time after the Effective Date to
other senior executives of the Company.

     During the Employment Period, the Company shall provide the Executive with
medical insurance benefits that are substantially similar to the medical
insurance benefits that the Executive received from his immediately preceding
employer immediately prior to the Executive’s termination from such employer.

     If the Executive is eligible for, and chooses to elect, continuing
coverage under his immediately preceding employer’s medical insurance plan(s)
in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”), he shall, upon termination of his employment with such employer,
continue to pay a monthly contribution amount, for each and every month of such
coverage, equal to the amount of the monthly contribution amount he paid for
medical insurance coverage under such employer’s medical insurance plan(s)
immediately prior to his termination from such employer. The Company shall pay
the difference between the amount of the total monthly premium required to
maintain the coverage and the monthly contribution amount paid by the Executive
pursuant to the preceding sentence; provided, however, that the Company shall
be required to pay such difference only if, and to the extent that, Executive
makes the monthly payments required in the preceding sentence.

     If at any time the Executive is eligible to participate under the
Company’s group medical insurance plan and he choses to do so he shall pay a
contribution amount equal to the amount paid by the other senior executives.

                                     (v)

Expenses. During the Employment Period, the Executive shall be
entitled to receive prompt reimbursement for all reasonable employment expenses
incurred by the Executive in accordance with the most favorable policies,
practices and procedures of the Company, as in effect generally from time to
time after the Effective Date with respect to other senior executives of the
Company.

                                     (vi)

Fringe Benefits. During the Employment Period, the Executive shall
be entitled to fringe benefits in accordance with the most favorable plans,
practices, programs and policies of the Company, as in effect generally from
time to time after the Effective Date with respect to other senior executives
of the Company.

                                     (vii)

Office and Support Staff. During the Employment Period, the
Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing
provided generally from time to time after the Effective Date with respect to
other senior executives of the Company.

                                     (viii)

Vacation. During the Employment Period, the Executive shall be
entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company, as in effect generally from
time to time after the Effective Date with respect to other senior executives
of the Company.

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                                     (ix)

Attorneys’ Fees. The Company agrees to reimburse Executive promptly
for all legal fees and expenses incurred by Executive in connection with the
reviewing and execution of this Agreement.

     3.     Termination of Employment.

              (a)
Death or Disability. The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment Period. If the
Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance
with Section 11(b) of its intention to terminate the Executive’s employment.
In such event, the Executive’s employment with the Company shall terminate
effective on the thirtieth (30th) day after receipt of such notice by the
Executive (the “Disability Effective Date”), provided that, within the thirty
(30) days after such receipt, the Executive shall not have returned to
full-time performance of the Executive’s duties. For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the
Executive’s duties with the Company on a full-time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness that
is determined to be total and permanent by a physician selected by the Company
or its insurers and acceptable to the Executive or the Executive’s legal
representative (such agreement as to acceptability not to be withheld
unreasonably).

               (b)
Cause. The Company may terminate the Executive’s employment during
the Employment Period for Cause. For purposes of this Agreement, “Cause” shall
mean (i) a material breach by the Executive of the Executive’s obligations
under Section 2(a) (other than as a result of incapacity due to physical or
mental illness) which is grossly negligent or willful on the Executive’s part
or which is committed in bad faith or without reasonable belief by the
Executive, that such breach is in the best interests of the Company, and which
is not remedied in a reasonable period of time after receipt of written notice
from the Company specifying such breach or (ii) the conviction of the Executive
of a felony involving moral turpitude or the guilty or nolo contendere plea of
the Executive to such a felony. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of a senior officer of the Company or based upon the advice of
counsel for the Company shall be conclusively presumed to be done, or omitted
to be done, by the Executive in good faith and in the best interests of the
Company.

               (c)
Termination Other Than for Cause. The Company may terminate the
Executive’s employment during the Employment Period for other than Cause, Death
or Disability.

               (d)
Good Reason. The Executive’s employment may be terminated by the
Executive for Good Reason. For purposes of this Agreement, “Good Reason” shall
mean in the absence of a written consent of the Executive:

                       (i) the

assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as
contemplated by Section 2(a) of this

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 Agreement, or any other action by the Company which results in a material
diminution in such position, authority, duties or responsibilities, excluding
for this purpose an isolated, insubstantial and inadvertent action not taken in
bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

                     (ii) any
material failure by the Company to comply with any of the
provisions of Section 2(b) of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

                    (iii) the

Company’s requiring the Executive to be based at any office or
location more than thirty-five (35) miles from that provided in Section 2(a)
hereof;

                     (iv) any
purported termination by the Company of the Executive’s
employment otherwise than as expressly permitted by this Agreement; or

                     (v) any

failure by the Company to comply with and satisfy Section 10(c) of
this Agreement.

     For purposes of this Section 3(c), any good faith determination of “Good
Reason” made by the Executive shall be conclusive.

             (e)
Notice of Termination. Any termination by the Company for Cause, or
by the Executive, shall be communicated by Notice of Termination to the other
party hereto given in accordance with Section 11(b). For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than fifteen (15) days after the
giving of such notice). The failure by the Executive or the Company to set
forth in the Notice of Termination any fact or circumstance shall not waive any
right of the Executive or the Company hereunder or preclude the Executive or
the Company from asserting such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder, except to the extent that the
Executive or the Company, as the case may be, demonstrates that it is
prejudiced by such failure.

             (f)
Date of Termination. “Date of Termination” means (i) if the
Executive’s employment is terminated by the Company for Cause, or by the
Executive, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be, (ii) if the Executive’s employment is
terminated by the Company other than for Cause or Disability, the Date of
Termination shall be the date on which the Company notifies the Executive of
such termination, or (iii) if the Executive’s employment is terminated by
reason of death or Disability, the Date of Termination shall be the date of
death of the Executive or the Disability Effective Date, as the case may be.

     4.     Obligations of the Company upon Termination.

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            (a)
Good Reason; Other Than for Cause, Death or Disability. If, during
the Employment Period, the Company shall terminate the Executive’s employment
other than for Cause, Death or Disability, or the Executive shall terminate
employment for Good Reason, then the Company shall: (1) continue to pay the
Executive’s Annual Base Salary, payable in accordance with the Company’s normal
payroll policies during the Employment Period; (2) be obligated to pay the
Executive, to the extent not theretofore paid, an amount equal to the Annual
Bonus paid or payable, including by reason of any deferral, to the Executive
for the most recently completed fiscal year during the Employment Period, if
any; (3) pay the Executive any compensation previously deferred by the
Executive (together with any accrued interest or earnings thereon) to the
extent not therefore paid; and (4) any accrued vacation pay, to the extent not
therefore paid (the sum of the amounts described in clauses (1), (2), (3) and
(4) shall be hereinafter referred to as the “Accrued Obligations”). All
Accrued Obligations referred to in clauses (2), (3) and (4) above shall be paid
to the Executive in a lump sum payment in cash within thirty (30) days of the
Date of Termination. All of the Executive’s unvested stock options will vest
as of the Date of Termination.

             (b)
Death. If the Executive’s employment is terminated by reason of the
Executive’s death during the Employment Period, this Agreement shall terminate
without further obligations to the Executive’s legal representatives under this
Agreement, other than for payment of Accrued Obligations (which shall be paid
to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash
within thirty (30) days of the Date of Termination). All of the Executive’s
options that would have vested within one (1) year from the date of death will
vest, but Executive will forfeit any unvested options scheduled to vest after
one (1) year from the date of death. All vested options will expire unless
exercised (and all outstanding loans resulting from the prior exercise of any
options must be repaid) within eighteen (18) months of the Date of Termination.

             (c)
Cause, Other Than for Good Reason. If the Executive’s employment
shall be terminated for Cause or the Executive terminates his employment
without Good Reason during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the
obligation to pay to the Executive his Annual Base Salary through the Date of
Termination plus Other Benefits and the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore unpaid. All
of the Executive’s unvested stock options will be forfeited and the Executive
must exercise any vested but unexercised options and repay any outstanding
loans resulting from the prior exercise of any options within ninety (90) days
(unless a longer period is designated).

             (d)
Disability. If the Executive’s employment shall be terminated by
reason of the Executive’s Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits. Accrued Obligations shall be paid to the Executive in a lump
sum in cash within thirty (30) days of the Date of Termination. The Executive
shall be entitled after the Disability Effective Date to receive, disability
and other benefits as in effect at any time thereafter generally with respect
to other senior executives of the Company. All of the Executive’s options that
would have vested within two (2) years of the Date of Termination will
immediately vest. All vested options will expire unless exercised (and all
outstanding loans resulting from the prior exercise of any options must be
repaid)

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within eighteen (18) months of the Date of Termination.

             (e)
Time of Payment. The Company shall make all payments required by this
Section 4 within the time periods provided in Sections 4(a), 4(b) and 4(c);
provided, however, that in the event that any such payments would be
non-deductible to the Company under the provisions of Section 162(m) of the
Internal Revenue Code of 1986, as amended (the “Code”), and the Executive is a
“covered employee” as defined in Treas. Reg. Section 1.162-27(c)(2) for the
taxable year of the Company during which the Date of Termination occurred or
for the immediately preceding year, the Company shall make any such payment not
earlier than ninety (90) days following the end of the Company’s taxable year
during which the Executive last was a “covered employee.”

             (f)
Nondisclosure to Media. After the Date of Termination or the end of
Employment Period, the Executive agrees that he will not discuss his employment
and resignation or termination (including the terms of this Agreement) with any
representatives of the media, either directly or indirectly, without the
written consent and approval of the Company.

     5.     Nonexclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company and for which the Executive may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any contract or agreement with the Company. Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or
agreement with the Company at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

     6.     Full Settlement; Resolution or Disputes.

             (a) The
Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and, except as provided in Section 8(a)
with respect to non-competition, such amounts shall not be reduced whether or
not the Executive obtains other employment. The Company agrees to pay promptly
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof unless a court of competent jurisdiction determines that
the Executive acted in Bad Faith in initiating the contest) by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any
payment pursuant to this Agreement), plus in each case interest on any delayed
payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Code; provided however, that the reasonableness of the fees and expenses
must be determined by an independent arbitrator, using standard legal
principles,

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mutually agreed upon by the Company and the Executive in accordance with
rules set forth by the American Arbitration Association.

             (b) If
there shall be any dispute between the Company and the Executive in
the event of any termination of the Executive’s employment by the Company or by
the Executive, then, unless and until there is a final, nonappealable judgment
by a court of competent jurisdiction declaring that such termination was for
Cause, the Company shall pay all amounts, and provide all benefits, to the
Executive and/or the Executive’s family or other beneficiaries, as the case may
be, that the Company would be required to pay or provide pursuant to Section
4(a) as though such termination were by the Company without Cause or by the
Executive for Good Reason; provided, however, that the Company shall not be
required to pay any disputed amounts pursuant to this paragraph except upon
receipt of an undertaking (which may be unsecured) by or on behalf of the
Executive to repay all such amounts to which the Executive is ultimately
adjudged by such court not to be entitled.

     7.     Confidential Information.

             (a) The
Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating
to the Company or any of its affiliated companies, and their respective
businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive’s employment with the Company, the Executive
shall not, without the prior written consent of the Company or except as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 7 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

             (b) In
the event of a breach or threatened breach of this Section 7, the
Executive agrees that the Company shall be entitled to injunctive relief in a
court of appropriate jurisdiction to remedy any such breach or threatened
breach, and the Executive acknowledges that damages would be inadequate and
insufficient.

             (c) Any
termination of the Executive’s employment or of this Agreement
shall have no effect on the continuing operation of this Section 7.

     8.     Non-Compete; Non-Solicitation.

             (a) For
the period commencing on the date hereof and ending on the earlier
of (i) the date that is twenty-four (24) months after the Executive ceases to
be employed by the Company, or (ii) the first date on which the Company fails
to punctually make any payment(s) that it is required to make under Section
4(a) without any set-off or deduction other than as required by applicable
Federal, state or local law or with respect to any employee benefit plan in
which the Executive continues to participate (the “Non-Competition Period"),
the Executive shall not in the United States of America, directly or
indirectly, either for himself or any other

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person, own, manage, control, materially participate in, invest in, permit
his name to be used by, act as consultant or advisor to, render material
services for (alone or in association with any person, firm, corporation or
other business organization) or otherwise assist in any manner any entity that
engages in or owns, invests in, manages or controls any venture or enterprise
engaged in the business of making loans or leases secured by equipment to
private equity-backed companies in the “life science” (as defined in the PPM)
industry (or any other business of the type that constitutes a substantial
portion of the Company’s business at the date the Executive ceases to be
employed by the Company) (collectively, a “Competitor”). Nothing herein shall
prohibit the Executive from being a passive owner of not more than 4.99% of the
equity securities of a corporation engaged in such business which is publicly
traded, so long as he has no active participation in the business of such
corporation.

             (b) During
the Non-Competition Period, the Executive shall not, directly
or indirectly, (i) induce or attempt to induce or aid others in inducing an
employee of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and an employee of the
Company except in the proper exercise of the Executive’s authority, or (ii)
induce or attempt to induce any customer to cease doing business with the
Company or not to obtain funding from the Company, or in any way interfere with
the relationship between the Company and any customer or other business
relation of the Company.

             (c) If,
at the time of enforcement of this Section 8, a court shall hold
that the duration, scope, area or other restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope, area or other restrictions reasonable under such
circumstances shall be substituted for the stated duration, scope, area or
other restrictions.

             (d) The
covenants made in this Section 8 shall be construed as an
agreement independent of any other provisions of this Agreement, and shall
survive the termination of this Agreement. Moreover, the existence of any
claim or cause of action of the Executive against the Company or any of its
affiliates, whether or not predicated upon the terms of this Agreement, shall
not constitute a defense to the enforcement of these covenants.

     9.     Indemnity. The Company will indemnify the Executive, in his capacity
as an officer and director of the Company, to the fullest extent permitted by
the Company’s Articles of Incorporation and Bylaws.

     10.     Successors.

             (a) This
Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and shall be enforceable by the Executive’s legal
representatives.

             (b) This
Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

             (c) The
Company will require any successor (whether direct or indirect, by

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purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

     11.     Miscellaneous.

             (a) This
Agreement shall be governed by and construed in accordance with
the laws of the Commonwealth of Virginia, without reference to principles of
conflict of laws. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

             (b) All
notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 
	If to the Executive to:	 	
If to the Company to:
	 
	Michael Altenburger

9521 Liberty Tree Lane

Vienna, Virginia 22182	 	
Oxford Finance Corporation

133 North Fairfax Street

Alexandria, Virginia 22314.

Attention: Corporate Secretary

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

             (c) The
invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

             (d) The
Company may withhold from any amounts payable under this Agreement
such Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

            (e) The
Executive’s or the Company’s failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement
or the failure to assert any right the Executive or the Company may have
hereunder, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

             (f) Any
entitlements to the Executive created under Section 2(b) shall be
contract rights to the extent not prohibited by law. However, the Company
shall not be required to amend, or refrain from amending, any of its plans,
practices, policies and programs to so provide the contract rights.

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             IN
WITNESS WHEREOF, the parties have executed this Employment Agreement as
of the day and year first above written.

	 	 	 
	 	COMPANY:	 
	 
	 	OXFORD FINANCE CORPORATION,

a Maryland corporation	 
	 
	 	By: /s/ J. ALDEN PHILBRICK, IV	 
	 	

Name: J. Alden Philbrick, IV	 
	 	

Title: President, Chief Executive Officer

          and Chairman of the Board	 
	 	
	 
	 
	 	EMPLOYEE:	 
	 
	 	MICHAEL ALTENBURGER	 
	 	 
	 	/s/ MICHAEL ALTENBURGER
	 	

	 

11exv4w2

 

Exhibit 4.2

WARRANT AGREEMENT

     THIS AGREEMENT is dated this ______day of ______, 2002, by and
among ANTEX BIOLOGICS INC., a Delaware corporation, having its offices at 300
Professional Drive, Gaithersburg, Maryland 20879 (the “Company”), American
Stock Transfer & Trust Company, a ______corporation, having its
offices at 59 Maiden Lane, New York, NY 10038, as agent in the capacity set
forth herein, and Roan/Meyers Associates, L.P., a New York limited partnership
(the “Representative”), having its offices at 17 State Street, New York, New
York 10004, as representative of the several Underwriters (as defined below).

     WHEREAS, pursuant to a Registration Statement on Form SB-2, Registration
Statement No. 333- ______(the “Unit Offering Registration Statement”) filed
with the Commission (as defined below), and an underwriting agreement between
the Company and the Underwriters dated ______, 2002 (the “Underwriting
Agreement”), each relating to the Company’s proposed public offering of its
securities, the Company proposes to issue up to [______] units (the “Units”)
(inclusive of [______] Units subject to the Representative’s over-allotment
option), each Unit consisting of one share of the Common Stock (as defined
below) and one Redeemable Common Stock Purchase Warrant (which is initially
exercisable to purchase one share of Common Stock on the terms and conditions
set forth in this Agreement (a “Warrant”)), and further proposes to issue to
the Representative or its designees an Option to purchase [______]
additional Units (the “Representative’s Purchase Option”);

     WHEREAS, each Warrant is redeemable by the Company for $0.001 per Warrant
upon 30 days’ prior written notice, if (i) the average closing sale price of
the Common Stock, as reported by the principal exchange on which the Common
Stock is traded (currently the American Stock Exchange), or The Nasdaq Stock
Market, Inc., or the OTC Bulletin Board or Pink Sheets LLC, as the case may be,
equals or exceeds 200% of the then applicable Exercise Price (as defined below)
for 20 consecutive trading days ending prior to the date of the notice of
redemption as provided herein, and (ii) there is an effective registration
statement under the Securities Act (as defined below), for the resale of the
shares of Common Stock issuable upon the exercise of the Warrants; and

     WHEREAS, the Company desires the Warrant Agent (as defined below), and the
Warrant Agent agrees, to act on behalf of the Company in connection with the
issuance, registration, exercise, division, transfer, exchange, replacement,
redemption and surrender of the Warrant Certificates (as defined below) for
Warrants and the rights of the holders thereof.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, and for the purpose of defining the terms and provisions
of the Warrants, the Warrant Certificates, and the respective rights and
obligations thereunder of the Company, the Registered Holders (as defined
below), the Representative on behalf of the Underwriters and the Warrant Agent,
the parties hereto agree as follows:

 

 

      SECTION 1.  DEFINITIONS. As used herein, the following terms shall have
the following meanings, unless the context shall otherwise require:

	 	(a)	 	“Business Office” shall mean the office of the Warrant Agent (or its successor) at which at any particular time its principal business shall be administered, which office is located on the date hereof at 59 Maiden Lane, New York, NY 10038.
	 
	 	(b)	 	“Change of Shares” shall have the meaning ascribed thereto in Section 8.1 herein.
	 
	 	(c)	 	“Closing Date” shall mean the closing date of the offer and sale of the Units, or the initial closing date if there is more than one closing.
	 
	 	(d)	 	“Commission” shall mean the United States Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.
	 
	 	(e)	 	“Common Stock” shall mean stock of the Company of any class or series, whether now or hereafter authorized, which has the right to participate in the distribution of earnings and assets of the Company without limit as to amount or percentage, which at the date hereof is the 95,000,000 authorized
shares of common stock, par value $0.01 per share, of the Company.
	 
	 	(f)	 	“Company” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(g)	 	“Effective Date” shall mean the date a registration statement for the sale of Warrant Stock pursuant to the exercise of the Warrants is declared effective by the Commission.
	 
	 	(h)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.
	 
	 	(i)	 	“Exercise Date” shall have the meaning ascribed thereto in Section 4 herein.
	 
	 	(j)	 	“Exercise Period” shall mean, with respect to Warrants, the period commencing on the Effective Date and terminating at 5:00 p.m. (New York time) on the earlier of (i) the Expiration Date and (ii) the last business day immediately preceding the Redemption Date.
	 
	 	(k)	 	“Exercise Price” shall mean the purchase price to be paid upon exercise of each Warrant in accordance with the terms hereof, which price shall be $[______] per share, subject to adjustment as provided in Section 8 herein.

2

 

	 	(l)	 	“Expiration Date” shall mean 5:00 p.m. (New York time) on ______, 2007, provided however, that if any such date shall be in the State of New York a holiday or a day on which banks are authorized to close, then the “Expiration Date” shall be 5:00 p.m. (New York time) on the next
following business day which in the State of New York is not a holiday or a day on which banks are authorized to close.
	 
	 	(m)	 	“NASD” shall mean the National Association of Securities Dealers, Inc., or any successor organization.
	 
	 	(n)	 	“Redemption Date” shall mean 5:00 p.m. (New York time) on the date the date fixed by the Company for the redemption in accordance with the provisions of Section 9 herein.
	 
	 	(o)	 	“Redemption Price” shall mean the price at which the Company may, at its option, redeem the Warrants, in accordance with the provisions of Section 9 herein, which price shall be $0.001 per Warrant.
	 
	 	(p)	 	“Registered Holders” shall mean the persons in whose names any Warrant Certificates shall be registered on the books maintained by the Warrant Agent pursuant to Section 6 herein.
	 
	 	(q)	 	“Representative” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(r)	 	“Representative’s Purchase Option” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(s)	 	“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.
	 
	 	(t)	 	“Transfer Agent” shall mean the transfer agent for the Company’s Common
Stock, which is currently American Stock Transfer & Trust Company.
	 
	 	(u)	 	“Underwriting Agreement” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(v)	 	“Underwriters” shall mean the underwriters listed in the Registration Statement in the Section entitled “Underwriting.”
	 
	 	(w)	 	“Unit Offering Registration Statement” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(x)	 	“Units” shall have the meaning ascribed thereto in the Preamble.
	 
	 	(y)	 	“Warrant Agent” shall mean American Stock Transfer & Trust Company (or its successor), as agent for the issuance, registration, transfer, and

3

 

	 		 	exchange of the Warrant Certificates, exercise of the Warrants and, thereupon, the issuance of the Warrant Stock.
	 
	 	(z)	 	“Warrant Certificates” shall mean shall mean certificates representing Warrants.
	 
	 	(aa)	 	“Warrant Stock” shall mean and include (i) up to [______] shares of authorized and unissued Common Stock initially reserved for issuance upon exercise of the Warrants; and (ii) any additional shares of Common Stock or other property which may hereafter become issuable or deliverable upon
exercise of the Warrants pursuant to Section 8 herein.
	 
	 	(bb)	 	“Warrant” shall have the meaning ascribed thereto in the Preamble, except that all references thereto in Section 9 herein shall not include the Representative’s Warrants.

     SECTION 2.   WARRANTS AND ISSUANCE OF WARRANT CERTIFICATES.

     2.1   Each Warrant, when the corresponding Warrant Certificate is executed
and countersigned as provided in Section 3.2 herein and delivered to the
Registered Holder thereof, shall initially entitle the Registered Holder to
purchase one (1) share of Common Stock upon the exercise thereof and payment of
the Exercise Price therefor, subject to modification and adjustment as provided
in Section 8 herein and subject to the prior redemption of the Warrants as
provided in Section 9 herein.

     2.2   Following execution of this Agreement, Warrant Certificates
representing the number of Warrants sold pursuant to the Underwriting Agreement
shall be executed by the Company and delivered to the Warrant Agent. Upon
written order of the Company signed by its Chairman, President or a Vice
President and by its Secretary or an Assistant Secretary, the Warrant
Certificates shall be countersigned, issued and delivered by the Warrant Agent
as part of the Units.

     2.3   From time to time up to the Expiration Date, the Warrant Agent shall
countersign and deliver stock certificates in required whole number
denominations representing up to an aggregate of [______] shares of Common
Stock, subject to adjustment as described herein, upon the exercise of Warrants
in accordance with this Agreement.

     2.4   From time to time, up to the Expiration Date of the Warrants, the
Warrant Agent shall countersign and deliver Warrant Certificates in required
whole number denominations to the persons entitled thereto in connection with
any transfer or exchange permitted under this Agreement; provided that no
Warrant Certificates shall be issued except (i) those initially issued
hereunder, (ii) those issued upon the exercise of fewer than all Warrants
represented by any Warrant Certificate to evidence the unexercised Warrants
held by the exercising Registered Holder, (iii) those issued upon any transfer
or exchange pursuant to Section 6 herein; (iv) those issued in replacement of
lost, stolen, destroyed or mutilated Warrant Certificates pursuant to Section 7
herein; (v) those issued pursuant to the exercise of the Representative’s
Purchase Option; and (vi) at the option of the Company, in such form as may be
approved by its Board of Directors, to reflect any adjustment or change in the
Exercise Price, the number of shares of

4

 

Common Stock purchasable upon exercise of the Warrants, or the Redemption
Price therefore, pursuant to Section 8 herein.

     2.5   Pursuant to the terms of the Representative’s Purchase Option, the
Representative may purchase up to [______] Units, each such Unit to consist
of one share of Common Stock and one Warrant (each a “Representative Warrant”).
The Representative’s Purchase Option (i) shall be exercisable for a four-year
period commencing on the first anniversary of the Closing Date, (ii) shall
expire on the fifth anniversary of the Closing Date, (iii) shall be exercisable
at an exercise price per Unit equal to One Hundred Twenty Percent (120%) of the
initial offering price per Unit, and (iv) shall not be subject to redemption by
the Company. Notwithstanding anything herein to the contrary, the
Representative’s Purchase Option shall not be transferable or assignable
without the prior written consent of the Company for a period of one (1) year
commencing the date hereof and thereafter only to officers, directors and
employees of the Representative and as may be permitted pursuant to Rule 2710
of the Conduct Rules of the NASD, as such rule may be amended from time to
time.

     2.6   No provision of this Agreement shall impair the right of the Company
purchase or otherwise acquire Warrants at such times, in such manner and for
such consideration as it may deem appropriate.

     SECTION 3.   FORM AND EXECUTION OF THE WARRANT CERTIFICATES.

     3.1   The Warrant Certificates shall be substantially in the form annexed
hereto as Exhibit A (the provisions of which are hereby incorporated herein)
and may have such letters, numbers, or other marks of identification or
designation and such legends, summaries, or endorsements printed, lithographed,
or engraved thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any law, or with any rule or regulation made pursuant thereto, or
with any rule or regulation of any stock exchange on which the Warrants may be
listed, or to conform to custom or usage. The Warrant Certificates shall bear
the dates of issuance thereof, whether upon initial issuance, transfer, or
exchange or in lieu of mutilated, lost, stolen, or destroyed Warrant
Certificates. Certificates shall be numbered serially with the letter “W “ (or
such other designation as the Company may deem appropriate) on Warrants of all
denominations.

     3.2   The Warrant Certificates shall be executed on behalf of the Company by
its Chairman, President or any Vice President and by its Secretary or an
Assistant Secretary or Treasurer, by manual or facsimile signatures printed
thereon, and shall have imprinted thereon a facsimile of the Company’s seal.
The Warrant Certificates shall be manually countersigned by the Warrant Agent
and shall not be valid for any purpose unless so countersigned. If any officer
of the Company who shall have signed any of the Warrant Certificates shall
cease to be such officer of the Company before the date of issuance of the
Warrant Certificates or before countersignature by the Warrant Agent and issue
and delivery thereof, such Warrant Certificates nevertheless may be
countersigned by the Warrant Agent, issued, and delivered with the same force
and effect as though the person who signed such Warrant Certificates had not
ceased to be such officer of the Company.

5

 

     SECTION 4.   EXERCISE OF WARRANTS.

     4.1   Each Warrant may be exercised at any time during the Exercise Period,
upon the terms and subject to the conditions set forth herein and in the
Warrant Certificate representing such Warrant. A Warrant shall be deemed to
have been exercised immediately prior to the close of business on the date of
the surrender for exercise (the “Exercise Date”) of the Warrant Certificate
representing such Warrant, with the exercise form thereon duly executed by the
Registered Holder thereof or his attorney duly authorized in writing, with
signatures guaranteed by a member firm of a national securities exchange, a
commercial bank (not a savings bank or a savings and loan association) or trust
company located in the United States or a member firm of the NASD, together
with payment made payable and sent to the Warrant Agent for the account of the
Company, in cash or by official bank, certified, or cashier’s check, or by
money order or wire transfer of good funds, of an amount in lawful money of the
United States of America equal to the Exercise Price, plus an amount equal to
any applicable transfer fees or taxes, and the person entitled to receive the
Warrant Stock deliverable upon such exercise shall be treated for all purposes
as the holder thereof as of the close of business on the Exercise Date,
irrespective of the date of issuance or delivery of such certificate for
Warrant Stock; provided, however, that if, at the date of the surrender of such
Warrants and the payment of the Exercise Price, the transfer books for the
Warrant Stock or other class of stock purchasable upon the exercise of such
Warrants shall be closed, the certificates for the Warrant Stock or for shares
of such other class of stock in respect of which such Warrants are then
exercised shall be issuable as of the date on which such books shall next be
opened (whether before or after the Expiration Date) and until such date the
Company shall be under no duty to deliver any certificate for such Warrant
Stock or for shares of such other class of stock; provided further, that the
transfer books of record, unless otherwise required by law, shall not be closed
at any time for a period longer than 20 days. Except as otherwise provided
herein, no Warrants presented for exercise after their Expiration Date will be
accepted for exercise and all unexercised Warrants shall be void after the
Expiration Date and all rights of the holders thereof shall cease at such time.
No alternative, conditional, or contingent exercises shall be accepted.

     4.2   Notwithstanding the provisions of Paragraph 4.1, a Warrant may not be
exercised by the Registered Holder thereof unless (i) the Warrant Stock to be
issued upon such exercise is registered for sale to the Registered Holder under
the Securities Act and (ii) such Warrant Stock is registered or otherwise
qualified for sale under the securities laws of the state or other jurisdiction
in which the Registered Holder resides or the sale qualifies for an exemption
from such registration or qualification.

     4.3   In no circumstances shall the Company be required to issue fractions
of shares upon exercise of the Warrants or otherwise, or to distribute
certificates for Warrant Stock that evidence fractional shares. With respect to
any fraction of a share called for upon any exercise hereof, the Company shall
pay to the Registered Holder an amount in cash equal to such fraction
multiplied by the current market value of such fractional share, determined as
follows: (1) if the Common Stock is listed on a national securities exchange or
admitted to unlisted trading privileges on such exchange or listed for trading
on The Nasdaq Stock Market, Inc. or the OTC Bulletin Board, the current market
value shall be the last reported sale price of the Common Stock on such market
on the last business day prior to the date of exercise of the Warrant or if no
such sale is made on such day, the average of the closing bid and asked prices
for such day on

6

 

such market; or (2) if the Common Stock is not so listed or admitted to
unlisted trading privileges, the current market value shall be the mean of the
last reported bid and asked prices reported by the Pink Sheets LLC for the last
business day prior to the date of the exercise of the Warrant; or (3) if the
Common Stock is not so listed or admitted to unlisted trading privileges and
bid and asked prices are not so reported, the current market value shall be
determined in a reasonable manner as determined in good faith by the Board of
Directors of the Company.

     4.4   As soon as practicable on or after the Exercise Date, the Warrant
Agent, on behalf of the Company, shall cause to be issued to the person or
persons entitled to receive the same, a certificate or certificates for the
Warrant Stock, and the Warrant Agent shall deliver the same to the person or
persons entitled thereto. No adjustment shall be made in respect of dividends
on Warrant Stock delivered upon exercise of any Warrant.

     4.5   The Company reserves the absolute right to waive any defect or
irregularity, permit a defect or irregularity to be cured or corrected within
such time as it may determine, or reject any exercise of a Warrant that it
determines to have been made improperly or the acceptance of which would, in
the opinion of the Company’s counsel, be unlawful. Any irregularities in
connection with presentments for exercise must be cured within such time as the
Company shall determine in its sole and absolute discretion unless waived. The
Company shall notify the Warrant Agent in writing of its waiver of any defect
or irregularity in presentment, its permission to cure or correct such defect
or irregularity and any subsequent cure or correction thereof. Neither the
Company nor the Warrant Agent shall be under any duty to give notification of
defects in presentments for exercise or incur any liability for failure to give
such notification. Any presentments for exercise as to which defects or
irregularities have not been cured or waived and as to which notice of cure or
waiver has not been given to the Warrant Agent as provided herein will be
returned to the Registered Holder by the Warrant Agent, as soon as practicable,
together with all funds held for the Registered Holder’s account. No interest
shall be paid on any such funds so returned.

     4.6   Once a Registered Holder has presented his Warrant Certificate and
payment for exercise, the Registered Holder’s exercise of the Warrant is
irrevocable.

     4.7   If less than all of the Warrants represented by a Warrant Certificate
are exercised, the Warrant Agent shall execute and mail, by first-class mail,
as soon as practicable following the date of exercise, to the Holder of such
Warrant Certificate, or such other person as shall be designated by the
Registered Holder, a new Warrant Certificate representing the number of
Warrants not exercised.

     4.8   Upon the exercise, as provided for in Section 4 herein, of any
Warrant, the Warrant Agent shall promptly deposit the payment therefor into an
interest bearing escrow account established by mutual agreement of the Company
and the Warrant Agent at a federally insured commercial bank. All funds from
the exercise deposited in the escrow account together with interest thereon,
less expenses to be paid by the Company, will be disbursed to the Company on a
weekly basis once determined by the Warrant Agent to be collected funds. An
accounting relating to the number of Warrants exercised and the net amount of
exercise funds remitted will be made by the Warrant Agent to the Company with
each payment to the Company of exercise funds, which will serve as an interim
accounting during the period during which the

7

 

Warrants may be exercised. A complete accounting concerning all exercises
of Warrants will be made to the Company at the completion of the period during
which the Warrants may be exercised.

     SECTION 5.   RESERVATION OF SHARES; LISTING; PAYMENT OF TAXES; ETC.

     5.1   The Company covenants that it will at all times reserve and keep
available out of its authorized Common Stock, solely for the purpose of
issuance upon exercise of the Warrants as herein provided, such number of
shares of Common Stock as shall then be issuable upon the exercise of all
outstanding Warrants. The Company covenants that all shares of Warrant Stock
which shall be so issuable shall be duly authorized and validly issued and upon
full payment therefor be fully paid and non-assessable and free from all
pre-emptive rights, taxes, claims, liens, encumbrances and charges.

     5.2   The Company covenants that (i) it will use commercially reasonable
efforts to maintain the effectiveness of the Unit Offering Registration
Statement for the offer and sale of Warrant Stock pursuant to the exercise of
the Warrants, including the filing of any necessary post-effective amendment to
the Unit Offering Registration Statement, and (ii) in connection with any such
exercise deliver a current prospectus which complies with Section 10(a)(3) of
the Act to the Registered Holder exercising the Warrant (except, if in the
opinion of counsel to the Company, such registration is not required under the
federal securities law or if the Company receives a letter from the staff of
the Commission stating that it would not take any enforcement action if such
registration is not effected). The Company covenants that it will use
commercially reasonable efforts to obtain any necessary approvals or
registrations under state “blue sky” securities laws that are necessary for the
exercise of the Warrants. No Warrants shall be issued to any Registered Holder
in any state in which such exercise would be unlawful.

     5.3   The Company shall pay all documentary, stamp, or similar taxes and
other governmental charges that may be imposed with respect of the issuance of
the Warrants, or the issuance, transfer, or delivery of any Warrant Stock upon
exercise of the Warrants; provided, however, that if a certificate for Warrant
Stock is to be delivered in a name other than the name of the Registered Holder
of the Warrant Certificate representing any Warrant being exercised, then no
such delivery shall be made unless the person requesting the same has paid to
the Warrant Agent the amount of any such taxes or charges incident thereto, if
any. Any transfer fees payable to the Warrant Agent for the transfer, exchange,
or exercise of any certificate issued pursuant to this Agreement shall be paid
by the presenter of such certificate.

     5.4   The Warrant Agent is hereby irrevocably authorized to requisition the
Company’s Transfer Agent from time to time for certificates representing shares
of Common Stock required upon exercise of the Warrants, and the Company will
authorize the Transfer Agent to comply with all such proper requisitions. If
the Warrant Agent is not the Transfer Agent, the Company shall file with the
Warrant Agent a statement setting forth the name and address of the Transfer
Agent for the Common Stock.

8

 

     SECTION 6.   EXCHANGE AND REGISTRATION OR TRANSFER OF WARRANTS.

     6.1   The Warrant Certificates may be exchanged for other Warrant
Certificates representing an equal aggregate number of Warrants. Warrant
Certificates also may be transferred in whole or in part, subject to compliance
with the federal securities laws and any applicable state securities laws.
Warrant Certificates to be so exchanged or transferred shall be surrendered to
the Warrant Agent at its Business Office, and the Company shall execute and the
Warrant Agent shall countersign, issue, and deliver in exchange therefor the
Warrant Certificates that the Registered Holder making the exchange shall be
entitled to receive.

     6.2   The Warrant Agent shall keep, at its Business Office, books in which,
subject to such reasonable regulations as it may prescribe, the Warrant Agent
shall register the Warrants and the transfer thereof. Upon due presentment for
registration of transfer of any Warrant Certificate at such office, the Company
shall execute and the Warrant Agent shall issue and deliver to the transferee a
new Warrant Certificate representing an equal aggregate number of Warrants.

     6.3   All Warrant Certificates presented for registration of transfer or for
exchange or exercise, and the subscription form on the reverse thereof, shall
be duly endorsed or be accompanied by a written instrument of transfer and
subscription in form satisfactory to the Company and the Warrant Agent, duly
executed by the Registered Holder thereof or his attorney duly authorized in
writing.

     6.4   No service charge or fee shall be charged to the transferee for any
exchange or registration or transfer of a Warrant Certificate. However, the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.

     6.5   All Warrant Certificates surrendered for exchange, transfer or
exercise, shall be promptly canceled by the Warrant Agent, and thereafter
either shall surrender to the Company or destroy the canceled Warrant
Certificates, as instructed by the Company.

     6.6   From time to time at such times as the Company may reasonably request,
the Warrant Agent shall provide the Company with a list of the Registered
Holders of the Warrants.

     6.7   Prior to due presentment for registration or transfer thereof, the
Company and the Warrant Agent may deem and treat the Registered Holder of any
Warrant Certificate as the absolute owner thereof and of each Warrant
represented thereby (notwithstanding any notations of ownership or writing
thereon made by anyone other than the Company or the Warrant Agent) for all
purposes, and shall not be affected by any notice to the contrary.

     SECTION 7.   LOSS OR MUTILATION.

     7.1   Upon receipt by the Company of evidence satisfactory to the Company of
the ownership of and the loss, theft, destruction, or mutilation of any Warrant
Certificate and, in the case of loss, theft, or destruction, an indemnity
satisfactory to the Company or, in the case of mutilation, upon surrender and
cancellation thereof, the Company shall execute and the Warrant

9

 

Agent shall countersign and deliver in lieu thereof a new Warrant
Certificate representing an equal aggregate number of Warrants. Applicants for
a substitute Warrant Certificate shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Warrant Agent may
prescribe.

     SECTION 8.   ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES OF COMMON
STOCK OR WARRANTS.

     8.1   Except as hereinafter provided, in the event the Company shall issue
any shares of Common Stock as a stock dividend to the holders of Common Stock,
or subdivide or combine the outstanding shares of Common Stock into a greater
or lesser number of shares (any such subdivision or combination being herein
called a “Change of Shares”), then, and thereafter upon each further Change of
Shares, the Exercise Price for the Warrants (whether or not the same shall be
issued and outstanding) in effect immediately prior to such Change of Shares
shall be changed to a price (including any applicable fraction of a cent to the
nearest cent) determined by dividing (i) the total number of shares of Common
Stock outstanding immediately prior to such Change of Shares, by (ii) the total
number of shares of Common Stock outstanding immediately after such Change of
Shares.

     For the purposes of any adjustment to be made in accordance with this
Section 8.1, the following provisions shall be applicable:

           8.1.1   Shares of Common Stock issuable by way of dividend or other
distribution on any stock of the Company shall be deemed to have been issued
immediately after the opening of business on the day following the record date
for the determination of shareholders entitled to receive such dividend.

           8.1.2   The number of shares of Common Stock at any one time outstanding
shall be deemed to include the aggregate maximum number of shares issuable
(subject to readjustment upon the actual issuance thereof) upon the exercise of
options, rights or warrants and upon the conversion or exchange of convertible
or exchangeable securities.

     8.2   Upon each adjustment of the Exercise Price pursuant to this Section 8,
the number of shares of Common Stock purchasable upon the exercise of each
Warrant shall be the number derived by multiplying the number of shares of
Common Stock purchasable immediately prior to such adjustment by the Exercise
Price in effect prior to such adjustment and dividing the product so obtained
by the applicable adjusted Exercise Price.

     8.3   After each adjustment of the Exercise Price pursuant to this Section
8.1, the Company will promptly prepare a certificate signed by the Chairman,
Chief Executive Officer or President, and by the Treasurer or an Assistant
Treasurer or the Secretary or an Assistant Secretary, of the Company setting
forth: (i) the Exercise Price as so adjusted, (ii) the number of shares of
Common Stock purchasable upon exercise of each Warrant, after such adjustment,
and (iii) a brief statement of the facts accounting for such adjustment.

     8.4   In case of (i) any reclassification or change of outstanding shares of
Common Stock issuable upon exercise of the Warrants (other than a change in par
value, or from par value to no par value, or from no par value to par value or
as a result of a subdivision or combination),

10

 

(ii)  any consolidation or merger of the Company with or into another
corporation (other than (1) a merger with a subsidiary of the Company in which
merger the Company is the continuing corporation or (2) any consolidation or
merger of the Company with or into another corporation which, in either
instance, does not result in any reclassification or change of the then
outstanding shares of Common Stock or other capital stock issuable upon
exercise of the Warrants (other than a change in par value, or from par value
to no par value, or from no par value to par value or as a result of
subdivision or combination)) or (iii) any sale or conveyance to another
corporation of the property of the Company as an entirety or substantially as
an entirety, then, as a condition of such reclassification, change,
consolidation, merger, sale or conveyance, the Company, or such successor or
purchasing corporation, as the case may be, shall make lawful and adequate
provision whereby the Registered Holder of each Warrant then outstanding shall
have the right thereafter to receive on exercise of such Warrant the kind and
amount of securities and property receivable upon such reclassification,
change, consolidation, merger, sale or conveyance by a holder of the number of
securities issuable upon exercise of such Warrant immediately prior to such
reclassification, change, consolidation, merger, sale or conveyance and shall
forthwith file at the Corporate Office of the Warrant Agent a statement signed
by its Chairman, Chief Executive Officer, President or a Vice President and by
its Treasurer or an Assistant Treasurer or its Secretary or an Assistant
Secretary evidencing such provision. Such provisions shall include provision
for adjustments which shall be as nearly equivalent as may be practicable to
the adjustments provided for in Sections 8.1 and 8.2 herein. The above
provisions of this Section 8.3 shall similarly apply to successive
reclassifications and changes of shares of Common Stock and to successive
consolidations, mergers, sales or conveyances.

     8.5   Irrespective of any adjustments or changes in the Exercise Price or
the number of shares of Common Stock purchasable upon exercise of the Warrants,
the Warrant Certificates theretofore and thereafter issued shall, unless the
Company shall exercise its option to issue new Warrant Certificates pursuant to
2.4 hereof, continue to express the Exercise Price per share and the number of
shares purchasable thereunder as the Exercise Price per share and the number of
shares purchasable thereunder were expressed in the Warrant Certificates when
the same were originally issued.

     8.6   The Company shall cause a brief summary of the certificate furnished
to the Warrant Agent pursuant to Section 8.3 or 8.4 herein to be sent by
ordinary first class mail to each Registered Holder at his last address as it
shall appear on the registry books of the Warrant Agent. No failure to mail
such notice nor any defect therein or in the mailing thereof shall affect the
validity thereof except as to the holder to whom the Company failed to mail
such notice, or except as to the holder whose notice was defective. The
affidavit of an officer of the Warrant Agent or the Secretary or an Assistant
Secretary of the Company that such notice has been mailed shall, in the absence
of fraud, be prima facie evidence of the facts stated therein.

     8.7   Notwithstanding any other provision of this Section 8, no adjustment
of the exercise price shall be made unless such adjustment would require an
increase or decrease of at least 5% in the Exercise Price, provided that any
adjustment that by reason of this Paragraph 8.7 is not required to be made
shall be carried forward and shall be made at the time of and together with
that next subsequent adjustment that, together all adjustment so carried
forward, shall require an increase or decrease of at least 5% in the Exercise
Price then in effect.

11

 

     SECTION 9.   REDEMPTION.

     9.1   Except for the Representative’s Warrants, upon the resolution of its
Board of Directors, the Company may, but shall not be required to, call for
redemption all of the Warrants at any time, provided: (i) the Company provides
to each Registered Holder of Warrants to be redeemed 30 days’ prior written
notice, (ii) the average closing price or bid price of the Common Stock, as
reported by the principal exchange on which the Common Stock is traded
(currently the American Stock Exchange), The Nasdaq Stock Market, Inc., the OTC
Bulletin Board or the Pink Sheet LLC, as the case may be, equals or exceeds
200% of the then applicable Exercise Price for 20 consecutive trading days
ending within 15 trading days prior to the date of issuance of the notice of
redemption and (iii) there is then a effective registration statement, which
may be the Registration Statement (the “Redemption Registration Statement”),
and a current prospectus covering the offer and sale of the Warrant Stock upon
the exercise of the Warrants. In such an event, the Company shall cause to be
filed with the Warrant Agent a certified copy of such resolution and a form of
notice of redemption, and the Warrant Agent shall mail to each of the
Registered Holders of the Warrants to be redeemed, by first class mail, postage
prepaid, to his last address appearing on the records of the Warrant Agent,
such notice of redemption. The notice of redemption shall identify the Warrants
to be redeemed, state the Redemption Date, the Redemption Price, and the date
upon which the Registered Holder’s right to exercise the Warrants will
terminate, and describe the manner in which Warrant Certificates are to be
surrendered. Any notice mailed in the manner provided herein shall be
conclusively presumed to have been duly given whether or not the Registered
Holder receives such notice. Failure to mail notice to any Registered Holder
shall not affect the validity of any other redemptions for which notice had
been duly provided.

     9.2   On or before the Redemption Date, each Registered Holder of Warrants
to be redeemed, unless he has previously exercised or will exercise such
Warrants on or before the Redemption Date, shall surrender the Warrant
Certificates representing such Warrants to the Warrant Agent. The Warrants to
be redeemed shall be exercisable up to and including the date immediately
preceding the Redemption Date. Upon receipt of such Warrant Certificates, the
Warrant Agent, as paying agent, shall pay the Redemption Price for such
Warrants to the order of the Registered Holders thereof. Any Warrants so
redeemed will be canceled by the Warrant Agent upon receipt. After the
Redemption Date, all rights with respect to such Warrants shall cease, except
for the right to receive the Redemption Price.

     9.3   Upon or prior to the Redemption Date, the Company shall deposit in
trust with the Warrant Agent a sum equal to the Redemption Price of all
Warrants called for redemption, with irrevocable instructions and authority to
the Warrant Agent to pay, on and after the Redemption Date, the Redemption
Price to the Registered Holders upon the surrender of the Warrant Certificates.
The deposit shall constitute full payment of the Warrants to the Registered
Holders, and from and after the later of (i) date of the deposit and (ii) the
Redemption Date, the Warrants shall be deemed to be no longer outstanding. The
balance of the deposit remaining unclaimed at the end of six months after the
Redemption Date shall be released by the Warrant Agent to the Company, after
which the holders of Warrants called for redemption shall be entitled to
receive payment of the Redemption Price only from the Company.

12

 

     9.4   If the Redemption Registration Statement is other than the Unit
Offering Registration Statement, the Company shall indemnify the Representative
and each person, if any, who controls the Representative within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act, against
all loss, claim, damage, expense or liability (including all expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which any of them may become subject under the Securities Act,
the Exchange Act or otherwise, arising from the Redemption Registration
Statement to the same extent and with the same effect (including the provisions
regarding contribution) as the provisions pursuant to which the Company has
agreed to indemnify the Representative with respect to the Unit Offering
Registration Statement as provided in Section [______] of the Underwriting
Agreement.

     9.5   No less than five trading days prior to the Redemption Date, the
Company shall furnish to the Representative (i) opinions of counsel to the
Company, dated such date and addressed to the Representative, and (ii) a “cold
comfort” letter dated such date addressed to the Representative, signed by the
independent public accountants who have issued a report on the Company’s
financial statements included in the Redemption Registration Statement, in each
case covering substantially the same matters with respect to the Redemption
Registration Statement (and the prospectus included therein) and, in the case
of such accountants’ letter, with respect to events subsequent to the date of
such financial statements, as are customarily covered in opinions of issuer’s
counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities, including, without limitation, those matters
covered in Sections [______] and [______] of the Underwriting Agreement.

     9.6   The Company shall as soon as practicable after the Redemption Date,
and in any event within 15 months thereafter, make “generally available to its
security holders” (within the meaning of Rule 158 under the Act) an earnings
statement (which need not be audited) complying with Section 11(a) of the Act,
and Rule 158 thereunder, and covering a period of at least 12 consecutive
months beginning after the Redemption Date.

     9.7   The Company shall deliver, within five trading days prior to the
Redemption Date, copies of all correspondence between the Commission and the
Company, its counsel or auditors and all memoranda relating to discussions with
the Commission or its staff with respect to the Redemption Registration
Statement and permit the Representative to do such investigation, upon
reasonable advance notice, with respect to information contained in or omitted
from the Redemption Registration Statement as it deems reasonably necessary to
comply with applicable securities laws or rules of the NASD. Such investigation
shall include access to books, records and properties and opportunities to
discuss the business of the Company with its officers and independent auditors,
all to such reasonable extent and at such reasonable times and as often as the
Representative shall reasonably request.

     SECTION 10.   CONCERNING THE WARRANT AGENT.

     10.1   The Warrant Agent acts hereunder as agent and in a ministerial
capacity for the Company, and its duties shall be determined solely by the
provisions hereof. The Warrant Agent shall not, by issuing and delivering
Warrant Certificates or by any other act hereunder, be deemed to make any
representations as to the validity, value or authorization of the Warrant

13

 

Certificates or the Warrants represented thereby or of any stock or other
property delivered upon exercise of the Warrants or whether any such stock is
fully paid and non-assessable. The Warrant Agent shall not at any time be under
any duty or responsibility to the holders of the Warrant Certificates to make
or cause to be made any adjustment of the Exercise Price provided in this
Agreement, or to determine whether any fact exists which may require any such
adjustments, or with respect to the nature or extent of any such adjustment,
when made, or with respect to the method employed in making the same. The
Warrant Agent shall not (i) be liable for any recital or statement of fact
contained herein or for any action taken, suffered, or omitted by it in
reliance on any Warrant Certificate or other document or instrument believed by
it in good faith to be genuine and to have been signed or presented by the
proper party or parties, (ii) be responsible for any failure on the part of the
Company to comply with any of its covenants and obligations contained in this
Agreement or the Warrant Certificates, or (iii) be liable for any act or
omission in connection with this Agreement, except for its own negligence or
willful misconduct.

     10.2   The Warrant Agent may at any time consult with counsel satisfactory
to it (who may be counsel for the Company) and shall incur no liability or
responsibility for any action taken, suffered, or omitted by it in good faith
in accordance with the opinion or advice of such counsel, other than as
specified in clause (iii) of Section 10.1 herein.

     10.3   Any notice, statement, instruction, request, direction, order, or
demand of the Company to the Warrant Agent hereunder shall be sufficiently
evidenced by an instrument signed by the Chairman, President, a Vice President,
the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer
(unless other evidence in respect thereof is herein specifically prescribed).
The Warrant Agent shall not be liable for any action taken, suffered, or
omitted by it in accordance with such notice, statement, instruction, request,
direction, order or demand reasonably believed by the Warrant Agent to be
genuine and to have been signed, sent or presented by the proper parties or
party.

     10.4   The Company agrees to pay the Warrant Agent reasonable compensation
for its services hereunder and to reimburse it for its reasonable expenses
hereunder. The Company further agrees to indemnify the Warrant Agent and save
it harmless against any and all losses, expenses, and liabilities, including
judgments, costs, and reasonable counsel fees, for anything done or omitted by
the Warrant Agent in the execution of its duties and powers hereunder, except
losses, expenses, and liabilities arising as a result of the Warrant Agent’s
own negligence or willful misconduct.

     10.5   The Warrant Agent may resign its duties and be discharged from all
further duties and liabilities hereunder (except liabilities arising as a
result of the Warrant Agent’s own negligence or willful misconduct) upon the
appointment by the Company of a successor Warrant Agent (the “Successor Warrant
Agent”). If the Warrant Agent notifies the Company of its intent to resign,
the Company shall use its best efforts to appoint a Successor Warrant Agent.
If the Company shall fail to make an appointment within a period of 60 days
after it has been notified in writing of such resignation or after such removal
by the resigning Warrant Agent, then the then the Warrant Agent may apply to
any court of competent jurisdiction for the appointment of a Successor Warrant
Agent. Any Succession Warrant Agent, whether appointed by the Company or by a
court, shall be a bank or trust company having a capital and surplus, as shown
by its last published report to its stockholders, of not less that $10,000,000,
or shall be a

14

 

registered transfer agent under the Exchange Act. Any Successor Warrant
Agent appointed hereunder shall execute, acknowledge and deliver to the Warrant
Agent then in office, and to the Company, an instrument accepting such
appointment under substantially the same terms and conditions as are contained
herein. After acceptance in writing of such appointment by the Successor
Warrant Agent is received by the Company, the Successor Warrant Agent shall be
vested with the same powers, rights, duties, and responsibilities as if it
originally had been named herein as the Warrant Agent, without any further
assurance, conveyance, act, or deed; but if for any reason it shall be
necessary or expedient for the former Warrant Agent to execute and deliver any
further assurance, conveyance, act, or deed, the same shall be executed and
delivered by the former Warrant Agent, at the expense of the Company. Not
later than 15 days after effective date of any such appointment, the Successor
Warrant Agent shall cause notice of the appointment of the Successor Warrant
Agent to be mailed to the Registered Holders of the outstanding Warrants;
however, the failure to mail such notice, or any defect contained therein,
shall not affect the legality or validity of the appointment of the Successor
Warrant Agent.

     10.6   Any corporation into which the Warrant Agent or any Successor Warrant
Agent may be merged, or any corporation resulting from any consolidation to
which the Warrant Agent or any Successor Warrant Agent shall be a party, or any
corporation succeeding to the corporate trust business of the Warrant Agent or
any Successor Warrant Agent shall be a successor warrant agent under this
Agreement without any further act, provided that such corporation is eligible
for appointment as successor to the Warrant Agent under the provisions of the
preceding paragraph. Any such successor Warrant Agent promptly shall cause
notice of its succession as Warrant Agent to be mailed to the Company and to
the Registered Holder of each Warrant Certificate then outstanding.

     10.7   The Warrant Agent, its subsidiaries and affiliates, and any of its or
their officers or directors, may buy and hold or sell the Warrants or other
securities of the Company and otherwise deal with the Company in the same
manner and to the same extent and with like effect as though it were not
Warrant Agent. Nothing herein shall preclude the Warrant Agent from acting in
any other capacity for the Company or for any other legal entity.

     SECTION 11.   NOTICES.

     11.1   Except for notices with respect to Warrant exercises, which are
governed by Section 4 herein, all notices, requests, consents, and other
communications hereunder shall be in writing, may be given by hand delivery,
first class mail, postage prepaid, or by facsimile transmission, and shall be
deemed to have been made when delivered by hand, when deposited in the mail or
when received by facsimile transmission:

           (i)   if to the Registered Holder of a Warrant Certificate, at the address
of such Registered Holder as shown on the registry books maintained by the
Warrant Agent; or

           (ii)   if to the Company, at 300 Professional Drive, Gaithersburg, Maryland
20879 to the attention of the President, or at such other address as may have
been furnished to the Warrant Agent or the Representative by the Company; or

15

 

           (iii)   if to the Warrant Agent, at its Business Office; or

           (iv)   if to the Representative, at Roan/Meyers Associates, L.P., 17 State
Street, New York, New York 10004, or at such other address as may have been
furnished to the Company or the Warrant Agent by the Representative, with a
copy to Morrison Cohen Singer & Weinstein, LLP, 750 Lexington Avenue, New York,
New York 10022, Attn.: Robert H. Cohen, Esq.

     11.2   All written notices required or desired to be given to the Registered
Holders by the Company pursuant to this Agreement shall be effected by the
Company providing to the Warrant Agent a copy of the written notice which the
Company is desirous of giving to the Registered Holders and the Warrant Agent
shall cause same to be delivered to such Registered Holders. The Company hereby
agrees that the Warrant Agent shall not have any liability for, and agrees to
indemnify the Warrant Agent with respect to, any written notice provided by the
Company to the Warrant Agent for delivery to Registered Holders, except with
respect to the Warrant Agent’s negligence for failing to deliver said notices.

     SECTION 12.   GOVERNING LAW.

     This Agreement shall be construed in accordance with and governed by the
laws of the State of New York, excluding the choice of law provisions thereof.

     SECTION 13.   BINDING EFFECT.

     This Agreement shall be binding upon and inure to the benefit of the
Company, the Warrant Agent, the Underwriters, and their respective successors,
and each of the Registered Holders from time to time of the Warrant
Certificates, or any of them. Nothing in this Agreement is intended or shall be
construed to confer upon any other person any right, remedy, or claim or to
impose upon any other person any duty, liability, or obligation.

     SECTION 14.   AMENDMENT

     The Warrant Agent may, without the consent or concurrence of the holders
of the Warrants, by supplemental agreement or otherwise, concur with the
Company in making and changes in, or corrections to, this Agreement that the
Warrant Agent shall have been advised by counsel (who may be counsel to the
Company) are necessary or desirable to cure any ambiguity or to correct any
defective or inconsistent provision, any clerical omission or mistake or any
manifest error herein contained, or to make any other provisions in regard to
matters or questions arising hereunder that are not inconsistent with the
provisions of the Warrants and do not adversely affect the rights of the
holders of the Warrants.

     SECTION 15.   TERMINATION.

     This Agreement shall terminate at the close of business on the Expiration
Date, or such earlier date upon which all Warrants have been exercised, except
that the Warrant Agent shall account to the Company for cash held by it and the
indemnity provisions of Section 10.4 and Section 11.2 herein shall survive such
termination.

16

 

     SECTION 16.   ENTIRE AGREEMENT

     This Agreement contain the entire agreement and understanding among the
parties hereto with respect to the matters herein, supercedes any and all other
agreement among the parties hereto relating to such matters, and, except as
otherwise provided in Section 14 herein, may be modified or amended only by a
written agreement signed by the parties hereto.

     SECTION 17.   DESCRIPTIVE HEADINGS

     The heading of the several sections of the Agreement are inserted for
convenience of reference only and shall not control or affect the meaning or
construction of any of the provisions thereof.

     SECTION 18.   COUNTERPARTS

     This Agreement may be executed in two or more counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all
such counterparts taken together shall constitute one and the same instrument.

     SECTION 19.   EXECUTION.

     This Agreement may be executed in several counterparts which taken
together shall constitute a single document.

17

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

	 	 
	 	ANTEX BIOLOGICS INC.
	 	 
	 	By:__________________
	 	      Name:
	 	      Title:
	 	 
	 	AMERICAN STOCK TRANSFER & TRUST

COMPANY
	 	 
	 	By:__________________
	 	      Name:
	 	      Title:
	 	 
	 	ROAN/MEYERS ASSOCIATES, L.P.
	 	 
	 	By:  MEYERS/JANSSEN SECURITIES

CORP., its General Partner
	 	 
	 	By:__________________
	 	      Name:
	 	      Title:

18

 

EXHIBIT A

[FORM OF FACE OF WARRANT CERTIFICATE]

______Warrants

VOID AFTER _____ , 2007

WARRANT CERTIFICATE FOR PURCHASE

OF COMMON STOCK

ANTEX BIOLOGICS INC.

     This certifies that FOR VALUE RECEIVED ______or
registered assigns (the “Registered Holder”) is the owner of the number of
Warrants (“Warrants”) specified above. Each Warrant represented hereby
initially entitles the Registered Holder to purchase, subject to the terms and
conditions set forth in this Warrant Certificate and the Warrant Agreement (as
hereinafter defined), one fully paid and nonassessable share of common stock,
par value $0.01 per share (“Common Stock”), of ANTEX BIOLOGICS INC. a Delaware
corporation (the “Company”), at any time prior to the Expiration Date (as
hereinafter defined), unless the Warrants are earlier redeemed, upon the
presentation and surrender of this Warrant Certificate with the Subscription
Form on the reverse hereof duly executed, at the corporate office of American
Stock Transfer & Trust Company, the warrant agent, or its successor (the
“Warrant Agent”), accompanied by payment of $[______] (the “Exercise Price”) per
share of Common Stock in lawful money of the United States of America in cash
or by official bank or certified check made payable to ANTEX BIOLOGICS INC.,
Special Account.

     This Warrant Certificate and each Warrant represented hereby are issued
pursuant to and are subject in all respects to the terms and conditions set
forth in the Warrant Agreement (the “Warrant Agreement”), dated ______, 2002
by and among the Company, the Warrant Agent and Roan/Meyers Associates, L.P.

     In the event of certain contingencies provided for in the Warrant
Agreement, the Exercise Price and the number of shares of Common Stock subject
to purchase upon the exercise of each Warrant represented hereby are subject to
modification or adjustment. Each Warrant represented hereby is exercisable at
the option of the Registered Holder, but no fractional shares of Common Stock
will be issued. In the case of the exercise of less than all the Warrants
represented hereby, the Company shall cancel this Warrant Certificate upon the
surrender hereof and shall execute, and cause the Warrant Agent to countersign
and deliver, a new Warrant Certificate of like tenor for the balance of such
Warrants.

     The term “Expiration Date” shall mean 5:00 P.M. (New York time) on
______, 2007 If such date shall in the State of New York be a holiday or a
day on which banks are authorized to close, then the Expiration Date shall mean
5:00 P.M. (New York time) the next following day which in the State of New York
is not a holiday or a day on which banks are authorized to close.

 

 

     The Company shall not be obligated to deliver any securities pursuant to
the exercise of the Warrants represented hereby unless a registration statement
under the Securities Act of 1933, as amended, with respect to such securities
is effective. The Company has covenanted and agreed that it will file a
registration statement and will use its best efforts to cause the same to
become effective and to keep such registration statement current while any of
the Warrants are outstanding. The Warrants represented hereby shall not be
exercisable by a Registered Holder in any state where such exercise would be
unlawful.

     This Warrant Certificate is exchangeable, upon the surrender hereof by the
Registered Holder at the business office of the Warrant Agent, for a new
Warrant Certificate or Warrant Certificates of like tenor representing an equal
aggregate number of Warrants, each of such new Warrant Certificates to
represent such number of Warrants as shall be designated by such Registered
Holder at the time of such surrender.

     Prior to the exercise of any Warrant represented hereby, the Registered
Holder shall not be entitled to any rights of a stockholder of the Company,
including, without limitation, the right to vote or to receive dividends or
other distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided in the Warrant Agreement.

     The Warrants represented hereby may be redeemed at the option of the
Company, at a redemption price of $0.001 per Warrant at any time after the
effective date of a registration statement filed by the Company registering
under the Securities Act of 1933, as amended, the shares of Common Stock
issuable upon exercise the Warrants; provided the market price (as defined in
the Warrant Agreement) for the Common Stock shall exceed $[______] per
share for a consecutive 20 trading-day period ending within 15 trading days
prior to the date on which the notice of redemption is given. Notice of
redemption shall be given not later than the 30th day before the date fixed for
redemption, all as provided in the Warrant Agreement. The Warrants will cease
to be exercisable at 5:00 p.m. (New York time) on the business day preceding
the date fixed for redemption. On and after the date fixed for redemption, the
Registered Holder shall have no rights with respect to the Warrants represented
hereby except to receive the $0.001 per Warrant upon surrender of this Warrant
Certificate.

     Prior to due presentment for registration of transfer hereof, the Company
and the Warrant Agent may deem and treat the Registered Holder as the absolute
owner hereof and of each Warrant represented hereby (notwithstanding any
notations of ownership or writing hereon made by anyone other than a duly
authorized officer of the Company or the Warrant Agent) for all purposes and
shall not be affected by any notice to the contrary.

     This Warrant Certificate shall be governed by and construed in accordance
with the laws of the State of New York.

     This Warrant Certificate is not valid unless countersigned by the Warrant
Agent.

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed, manually or in facsimile, by an officer of the Company thereunto
duly authorized and a facsimile of its corporate seal to be imprinted hereon.

	 	 	 
	 	 	
ANTEX BIOLOGICS INC.
	Dated: _________	 	
By: __________________
	 	 	      
Name:
	 	 	      
Title:

[seal]

Countersigned:

	 
	American Stock Transfer & Trust Company
	          as Warrant Agent

	 
	By: ______________________
	               Authorized Officer

 

 

[FORM OF REVERSE OF WARRANT CERTIFICATE]

SUBSCRIPTION FORM

To Be Executed by the Registered Holder

in Order to Exercise Warrants

     The undersigned Registered Holder hereby irrevocably elects to exercise
______Warrants represented by this Warrant Certificate, and to purchase the
securities issuable upon the exercise of such Warrants, and requests that
certificates for such securities shall be issued in the name of

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

[please print or type name and address]

and be delivered to

[please print or type name and address]

and if such number of Warrants shall not be all the Warrants evidenced by this
Warrant Certificate, that a new Warrant Certificate for the balance of such
Warrants be registered in the name of, and delivered to, the Registered Holder
at the address stated below.

	 	 	 	 	 
	Dated:______	 	 	 	X _________________________
	 	 	 	 	___________________________
	 	 	 	 	___________________________
	 	 	 	 	___________________________
	 	 	 	 	Address
	 	 	 	 	___________________________
	 	 	 	 	Taxpayer Identification Number
	 	 	 	 	___________________________
	 	 	 	 	Signature Guaranteed

___________________________

 

 

ASSIGNMENT

To Be Executed by the Registered Holder

in Order to Assign Warrants

FOR VALUE RECEIVED, ______hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

[please print or type name and address]

______of the Warrants represented by this Warrant Certificate, and
hereby irrevocably constitutes and appoints ____________

____________Attorney to transfer this Warrant Certificate
on the books of the Company, with full power of substitution in the premises.

	 	 	 
	Dated: ____________	 	
X ________________________
	 	 	
              Signature Guaranteed

THE SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE
GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE
AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE.

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