Document:

exv4w1

Exhibit 4.1

WARRANT AGREEMENT

     This
Warrant Agreement made as of May 21, 2010, is between RegeneRx Biopharmaceuticals, Inc.,
a Delaware corporation, with offices at 15245 Shady Grove Road, Suite 470, Rockville, MD 20850 (the
“Company”), and American Stock Transfer & Trust Company, LLC, with offices at 6201 15th Avenue,
Brooklyn, NY (the “Warrant Agent”).

     WHEREAS, the Company is engaged in a public offering of units, each unit comprised of one
share of Common Stock (as defined below) and 0.4 Warrants (as defined below) and, in connection
therewith, has determined to issue and deliver up to 13,225,000 warrants (the “Warrants”) to the
investors in the public offering, each Warrant evidencing the right of the holder thereof to
purchase one share of the Company’s common stock, par value $0.001 per share (the “Common Stock”),
for $0.56, subject to adjustment as described herein;

     WHEREAS, the Company has filed with the Securities and Exchange Commission a registration
statement on Form S-3 (File No. 333-166146) (the “Registration Statement”), for the registration
under the Securities Act of 1933, as amended (the “Act”), of, among other securities, the Warrants
and the Common Stock issuable upon exercise of the Warrants;

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, registration, transfer,
exchange, redemption and exercise of the Warrants;

     WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms
upon which they shall be issued and exercised, and the respective rights, limitation of rights and
immunities of the Company, the Warrant Agent and the holders of the Warrants; and

     WHEREAS, all acts and things have been done and performed which are necessary to make the
Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant
Agent, as provided herein, the legally valid and binding obligations of the Company, and to
authorize the execution and delivery of this Warrant Agreement.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

     1. Appointment of Warrant Agent. The Company hereby appoints the Warrant
Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts such
appointment and agrees to perform the same in accordance with the terms and conditions set forth in
this Warrant Agreement.

     2. Warrants.

          2.1 Form of Warrant. Each Warrant shall be (a) issued in registered form
only, (b) in substantially the form of Exhibit A attached hereto, the provisions of which
are incorporated herein, and (c) signed by, or bear the facsimile signature of, (i) the Chairman of
the Board, the Chief Executive Officer or the President, and (ii) the Treasurer, Secretary or
Assistant

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Secretary of the Company. In the event a person whose facsimile signature has been placed upon
any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant
before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased
to be such at the date of issuance.

          2.2 Effect of Countersignature. Unless and until countersigned by the
Warrant Agent pursuant to this Warrant Agreement, a Warrant shall be invalid and of no effect and
may not be exercised by the holder thereof. Warrant certificates shall be dated the date of
countersignature by the Warrant Agent.

          2.3 Registration.

               2.3.1
Warrant Register. The Warrant Agent shall maintain books (“Warrant
Register”), for the registration of the original issuance and transfers of the Warrants. Upon the
initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the
names of the respective holders thereof in such denominations and otherwise in accordance with
instructions delivered to the Warrant Agent by the Company.

               2.3.2 Registered Holder. Prior to due presentment for registration of
transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose
name such Warrant shall be registered upon the Warrant Register (“Registered Holder”), as the
absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any
notation of ownership or other writing on the warrant certificate made by anyone other than the
Company or the Warrant Agent), for the purpose of any exercise thereof, and for all other purposes,
and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

     3. Terms and Exercise of Warrants.

          3.1
Warrant Price. Each whole Warrant shall, when countersigned by the
Warrant Agent, entitle the Registered Holder thereof, subject to the provisions of such Warrant and
of this Warrant Agreement, to purchase from the Company one share of Common Stock, at the price of
$0.56 per whole share, subject to the adjustments provided in Section 4 hereof and in the last
sentence of this Section 3.1. The term “Warrant Price” as used in this Warrant Agreement refers to
the price per share at which Common Stock may be purchased at the time a Warrant is exercised. The
Company, in its sole discretion, may lower the Warrant Price at any time prior to the Expiration
Date (as defined below); provided, that any such reduction shall be identical in percentage terms
among all of the Warrants; and provided, further, that in no event shall the Warrant Price be
reduced below the par value of one share of Common Stock.

          3.2 Duration of Warrants. The Warrants will be exercisable until 5:00 p.m.,
New York City time, on the Expiration Date. For purposes of this Warrant Agreement, the
“Expiration Date” shall mean the earlier to occur of
(i) May 21, 2015, or (ii) the date fixed for
redemption of the Warrants as provided in Section 6 of this Warrant Agreement. Except with respect
to the right to receive the Redemption Price (as set forth in Section 6 hereunder), each Warrant
not exercised on or before the Expiration Date shall become void, and all rights

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thereunder and all rights in respect thereof under this Warrant Agreement shall cease at the
close of business on the Expiration Date. The Company may extend the duration of the Warrants by
delaying the Expiration Date; provided, however, that the Company will provide notice of any such
extension to each registered holder of the Warrants, at the last address for such holder as set
forth in the Warrant Register, not less than twenty (20) days prior to the Expiration Date then in
effect.

          3.3 Exercise of Warrants.

               3.3.1 Payment. Subject to the provisions of the Warrant and this Warrant
Agreement, a Warrant, when countersigned by the Warrant Agent, may be exercised by the Registered
Holder thereof by surrendering it, at the office of the Warrant Agent, or at the office of its
successor as Warrant Agent, with the subscription form, as set forth in the Warrant, duly executed,
and by paying in full, in lawful money of the United States, by certified check made payable to the
Company or by wire transfer of immediately available funds to an account designated by the Company
(or as otherwise agreed to by the Company), the Warrant Price for each full share of Common Stock
as to which the Warrant is exercised and any and all applicable taxes due in connection with the
exercise of the Warrant, the exchange of the Warrant for the Common Stock, and the issuance of the
Common Stock. In no event shall the Registered Holder of any Warrant be entitled to “net cash
settle” the Warrant.

               3.3.2 Issuance of Certificates. As soon as practicable after the exercise of
any Warrant and the clearance of the funds in payment of the Warrant Price for each full share of
Common Stock as to which the Warrant is exercised, the Company shall issue to the Registered Holder
of such Warrant a certificate or certificates representing the number of full shares of Common
Stock to which he, she or it is entitled, registered in such name or names as may be directed by
him, her or it, and, if such Warrant shall not have been exercised or surrendered in full, a new
countersigned Warrant for the number of shares as to which such Warrant shall not have been
exercised or surrendered. Subject to Section 7.4 and notwithstanding the foregoing, the Company
shall not be obligated to deliver any securities pursuant to the exercise of a Warrant unless (a) a
registration statement under the Act with respect to the Common Stock issuable upon exercise of
such Warrants is effective and a current prospectus relating to the shares of Common Stock issuable
upon exercise of the Warrants is available for delivery to the Warrant holders or (b) in the
opinion of counsel to the Company, the exercise of the Warrants is exempt from the registration
requirements of the Act and such securities are qualified for sale or exempt from qualification
under applicable securities laws of the states or other jurisdictions in which the Registered
Holder resides. Warrants may not be exercised by, or securities issued to, any Registered Holder in
any state in which such exercise or issuance would be unlawful. In the event a registration
statement under the Act with respect to the Common Stock underlying the Warrants is not effective
or a prospectus is not available, or because such exercise would be unlawful with respect to a
Registered Holder in any state, the Registered Holder shall not be entitled to exercise such
Warrants and such Warrants may have no value and expire worthless. In no event will the Company be
obligated to pay such Registered Holder any cash consideration upon exercise (except pursuant to
Section 4.5).

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               3.3.3 Valid Issuance. All shares of Common Stock issued upon the proper
exercise or surrender of a Warrant in conformity with this Warrant Agreement shall be validly
issued, fully paid and nonassessable.

               3.3.4 Date of Issuance. Each person or entity in whose name any such
certificate for shares of Common Stock is issued shall, for all purposes, be deemed to have become
the holder of record of such shares on the date on which the Warrant was surrendered and payment of
the Warrant Price for each full share of Common Stock as to which the Warrant is exercised was
made, irrespective of the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of business on the
next succeeding date on which the stock transfer books are open.

          3.4 Disposition of Proceeds on Exercise of Warrants. The Warrant Agent
shall promptly forward to the Company all monies received by the Warrant Agent for the purchase of
shares of Common Stock through the exercise of Warrants.

     4. Adjustments.

          4.1 Stock Dividends — Split-Ups. If, after the date hereof, and subject to
the provisions of Section 4.6 below, the number of outstanding shares of Common Stock is increased
by a stock dividend payable in shares of Common Stock, or by a split-up of shares of Common Stock,
or other similar event, then, on the effective date of such stock dividend, split-up or similar
event, the number of shares of Common Stock issuable on exercise of each Warrant shall be increased
in proportion to such increase in outstanding shares of Common Stock.

          4.2 Aggregation of Shares. If, after the date hereof, and subject to the
provisions of Section 4.6, the number of outstanding shares of Common Stock is decreased by a
consolidation, combination, reverse stock split or reclassification of shares of Common Stock or
other similar event, then, on the effective date of such consolidation, combination, reverse stock
split, reclassification or similar event, the number of shares of Common Stock issuable on exercise
of each Warrant shall be decreased in proportion to such decrease in outstanding shares of Common
Stock.

          4.3 Adjustments in Warrant Price. Whenever the number of shares of Common
Stock purchasable upon the exercise of the Warrants is adjusted, as provided in Sections 4.1 and
4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant
Price, immediately prior to such adjustment, by a fraction, (a) the numerator of which shall be the
number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to
such adjustment, and (b) the denominator of which shall be the number of shares of Common Stock so
purchasable immediately thereafter. Notwithstanding the foregoing or anything to the contrary
herein, in no event shall the Warrant Price be reduced below the par value of one share of Common
Stock.

          4.4 Extraordinary Dividends. If the Company, at any time prior to the
Expiration Date, shall pay a dividend in cash, securities or other assets to the holders of Common

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Stock (or other shares of the Company’s capital stock into which the Warrants are
convertible), other than (i) as described in Sections 4.1, 4.2 or 4.5 or (ii) regular quarterly or
other periodic dividends (any such non-excluded event being referred to herein as an “Extraordinary
Dividend”), then the Warrant Price shall be decreased, effective immediately after the effective
date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as
determined by the Company’s Board of Directors, in good faith) of any securities or other assets
paid on each share of Common Stock in respect of such Extraordinary Dividend.

          4.5 Replacement of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of Common Stock (other than a change
covered by Sections 4.1 or 4.2 hereof or one that solely affects the par value of such shares of
Common Stock), or, in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization of the outstanding
shares of Common Stock), or, in the case of any sale or conveyance to another corporation or entity
of the assets or other property of the Company as an entirety or substantially as an entirety, in
connection with which the Company is dissolved, the Warrant holders shall thereafter have the right
to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants
and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented thereby, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer,
that the Warrant holder would have received if such Warrant holder had exercised his, her or its
Warrant(s) immediately prior to such event; and if any reclassification also results in a change in
shares of Common Stock covered by Sections 4.1 or 4.2, then such adjustment shall be made pursuant
to Sections 4.1, 4.2, 4.3 and this Section 4.5. The provisions of this Section 4 shall similarly
apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other
transfers.

          4.6 Notices of Changes in Warrant. Upon every adjustment of the Warrant
Price or the number of shares issuable upon exercise of a Warrant, the Company shall give written
notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price
upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based. Upon the occurrence of any event specified in
Sections 4.1, 4.2, 4.3, 4.4 or 4.5 the Company shall give written notice to each Warrant holder, at
the last address set forth for such holder in the Warrant Register, of the record date or the
effective date of the event. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of such event.

          4.7 No Fractional Shares. Notwithstanding any provision contained in this
Warrant Agreement to the contrary, Warrants can only be exercised to the extent aggregated for
whole shares of Common Stock, and the Company shall not issue fractional shares upon exercise of
Warrants.

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          4.8 Form of Warrant. The form of Warrant need not be changed because of any
adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same
Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant
to this Warrant Agreement. However, the Company may, at any time, in its sole discretion, make any
change in the form of Warrant that the Company may deem appropriate and that does not affect the
substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or
substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

          4.9 Notice of Certain Transactions. In the event that the Company shall
propose to (a) offer the holders of its Common Stock rights to subscribe for or to purchase any
securities convertible into shares of Common Stock or shares of stock of any class or any other
securities, rights or options, (b) issue any rights, options or warrants entitling the holders of
Common Stock to subscribe for shares of Common Stock or (c) make a tender offer, redemption offer
or exchange offer with respect to the Common Stock, the Company shall send to the Warrant holders a
notice of such proposed action or offer. Such notice shall be mailed to the registered holders at
their addresses as they appear in the Warrant Register, which shall specify the record date for the
purposes of such offer or issuance of rights, or the date such issuance or event is to take place
and the last date for participation therein by the holders of Common Stock, if any such date has
been fixed, and shall briefly indicate the effect of such action on the Common Stock and on the
number and kind of any other shares of stock and on other property, if any, and the number of
shares of Common Stock and other property, if any, issuable upon exercise of each Warrant and the
Warrant Price after giving effect to any adjustment pursuant to this Article 4 which would be
required as a result of such action. Such notice shall be given as promptly as practicable after
the Board has determined to take any such action and (x) in the case of any action covered by
clause (a) or (b) above at least ten (10) days prior to the record date for determining the holders
of the Common Stock for purposes of such action or (y) in the case of any other such action at
least twenty (20) days prior to the date of the taking of such proposed action or the last date for
participation therein by the holders of Common Stock, whichever shall be the earlier.

          4.10 Other Events. If any event occurs as to which the foregoing provisions
of this Article 4 are not strictly applicable or, if strictly applicable, would not, in the good
faith judgment of the Board, fairly and adequately protect the purchase rights of the registered
holders of the Warrants in accordance with the essential intent and principles of such provisions,
then the Board shall make such adjustments in the application of such provisions, in accordance
with such essential intent and principles, as shall be reasonably necessary, in the good faith
opinion of the Board, to protect such purchase rights as aforesaid.

     5. Transfer and Exchange of Warrants.

          5.1 Registration of Transfer. The Warrant Agent shall register the transfer,
from time to time, of any outstanding Warrant into the Warrant Register, upon surrender of such
Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by
appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal
aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the

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Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the
Company from time to time upon the Company’s request.

          5.2 Procedure for Surrender of Warrants. Warrants may be surrendered to the
Warrant Agent, together with a written request for exchange or transfer, and, thereupon, the
Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the
Registered Holder of the Warrants so surrendered, representing an equal aggregate number of
Warrants; provided, however, that, in the event a Warrant surrendered for transfer bears a
restrictive legend, the Warrant Agent shall not cancel such Warrant and shall issue new Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for the Company
stating that such transfer may be made and indicating whether the new Warrants must also bear a
restrictive legend.

          5.3 Fractional Warrants. Following the initial issuance of the Warrants by
the Company, the Warrant Agent shall not be required to effect any registration of transfer or
exchange which will result in the issuance of a warrant certificate for a fraction of a warrant.
If the holder of any Warrant would be entitled, upon any such transfer or exchange, to receive a
fractional interest in a Warrant, the Warrant Agent shall, upon such transfer or exchange, round
down to a whole number of Warrants to be issued upon such transfer or exchange.

          5.4 Service Charges. No service charge shall be made for any exchange or
registration of transfer of Warrants.

          5.5 Warrant Execution and Countersignature. The Warrant Agent is hereby
authorized to countersign and to deliver, in accordance with the terms of this Warrant Agreement,
the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed
on behalf of the Company for such purpose.

     6. Redemption.

          6.1 Redemption. Subject to the penultimate and final sentences of this
Section 6.1, all, but not less than all, of the outstanding Warrants may be redeemed, at the option
of the Company, at any time after they become exercisable and prior to their expiration, at the
office of the Warrant Agent, upon the notice referred to in Section 6.2, in whole but not in part,
at the price of $0.01 per whole Warrant (“Redemption Price”), provided that the last sales price of
the Common Stock has been equal to or greater than $1.78 per share for any twenty (20) trading days
within a thirty (30) consecutive trading day period ending on the third business day prior to the
date on which notice of redemption is given. Notwithstanding anything to the contrary contained
herein, the Company shall not call the Warrants for redemption unless there is an effective
registration statement under the Act relating to the shares of Common Stock issuable upon exercise
of the Warrants current and available at the time of the notice required by Section 6.2 and at the
time of redemption.

          6.2 Date Fixed for, and Notice of, Redemption. In the event the Company
shall elect to redeem all of the Warrants, the Company shall fix a date for the redemption. Notice

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of redemption shall be mailed by first class mail, postage prepaid, by the Company not less
than thirty (30) days prior to the date fixed for redemption to the Registered Holders of the
Warrants to be redeemed at their last addresses as they shall appear on the Warrant Register. Any
notice required to be given under this Warrant Agreement to the Registered Holder which is mailed
in the manner herein provided shall be conclusively presumed to have been duly given, whether or
not the Registered Holder received such notice.

          6.3 Exercise After Notice of Redemption. The Warrants may be exercised in
accordance with Section 3 of this Warrant Agreement at any time after notice of redemption shall
have been given by the Company pursuant to Section 6.2 hereof and prior to the time and date fixed
for redemption. On and after the redemption date, the record holder of the Warrants shall have no
further rights except to receive, upon surrender of the Warrants, the Redemption Price.

     7. Other Provisions Relating to Rights of Holders of Warrants.

          7.1 No Rights as Stockholder. A Warrant does not entitle the Registered
Holder thereof to any of the rights of a stockholder of the Company, including, without limitation,
the right to receive dividends, or other distributions, exercise any preemptive rights to vote or
to consent or to receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter.

          7.2 Lost, Stolen Mutilated or Destroyed Warrants. If any Warrant is lost,
stolen, mutilated or destroyed, the Company and the Warrant Agent may, on such terms as to
indemnity or otherwise as they may in their discretion impose (which terms shall, in the case of a
mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor
and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall
constitute a substitute contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

          7.3 Reservation of Common Stock. The Company shall at all times reserve and
keep available a number of its authorized but unissued shares of Common Stock that will be
sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this
Warrant Agreement.

          7.4 Registration of Common Stock. The Company will use its best efforts to
maintain the effectiveness of the Registration Statement, including by the filing of any required
post-effective amendments to such Registration Statement, and ensure that a prospectus is available
for delivery to the Warrant holders until the expiration of the Warrants in accordance with the
provisions of this Warrant Agreement. The Warrants shall not be exercisable and the Company shall
not be obligated to issue Common Stock unless, at the time a holder seeks to exercise Warrants, a
prospectus related to the Common Stock issuable upon exercise of the Warrants is current and the
Common Stock has been registered or qualified or deemed to be exempt under the laws of the state of
residence of the holder of the Warrants. In addition, the Company agrees to use its best efforts
to register such securities under the blue sky laws of the states of residence of exercising
warrant holders, if permitted by the blue sky laws of such

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jurisdictions, in the event that an exemption is not available; provided, however, that the
Company shall not be required to register or qualify in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general consent to service of
process in effecting such registration or qualification. The provisions of this Section 7.4 may
not be modified, amended or deleted without the prior written consent of Maxim Group LLC.

     8. Concerning the Warrant Agent and Other Matters.

          8.1 Payment of Taxes. The Company will, from time to time, promptly pay all
taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the
issuance or delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall
not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

          8.2 Resignation, Consolidation, or Merger of Warrant Agent.

               8.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any
successor to it hereafter appointed, may resign its duties and be discharged from all further
duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If
the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise,
the Company shall appoint, in writing, a successor Warrant Agent in place of the Warrant Agent. If
the Company shall fail to make such appointment within a period of thirty (30) days after it has
been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of
the Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the
Company), then the holder of any Warrant may apply to the Supreme Court of the State of New York
for the County of New York for the appointment of a successor Warrant Agent. Any successor Warrant
Agent, whether appointed by the Company or by such court, shall be a corporation organized and
existing under the laws of the State of New York, in good standing and have its principal office in
the Borough of Manhattan, City and State of New York, and be authorized under such laws to exercise
corporate trust powers and subject to supervision or examination by federal or state authorities.
After appointment, any successor Warrant Agent shall be vested with all the authority, powers,
rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect as if
originally named as Warrant Agent hereunder, without any further act or deed; but, if for any
reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and
deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and, upon
request of any successor Warrant Agent, the Company shall make, execute, acknowledge, and deliver
any and all instruments in writing for more fully and effectually vesting in and confirming to such
successor Warrant Agent all such authority, powers, rights, immunities, duties and obligations.

               8.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant
Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent
and the transfer agent for the Common Stock not later than the effective date of any such
appointment.

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               8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which
the Warrant Agent may be merged or with which it may be consolidated or any corporation resulting
from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Warrant Agreement without any further act on the part of the Company or
the Warrant Agent.

          8.3 Fees and Expenses of Warrant Agent.

               8.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable
remuneration for its services as Warrant Agent hereunder as set forth on Exhibit B hereto
and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may
reasonably incur in the execution of its duties hereunder.

               8.3.2 Further Assurances. The Company agrees to perform, execute,
acknowledge and deliver, or cause to be performed, executed, acknowledged and delivered, all such
further and other acts, instruments and assurances as may reasonably be required by the Warrant
Agent for the carrying out or performing of the provisions of this Warrant Agreement.

          8.4 Liability of Warrant Agent.

               8.4.1 Reliance on Company Statement. Whenever, in the performance of its
duties under this Warrant Agreement, the Warrant Agent shall deem it necessary or desirable that
any fact or matter be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a statement signed by the
Chief Executive Officer, Chief Financial Officer or Chairman of the Board of the Company and
delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken
or suffered in good faith by it pursuant to the provisions of this Warrant Agreement.

               8.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its
own negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent
and save it harmless against any and all liabilities, including judgments, costs and reasonable
counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant
Agreement, except as a result of the Warrant Agent’s negligence, willful misconduct or bad faith.

               8.4.3 Exclusions. The Warrant Agent shall have no responsibility with
respect to the validity of this Warrant Agreement or with respect to the validity or execution of
any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by
the Company of any covenant or condition contained in this Warrant Agreement or in any Warrant; nor
shall it be responsible to make any adjustments required under the provisions of Section 4 hereof
or responsible for the manner, method or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment; nor shall it, by any act hereunder, be
deemed to make any representation or warranty as to the authorization or reservation of any shares
of Common Stock to be issued pursuant to this Warrant Agreement or

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any Warrant or as to whether any shares of Common Stock will when issued be valid and fully
paid and nonassessable.

          8.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency
established by this Warrant Agreement and agrees to perform the same upon the terms and conditions
herein set forth and, among other things, shall account promptly to the Company with respect to
Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the
Warrant Agent for the purchase of shares of the Company’s Common Stock through the exercise of
Warrants.

     9. Miscellaneous Provisions.

          9.1 Successors. All the covenants and provisions of this Warrant Agreement
by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of
their respective successors and assigns.

          9.2 Notices. Any notice, statement or demand authorized by this Warrant
Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the
Company shall be delivered by hand or sent by registered or certified mail or overnight courier
service, addressed (until another address is filed in writing by the Company with the Warrant
Agent) as follows:

RegeneRx Biopharmaceuticals, Inc.

15245 Shady Grove Road, Suite 470

Rockville, MD 20850

Attn: Chief Executive Officer

Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the
holder of any Warrant or by the Company to or on the Warrant Agent shall be delivered by hand or
sent by registered or certified mail or overnight courier service, addressed (until another address
is filed in writing by the Warrant Agent with the Company), as follows:

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attn: Susan Silber

with a copy in each case to (which shall not constitute notice):

Cooley LLP

One Freedom Square

Reston Town Center

11951 Freedom Drive

Reston, VA 20190

Attn: Darren K. DeStefano, Esq.

- 11 -

 

Maxim Group LLC

405 Lexington Avenue

New York, NY 10174

Attn: David Strupp

Lowenstein Sandler PC

65 Livingston Avenue

Roseland, New Jersey 07068

Attn: Steven M. Skolnick, Esq.

Any notice, sent pursuant to this Warrant Agreement shall be effective, if delivered by hand, upon
receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next
business day of the delivery to the courier, and if sent by registered or certified mail on the
third day after registration or certification thereof.

          9.3 Applicable Law. The validity, interpretation, and performance of this
Warrant Agreement and of the Warrants shall be governed in all respects by the laws of the State of
New York, without giving effect to conflict of laws. The Company hereby agrees that any action,
proceeding or claim against it arising out of or relating in any way to this Warrant Agreement
shall be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be
served upon the Company may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 9.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding
upon the Company in any action, proceeding or claim.

          9.4 Persons Having Rights under this Warrant Agreement. Nothing in this
Warrant Agreement expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the parties hereto and the Registered Holders of the Warrants and, for the purposes of Sections
7.4, 9.2 and 9.8 hereof, the underwriters in the public offering, any right, remedy, or claim under
or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or
agreement hereof. Each underwriter in the public offering shall be deemed to be a third-party
beneficiary of this Warrant Agreement with respect to Sections 7.4, 9.2 and 9.8 hereof. All
covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement
shall be for the sole and exclusive benefit of the parties hereto (and the underwriters in the
public offering with respect to the Sections 7.4, 9.2 and 9.8 hereof) and their successors and
assigns and of the Registered Holders of the Warrants.

          9.5 Examination of the Warrant Agreement. A copy of this Warrant Agreement
shall be available at all reasonable times at the office of the Warrant Agent for inspection by the
Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit his, her
or its Warrant for inspection.

- 12 -

 

          9.6 Counterparts- Facsimile Signatures. This Warrant Agreement may be
executed in any number of counterparts, and each of such counterparts shall, for all purposes, be
deemed to be an original, and all such counterparts shall together constitute one and the same
instrument. Facsimile signatures shall constitute original signatures for all purposes of this
Warrant Agreement.

          9.7 Effect of Headings. The section headings herein are for convenience only
and are not part of this Warrant Agreement and shall not affect the interpretation thereof.

          9.8 Amendments.

               9.8.1 This Warrant Agreement and any Warrant certificate may be amended by the
parties hereto by executing a supplemental warrant agreement (a “Supplemental Agreement”), without
the consent of any of the Warrant holders, for the purpose of (i) curing any ambiguity, or curing,
correcting or supplementing any defective provision contained herein, or making any other
provisions with respect to matters or questions arising under this Warrant Agreement that is not
inconsistent with the provisions of this agreement or the Warrant certificates, (ii) evidencing the
succession of another corporation to the Company and the assumption by any such successor of the
covenants of the Company contained in this Warrant Agreement and the Warrants, (iii) evidencing and
providing for the acceptance of appointment by a successor Warrant Agent with respect to the
Warrants, (iv) adding to the covenants of the Company for the benefit of the Holders or
surrendering any right or power conferred upon the Company under this Agreement, or (viii) amending
this Warrant Agreement and the Warrants in any manner that the Company may deem to be necessary or
desirable and that will not adversely affect the interests of the Warrant holders in any material
respect.

               9.8.2 The Company and the Warrant Agent may amend this Warrant Agreement and the
Warrants by executing a Supplemental Agreement with the consent of the Holders of not fewer than a
majority of the unexercised Warrants affected by such amendment, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Warrant
Agreement or of modifying in any manner the rights of the Holders under this Warrant Agreement;
provided, however, that, without the consent of each of the Warrant holders affected thereby, no
such amendment may be made that (i) changes the Warrants so as to reduce the number of shares
purchasable upon exercise of the Warrants or so as to increase the Warrant Price (other than as
provided by Section 4), (ii) shortens the period of time during which the Warrants may be
exercised, (iii) otherwise adversely affects the exercise rights of the Holders in any material
respect, or (iv) reduces the number of unexercised Warrants the holders of which must consent for
amendment of this Warrant Agreement or the Warrants. Notwithstanding anything contained herein to
the contrary, Section 9 may be amended only by the parties hereto with the consent of Maxim Group
LLC. If requested by the Warrant Agent, the Company shall cause a legal opinion, covering such
matters as are customary in connection with such amendments, to be delivered to the Warrant Agent
upon execution of a Supplemental Agreement.

         
      9.8.3 The parties hereto acknowledge that each underwriters in the public offering
shall be an intended third party beneficiary of this Section 9.8.

- 13 -

 

          9.9 Severability. This Warrant Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect the validity or
enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in
lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there
shall be added as a part of this Warrant Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible and be valid and enforceable.

     IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties hereto as of
the day and year first above written.

	 	 	 	 	 
	 	REGENERX BIOPHARMACEUTICALS, INC.

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

	 	 	 	 	 
	 	AMERICAN STOCK TRANSFER &

TRUST COMPANY, LLC

 	 
	 	By:  	/s/
Herbert J. Lemmer 	 
	 	 	Name:  	Herbert J. Lemmer 	 
	 	 	Title:  	Vice President 	 

- 14 -

 

	 	 	 	 	 

EXHIBIT A

Form of Warrant

 

 

	 	 	 	 	 

	WARRANT NO.

	 	 	 	WARRANTS
	 
	 	 	 	 
	 

	 	THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR	 	 
	 

	 	TO 5:00 P.M. NEW YORK CITY
TIME, May 21, 2015	 	 

REGENERX BIOPHARMACEUTICALS, INC.

CUSIP
75886X 116

WARRANT

THIS CERTIFIES THAT, for value received

is the
registered holder of a Warrant or Warrants expiring May 21, 2015 (the “Warrant”) to purchase
one fully paid and non-assessable share of Common Stock, par value $0.001 per share (“Shares”), of
RegeneRx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), for each Warrant
evidenced by this Warrant Certificate. The Warrant entitles the holder thereof to purchase from
the Company such number of Shares of the Company at the price of
$0.56 per share, upon surrender of
this Warrant Certificate and payment of the Warrant Price (as defined below) at the office or
agency of the Warrant Agent, American Stock Transfer & Trust Company, LLC (such payment to be made
by certified check made payable to the Company or by wire transfer of immediately available funds
to an account designated by the Company), subject to the conditions set forth herein and in the
Warrant Agreement between the Company and the warrant agent named therein (the “Warrant
Agreement”). Notwithstanding anything else in this Warrant Certificate, or the Warrant Agreement,
no Warrant may be exercised unless at the time of exercise (i) a registration statement covering
the Warrant Shares to be issued upon exercise is effective under the Act and (ii) a prospectus
thereunder relating to the Warrant Shares is current. In no event shall the registered holder of
this Warrant be entitled to receive a net-cash settlement, shares of common stock or other
consideration in lieu of physical settlement in Shares of the Company. The Warrant Agreement
provides that upon the occurrence of certain events the Warrant Price and the number of Shares
purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be
adjusted. The term Warrant Price as used in this Warrant Certificate refers to the price per
Share at which Shares may be purchased at the time the Warrant is exercised.

     This Warrant will expire at the time and date first above written if it is not exercised prior
to such time and date by the registered holder pursuant to the terms of the Warrant Agreement or if
it is not redeemed by the Company prior to such time and date.

     No fraction of a Share will be issued upon any exercise of a Warrant. If the holder of a
Warrant would be entitled to receive a fraction of a Share upon any exercise of a Warrant, the
Company shall, upon such exercise, round up to the nearest whole number the number of Shares to be
issued to such holder.

     Upon any exercise of the Warrant for less than the total number of full Shares provided for
herein, there shall be issued to the registered holder hereof or his assignee a new Warrant
Certificate covering the number of Shares for which the Warrant has not been exercised.

     Warrant Certificates, when surrendered at the office or agency of the Warrant Agent by the
registered holder hereof in person or by attorney duly authorized in writing, may be exchanged in
the manner and subject to the limitations provided in the Warrant Agreement, but without payment of
any service charge, for another Warrant Certificate or Warrant Certificates of like tenor and
evidencing in the aggregate a like number of Warrants.

     Upon due presentment for registration of transfer of the Warrant Certificate at the office or
agency of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like tenor and
evidencing in the aggregate a like number of Warrants shall be issued to the transferee in exchange
for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without
charge except for any applicable tax or other governmental charge.

A-1

 

     The Company and the Warrant Agent may deem and treat the registered holder as the absolute
owner of this Warrant Certificate (notwithstanding any notation of ownership or other writing
hereon made by anyone), for the
purpose of any exercise hereof, of any distribution to the registered holder, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to
the contrary.

     This Warrant does not entitle the registered holder to any of the rights of a stockholder of
the Company.

     The Company reserves the right to call the Warrant prior to its exercise, with a notice of
call in writing to the holder of record of the Warrant, giving 30 days’ notice of such call at any
time while the Warrant is exercisable if the last sale price of the
Shares has been at least $1.78
per share on each of 20 trading days within a 30 trading day period ending on the third business
day prior to the date on which notice of such call is given. The call price of the Warrants is to
be $0.01 per Warrant. Any Warrant either not exercised or tendered back to the Company by the end
of the date specified in the notice of call shall be canceled on the books of the Company and have
no further value except for the $0.01 call price.

REGENERX BIOPHARMACEUTICALS, INC.

By:

	 	 	 

	President

	 	Assistant Secretary and Treasurer

COUNTERSIGNED:

     AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

(New York, NY)

AS WARRANT AGENT

By:

	 	 	 

	Authorized Signature
	 	 

 A-2

 

SUBSCRIPTION FORM

To Be Executed by the Registered Holder in Order to Exercise Warrants

The undersigned Registered Holder irrevocably elects to exercise    
                  Warrants
represented by this Warrant Certificate, and to purchase the shares of Common Stock issuable upon
the exercise of such Warrants, and requests that Certificates for such shares shall be issued in
the name of

 

(PLEASE TYPE OR PRINT NAME AND ADDRESS)

 

 

 

(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

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:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(SIGNATURE)

	 

	 	 	 	 
	 

	 	 	 	(ADDRESS)

	 

	 	 	 	
 
	 

	 	 	 	 
	 

	 	 	 	(TAX IDENTIFICATION NUMBER)

Signature Guaranteed:        
                    
             

THE SIGNATURE TO THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME 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 CHICAGO STOCK EXCHANGE.

ASSIGNMENT

To Be Executed by the Registered Holder in Order to Assign Warrants

For Value Received,         
                     
            hereby sell, assign, and transfer unto

 

(PLEASE TYPE OR PRINT NAME AND ADDRESS)

 

 

A-3

 

 

(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

and be delivered to

 

(PLEASE PRINT OR TYPE NAME AND ADDRESS)

      
               
                
    of the Warrants represented by this Warrant Certificate, and hereby
irrevocably constitute and appoint          
               
                 Attorney to transfer this Warrant
Certificate on the books of the Company, with full power of substitution in the premises.

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(SIGNATURE)

Signature Guaranteed:       
                   
               

THE SIGNATURE TO THE ASSIGNMENT OF THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME 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 CHICAGO STOCK
EXCHANGE.

A-4exv4w3

Exhibit 4.3

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS AND MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN
EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER
APPLICABLE SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

REGENERX BIOPHARMACEUTICALS, INC.

WARRANT

805,000 Common Shares

May 21, 2010

     This WARRANT (this “Warrant”) of RegeneRx Biopharmaceuticals, Inc., a corporation duly
organized and validly existing under the laws of the State of Delaware (the “Company”), is being
issued pursuant to that certain Underwriting Agreement, dated as of
May 17, 2010, by and between
the Company and Maxim Group LLC, the representative of the underwriters (the “Representative”)
relating to a firm commitment public offering (the
“Offering”) of an aggregate of 11,500,000 units,
each unit consisting of (i) one share of common stock, par value of $0.001 of the Company (each a
“Common Share” and collectively, the “Common
Shares”) and (ii) 0.4 Warrants to purchase one Common
Share.

     FOR VALUE RECEIVED, the Company hereby grants to Maxim Group LLC and its permitted successors
and assigns (collectively, the “Holder”) the right
to purchase from the Company up to 805,000
(eight hundred five thousand) Common Shares (such Common Shares underlying this Warrant, the “Warrant Shares”), at
a per share purchase price equal to $0.45 (the “Exercise Price”), subject to the terms,
conditions, and adjustments set forth below in this Warrant.

     1. Vesting of Warrant. This Warrant shall vest and become exercisable on the six (6)
month anniversary of the Base Date (the “Vesting Date”). For purposes of this Warrant, the “Base
Date” shall mean May 17, 2010. Except as otherwise provided for herein or as permitted by
applicable rules of the Financial Industry Regulatory Authority (“FINRA”), this Warrant shall not
be sold, transferred, assigned, pledged, or hypothecated prior to the Vesting Date.

     2. Expiration of Warrant. This Warrant shall expire on the five (5) year anniversary
of the Base Date (the “Expiration Date”).

 

 

     3. Exercise of Warrant. This Warrant shall be exercisable pursuant to the terms of
this Section 3.

          3.1 Manner of Exercise.

          (a) This Warrant is exercisable in whole or in part at any time and from time to time. Such
exercise shall be effectuated by submitting to the Company (either by delivery to the Company or by
facsimile transmission as provided in Section 12 hereof) a completed and duly executed Notice of
Exercise (substantially in the form attached as Exhibit A hereto) as provided in this
paragraph. The date such Notice of Exercise is faxed or delivered to the Company shall be the
“Exercise Date,” provided that the Holder of this Warrant tenders this Warrant Certificate to the
Company within five (5) Business Days thereafter. As used in this Warrant, “Business Day” shall
mean any day other than a Saturday, Sunday, or any day on which the major stock exchanges in New
York, New York are not open for business. The Notice of Exercise shall be executed by the Holder
of this Warrant and shall indicate the number of Warrant Shares then being purchased pursuant to
such exercise. Upon surrender of this Warrant Certificate, together with appropriate payment of the
Exercise Price for the Warrant Shares purchased, the Holder shall be entitled to receive a
certificate or certificates for the Common Shares so purchased. The Exercise Price may be paid in
a “cashless” or “cash” exercise or a combination thereof pursuant to Section 3.1(b) and Section
3.1(c) below.

          (b) If the Notice of Exercise form elects a “cashless” exercise, the Holder shall thereby be
entitled to receive a number of Common Shares determined as follows:

          X
= Y [(A – B)/A]

          where:

          X = the number of Warrant Shares to be issued to the Holder.

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

          A = the Fair Market Value

          B = the Exercise Price.

          For purposes of this Section 3.1(b), “Fair Market Value” shall be the closing price of the
Common Shares as reported by the OTC Bulletin Board, or if listed on a national securities exchange
or quoted on an automated quotation service, such national securities exchange or automated
quotation service, on the date immediately prior to the Exercise Date. If the Common Shares are
not then listed on a national stock exchange or quoted on the OTC Bulletin Board or such other
quotation system or association, the Fair Market Value of one Common Share as of the date of
determination, shall be as determined in good faith by the Board of Directors of the Company and
the Holder. If the Common Shares are not then listed on a national securities exchange, the OTC
Bulletin Board or such other quotation system or association, the Board of Directors of the Company
shall respond promptly, in writing, to an inquiry by the Holder prior to the exercise hereunder as
to the fair market value of an Common

2

 

Share as determined by the Board of Directors of the Company. In the event that the Board of
Directors of the Company and the Holder are unable to agree upon the fair market value, the Company
and the Holder shall jointly select an appraiser who is experienced in such matters. The decision
of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne
equally by the Company and the Holder.

          (c) If the Notice of Exercise form elects a “cash” exercise, the Exercise Price per Common
Share for the shares then being exercised shall be payable in cash or by certified or official bank
check.

          3.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the Business Day on which this Warrant
shall have been duly surrendered to the Company, and at such time the Holder in whose name any
certificate or certificates for Warrant Shares shall be issuable upon exercise as provided in
Section 3.3 hereof shall be deemed to have become the Holder or Holders of record thereof of the
number of Warrant Shares purchased upon exercise of this Warrant.

          3.3 Delivery of Common Share Certificates and New Warrant. As soon as reasonably
practicable after each exercise of this Warrant, in whole or in part, and in any event within five
(5) Business Days thereafter, the Company, at its expense (including the payment by it of any
applicable issue taxes), will cause to be issued in the name of and delivered to the Holder hereof
or, subject to Sections 9 and 10 hereof, as the Holder (upon payment by the Holder of any
applicable transfer taxes) may direct:

          (a) a certificate or certificates (with appropriate restrictive legends, as applicable) for
the number of duly authorized, validly issued, fully paid, and nonassessable Common Shares to which
the Holder shall be entitled upon exercise; and

          (b) in case exercise is in part only, a new Warrant document of like tenor, dated the date
hereof, for the remaining number of Warrant Shares issuable upon exercise of this Warrant after
giving effect to the partial exercise of this Warrant (including the delivery of any Warrant Shares
as payment of the Exercise Price for such partial exercise of this Warrant).

     4. Certain Adjustments. For so long as this Warrant is outstanding:

          4.1 Mergers or Consolidations. If at any time after the date hereof there shall be a
capital reorganization (other than a combination or subdivision of the Common Shares otherwise
provided for herein) resulting in a reclassification to or change in the terms of securities
issuable upon exercise of this Warrant (a “Reorganization”), or a merger or consolidation of the
Company with another corporation, association, partnership, organization, business, individual,
government or political subdivision thereof or a governmental agency (a “Person” or the “Persons”)
(other than a merger with another Person in which the Company is a continuing corporation and which
does not result in any reclassification or change in the terms of securities issuable upon exercise
of this Warrant or a merger effected exclusively for the purpose of changing the domicile of the
Company) (a “Merger”), then, as a part of such Reorganization or Merger, lawful provision and
adjustment shall be made so that the Holder shall thereafter be entitled to receive, upon exercise
of this Warrant, the number of shares of stock or any other

3

 

equity or debt securities or property receivable upon such Reorganization or Merger by a
holder of the number of Common Shares which might have been purchased upon exercise of this Warrant
immediately prior to such Reorganization or Merger. In any such case, appropriate adjustment shall
be made in the application of the provisions of this Warrant with respect to the rights and
interests of the Holder after the Reorganization or Merger to the end that the provisions of this
Warrant (including adjustment of the Exercise Price then in effect and the number of Warrant
Shares) shall be applicable after that event, as near as reasonably may be, in relation to any
shares of stock, securities, property or other assets thereafter deliverable upon exercise of this
Warrant. The provisions of this Section 4.1 shall similarly apply to successive Reorganizations
and Mergers.

          4.2 Splits and Subdivisions; Dividends. In the event the Company should at any time
or from time to time effectuate a split or subdivision of the outstanding Common Shares or pay a
dividend in or make a distribution payable in additional Common Shares or other securities or
rights convertible into, or entitling the holder thereof to receive, directly or indirectly,
additional Common Shares (hereinafter referred to as the “Common Share Equivalents”) without
payment of any consideration by such holder for the additional Common Shares or Common Shares
Equivalents (including the additional Common Shares issuable upon conversion or exercise thereof),
then, as of the applicable record date (or the date of such distribution, split or subdivision if
no record date is fixed), the per share Exercise Price shall be appropriately decreased and the
number of Warrant Shares shall be appropriately increased in proportion to such increase (or
potential increase) of outstanding shares; provided, however, that no adjustment shall be made in
the event the split, subdivision, dividend or distribution is not effectuated. Notwithstanding the
foregoing or anything else to the contrary herein, in no event shall the per share Exercise Price
be reduced below the par value of one Common Share or of such other securities as may be issued
upon exercise of the Warrant.

          Pursuant to the anti-dilution terms of this Section 4.2, provided that the public shareholders
are proportionally affected by such split or subdivision, dividend, distribution, or other similar
event, the Representative may receive a greater number of Warrant Shares or the per share Exercise
Price may be lower than originally contemplated by this Warrant. Additionally, the Representative
shall not have the right to accrue cash dividends prior to the exercise or conversion of the
Warrant.

          4.3 Combination of Shares. If the number of Common Shares outstanding at any time
after the date hereof is decreased by a combination of the outstanding Common Shares, the per share
Exercise Price shall be appropriately increased and the number of shares of Warrant Shares shall be
appropriately decreased in proportion to such decrease in outstanding shares.

          4.4 Adjustments for Other Distributions. In the event the Company shall declare a
distribution payable in securities of other Persons, evidences of indebtedness issued by the
Company or other Persons, assets (excluding cash dividends or distributions to the holders of
Common Stock paid out of current or retained earnings and declared by the Company’s Board of
Directors) or options or rights not referred to in Sections 4.1, 4.2, or 4.3, then, in each such
case for the purpose of this Section 4.4, upon exercise of this Warrant, the Holder shall be
entitled to a proportionate share of any such distribution as though the Holder was the actual
record holder of

4

 

the number of Warrant Shares as of the record date fixed for the determination of the holders
of Common Shares of the Company entitled to receive such distribution.

     5. No Impairment. The Company will not, by amendment of its certificate of
incorporation or by-laws or through any consolidation, Merger, Reorganization, transfer of assets,
dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all of the terms and in the taking of all actions necessary or
appropriate to protect the rights of the Holder against impairment.

     6. Chief Financial Officer’s Report as to Adjustments. With respect to each
adjustment pursuant to Section 4 of this Warrant, the Company, at its expense, will promptly
compute the adjustment or re-adjustment in accordance with the terms of this Warrant and cause its
Chief Financial Officer to certify the computation (other than any computation of the fair value of
property of the Company) and prepare a report setting forth, in reasonable detail, the event
requiring the adjustment or re-adjustment and the amount of such adjustment or re-adjustment, the
method of calculation thereof and the facts upon which the adjustment or re-adjustment is based,
and the Exercise Price and the number of Warrant Shares or other securities purchasable hereunder
after giving effect to such adjustment or re-adjustment, which report shall be mailed by first
class mail, postage prepaid to the Holder. The Company will also keep copies of all reports at its
office maintained pursuant to Section 10.2(a) hereof and will cause them to be available for
inspection at the office during normal business hours upon reasonable notice by the Holder or any
prospective purchaser of the Warrant designated by the Holder thereof.

     7. Reservation of Shares. The Company shall, solely for the purpose of effecting the
exercise of this Warrant, at all times during the term of this Warrant, reserve and keep available
out of its authorized Common Shares, free from all taxes, liens, and charges with respect to the
issue thereof and not subject to preemptive rights or other similar rights of shareholders of the
Company, such number of its Common Shares as shall from time to time be sufficient to effect in
full the exercise of this Warrant. If at any time the number of authorized but unissued Common
Shares shall not be sufficient to effect in full the exercise of this Warrant, in addition to such
other remedies as shall be available to Holder, the Company will promptly take such corporate
action as may, in the opinion of its counsel, be necessary to increase the number of authorized but
unissued Common Shares to such number of shares as shall be sufficient for such purposes, including
without limitation, using its best efforts to obtain the requisite shareholder approval necessary
to increase the number of authorized Common Shares. The Company hereby represents and warrants
that all Common Shares issuable upon exercise of this Warrant shall be duly authorized and, when
issued and paid for upon exercise, shall be validly issued, fully paid and nonassessable.

     8. Registration and Listing.

          8.1 Definition of Registrable Securities; Majority. As used herein, the term
“Registrable Securities” means any Common Shares issuable upon the exercise of this Warrant, until
the date (if any) on which such shares shall have been transferred or exchanged and new
certificates for them not bearing a legend restricting further transfer shall have been delivered
by

5

 

the Company and subsequent disposition of them shall not require registration or qualification
of them under the Securities Act or any similar state law then in force. For purposes of this
Warrant, the term “Majority”, in reference to the holders of Registrable Securities, shall mean in
excess of fifty percent (50%) of the then outstanding Registrable Securities (assuming the exercise
of the entire Warrant) that (i) are not held by the Company, an affiliate, officer, creditor,
employee or agent thereof or any of their respective affiliates, members of their family, Persons
acting as nominees or in conjunction therewith and (ii) have not be resold to the public pursuant
to a registration statement filed under the Securities Act.

          8.2 Required Registration.

          (a) At any time on or after the six (6) month anniversary of the Base Date and on or before
the five (5) year anniversary of the Base Date, but in no event on more than two (2) occasions (the
Registration Expenses associated with second required registration effected (as described in
Section 8.2(c)) pursuant to this Section 8.2(a) shall be payable by the Holder pursuant to Section
8.6), upon the written request of the holders of the Registrable Securities representing a Majority
of such securities, the Company will use its best efforts to effect the registration of the
respective shares of the holders of Registrable Securities under the Securities Act to the extent
requisite to permit the disposition thereof as expeditiously as reasonably possible, but in no
event later than one hundred-twenty (120) days from the date of such request.

          (b) Registration of Registrable Securities under this Section 8.2 shall be on such appropriate
registration form: (i) as shall be selected by the Company, and (ii) as shall permit the
disposition of such Registrable Securities in accordance with this Section 8.2. The Company agrees
to include in any such registration statement all information which the requesting holders of
Registrable Securities shall reasonably request, which is required to be contained therein. The
Company will pay all Registration Expenses in connection with the first, and only the first,
required registration of Registrable Securities effected (as described in Section 8.2(c)) pursuant
to this Section 8.2.

          (c) A registration requested pursuant to this Section 8.2 shall not be deemed to have been
effected: (i) unless a registration statement with respect thereto has become effective or (ii) if,
after it has become effective, such registration is interfered with by any stop order, injunction
or other order or requirement of the Securities and Exchange Commission (the “SEC”) or other
governmental agency or court of competent jurisdiction for any reason, other than by reason of some
act or omission by a holder of Registrable Securities.

          8.3 Incidental Registration Rights.

          (a) If the Company, at any time on or after the six (6) month anniversary of the Base Date and
on or before the five (5) year anniversary of the Base Date, proposes to register any of its
securities under the Securities Act (other than in connection with a registration on Form S-4 or
S-8 or any successor forms) whether for its own account or for the account of any holder or holders
of its shares other than Registrable Securities (any shares of such holder or holders (but not
those of the Company and not Registrable Securities) with respect to any registration are referred
to herein as, “Other Shares”), each such time the Company shall give

6

 

prompt (but not less than thirty (30) days prior to the anticipated effectiveness thereof)
written notice to the holders of Registrable Securities of its intention to do so. Upon the
written request of any such holder of Registrable Securities made within twenty (20) days after the
receipt of any such notice (which request shall specify the Registrable Securities intended to be
disposed of by such holder), except as set forth in Section 8.3(b), the Company will use its best
efforts to effect the registration under the Securities Act of all of the Registrable Securities
which the Company has been so requested to register by such holder, to the extent requisite to
permit the disposition of the Registrable Securities so to be registered, by inclusion of such
Registrable Securities in the registration statement which covers the securities which the Company
proposes to register; provided, however, that if, at any time after giving written
notice of its intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for
any reason in its sole discretion either to not register, to delay or to withdraw registration of
such securities, the Company may, at its election, give written notice of such determination to
such holder and, thereupon, (i) in the case of a determination not to register, shall be relieved
of its obligation to register any Registrable Securities in connection with such registration (but
not from its obligation to pay the Registration Expenses in connection therewith), without
prejudice, however, to the rights of the holders of Registrable Securities entitled to request that
such registration be effected as a registration under Section 8.2, (ii) in the case of a
determination to delay registration, shall be permitted to delay registering any Registrable
Securities for the same period as the delay in registering such other securities (including the
Other Shares), without prejudice, however, to the rights of the holders of Registrable Securities
entitled to request that such registration be effected as a registration under Section 8.2 and
(iii) in the case of a determination to withdraw registration, shall be permitted to withdraw
registration, without prejudice, however, to the rights of the holders of Registrable Securities
entitled to request that such registration be effected as a registration under Section 8.2. No
registration effected under this Section 8.3 shall relieve the Company of its obligation to effect
any registration upon request under Section 8.2, nor shall any such registration hereunder be
deemed to have been effected pursuant to Section 8.2. The Company will pay all Registration
Expenses in connection with each registration of Registrable Securities pursuant to this Section
8.3.

          (b) If the Company at any time proposes to register any of its securities under the Securities
Act as contemplated by this Section 8.3 and such securities are to be distributed by or through one
or more underwriters, the Company will, if requested by a holder of Registrable Securities, use its
best efforts to arrange for such underwriters to include all the Registrable Securities to be
offered and sold by such holder among the securities to be distributed by such underwriters,
provided that if the managing underwriter of such underwritten offering shall inform the Company by
letter of its belief that inclusion in such distribution of all or a specified number of such
securities proposed to be distributed by such holders of Registrable Securities or Other Shares
would interfere with the successful marketing of the securities being distributed by the Company
(such letter to state the basis of such belief and the approximate number of such Registrable
Securities, such Other Shares and shares held by the Company proposed so to be registered which may
be distributed without such effect) (the “Underwriter’s Letter”), then the Company may, upon
written notice to such holder, the other holders of Registrable Securities, and holders of such
Other Shares, reduce pro rata in accordance with the number of Common Shares desired to be included
in such registration (if and to the extent stated by such managing

7

 

underwriter to be necessary to eliminate such effect) the number of such Registrable
Securities and Other Shares the registration of which shall have been requested by each holder
thereof so that the resulting aggregate number of such Registrable Securities and Other Shares so
included in such registration, together with the number of securities to be included in such
registration for the account of the Company, shall be equal to the number of shares stated in the
Underwriter’s Letter.

          8.4 Registration Procedures. Whenever the holders of Registrable Securities have
properly requested that any Registrable Securities be registered pursuant to the terms of this
Warrant, the Company shall use its best efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition thereof, and pursuant
thereto the Company shall as expeditiously as possible:

          (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to become effective;

          (b) notify such holders of the effectiveness of each registration statement filed hereunder
and prepare and file with the SEC such amendments and supplements to such registration statement
and the prospectus used in connection therewith as may be necessary to (i) keep such registration
statement effective and the prospectus included therein usable for a period commencing on the date
that such registration statement is initially declared effective by the SEC and ending on the date
when all Registrable Securities covered by such registration statement have been sold pursuant to
the registration statement or cease to be Registrable Securities, and (ii) comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of disposition by
the sellers thereof set forth in such registration statement;

          (c) furnish to such holders such number of copies of such registration statement, each
amendment and supplement thereto, the prospectus included in such registration statement (including
each preliminary prospectus) and such other documents as such seller may reasonably request to
facilitate the disposition of the Registrable Securities owned by such holders;

          (d) use its best efforts to register or qualify such Registrable Securities under such other
securities or blue sky laws of such jurisdictions as such holders reasonably request and do any and
all other acts and things which may be reasonably necessary or advisable to enable such holders to
consummate the disposition in such jurisdictions of the Registrable Securities owned by such
holders; provided, however, that the Company shall not be required to: (i) qualify
generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction, or (iii)
consent to general service of process in any such jurisdiction;

          (e) notify such holders, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the happening of any event as a result of which the
prospectus included in such registration statement contains an untrue statement of a material fact
or omits any material fact necessary to make the statements therein, in light of the

8

 

circumstances in which they are made, not materially misleading, and, at the reasonable
request of such holders, the Company shall prepare a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus
shall not contain an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances in which they are made, not
materially misleading;

          (f) provide a transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

          (g) make available for inspection by any underwriter participating in any disposition pursuant
to such registration statement, and any attorney, accountant or other agent retained by any such
underwriter, all financial and other records, pertinent corporate documents and properties of the
Company, and cause the Company’s officers, directors, managers, employees and independent
accountants to supply all information reasonably requested by any such underwriter, attorney,
accountant or agent in connection with such registration statement;

          (h) otherwise use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably practicable, an earnings
statement of the Company, which earnings statement shall satisfy the provisions of Section 11(a) of
the Securities Act and, at the option of the Company, Rule 158 thereunder;

          (i) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any Registrable Securities included in such registration
statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain
the withdrawal of such order;

          (j) use its best efforts to cause any Registrable Securities covered by such registration
statement to be registered with or approved by such other governmental agencies or authorities as
may be necessary to enable the sellers thereof to consummate the disposition of such Registrable
Securities; and

          (k) if the offering is underwritten, use its best efforts to furnish on the date that
Registrable Securities are delivered to the underwriters for sale pursuant to such registration, an
opinion dated such date of counsel representing the Company for the purposes of such registration,
addressed to the underwriters covering such issues as are customarily addressed in opinions to
underwriters in public offerings and reasonably required by such underwriters.

          8.5 [Intentionally Omitted].

          8.6 Expenses. The Company shall pay all Registration Expenses relating to the
registration and listing obligations set forth in this Section 8, except that the Holder shall be
responsible for the Registration Expenses for the second required registration effected pursuant to
Section 8.2(a). For purposes of this Warrant, the term “Registration Expenses” means: (a) all

9

 

registration, filing and FINRA fees, (b) all reasonable fees and expenses of complying with
securities or blue sky laws, (c) all word processing, duplicating and printing expenses, (d) the
fees and disbursements of counsel for the Company and of its independent public accountants,
including the expenses of any special audits or “cold comfort” letters required by or incident to
such performance and compliance, (e) premiums and other costs of policies of insurance (if any)
against liabilities arising out of the public offering of the Registrable Securities being
registered if the Company desires such insurance, if any, and (f) fees and disbursements of one
counsel for all of the selling holders of Registrable Securities. Registration Expenses shall not
include any underwriting discounts and commissions which may be incurred in the sale of any
Registrable Securities and transfer taxes of the selling holders of Registrable Securities.

          8.7 Restrictions. The Company shall not be obligated to effect a registration
pursuant to Section 8.2 during the period beginning on the date sixty (60) days prior to the
Company’s good faith estimate of the date of filing of, and ending on a date one hundred twenty
(120) days after the effective date of, a Company-initiated registration (other than a registration
pursuant to Form S-8), provided that: (i) if the holder of Registrable Securities elects to have
all or some of its Registrable Securities included in the registration pursuant to Section 8.3
hereof, such Registrable Securities are included in the Company-initiated registration statement to
the extent required hereunder and (ii) the Company is actively employing its best efforts to cause
such registration to become effective.

          8.8 Information Provided by Holders. Any holder of Registrable Securities included in
any registration shall furnish to the Company such information as the Company may reasonably
request in writing to enable the Company to comply with the provisions hereof in connection with
any registration referred to in this Warrant. In the event that a holder of Registrable Securities
fails to provide such information on a timely basis, and in any event within seven (7) Business
Days of the Company’s written request, then the Company shall be entitled to exclude the
Registrable Securities of such holder from such registration and the Company shall nevertheless be
deemed to have satisfied its obligations hereunder with respect to such registration.

     9. Restrictions on Transfer.

          9.1 Restrictive Legends. This Warrant and each Warrant issued upon transfer or in
substitution for this Warrant pursuant to Section 10 hereof, each certificate for Common Shares
issued upon the exercise of the Warrant and each certificate issued upon the transfer of any such
Common Shares shall be transferable only upon satisfaction of the conditions specified in this
Section 9. Each of the foregoing securities shall be stamped or otherwise imprinted with a legend
reflecting the restrictions on transfer set forth herein and any restrictions required under the
Securities Act or other applicable securities laws.

          9.2 Notice of Proposed Transfer. Prior to any transfer of any securities which are
not registered under an effective registration statement under the Securities Act (“Restricted
Securities”), which transfer may only occur if there is an exemption from the registration
provisions of the Securities Act and all other applicable securities laws, the Holder will give
written notice to the Company of the Holder’s intention to effect a transfer (and shall describe

10

 

the manner and circumstances of the proposed transfer). The following provisions shall apply
to any proposed transfer of Restricted Securities:

             
  (i) If in the opinion of counsel for the Holder reasonably satisfactory to the Company the
proposed transfer may be effected without registration of the Restricted Securities under the
Securities Act (which opinion shall state in detail the basis of the legal conclusions reached
therein), the Holder shall, upon delivery of an executed original of such opinion, be entitled to
transfer the Restricted Securities in accordance with the terms of the notice delivered by the
Holder to the Company. Each certificate representing the Restricted Securities issued upon or in
connection with any transfer shall bear the restrictive legends required by Section 9.1 hereof.

             
  (ii) If the opinion called for in (i) above is not delivered, the Holder shall not be entitled
to transfer the Restricted Securities until either (x) receipt by the Company of a further notice
from such Holder pursuant to the foregoing provisions of this Section 9.2 and fulfillment of the
provisions of clause (i) above, or (y) such Restricted Securities have been effectively registered
under the Securities Act.

          9.3 Certain Other Transfer Restrictions. Notwithstanding any other provision of this
Section 9: (i) prior to the Vesting Date, this Warrant or the Restricted Securities thereunder may
only be transferred or assigned to the persons permitted under FINRA Rule 5110(g)(1), and (ii) no
opinion of counsel shall be necessary for a transfer of Restricted Securities by the Holder to any
Person employed by or owning equity in the Holder, if the transferee agrees in writing to be
subject to the terms hereof to the same extent as if the transferee were the original holder hereof
and such transfer is permitted under applicable securities laws.

          9.4 Termination of Restrictions. The restrictions imposed by this Section 9 upon the
transferability of Restricted Securities shall cease and terminate as to any particular Restricted
Securities: (a) which shall have been effectively registered under the Securities Act, or (b) when,
in the opinions of both counsel for the Holder and counsel for the Company, such restrictions are
no longer required to insure compliance with the Securities Act. Whenever such restrictions shall
cease and terminate as to any Restricted Securities, the Holder shall be entitled to receive from
the Company, without expense (other than applicable transfer taxes, if any), new securities of like
tenor not bearing the applicable legends required by Section 9.1 hereof.

     10. Ownership, Transfer and Substitution of Warrant.

          10.1 Ownership of Warrant. The Company may treat any Person in whose name this
Warrant is registered in the Warrant Register maintained pursuant to Section 10.2(b) hereof as the
owner and Holder for all purposes, notwithstanding any notice to the contrary, except that, if and
when any Warrant is properly assigned in blank, the Company may (but shall not be obligated to)
treat the bearer thereof as the owner of such Warrant for all purposes, notwithstanding any notice
to the contrary. Subject to Sections 9 and 10 hereof, this Warrant, if properly assigned, may be
exercised by a new Holder without a new Warrant first having been issued.

11

 

          10.2 Office; Exchange of Warrant.

          (a) The Company will maintain its principal office at the location identified in the
prospectus relating to the Offering or at such other offices as set forth in the Company’s most
current filing under the Securities Exchange Act of 1934, as amended, or as the Company otherwise
notifies the Holder.

          (b) The Company shall cause to be kept at its office a Warrant Register for the registration
and transfer of the Warrant. The name and address of the Holder of the Warrant, the transfers
thereof and the name and address of the transferee of the Warrant shall be registered in such
Warrant Register.

          (c) Upon the surrender of this Warrant, properly endorsed, for registration of transfer or for
exchange at the office of the Company maintained pursuant to Section 10.2(a) hereof, the Company at
its expense will (subject to compliance by the Holder with Section 9 hereof, if applicable) execute
and deliver to or upon the order of the Holder thereof a new Warrant of like tenor, in the name of
such Holder or as such Holder (upon payment by such holder of any applicable transfer taxes) may
direct, calling in the aggregate on the face thereof for the number of Common Shares called for on
the face of the Warrant so surrendered (after giving effect to any previous adjustment(s) to the
number of Warrant Shares).

          10.3 Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such
loss, theft or destruction of this Warrant, upon delivery of indemnity reasonably satisfactory to
the Company in form and amount or, in the case of any mutilation, upon surrender of this Warrant
for cancellation at the office of the Company maintained pursuant to Section 10.2(a) hereof, the
Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor and
dated the date hereof.

     11. No Rights or Liabilities as Stockholder. Except as provided in Section 4.4, no
Holder shall be entitled to vote or receive dividends or be deemed the holder of any Common Shares
or any other securities of the Company which may at any time be issuable on the exercise hereof for
any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, consolidation, Merger, conveyance, or otherwise) or
to receive notice of meetings, or to receive dividends or subscription rights or otherwise until
the Warrant shall have been exercised and the Common Shares purchasable upon the exercise hereof
shall have become deliverable, as provided herein. The Holder will not be entitled to share in the
assets of the Company in the event of a liquidation, dissolution or the winding up of the Company.

     12. Notices. Any notice or other communication in connection with this Warrant shall
be given in writing and directed to the parties hereto as follows: (a) if to the Holder, c/o

12

 

Maxim Group LLC, 405 Lexington Avenue, New York, NY 10174, Attn: David Strupp, Fax No: (212)
895-3783 or (b) if to the Company, to the attention of its Chief Executive Officer at its office
maintained pursuant to Section 10.2(a) hereof; provided, that the exercise of the Warrant
shall also be effected in the manner provided in Section 3 hereof. Notices shall be deemed
properly delivered and received when delivered to the notice party (i) if personally delivered,
upon receipt or refusal to accept delivery, (ii) if sent via facsimile, upon mechanical
confirmation of successful transmission thereof generated by the sending telecopy machine, (iii) if
sent by a commercial overnight courier for delivery on the next Business Day, on the first Business
Day after deposit with such courier service, or (iv) if sent by registered or certified mail, five
(5) Business Days after deposit thereof in the U.S. mail.

     13. Payment of Taxes. The Company will pay all documentary stamp taxes attributable
to the issuance of Common Shares underlying this Warrant upon exercise of this Warrant;
provided, however, that the Company shall not be required to pay any tax which may
be payable in respect of any transfer involved in the transfer or registration of this Warrant or
any certificate for Common Shares underlying this Warrant in a name other that of the Holder. The
Holder is responsible for all other tax liability that may arise as a result of holding or
transferring this Warrant or receiving Common Shares underlying this Warrant upon exercise hereof.

     14. Miscellaneous. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought. This Warrant shall be
construed and enforced in accordance with and governed by the laws of the State of New York. The
section headings in this Warrant are for purposes of convenience only and shall not constitute a
part hereof.

[Signature Page Follows]

13

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	REGENERX BIOPHARMACEUTICALS, INC.

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

[Signature Page to Representative’s Warrant]

14

 

EXHIBIT A

FORM OF EXERCISE NOTICE

[To be executed only upon exercise of Warrant]

To RegeneRx Biopharmaceuticals, Inc.:

          
The undersigned registered holder of the within Warrant hereby irrevocably exercises the
Warrant pursuant to Section 3.1 of the Warrant with respect to            
          Warrant Shares, at an
exercise price per share of $___, and requests that the certificates for such Warrant Shares be
issued, subject to Sections 9 and 10, in the name of, and delivered to:

	 	 	 	 	 

	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

          
The undersigned is hereby making payment for the Warrant Shares in the following manner:
                     
                    [describe desired payment method as provided for in 3.1 of the Warrant].

          
The undersigned  hereby represents and warrants that it is, and has been since its acquisition
of the Warrant, the record and beneficial owner of the Warrant.

Dated:            
         

	 	 	 	 	 

	 

	 	 	 	 
	 

	 	Print or Type Name	 	 
	 
	 	 	 	 
	 

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

	 	 	 	 
	 

	 	(Street Address)	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(City)       (State)      (Zip Code)	 	 

 

EXHIBIT B

FORM OF ASSIGNMENT

[To be executed only upon transfer of Warrant]

          For value
received, the undersigned registered holder of the within Warrant hereby sells,
assigns, and transfers unto                  
                     
   [include name and addresses] the rights
represented by the Warrant to purchase                
      Common Shares of RegeneRx Biopharmaceuticals,
Inc. to which the Warrant relates, and appoints              
                     
       Attorney to make such
transfer on the books of RegeneRx Biopharmaceuticals, Inc. maintained for the purpose, with full
power of substitution in the premises.

	 	 	 

	Dated:

	 	 
	 

	 	(Signature must conform in all respects
	 

	 	to name of holder as specified on the
	 

	 	face of Warrant)
	 
	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	(City) (State) (Zip Code)
	 
	 	 
	Signed in the presence of:

	 	 
	 
	 	 
	 

	 	(Signature of Transferee)
	 
	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	(City) (State) (Zip Code)
	Signed in the presence of:

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