Document:

Ex4-1

 

 Exhibit
4.1

 

For
U.S. Persons:

 

[NEITHER]
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND
APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. TO THE
EXTENT PERMITTED BY APPLICABLE SECURITIES LAWS, THIS SECURITY [AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY] MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION
THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

 

For
Non-U.S. Persons:

 

THESE
SECURITIES [AND THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO
ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”)
PURSUANT TO REGULATION S UNDER THE 1933 ACT. ACCORDINGLY, NONE OF
THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS,
AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE
UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS
DEFINED IN REGULATION S PROMULGATED UNDER THE SECURITIES ACT)
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN ACCORDANCE WITH THE 1933 ACT.

 

 

 

FORM
OF COMMON STOCK PURCHASE WARRANT MABVAX THERAPEUTICS HOLDINGS,
INC.

 

 

Warrant Shares:
[              
]                                                              

          

Initial Issuance
Date: January [ ], 2018 

Warrant No:
[              
]                                                        

 

 

 

 

 

 

 

 

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, [ ] or its assigns (the
“Holder”)
is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on
or after the six month anniversary of the Initial Issuance Date
(the “Initial
Exercise Date”) and on or prior to the close of
business on the thirty six (36) month anniversary of the Initial
Exercise Date (the “Termination Date”) but
not thereafter, to subscribe for and purchase from MABVAX THERAPEUTICS HOLDINGS, INC., a
Delaware corporation (the “Company”), up to
[ ] shares (as subject to
adjustment hereunder, the “Warrant Shares”) of
Common Stock. The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in
Section 2(b).

 

Section 1. Definitions. Capitalized terms
used and not otherwise defined herein shall have the meanings set
forth in that certain Securities Purchase Agreement (the
“Purchase
Agreement”), dated January [ ], 2018, among the
Company and the Holder.

 

 

-1-

 

 

 

Section
2.                       
Exercise.

 

a)            Exercise
of the purchase rights represented by this Warrant may be made, in
whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to
the Company (or such other office or agency of the Company as it
may designate by notice in writing to the registered Holder at the
address of the Holder appearing on the books of the Company) of a
duly executed facsimile copy of the Notice of Exercise Form annexed
hereto. Within two (2) Trading Days following the date of exercise
as aforesaid, the Holder shall deliver the aggregate Exercise Price
for the shares specified in the applicable Notice of Exercise by
wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section
2(c) below is specified in the applicable Notice of Exercise.
Notwithstanding anything herein to the contrary (although the
Holder may surrender the Warrant to, and receive a replacement
Warrant from, the Company), the Holder shall not be required to
physically surrender this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three
(3) Trading Days of the date the final Notice of Exercise is
delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the
outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased.
No ink-original Notice of Exercise shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of
any Notice of Exercise be required. The Holder and the Company
shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise Form within one (1) Trading
Day of delivery of such notice. Notwithstanding anything to the
contrary herein, all rules and requirements of the Company’s
transfer agent shall govern and supersede anything herein.
The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a
portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be
less than the amount stated on the face hereof.

 

b)            Exercise
Price. The initial exercise price per share of the Common
Stock under this Warrant shall be $0.90, (the “Initial Exercise Price”)
subject to adjustment hereunder (as adjusted, the
“Exercise
Price”), payable, subject to Section 2(c) below, in
immediately available funds.

 

c)            Cashless
Exercise. If at any time after the four (4) month
anniversary of the Initial Issuance Date, provided there is no
effective registration statement registering, or no current
prospectus available for the resale of the Warrant Shares by the
Holder, then after the Initial Exercise Date, this Warrant may also
be exercised at the Holder’s election, in whole or in part,
at such time by means of a “cashless exercise” in which
the Holder shall be entitled to receive a number of Warrant Shares
equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

(A) =
the VWAP on the Trading Day immediately preceding the date on which
Holder elects to exercise this Warrant by means of a
“cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

 

 

-2-

 

 

 

If
Warrant Shares are issued in such a cashless exercise, the parties
acknowledge and agree that in accordance with Section 3(a)(9) of
the Securities Act, the Warrant Shares shall take on the
characteristics of the Warrants being exercised, and the holding
period of the Warrant Shares being issued may be tacked on to the
holding period of this Warrant. The Company agrees not to take any
position contrary to this Section 2(c).

 

Notwithstanding
anything herein to the contrary, on the Termination Date, unless
the Holder notifies the Company otherwise, if there is no effective
Registration Statement registering, or no current prospectus
available for, the resale of the Warrant Shares by the Holder and
the Exercise Price is greater than the VWAP on the Trading Day
immediately preceding the date on which the Warrant would otherwise
expire, then this Warrant shall be automatically exercised via
cashless exercise pursuant to this Section 2(c). In the event the
issuance of Warrant Shares upon such automatic exercise would cause
the Holder to exceed the Beneficial Ownership Limitation, then the
delivery of such Warrant Shares shall be held in abeyance until
such time as the Holder notifies the Company that it may receive
any or all of such Warrant Shares without exceeding the Beneficial
Ownership Limitation.

 

d) 

Mechanics of
Exercise.

 

(a)           Delivery
of Certificates Upon Exercise. Certificates for shares
purchased hereunder shall be transmitted by the Company’s
transfer agent for its Common Stock (the “Transfer Agent”) to the
Holder by crediting the account of the Holder’s prime broker
with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or
(B) this Warrant is being exercised via cashless exercise and Rule
144 is available, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that
is the later to occur of (A) two (2) Trading Days after the
delivery to the Company of the Notice of Exercise, and (B) one (1)
Trading Day after the payment of the aggregate Exercise Price as
set forth above (including by cashless exercise, if permitted)
(such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by
cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares, having been paid. The Company understands
that a delay in the delivery of the Warrant Shares after the
Warrant Share Delivery Date could result in economic
loss to the Holder. As compensation to the Holder for such loss,
the Company agrees to pay (as liquidated damages and not as a
penalty) to the Holder for late issuance of Warrant Shares upon
exercise of this Warrant the proportionate amount of $10 per
Trading Day (increasing to $20 per Trading Day after the fifth
(5th) Trading Day) after the
Warrant Share Delivery Date for each $1,000 of Exercise Price of
Warrant Shares for which this Warrant is exercised which are not
timely delivered. The Company shall pay any payments incurred under
this Section in immediately available funds upon demand.
Furthermore, in addition to any other remedies which may be
available to the Holder, in the event that the Company fails for
any reason to effect delivery of the Warrant Shares by the Warrant
Share Delivery Date, the Holder may revoke all or part of the
relevant Warrant exercise by delivery of a notice to such effect to
the Company, whereupon the Company and the Holder shall each be
restored to their respective positions immediately prior to the
exercise of the relevant portion of this Warrant, except that the
liquidated damages described above shall be payable through the
date notice of revocation or rescission is given to the
Company.

 

 

 

 

-3-

 

 

i. Delivery of New Warrants Upon
Exercise. If this Warrant shall have been exercised in part,
the Company shall, at the request of a Holder and upon surrender of
this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to
the Holder a new Warrant evidencing the rights of the Holder to
purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with
this Warrant.

 

ii.          Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(d)(i) by the
Warrant Share Delivery Date, then the Holder will have the right,
at any time prior to issuance of such Warrant Shares, to rescind
such exercise.

 

iii.        Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon
Exercise. In addition to any other rights available to the
Holder, if the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the
Holder is required by its broker to purchase (in an open market
transaction or otherwise) or the Holder’s brokerage firm
otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which
the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2)
the price at which the sell order giving rise to such purchase
obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored (in which
case such exercise shall be deemed rescinded) or deliver to the
Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and
delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to
cover a Buy- In with respect to an attempted exercise of shares of
Common Stock with an aggregate sale price giving rise to such
purchase obligation of $10,000, under clause (A) of the
immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of
the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to
pursue any other remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing
shares of Common Stock upon exercise of the Warrant as required
pursuant to the terms hereof.

 

 

 

 

-4-

 

 

 

iv. No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall
be issued upon the exercise of this Warrant. As to any fraction of
a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay
a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up
to the next whole share.

 

v.          Charges,
Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance
of such certificate, all of which taxes and expenses shall be paid
by the Company, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the
Holder; provided,
however, that in
the event certificates for Warrant Shares are to be issued in a
name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder and the Company
may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.
The Company shall pay all Transfer Agent fees required for same-day
processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic
delivery of the Warrant Shares.

 

vi.           Closing
of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

 

-5-

 

 

 

e) Holder’s Exercise
Limitations. (i) The Company shall not effect any exercise
of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to
the extent that after giving effect to such issuance after exercise
as set forth on the applicable Notice of Exercise, the Holder
(together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the
Holder’s Affiliates (such Persons, “Attribution Parties”)),
would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below). For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned
by the Holder and its Affiliates and Attribution Parties shall
include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which
would be issuable upon (i) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of
its Affiliates or Attribution Parties and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other
Common Stock Equivalents) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially
owned by the Holder or any of its Affiliates or Attribution
Parties. Except as set forth in the preceding sentence, for
purposes of this Section 2(e), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder, it being
acknowledged by the Holder that the Company is not representing to
the Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and the Holder is solely responsible for
any schedules required to be filed in accordance therewith. To the
extent that the limitation contained in this Section 2(e) applies,
the determination of whether this Warrant is exercisable (in
relation to other securities owned by the Holder together with any
Affiliates and Attribution Parties) and of which portion of this
Warrant is exercisable shall be in the sole discretion of the
Holder, and the submission of a Notice of Exercise shall be deemed
to be the Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder
together with any Affiliates and Attribution Parties) and of which
portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no
obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of
outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the
Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public
announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of
shares of Common Stock outstanding. Upon the written or oral
request of a Holder, the Company shall within one Trading Day
confirm orally and in writing to the Holder the number of shares of
Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates or
Attribution Parties since the date as of which such number of
outstanding shares of Common Stock was reported. The
“Beneficial
Ownership Limitation” shall be 9.99% of the number of
shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The Holder, upon notice to the Company,
may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 2(e), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon exercise of
this Warrant held by the Holder and the provisions of this Section
2(e) shall continue to apply. Any increase in the Beneficial
Ownership Limitation will not be effective until the 61st day after such notice is delivered to
the Company. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity
with the terms of this Section 2(e) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation herein contained or to
make changes or supplements necessary or desirable to properly give
effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of this
Warrant.

 

Section 3. Certain
Adjustments.

 

a)            Stock
Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock
or any other equity or equity equivalent securities payable in
shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon
exercise of this Warrant or pursuant to any of the other
Transaction Documents), (ii) subdivides outstanding shares of
Common Stock into a larger number of shares, (iii)  combines (including
by way of reverse stock split) outstanding shares of Common Stock
into a smaller number of
shares, or (iv) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case
the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

 

 

 

-6-

 

 

 

b) Subsequent Rights Offerings. In
addition to any adjustments pursuant to Section 3(a) above, if at
any time the Company grants, issues or sells any Common Stock
Equivalents or rights to purchase stock, warrants, securities or
other property pro rata to all of the record holders of any class
of shares of Common Stock (the “Purchase Rights”), then
the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of
shares of Common Stock acquirable upon complete exercise of this
Warrant (without regard to any limitations on exercise hereof,
including without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights (provided, however, to the extent that the
Holder’s right to participate in any such Purchase Right
would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in
such Purchase Right to such extent (or beneficial ownership of such
shares of Common Stock as a result of such Purchase Right to such
extent) and such Purchase Right to such extent shall be held in
abeyance for the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Beneficial
Ownership Limitation).

 

c)            Pro
Rata Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets)
to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of
cash, stock or other securities, property or options by way of a
dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a
“Distribution”), at any
time after the issuance of this Warrant, then, in each such case,
the Holder shall be entitled to participate in such Distribution to
the extent that the Holder exercises this Warrant immediately
before the date of which a record is taken for such Distribution,
or, if no such record is taken, the date as of which the record
holders of shares of Common Stock are to be determined for the
participation in such Distribution.

 

d) Fundamental Transaction. If, at
any time while this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another
Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a
series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock, (iv)
the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or
recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash
or property, or (v) the Company, directly or indirectly, in one or
more related transactions consummates a stock or share purchase
agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the
number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall
be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor
entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the
provisions of this Section 3(e) pursuant to written agreements and
shall, at the option of the Holder, deliver to the Holder in
exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and
substance to this Warrant which is exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but
taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of
such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and
after the date of such Fundamental Transaction, the provisions of
this Warrant and the other Transaction Documents referring to the
“Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant and
the other Transaction Documents with the same effect as if such
Successor Entity had been named as the Company herein.

 

 

 

-7-

 

 

e)            Calculations.
All calculations under this Section 3 shall be made to the nearest
cent or the nearest whole share, as the case may be. For purposes
of this Section 3, the number of shares of Common Stock
deemed to be issued and outstanding as of a given date shall be the
sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

 

f)     
           
Notice to
Holder.

 

i.         Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted
pursuant to any provision of this Section 3, the Company shall
promptly mail to the Holder a notice setting forth the Exercise
Price after such adjustment and any resulting adjustment to the
number of Warrant Shares and setting forth a brief statement of the
facts requiring such adjustment.

  

ii. Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the
granting to all holders of the Common Stock rights or warrants to
subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, or (E)
the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, to the extent that such information
constitutes material non-public information (as determined in good
faith by the Company) the Company shall follow the procedure
described in the Purchase Agreement and shall deliver to the Holder
at its last address as it shall appear upon the Warrant Register of
the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of
such dividend, distribution, redemption, rights or warrants, or if
a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become
effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange
their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure
to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to
be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non- public
information regarding the Company or any of the Subsidiaries, the
Company shall simultaneously file such notice with the Commission
SEC pursuant to a Current Report on Form 8-K. The Holder shall
remain entitled to exercise this Warrant during the period
commencing on the date of such notice to the effective date of the
event triggering such notice except as may otherwise be expressly
set forth herein.

 

Section
4.                       
Transfer of
Warrant.

 

a)            Transferability.
Subject to compliance with any applicable securities laws and the
provisions of the Purchase Agreement, this Warrant and all rights
hereunder (including, without limitation, any registration rights)
are transferable, in whole or in part, upon surrender of this
Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such
surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee
or assignees, as applicable, and in the denomination or
denominations specified in such instrument of assignment, and shall
issue to the assignor a new Warrant evidencing the portion of this
Warrant not so assigned, and this Warrant shall promptly be
cancelled. Notwithstanding anything herein to the contrary, the
Holder shall not be required to physically surrender this Warrant
to the Company unless the Holder has assigned this Warrant in full,
in which case, the Holder shall surrender this Warrant to the
Company within three (3) Trading Days of the date on which the
Holder delivers an assignment form to the Company assigning this
Warrant in full. The Warrant, if properly assigned in accordance
herewith, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

 

 

 

 

-8-

 

 

 

b) New Warrants. This Warrant may
be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants
are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which
may be involved in such division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with
such notice. All Warrants issued on transfers or exchanges shall be
dated the initial issuance date of this Warrant and shall be
identical with this Warrant except as to the number of Warrant
Shares issuable pursuant thereto.

 

c)            Warrant
Register. The Company shall register this Warrant, upon
records to be maintained by the Company or its transfer agent for
that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.

 

Section 5. Certain Definitions. For
purposes of this Warrant, the following terms shall have the
following meanings:

 

(a)            “Affiliate”
shall mean as applied to any Person, means any other Person
directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition,
“control” (including, with correlative meanings, the
terms “controlling”, “controlled by” and
“under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities or
by contract or otherwise. For purposes of this definition, a Person
shall be deemed to be “controlled by” a Person
if such latter Person possesses, directly or indirectly, power to
vote 10% or more of the securities having ordinary voting power for
the election of directors of such former Person

 

(b)     
        “Bloomberg” means Bloomberg
Financial Markets.

 

(c)             
“Business Day” means any day other
than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain
closed.

 

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

 

 

 

-9-

 

 

 

(e)  
“Common Stock” means (i) the
Company’s shares of Common Stock, $0.01 par value per share,
and (ii) any share capital into which such Common Stock shall have
been changed or any share capital resulting from a reclassification
of such Common Stock.

 

(f)            “Common
Stock Equivalents” means any securities of the Company
or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation,
any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or
exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock

 

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

 

(h)            “Principal
Market” means The NASDAQ Capital Market or the
principal securities exchange or securities market on which the
Common Stock is then quoted or traded.

 

(i)             “Rule
144” means Rule 144 promulgated by the SEC pursuant to
the Securities Act, as such Rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted
by the Commission having substantially the same purpose and effect
as such Rule

 

(j)              “Subsidiary”
means any subsidiary of the Company including any direct or
indirect subsidiary of the Company formed or acquired after the
date hereof.

 

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

 

(l)            “VWAP”
means, for any security as of any date, the dollar volume-weighted
average price for such security on the Principal Market (or, if the
Principal Market is not the principal trading market for such
security, then on the principal securities exchange or securities
market on which such security is then traded) during the period
beginning at 9:30:01 a.m., New York time, and ending at 4:00:00
p.m., New York time, as reported by Bloomberg through its
“HP” function set to “weighted average” or,
if the foregoing does not apply, the dollar volume-weighted average
price of such security in the over-the-counter market on the
electronic bulletin board for such security during the period
beginning at 9:30:01 a.m., New York time, and ending at 4:00:00
p.m., New York time, as reported by Bloomberg, or, if no dollar
volume- weighted average price is reported for such security by
Bloomberg for such hours, the average of the highest closing bid
price and the lowest closing ask price of any of the market makers
for such security as reported in the “pink sheets” by
OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP
cannot be calculated for such security on such date on any of the
foregoing bases, the VWAP of such security on such date shall be
the fair market value as mutually determined by the Company and
such Holder. All such determinations shall be appropriately
adjusted for any stock dividend, stock split, stock combination or
other similar transaction during such period

 

 

 

 

-10-

 

 

 

Section
6.                       
Miscellaneous.

 

a)            No
Rights as Stockholder Until Exercise. This Warrant does not
entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set
forth in Section 2(d)(i).

 

b)            Loss,
Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if
mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in
lieu of such Warrant or stock certificate.

 

c)            Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or
granted herein shall not be a Trading Day, then, such action may be
taken or such right may be exercised on the next succeeding Trading
Day.

 

d) 

Authorized Shares.

 

(i)            The
Company covenants that, during the period the Warrant is
outstanding, it will reserve from its authorized and unissued
Common Stock 100% of the maximum number of shares for the issuance
of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance
of this Warrant shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares
upon the exercise of the purchase rights under this Warrant. The
Company will take all such reasonable action as may be necessary to
assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any
requirements of the Principal Market upon which the Common Stock
may be listed. The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights
represented by this Warrant and payment for such Warrant Shares in
accordance herewith, be duly authorized,
validly issued, fully paid and non-assessable and free from all
taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

 

 

 

-11-

 

 

 

(ii) Except
and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant.

 

(iii)            Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction
thereof.

 

e)            Jurisdiction.
All questions concerning governing law, jurisdiction, venue and the
construction, validity, enforcement and interpretation of this
Warrant shall be determined in accordance with the provisions of
the Purchase Agreement.

 

f)            Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, or unless exercised in
a cashless exercise when Rule 144 is available, and the Holder does
not utilize cashless exercise, will have restrictions upon resale
imposed by state and federal securities laws.

 

g)            Non-waiver
and Expenses. No course of dealing or any delay or failure
to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s
rights, powers or remedies. Without limiting any other provision of
this Warrant or the Purchase Agreement, if the Company
intentionally and knowingly fails to comply with any provision of
this Warrant, which results in any material damages to the Holder,
the Company shall pay to the Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not
limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by the Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

 

h)            Notices.
Any notice, request or other document required or permitted to be
given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase
Agreement.

 

i)            Limitation
of Liability. No provision hereof, in the absence of any
affirmative action by the Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the
rights or privileges of the Holder, shall give rise to any
liability of the Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the
Company.

 

 

 

 

-12-

 

 

 

j) Remedies. The Holder, in
addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees
that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this
Warrant and hereby agrees to waive and not to assert the defense in
any action for specific performance that a remedy at law would be
adequate.

 

k)            Successors
and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted
assigns of the Company and the successors and permitted assigns of
Holder. The provisions of this Warrant are intended to be for the
benefit of any Holder from time to time of this Warrant and shall
be enforceable by the Holder or holder of Warrant
Shares.

 

l)            Amendment.
This Warrant may be modified or amended or the provisions hereof
waived with the written consent of the Company and the Holders of
not less than a majority of the then outstanding Warrants issued
pursuant to the Purchase Agreement.

 

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

 

n)            Headings.
The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

-13-

 

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized as of the date first above
indicated.

 

 

 

 

	
 

	

MABVAX
THERAPEUTICS HOLDINGS, INC.

	
 

	

 

 

 

By: 

Name:

Title:

 

-14-

 

 

NOTICE
OF EXERCISE

 

TO:            

MABVAX THERAPEUTICS
HOLDINGS, INC.

 

(1)  
The
undersigned hereby elects to purchase  ____________ Warrant
Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the
exercise price in full, together with all applicable transfer
taxes, if any.

 

(2)  Payment shall take
the form of (check applicable box): [ ] in lawful money of the
United States; or

 

[ ] [if
permitted] the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number
of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3)           Please
issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is
specified below:

(4)           After
giving effect to this Notice of Exercise, the undersigned will not
have exceeded the Beneficial Ownership Limitation.

 

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

__________________________________

 

__________________________________

 

__________________________________

 

 

 

 

 

 

 

 

 

[SIGNATURE OF
HOLDER]

 

 

Name of Investing
Entity: __________________________________
                                                                                                                                                         

Signature of Authorized Signatory of Investing
Entity: __________________________________

Name of Authorized
Signatory: __________________________________

Title of Authorized
Signatory: __________________________________

Date:
__________________________________

 

 

 

 

 

-15-

 

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute this form and supply required
information. Do not use this form to exercise the
warrant.)

 

MABVAX
THERAPEUTICS HOLDINGS, INC.

 

 

 

FOR
VALUE RECEIVED, [ _____ ] all of or [ _____ ]
shares of the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

 

 

 

 
__________________________________
     whose address is

 

_____________________________________________________.
      

 

 

 

_____________________________________________________

 

 

Dated:
______________,
_____    
              

 

 

 

Holder’s
Signature: __________________________________  

 

 

Holder’s
Address: __________________________________

 

__________________________________
      
                                                                                      
    

 

 

 

Signature
Guaranteed: __________________________________
      
                                                                                                     

 

 

 

 

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

 

 

 

-16-Ex 10-1

 

 Exhibit
10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this
“Agreement”)
is dated as of January __, 2018 between MabVax Therapeutics
Holdings, Inc., a Delaware corporation (the
“Company”),
and each purchaser identified on the signature pages hereto (each,
including its successors and permitted assigns, a
“Purchaser”
and collectively, the “Purchasers”).

 

PREAMBLE

 

WHEREAS, subject to the terms and conditions set
forth in this Agreement and pursuant to Section 4(a)(2) of the
Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506
promulgated thereunder or Regulation S promulgated under the
Securities Act, the Company desires to issue and sell to each
Purchaser, and each Purchaser, severally and not jointly, desires
to purchase from the Company, securities of the Company as more
fully described in this Agreement (the “Offering”).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Company
and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1       Definitions.
In addition to the terms defined elsewhere in this Agreement, for
all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Accredited
Investor” shall have the
meaning ascribed to it in Section 3.2(c).

 

“Affiliate”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed
under Rule 405 under the Securities Act.

 

“Board of
Directors” means the
board of directors of the Company.

 

“Business
Day” means any day except
any Saturday, any Sunday, any day which is a federal legal holiday
in the United States or any day on which banking institutions in
the State of New York are authorized or required by law or other
governmental action to close.

 

“Certificate of
Designation” means the
Certificate of Designations, Preferences and Rights of the
Preferred Shares to be filed prior to the Closing by the Company
with the Secretary of State of Delaware, in the form of
Exhibit
A attached
hereto.

 

“Closing”
means the closing of the purchase and sale of the Securities
pursuant to Section 2.1.

 

“Closing
Date” means the Trading
Day on which all of the Transaction Documents have been executed
and delivered by the applicable parties thereto, and all conditions
precedent to (i) the Purchasers’ obligations to pay the
Subscription Amount at such Closing and (ii) the Company’s
obligations to deliver the Securities to be issued and sold at such
Closing, in each case, have been satisfied or waived, but in no
event later than the third Trading Day following the date hereof in
the case of such Closing.

 

“Commission”
means the United States Securities and Exchange
Commission.

 

“Common
Stock” means the common
stock of the Company, $0.01 par value per share, and any other
class of securities into which such securities may hereafter be
reclassified or changed.

 

 

 

-1-

 

 

“Company
Counsel” means such firm
or firms as may from time to time provide legal services to the
Company.

 

 “Conversion
Shares” means the shares
of the Company’s Common Stock issuable upon conversion of the
Preferred Shares.

 

 “Exchange
Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

 “FCPA”
means the Foreign Corrupt Practices Act of 1977, as
amended.

 

 “GAAP”
shall have the meaning ascribed to such term in Section
3.1(g).

 

 “Liens”
means a lien, charge pledge, security interest, encumbrance, right
of first refusal, preemptive right or other
restriction.

 

“Majority in
Interest” shall have the
meaning ascribed to such term in Section 5.5.

 

“Material Adverse
Effect” shall have the
meaning assigned to such term in Section
3.1(b).

 

“Maximum Rate” shall have
the meaning ascribed to such term in Section 5.21.

 

 “Offering”
shall have the meaning ascribed to such term in the
Preamble.

 

“Per Unit Purchase
Price” equals $0.75 per
Unit, subject to adjustment for reverse and forward stock splits,
stock dividends, and other similar transactions affecting the
Common Stock that occur after the date of this Agreement and prior
to Closing.

 

“Person”
means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any
kind.

 

“Preferred
Shares” means the
Company’s newly designated Series M Convertible Preferred
Stock, par value $0.01 per share, which are convertible into shares
of Common Stock, with such rights and designations as set forth in
the form of Certificate of Designations.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding
(including, without limitation, an informal investigation or
partial proceeding, such as a deposition), whether commenced or
threatened.

 

“Registration Rights
Agreement” means the
Registration Rights Agreement, dated the date hereof, among the
Company and the Purchasers, in the form of Exhibit C
attached hereto.

 

“Registration
Statement” means a
registration statement meeting the requirements set forth in the
Registration Rights Agreement and covering the resale of the Shares
and Warrant Shares by each Purchaser as provided for in the
Registration Rights Agreement.

 

“Required
Approvals” shall have the
meaning ascribed to such term in Section
3.1(e).

 

“Rule
144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission
having substantially the same purpose and effect as such
Rule.

 

 

 

-2-

 

 

“SEC
Reports” shall
mean all reports, schedules, forms, statements and other
documents filed by the Company under the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the three (3)
months preceding the date hereof, including the exhibits thereto
and documents incorporated by reference therein, which have been
available on EDGAR not less than five (5) days before the Closing
Date.

 

“Securities”
means the Units, Shares, Conversion Shares, the Warrants and the
Warrant Shares.

 

“Securities
Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

“Securities Laws” means
the securities laws of the United States or any state thereof and
the rules and regulations promulgated thereunder.

 

“Shares”
means the shares of Common Stock or, at the election of each
Purchaser, Preferred Shares delivered to the Purchasers, as the
case may be, pursuant to this Agreement in connection with the
Closing.

 

“Short
Sales” means all
“short sales” as defined in Rule 200 of Regulation SHO
under the Exchange Act (but shall not be deemed to include the
location and/or reservation of borrowable shares of Common
Stock). 

 

“Subscription
Amount” means, as to each
Purchaser at the Closing, the aggregate amount of cash
consideration to be paid for Units purchased hereunder at the
Closing as specified below such Purchaser’s name on the
signature page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in
immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable and
with regard to future events, also include any direct or indirect
subsidiary of the Company formed or acquired after the date
hereof.

 

“Termination Date” shall
have the meaning ascribed to such term in Section 2.1.

 

“Trading Day” means a day
on which the principal Trading Market is open for trading;
provided, that in the event that the Common Stock is not listed or
quoted for trading on a Trading Market on the date in question,
then Trading Day shall mean a Business Day.

 

“Trading Market” means any
of the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the NYSE MKT,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
Global Select Market, the New York Stock Exchange, the OTC Bulletin
Board, the OTCQB or the OTCQX (or any successors to any of the
foregoing).

 

“Transaction
Documents” means this
Agreement, the Certificate of Designations, the Registration Rights
Agreement, the Warrants, all exhibits and schedules thereto and
hereto and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

 

“Transfer
Agent” means
Computershare Trust Company, N.A. Its address is 250 Royall Street,
Canton, MA 02021, and any successor transfer agent of the
Company.

 

“Unit Purchase
Price” shall have the
meaning ascribed to such term in Section 2.1.

 

 

 

-3-

 

 

“VWAP”
means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted
average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is
then listed or quoted as reported by Bloomberg L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New
York City time)), (b)  if the OTC Bulletin Board is not a
Trading Market, the volume weighted average price of the Common
Stock for such date (or the nearest preceding date) on the OTC
Bulletin Board, (c) if the Common Stock is not then listed or
quoted for trading on the OTC Bulletin Board and if prices for the
Common Stock are then reported on the OTCQX, OTCQB or OTC Pink
Marketplace maintained by the OTC Markets Group, Inc. (or a similar
organization or agency succeeding to its functions of reporting
prices), the volume weighted average price of the Common Stock on
the first such facility (or a similar organization or agency
succeeding to its functions of reporting prices), or (d) in
all other cases, the fair market value of a share of Common Stock
as determined by an independent appraiser selected in good faith by
the Purchasers of a majority in interest of the Securities then
outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered
to the Purchasers at the Closing in the form of Exhibit B
attached hereto.

 

“Warrant
Shares” means the shares
of Common Stock issuable upon exercise of the Warrants,
provided that any share of Common Stock issued upon exercise of the
Warrants shall not constitute an issued Warrant Share for purposes
of this Agreement after such share has been irrevocably sold
pursuant to an effective registration statement under the
Securities Act or pursuant to Rule 144 without further restrictions
or conditions to transfer pursuant to Rule 144.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing. 
On one or more Closing Dates, upon the terms and subject to the
conditions set forth herein, substantially concurrent with the
execution and delivery of this Agreement by the parties hereto, the
Company agrees to sell, and each of the Purchasers, severally and
not jointly, agrees to purchase the Units for an aggregate
purchase price up to a maximum of $2,750,000
(“Purchase
Price”), each consisting
of one share of Common Stock (or, at the election of any Purchaser
who, as a result of the ownership of the Common Stock would hold in
excess of 4.99% of the Company’s issued and outstanding
Common Stock, the equivalent amount of Preferred Shares) together
with Warrants to purchase in the aggregate shares of Common Stock
equal to seventy percent (70%) of the subscribed Shares (in the
event a Purchaser elects to receive Preferred Shares, seventy
percent (70%) of the Conversion Shares) (each such purchase and
sale being the “Closing”),
at the Per Unit Purchase Price. Prior to the Closing, each
Purchaser shall deliver to the Company, inter alia,
such Purchaser’s Subscription Amount as set forth on the
signature page hereto executed by such Purchaser by a wire transfer
of immediately available funds, and the Company shall, on the
Closing Date, cause the Company to deliver to each
Purchaser, inter alia,
a certificate representing the number of Shares and Warrants
purchased by each such Purchaser at the Closing as determined
pursuant to Section 2.2(a). The Company and each Purchaser shall
also deliver the other items set forth in Section 2.2 deliverable
at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, the Closings shall occur at the
offices of Company Counsel or such other location as the parties
shall mutually agree. Notwithstanding anything herein to the
contrary, each Closing Date shall occur on or before February 28,
2018 (such outside date, “Termination Date”). If
any Closing is not held on or before the Termination Date, (i) all
subscription documents executed by the Company or a Purchaser shall
be returned to the Company or such Purchaser, as applicable, and
(ii) each Subscription Amount shall be returned, without interest
or deduction to the Purchaser who delivered such Subscription
Amount. If a Closing is not held on or before the Termination Date,
the Company shall cause all subscription documents and funds to be
returned, without interest or deduction to each prospective
Purchaser.

 

 

 

-4-

 

 

2.2          Deliveries.

 

(a)           On
the Closing Date, the Company shall deliver or cause to be
delivered to the Purchasers the following:

 

(i)    
this Agreement and the Registration Rights Agreement each duly
executed by the Company, to the Purchasers;

 

(ii)
certificates evidencing a number of applicable Shares equal to such
Purchaser’s Subscription Amount divided by the Unit Purchase
Price registered in the name of such Purchaser;

 

(iii)
a Warrant registered in the name of such Purchaser to purchase up
to a number of shares of Common Stock equal to 70% of such
Purchaser’s shares of Common Stock purchased (or, if
Preferred Shares elected, Conversion Shares) on the date hereof,
with an exercise price equal to $0.90, subject to adjustment
therein; and

 

(iv)
file stamped evidence from the Secretary of State of the State of
Delaware of the Certificate of Designation.

 

(b)          On
or prior to the applicable Closing Date, each Purchaser shall
deliver or cause to be delivered to the Company the
following:

  

(i) such
Purchaser’s Subscription Amount by wire transfer to the
account previously specified by the Company; and

 

(ii) this
Agreement and the Registration Rights Agreement each duly executed
by the Purchaser

  

2.3           Closing
Conditions.

 

(a)           The
obligations of the Company hereunder in connection with the
Closing, unless waived by a Majority in Interest, are subject to
the following conditions being met:

 

(i)          the
accuracy in all material respects when made and on the Closing Date
of the representations and warranties of the Purchasers contained
herein (unless as of a specific date therein in which case they
shall be accurate as of such date);

 

(ii)         all
conditions, obligations, covenants and agreements of each Purchaser
under this Agreement required to be performed at or prior to the
Closing Date shall have been performed in all material respects;
and

 

(iii)      the
delivery by each Purchaser of the items set forth in Section 2.2(b)
of this Agreement.

 

(b)              The
respective independent obligations of a Purchaser hereunder in
connection with the Closing, unless waived by such Purchaser, are
subject to the following conditions being met:

 

(i)           the
accuracy in all material respects (when made and on the Closing
Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein in which case they
shall be accurate as of such date);

 

(ii)          all
Required Approvals, obligations, covenants and agreements of the
Company under this Agreement required to be performed at or prior
to the Closing Date shall have been performed;

 

(iii)         the
delivery by the Company of the items set forth in Section 2.2(a) of
this Agreement; and

 

(iv)         there
shall have been no Material Adverse Effect with respect to the
Company since the date hereof and the Closing Date.

 

 

 

 

-5-

 

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1          Representations
and Warranties of the Company.
Except as set forth in the SEC Reports, which shall be deemed a
part hereof, the Company hereby makes the following representations
and warranties to each Purchaser as of the date of this Agreement
and as of the Closing Date:

 

(a)           Subsidiaries. 
All of the direct and indirect subsidiaries of the Company are set
forth in the SEC Reports. The Company owns, directly or indirectly,
a majority of the capital stock or other equity interests of each
Subsidiary free and clear of any Liens, subject to restrictions
under applicable laws, and all of the issued and outstanding shares
of capital stock of each Subsidiary are validly issued and are
fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

(b)           Organization
and Qualification.  The
Company and each of the Subsidiaries is an entity duly incorporated
or otherwise organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization,
with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in
violation or default of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other
organizational or charter documents.  Each of the Company and
the Subsidiaries is duly qualified to conduct business and is in
good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the
case may be, could not reasonably be expected to result in: (i) a
material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the
results of operations, assets, business, prospects or condition
(financial or otherwise) of the Company and the Subsidiaries, taken
as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a
timely basis its obligations under any Transaction Document (any of
(i), (ii) or (iii), a “Material Adverse
Effect”) and to the best
of the Company’s knowledge no Proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or
qualification.

 

(c)           Authorization;
Enforcement.  The Company
has the requisite corporate power and authority to enter into and
to consummate the transactions contemplated by this Agreement and
each of the other Transaction Documents and otherwise to carry out
its obligations hereunder and thereunder.  The execution and
delivery of each of this Agreement and the other Transaction
Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and
no further action is required by the Company, the Board of
Directors or the Company’s stockholders in connection
herewith or therewith other than in connection with the Required
Approvals. This Agreement and each other Transaction Document
to which it is a party has been (or upon delivery will have been)
duly executed by the Company and, when delivered in accordance with
the terms hereof and thereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in
accordance with its terms, except: (i) as limited by general
equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other laws of general
application affecting enforcement of creditors’ rights
generally, and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable
remedies.

 

(d)           No
Conflicts.  The execution,
delivery and performance by the Company of this Agreement and the
other Transaction Documents to which it is a party, the issuance
and sale of the Securities and the consummation by it of the
transactions contemplated hereby and thereby do not and will not:
(i) conflict with or violate any provision of the Company’s
or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, (ii) conflict
with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) by the Company or any
Subsidiary under, result in the creation of any Lien upon any of
the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other
understanding to which the Company or any Subsidiary is a party or
by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals,
conflict with or result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including Securities Laws), or
by which any property or asset of the Company or a Subsidiary is
bound or affected; except in the case of each of clauses (ii) and
(iii), such as reasonably be expected to result in a Material
Adverse Effect.

 

 

 

-6-

 

 

(e)           Filings,
Consents and Approvals.  The
Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing
or registration with, any court or other provincial or foreign or
domestic federal, state, local or other governmental authority or
other Person in connection with the execution, delivery and
performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.5 of this
Agreement, (ii) the filing with the Commission pursuant to the
Registration Rights Agreement, (iii) the notice and/or
application(s) to each applicable Trading Market for the issuance
and sale of the Securities and the listing of the Shares and
Underlying Shares (as defined below) for trading thereon in the
time and manner required thereby, all of which shall have been
effectuated prior to the Closing, (iv) the filing of the
Certificate of Designation with the Secretary of State of the State
of Delaware, (v) the
filing of a Form D with the Commission and (vi) the consent of the
lead investor in the May 17, 2017 public offering (collectively,
the “Required
Approvals”).

 

(f)           Issuance
of the Securities.  The
Securities are restricted securities and have been duly authorized
and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens other than
restrictions on transfer provided for under the Securities Act, the
Exchange Act, in the Transaction Documents and as provided
herein.

 

(g)           Form
8-K; Financial Statements.
The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by the Company
under the Securities Act and the Exchange Act, including pursuant
to Sections 12(b), 12(g), 13(a) or 15(d) thereof, for the six (6)
months preceding the date hereof. The
Form 8-K described in Section 4.3, upon its filing, will comply in
all material respects with the requirements of the Exchange Act,
and will not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The
latest audited financial statements of the Company included in the
SEC Reports, if any, comply in all material respects with
applicable accounting requirements and the rules and regulations of
the Commission with respect thereto as in effect at the time of
filing.  Such financial statements have been prepared in
accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods
involved (“GAAP”),
except as may be otherwise specified in such financial statements
or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP and are subject to
normal, immaterial, year-end audit adjustments, and fairly present
in all material respects the financial position of the Company and
its consolidated Subsidiaries as of and for the dates thereof and
the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

 

(h)          Certain
Fees. There are no brokerage or
finder’s fees or commissions that are or will be payable by
the Company or any Subsidiary to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by the
Transaction Documents. The Purchasers shall have no obligation with
respect to any fees or with respect to any claims made by or on
behalf of other Persons for fees of a type contemplated in this
Section that may be due in connection with the transactions
contemplated by the Transaction Documents

 

 

-7-

 

 

3.2          Representations
and Warranties of the Purchasers.  Each Purchaser, for itself and for no
other Purchaser, hereby represents and warrants as of the date
hereof and as of the Closing Date to the Company as follows (unless
as of a specific date therein):

 

(a)           Organization;
Authority.  Such
Purchaser is either an individual or an entity duly incorporated or
formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation with full right,
corporate, partnership, limited liability company or similar power
and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry
out its obligations hereunder and thereunder. The execution and
delivery of the Transaction Documents and performance by such
Purchaser of the transactions contemplated by the Transaction
Documents have been duly authorized by all necessary corporate,
partnership, limited liability company or similar action, as
applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such
Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited
by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by
applicable law. If such Purchaser is an entity, the address of its
principal place of business is as set forth on the signature page
hereto, and if such Purchaser is an individual, the address of its
principal residence is as set forth on the signature page
hereto.

 

(b)           Understandings
or Arrangements. Such Purchaser understands that the
Securities are “restricted securities” and have not
been registered under the Securities Act or any applicable state
securities law and is acquiring the Securities as principal for its
own account and not with a view to or for distributing or reselling
such Securities or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present
intention of distributing any of such Securities in violation of
the Securities Act or any applicable state securities law and has
no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of such
Securities in violation of the Securities Act or any applicable
state securities law (this representation and warranty not limiting
such Purchaser’s right to sell the Securities pursuant to a
registration statement or otherwise in compliance with applicable
federal and state securities laws). Such Purchaser is acquiring the
Securities hereunder in the ordinary course of its
business.

 

(c)           Purchaser
Status.  At the
time such Purchaser was offered the Securities, it was, and as of
the date hereof it is, and on each date on which it exercises any
Warrants it will be either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act or (ii) a
“qualified institutional buyer” as defined in Rule
144A(a) under the Securities Act. Such Purchaser is not required to
be registered as a broker-dealer under Section 15 of the Exchange
Act. Such Purchaser has the authority and is duly and legally
qualified to purchase and own the Securities. Such Purchaser is
able to bear the risk of such investment for an indefinite period
and to afford a complete loss thereof. Such Purchaser has provided
the information in the Accredited Investor Questionnaire attached
hereto as Exhibit D
(the “Investor
Questionnaire”). The information set forth on the
signature pages hereto and the Investor Questionnaire regarding
such Purchaser is true and complete in all respects. Except as
disclosed in the Investor Questionnaire, such Purchaser has had no
position, office or other material relationship within the past
three years with the Company or Persons (as defined below) known to
such Purchaser to be affiliates of the Company, and is not a member
of the Financial Industry Regulatory Authority or an
“associated person” (as such term is defined under the
FINRA Membership and Registration Rules Section
1011). 

 

(d)           Experience
of Such Purchaser. 
Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and
risks of the prospective investment in the Securities, and has so
evaluated the merits and risks of such investment. Such Purchaser
is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete
loss of such investment.

 

 

-8-

 

 

 

(e)           Information
on Company. Such Purchaser has been furnished with or has
had access to the EDGAR Website of the Commission to the
Company’s filings made with the Commission during the period
from the date that is two (2) years preceding the date hereof
through the tenth business day preceding the Closing Date in which
such Purchaser purchases Securities hereunder, including but not
limited to the Risk Factor section of the Company’s filings
and reports made with the Commission.   In addition,
such Purchaser may have received in writing from the Company such
other information concerning its operations, financial condition
and other matters as such Purchaser has requested, identified
thereon as OTHER WRITTEN INFORMATION (such other information is
collectively, the “Other Written
Information”), and considered all factors such
Purchaser deems material in deciding on the advisability of
investing in the Securities.  Such Purchaser was afforded
(i) the opportunity to ask such questions as such Purchaser deemed
necessary of, and to receive answers from, representatives of the
Company concerning the merits and risks of acquiring the
Securities; (ii) the right of access to information about the
Company and its financial condition, results of operations,
business, properties, management and prospects sufficient to enable
such Purchaser to evaluate the Securities; and (iii) the
opportunity to obtain such additional information that the Company
possesses or can acquire without unreasonable effort or expense
that is necessary to make an informed investment decision with
respect to acquiring the Securities.

 

(f)           Certain
Transactions and Confidentiality.  Such Purchaser understands and
agrees that the Securities have not been registered under the
Securities Act or any applicable state securities laws, by reason
of their issuance in a transaction that does not require
registration under the Securities Act, and that such Securities
must be held indefinitely unless a subsequent disposition is
registered under the Securities Act or any applicable state
securities laws or is exempt from such registration. Such Purchaser
understands and agrees that the Securities are being offered and
sold to such Purchaser in reliance on specific exemptions from the
registration requirements of United States federal and state
securities laws and regulations and that the Company is relying in
part upon the truth and accuracy of, and such Purchaser’s
compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Purchaser set forth
herein in order to determine the availability of such exemptions
and the eligibility of such Purchaser to acquire the
Securities.

 

(g)           Communication
of Offer. Such Purchaser is not purchasing the Securities as
a result of any “general solicitation” or
“general advertising,” as such terms are defined in
Regulation D, which includes, but is not limited to, any
advertisement, article, notice or other communication regarding the
Securities published in any newspaper, magazine or similar media or
on the internet or broadcast over television, radio or the internet
or presented at any seminar or any other general solicitation or
general advertisement.

 

 

-9-

 

 

(h)     
     No Governmental Review. Such
Purchaser understands that no United States federal or state agency
or any other governmental or state agency has passed on or made
recommendations or endorsement of the Securities or the suitability
of the investment in the Securities nor have such authorities
passed upon or endorsed the merits of the offering of the
Securities.

 

(i)             
No Conflicts. The
execution, delivery and performance of this Agreement and
performance under the other Transaction Documents and the
consummation by such Purchaser of the transactions contemplated
hereby and thereby or relating hereto or thereto do not and will
not (i) result in a violation of such Purchaser’s charter
documents, bylaws or other organizational documents, if applicable,
(ii) conflict with nor constitute a default (or an event which with
notice or lapse of time or both would become a default) under any
agreement to which such Purchaser is a party, nor (iii) result in a
violation of any law, rule, or regulation, or any order, judgment
or decree of any court or governmental agency applicable to such
Purchaser or its properties (except for such conflicts, defaults
and violations as would not, individually or in the aggregate, have
a material adverse effect on such Purchaser). Such Purchaser is not
required to obtain any consent, authorization or order of, or make
any filing or registration with, any court or governmental agency
in order for it to execute, deliver or perform any of its
obligations under this Agreement or perform under the other
Transaction Documents nor to purchase the Securities in accordance
with the terms hereof, provided that for purposes of the
representation made in this sentence, such Purchaser is assuming
and relying upon the accuracy of the relevant representations and
agreements of the Company herein.

 

(j)             
Certain Transactions and
Confidentiality. Other than consummating the transactions
contemplated hereunder, such Purchaser has not directly or
indirectly, nor has any Person acting on behalf of or pursuant to
any understanding with such Purchaser, executed any purchases or
sales, including Short Sales, of the securities of the Company
during the period commencing as of the time that such Purchaser
first received a written term sheet of the Offering from the
Company setting forth the material terms of the transactions
contemplated hereunder and ending immediately prior to the
execution hereof. Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such
Purchaser’s assets and the portfolio managers have no direct
knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets,
the representation set forth above shall only apply with respect to
the portion of assets managed by the portfolio manager that made
the investment decision to purchase the Securities covered by this
Agreement. Other than to other Persons party to this Agreement,
such Purchaser has maintained the confidentiality of all
disclosures made to it in connection with this transaction
(including the existence and terms of this transaction).
Notwithstanding the foregoing, for avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or
preclude any actions, with respect to the identification of the
availability of, or securing of, available shares to borrow in
order to effect Short Sales or similar transactions after the
Closing Date.

 

(k)           
Pre-Existing
Relationships. The
Purchaser represents and warrants that: (i) the Purchaser has a
prior substantial pre-existing relationship with the Company, the
Purchaser is not investing in the Offering in connection with or as
a result of any registration statement filed with the SEC by the
Company and (ii) no Securities were offered or sold to it by
means of any form of general solicitation or general advertising,
and in connection therewith, the Purchaser did not (A) receive or
review any advertisement, article, notice or other communication
published in a newspaper or magazine or similar media or broadcast
over television or radio, whether closed circuit, or generally
available; or (B) attend any seminar meeting or industry investor
conference whose attendees were invited by any general solicitation
or general advertising; or (C) observe any website or filing of the
Company with the Commission in which any offering of securities by
the Company was described and as a result learned of any offering
of securities by the Company.

 

(l)           
Non-U.S. Person. To
the extent the Purchaser is not a U.S. Person (a “Reg S
Person”), such Purchaser hereby represents that the
representations contained in paragraphs (1) through (6) of this
Section 3.2(l) are true and correct with respect to such
Purchaser.

 

 

 

-10-

 

 

(1)           (i)
the issuance and sale to such Reg S Person of the Securities is
intended to be exempt from the registration requirements of the
Securities Act, pursuant to the provisions of Regulation S; (ii) it
is not a “U.S. Person,” as such term is defined in
Regulation S, and is not acquiring the Securities for the account
or benefit of any U.S. Person; and (iii) the offer and sale of the
Securities has not taken place, and is not taking place, within the
United States of America or its territories or possessions. Such
Reg S Person acknowledges that the offer and sale of the Securities
has taken place, and is taking place in an “offshore
transaction,” as such term is defined in Regulation
S.

 

(2)           Such
Reg S Person acknowledges and agrees that, pursuant to the
provisions of Regulation S, the Securities cannot be sold, assigned, transferred, conveyed,
pledged or otherwise disposed of to any U.S. Person or within the
United States of America or its territories or possessions for a
period of one year from and after the Closing Date, unless
such Securities are registered
for sale in the United States pursuant to an effective registration
statement under the Securities Act or another exemption from such
registration is available. Such Reg S Person acknowledges that it
has not engaged in any hedging transactions with regard to
the Securities.

 

(3)           Such
Reg S Person consents to the placement of a legend on any
certificate, note or other document evidencing the Securities and
understands that the Company shall be required to refuse to
register any transfer of securities not made in accordance with
applicable U.S. securities laws.

 

(4)           Such
Reg S Person is not a “distributor” of securities, as
that term is defined in Regulation S, nor a dealer in
securities.

 

(5)           Such
Reg S Person understands that the Securities have not been registered under the Securities Act,
or the securities laws of any state and are subject to substantial
restrictions on resale or transfer. The Securities
are “restricted
securities” within the meaning of Regulation S and Rule 144,
promulgated under the Securities Act.

 

(6)           Such
Reg S Person makes the representations, declarations and warranties
as contained in this Section 3.2(l) with the intent that the same
shall be relied upon by the Company in determining its suitability
as a purchaser of such Securities.

 

(m)
Survival. The
foregoing representations and warranties shall survive the Closing
Date.

 

The
Company acknowledges and agrees that the representations contained
in Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s
representations and warranties contained in this Agreement or any
representations and warranties contained in any other Transaction
Document or any other document or instrument executed and/or
delivered in connection with this Agreement or the consummation of
the transaction contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer
Restrictions.

 

(a)           Securities
Laws. The Securities may only
be disposed of in compliance with state and federal securities
laws.  In connection with any transfer of Securities other
than pursuant to an effective registration statement or Rule 144,
to the Company or to an Affiliate of a Purchaser or in connection
with a pledge as contemplated in Section 4.1(c), the Company may
require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor and reasonably acceptable to
the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred
Securities under the Securities Act.  As a condition of such
transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement, and the Registration Rights Agreement,
and shall have the rights and obligations of a Purchaser under this
Agreement and the other Transaction Documents.

 

(b)          Legend.
The Purchasers agree to the
imprinting, so long as is required by this Section 4.1, of a legend
on any of the Securities in the following form:

 

 

 

 

-11-

 

 

For U.S. Persons:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES [FOR] WHICH THIS SECURITY IS
EXERCISABLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND
APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  TO
THE EXTENT PERMITTED BY APPLICABLE SECURITIES LAWS, THIS SECURITY
[AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY] MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION
THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

 

For
Non-U.S. Persons:

 

THESE
SECURITIES [AND THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE] WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO
ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”)
PURSUANT TO REGULATION S UNDER THE 1933 ACT. ACCORDINGLY, NONE OF
THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS,
AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE
UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS
DEFINED IN REGULATION S PROMULGATED UNDER THE SECURITIES ACT)
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN ACCORDANCE WITH THE 1933 ACT.

 

(c)                    Pledge.
The Company acknowledges and agrees that a Purchaser may from time
to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or
all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under
the Securities Act and who agrees to be bound by the provisions of
this Agreement and the Registration Rights Agreement and, if
required under the terms of such arrangement, such Purchaser may
transfer pledge or secure Securities to the pledgees or secured
parties. Such a pledge or transfer would not be subject to approval
of the Company and no legal opinion of legal counsel of the
pledgee, secured party or pledgor shall be required in connection
therewith. Further, no notice shall be required of such pledge. At
such Purchaser’s expense, the Company will execute and
deliver such reasonable documentation as a pledgee or secured party
of Securities may reasonably request in connection with a pledge or
transfer of the Securities including, if the Securities are subject
to registration pursuant to the Registration Rights Agreement, the
preparation and filing of any required prospectus supplement under
Rule 424(b)(3) under the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of
selling stockholders thereunder.

 

 

 

-12-

 

 

(d)                    Company
will accept an opinion of counsel to Purchaser (reasonably
acceptable to Company and Transfer Agent) and upon acceptance by
Transfer Agent, certificates evidencing the Conversion Shares and
the Warrant Shares (collectively, the “Underlying
Shares”) shall not contain any legend (including the legend
set forth in Section 4.1(b) hereof): (i) while a registration
statement (including the Registration Statement) covering the
resale of such security is effective under the Securities Act, (ii)
following any sale of such Underlying Shares pursuant to Rule 144
(assuming cashless exercise of the Warrants, solely with respect to
any Warrant Shares), (iii) if such Underlying Shares are eligible
for sale under Rule 144 (assuming cashless exercise of the
Warrants, solely with respect to any Warrant Shares), or (iv) if
such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission), unless
counsel to the Company shall have rendered such opinion. The
Company shall cause its counsel to issue a legal opinion to the
Transfer Agent or the Purchaser promptly after the Effective Date
if required by the Transfer Agent to effect the removal of the
legend hereunder.

 

4.2      Conversion/Exercise
Procedures. The form of Notice
of Exercise included in the Warrants and the form of Conversion
Notice included in the Certificate of Designation, as the case may
be, set forth the totality of the procedures required of the
Purchasers in order to exercise the Warrants or convert the
Preferred Shares, as applicable. Without limiting the preceding
sentences, no ink-original Notice of Exercise or Conversion Notice
shall be required, nor shall any medallion guarantee (or other type
of guarantee or notarization) of any Notice of Exercise or
Conversion Notice form be required in order to exercise the
Warrants or convert the Preferred Shares. No additional legal
opinion, other information or instructions shall be required of the
Purchasers to exercise their Warrants or convert their Preferred
Shares. The Company shall honor exercises of the Warrants and
conversion of the Preferred Shares and shall deliver the underlying
shares of Common Stock in accordance with the terms, conditions and
time periods set forth in the Transaction
Documents.   

  

4.3          Securities
Laws Disclosure; Publicity.  The Company shall, by 9:00 a.m.
(New York City time) on the third (3d) Trading Day immediately
following the Closing Date, issue a press release disclosing the
material terms of the transactions contemplated hereby, and shall
file a Current Report on Form 8-K including the Transaction
Documents as exhibits thereto within the time period required by
the Exchange Act. From and after the issuance of such press release
and Form 8-K, the Company represents to the Purchasers that it
shall have publicly disclosed all material, non-public information
delivered to any of the Purchasers by the Company or any of its
Subsidiaries, or any of their respective officers, directors,
employees or agents in connection with the transactions
contemplated by the Transaction Documents existing as of the
Closing Date. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of
any Purchaser in any filing with the Commission or any regulatory
agency or Trading Market unless the name of such Purchaser is
already included in the body of the Transaction Documents, without
the prior written consent of such Purchaser, except: (a) as
required by federal securities law in connection with the filing of
final Transaction Documents with the Commission, (b) pursuant to
the Registration Rights Agreement and (c) to the extent such
disclosure is required by law or Trading Market
regulations).

 

4.4       Use
of Proceeds.  The Company
will use the net proceeds to the Company from the sale of the
Shares and Warrants hereunder for general corporate purposes and
working capital.

 

 

 

-13-

 

 

 

4.5           
Form D;
Blue Sky Filings.  The
Company agrees to timely file a Form D with respect to the sale of
the Securities by the Company under this Agreement as required
under Regulation D. The Company shall take such action as the
Company shall reasonably determine is necessary in order to obtain
an exemption for, or to qualify the Securities for, sale to the
Purchasers at the Closing under applicable securities or
“Blue Sky” laws of the states of the United States, and
shall provide evidence of such actions promptly upon request of any
Purchaser.

 

4.6           
Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with
the other Purchasers, covenants that neither it, nor any Affiliate
acting on its behalf or pursuant to any understanding with it will
execute any purchases or sales, including Short Sales, of any of
the Company’s securities during the period commencing with
the execution of this Agreement and ending at such time that the
transactions contemplated by this Agreement are first publicly
disclosed or required to be disclosed, whichever occurs first, in
the Form 8-K described in Section 4.3.  Each Purchaser,
severally and not jointly with the other Purchasers, covenants that
until such time as the transactions contemplated by this Agreement
are publicly disclosed or required to be publicly disclosed,
whichever occurs first, by the Company in such Form 8-K, such
Purchaser will maintain the confidentiality of the existence and
terms of this transaction and the information included in the
Transaction Documents. Notwithstanding the foregoing, and
notwithstanding anything contained in this Agreement to the
contrary, the Company expressly acknowledges and agrees that (i) no
Purchaser makes any representation, warranty or covenant hereby
that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by
this Agreement are required to be disclosed in the Form 8-K
described in Section 4.3, (ii) no Purchaser shall be restricted or
prohibited from effecting any transactions in any securities of the
Company in accordance with applicable Securities Laws from and
after the time that the transactions contemplated by this Agreement
are first disclosed or required to be disclosed, whichever occurs
first, in the Form 8-K described in Section 4.5, and (iii) no
Purchaser shall have any duty of confidentiality to the Company or
its Subsidiaries after the filing of such Form 8-K or after the
date such Form 8-K is required to have been filed, whichever occurs
first.  Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such
Purchaser’s assets and the portfolio managers have no direct
knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets,
the covenant set forth above shall only apply with respect to the
portion of assets managed by the portfolio manager that made the
investment decision to purchase the Securities covered by this
Agreement.

 

 

 

-14-

 

 

ARTICLE V.

MISCELLANEOUS

 

5.1         Termination. 
This Agreement may be terminated by any Purchaser, as to such
Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other
Purchasers, by written notice given at any time to the Company,
prior to the occurrence of a Closing with respect to such
Purchaser’s Subscription Agreement. In the event of any
termination by a Purchaser under this Section 5.1, the Company
shall promptly (and in any event within two (2) Business Days of
such termination) refund such Purchaser’s entire subscription
amount.

 

5.2         Fees
and Expenses.  Except as
expressly set forth in the Transaction Documents, each party shall
pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery
and performance of this Agreement.  Except as set forth in the
Warrants, the Company shall pay all Transfer Agent fees, stamp
taxes and other similar taxes and duties levied in connection with
the delivery of any Securities to the
Purchasers.

 

5.3         Entire
Agreement.  The
Transaction Documents, together with the exhibits and schedules
thereto, contain the entire understanding of the parties with
respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.

 

5.4         Notices. 
All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally
served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable
air courier service with charges prepaid, or (iv) transmitted by
hand delivery, telegram, or facsimile, addressed as set forth below
or to such other address as such party shall have specified most
recently by written notice. Any notice or other communication
required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with
accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service,
prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such
communications shall be: (i) if to the Company, to: MabVax
Therapeutics Holdings, Inc., 11535 Sorrento Valley Road, Suite 400,
San Diego, CA 92121, Attn: Chief Financial Officer, with a
copy by fax only to (which shall not constitute notice): Company
Counsel, and (ii) if to the Purchasers, to: the addresses and fax
numbers indicated on the signature pages hereto.

 

5.5           Amendments;
Waivers.  No
provision of this Agreement may be waived, modified, supplemented
or amended except in a written instrument signed, in the case of an
amendment, by the Company and the Purchasers holding at least a
majority of the component of the affected Securities (Shares or
Warrants) purchased hereunder and which are materially adversely
affected by such waiver, modification, supplement or amendment then
outstanding (such majority being the “Majority in
Interest”) or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought. No waiver
of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right
hereunder in any manner impair the exercise of any such right.
As employed herein,
“consent” shall mean consent of the Majority in
Interest on the date such consent is requested or
required.

 

5.6           Headings. 
The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7           Successors
and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns.  The
Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of each Purchaser
(other than by merger).  Any Purchaser may assign any or all
of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided that such
transferee agrees in writing to be bound, with respect to the
transferred Securities, by the provisions of the Transaction
Documents that apply to the
“Purchasers.” 

 

 

 

-15-

 

 

5.8           No
Third-Party Beneficiaries.  This Agreement is intended for the benefit
of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof
be enforced by, any other Person, except as otherwise provided for
herein.

 

5.9           Governing
Law.  All questions
concerning the construction, validity, enforcement and
interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of
the State of New York, without regard to the principles of
conflicts of law thereof.  Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party hereto or
its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of
New York. Each party hereto and each individual signing any
Transaction Document on behalf of the Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it,
he or she is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding.  Each party hereby
irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by
mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other
manner permitted by law.  If either party shall commence an
action or proceeding to enforce any provisions of the Transaction
Documents, then, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of
such action or proceeding.

 

5.10         Survival. 
The representations and warranties contained herein shall survive
the Closing and the delivery of the Securities at the Closings for
the applicable statute of limitations.

 

5.11         Execution. 
This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been
signed by each party and delivered to each other party, it being
understood that the parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a
valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an
original thereof.

 

5.12         Severability. 
If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It
is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

5.13         Rescission
and Withdrawal Right. 
Notwithstanding anything to the contrary contained in (and without
limiting any similar provisions of) any of the other Transaction
Documents, whenever any Purchaser exercises a right, election,
demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods
therein provided, then such Purchaser may rescind or withdraw, in
its sole discretion from time to time upon written notice to the
Company, any relevant notice, demand or election in whole or in
part without prejudice to its future actions and rights; provided,
however, that in the case of a rescission of an exercise of a
Warrant, the applicable Purchaser shall be required to return any
Warrant Shares subject to any such rescinded exercise notice
concurrently with the return to such Purchaser of the aggregate
exercise price paid to the Company for such Warrant Shares and the
restoration of such Purchaser’s right to acquire such Warrant
Shares pursuant to such Purchaser’s Warrant (including,
issuance of a replacement warrant certificate evidencing such
restored right).

 

 

-16-

 

 

5.14         Replacement
of Securities.  If any
certificate or instrument evidencing any Securities is mutilated,
lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon surrender and
cancellation thereof (in the case of mutilation), or in lieu of and
substitution therefor, a new certificate or instrument, but only
upon receipt of evidence reasonably satisfactory to the Company of
such loss, theft, destruction, or mutilation, and of the
ownership of such Security.  The
applicant for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs
(including customary indemnity and bonds) associated with the
issuance of such replacement Securities.

 

5.15         Remedies. 
In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific
performance under the Transaction Documents.  The parties
agree that monetary damages may not be adequate compensation for
any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to
assert in any action for specific performance of any such
obligation the defense that a remedy at law would be
adequate.

 

5.16         Payment
Set Aside.  To the extent
that the Company makes a payment or payments to any Purchaser
pursuant to any Transaction Document or a Purchaser enforces or
exercises its rights thereunder, and such payment or payments or
the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are
required to be refunded, repaid or otherwise restored to the
Company, a trustee, receiver or any other Person under any law
(including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof
originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or
such enforcement or setoff had not occurred.

 

5.17         Legal
Representation. Each Purchaser acknowledges that it has been
represented by independent legal counsel in the preparation of the
Agreement. Each Purchaser recognizes and acknowledges that counsel
to the Company has represented other shareholders of the Company,
and may, in the future, represent others in connection with various
legal matters and each Purchaser waives any conflicts of interest
and other allegations that it has not been represented by its own
counsel.

 

5.18         Saturdays,
Sundays, Holidays, etc. 
   If the last or appointed day for the taking of
any action or the expiration of any right required or granted
herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business
Day.

 

5.19         Construction.
The parties agree that each of them and/or their respective counsel
have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the
Transaction Documents or any amendments thereto. In addition, each
and every reference to share prices and shares of Common Stock in
any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and
other similar transactions of the Common Stock that occur after the
date of this Agreement.

 

5.20        
Usury. To the extent it may
lawfully do so, the Company hereby agrees not to insist upon or
plead or in any manner whatsoever claim, and will resist any and
all efforts to be compelled to take the benefit or advantage of,
usury laws wherever enacted, now or at any time hereafter in force,
in connection with any claim, action or proceeding that may be
brought by any Purchaser in order to enforce any right or remedy
under any Transaction Document. Notwithstanding any provision to
the contrary contained in any Transaction Document, it is expressly
agreed and provided that the total liability of the Company under
the Transaction Documents for payments in the nature of interest
shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and,
without limiting the foregoing, in no event shall any rate of
interest or default interest, or both of them, when aggregated with
any other sums in the nature of interest that the Company may be
obligated to pay under the Transaction Documents exceed such
Maximum Rate. It is agreed that if the maximum contract rate of
interest allowed by law and applicable to the Transaction Documents
is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate
of interest allowed by law will be the Maximum Rate applicable to
the Transaction Documents from the Closing Date thereof forward,
unless such application is precluded by applicable law. If under
any circumstances whatsoever, interest in excess of the Maximum
Rate is paid by the Company to any Purchaser with respect to
indebtedness evidenced by the Transaction Documents, such excess
shall be applied by such Purchaser to the unpaid principal balance
of any such indebtedness or be refunded to the Company, the manner
of handling such excess to be at such Purchaser’s
election.

 

5.21         WAIVER
OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY
JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT
PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY
JURY.

 

5.22              Equitable
Adjustment. Trading volume
amounts, price/volume amounts and similar figures in the
Transaction Documents shall be equitably adjusted (but without
duplication) to offset the effect of stock splits, similar events
and as otherwise described in this Agreement and
Warrants. 

 

(Signature Pages Follow)

 

 

-17-

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated
above.

 

 

	

MABVAX THERAPEUTICS HOLDINGS, INC.

	
 

	

Address for Notice:

 

	
 

	
 

	

 

11535 Sorrento Valley Road, Suite 400

San Diego, CA 92121

 

	

By: 

	
 

	
 

	
 

	

Name:

	
 

	
 

	
 

	

Title: 

	
 

	
 

	
 

	
 

	
 

	
 

	

With a copy to (which shall not constitute notice):

	
 

	
 

	
 

	
 

	
 

	

Harvey
J. Kesner, Esq.

Sichenzia
Ross Ference Kesner LLP

1185
Avenue of the Americas, 37th Floor

New
York, NY 10036

	
 

	
 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

 

 

-18-

 

 

 

[PURCHASER
SIGNATURE PAGES TO MABVAX THERAPEUTICS HOLDINGS, INC.

SECURITIES
PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities
Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated
above.

 

Name of
Purchaser: ________________________________________________________________

 

 

 

Signature
of Authorized Signatory of Purchaser:
__________________________________________

 

 

Name of
Authorized Signatory:
_______________________________________________________

 

 

Title
of Authorized Signatory:
________________________________________________________

 

 

Address
for Delivery of Securities to Purchaser (if not same as address for
notice):

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

 

 

 

 

Subscription
Amount: US$________________

 

□ Shares of Common Stock at $0.75 per Unit:
___________________

 

OR

□ Shares of Series M Preferred Stock at $0.75 per
Unit: ___________________

 

PLUS

 

Warrants:
___________________

 

EIN
Number, if applicable, will be provided under separate
cover.

 

 

-19-

 

 

EXHIBITS

 

Exhibit
A                       

Form of Certificate
of Designation

Exhibit
B                       

Form of
Warrant

Exhibit
C                       

Registration Rights
Agreement

Exhibit
D                       

Form of Investor
Questionnaire

 

 

 

 

-20-

 

 

EXHIBIT D

 

ACCREDITED INVESTOR QUESTIONNAIRE

IN CONNECTION WITH INVESTMENT IN UNITS OF MABVAX THERAPEUTICS
HOLDINGS, INC.,

A DELAWARE CORPORATION

PURSUANT TO SECURITIES PURCHASE AGREEMENT DATED , 2018

 

 

To:          

MabVax Therapeutics
Holdings, Inc.

11535
Sorrento Valley Road, Suite 400

San
Diego, CA 92121

Fax:
[ ]

 

INSTRUCTIONS

 

PLEASE
ANSWER ALL QUESTIONS. If the appropriate answer is
“None” or “Not Applicable”, so state.
Please print or type your answers to all questions. Attach
additional sheets if necessary to complete your answers to any
item.

 

Your
answers will be kept strictly confidential at all times. However,
MabVax Therapeutics Holdings, Inc. (collectively, the
“Company”) may present this Questionnaire to such
parties as it deems appropriate in order to assure itself that the
offer and sale of securities of the Company will not result in a
violation of the registration provisions of the Securities Act of
1933, as amended, or a violation of the securities laws of any
state.

 

1.            

Please provide the
following information:

 

Name:                                                                                                                                           

 

Name of additional
purchaser:                                                                                                                                           

 

(Please
complete information in Question 5)

 

Date of
birth, or if other than an individual, year of organization or
incorporation:

 

 

 

 

 

2.            

Residence address,
or if other than an individual, principal office
address:

 

 

 

 

 

 

 

Telephone
number:                                                                                                                                           

 

Social Security
Number:                                                                                                                                           

 

Taxpayer
Identification
Number:                                                                                                                                           

 

3. Business
address:                                                                                                                                           

 

 

 

 

 

Business telephone
number:                                                                                                                                           

 

4. Send mail
to:                                            

Residence
______                                                       

Business
_______

 

 

-21-

 

 

 

5.            

With respect to
tenants in common, joint tenants and tenants by the entirety,
complete only if information differs from that above:

 

Residence
address:                                                                                                                                           

 

 

 

 

 

Telephone
number:                                                                                                                                           

 

Social Security
Number:                                                                                                                                           

 

Taxpayer
Identification
Number:                                                                                                                                           

 

Business
address:                                                                                                                                           

 

 

 

 

 

Business telephone
number:                                                                                                                                           

 

Send Mail
to:                                            

Residence
_______                                                       

Business
_______

 

6.            

Please describe
your present or most recent business or occupation and indicate
such information as the nature of your employment, how long you
have been employed there, the principal business of your employer,
the principal activities under your management or supervision and
the scope (e.g. dollar volume, industry rank, etc.) of such
activities:

 

 

 

 

 

 

 

 

 

7.            

Please state
whether you (i) are associated with or affiliated with a member of
the Financial Industry Regulatory Association, Inc.
(“FINRA”), (ii) are an owner of stock or other
securities of FINRA member (other than stock or other securities
purchased on the open market), or (iii) have made a subordinated
loan to any FINRA member:

 

_______                                            

_______

 

Yes                                            

No

 

If you
answered yes to any of (i) – (iii) above, please indicate the
applicable answer and briefly describe the facts
below:

 

 

 

 

 

 

 

8A.            

Applicable to
Individuals ONLY. Please answer the following questions concerning
your financial condition as an “accredited investor”
(within the meaning of Rule 501 of Regulation D). If the purchaser
is more than one individual, each individual must initial an answer
where the question indicates a “yes” or
“no” response and must answer any other question fully,
indicating to which individual such answer applies. If the
purchaser is purchasing jointly with his or her spouse, one answer
may be indicated for the couple as a whole:

 

 

-22-

 

 

 

8.1            

Does your net
worth* (or joint net worth with your spouse) exceed
$1,000,000?

 

_______                                            

_______

 

Yes                                            

No

 

8.2            

Did you have an
individual income** in excess of $200,000 or joint income together
with your spouse in excess of $300,000 in each of the two most
recent years and do you reasonably expect to reach the same income
level in the current year?

 

_______                                            

_______

 

Yes                                            

No

 

8.3            

Are you an
executive officer of the Company?

 

_______                                            

_______

 

Yes                                            

No

 

* For
purposes hereof, net worth shall be deemed to include ALL of your
assets, liquid or illiquid MINUS any liabilities.

 

** For
purposes hereof, the term “income” is not limited to
“adjusted gross income” as that term is defined for
federal income tax purposes, but rather includes certain items of
income which are deducted in computing “adjusted gross
income”. For investors who are salaried employees, the gross
salary of such investor, minus any significant expenses personally
incurred by such investor in connection with earning the salary,
plus any income from any other source including unearned income, is
a fair measure of “income” for purposes hereof. For
investors who are self-employed, “income” is generally
construed to mean total revenues received during the calendar year
minus significant expenses incurred in connection with earning such
revenues.

 

8.B            

Applicable to
Corporations, Partnerships, Trusts, Limited Liability Companies and
other Entities ONLY:

 

The
purchaser is an accredited investor because the purchaser falls
within at least one of the following categories (Check all
appropriate lines):

 

___ 

(i) a bank as
defined in Section 3(a)(2) of the Act or a savings and loan
association or other institution as defined in Section 3(a)(5)(A)
of the Act whether acting in its individual or fiduciary
capacity;

 

___ 

(ii) a
broker-dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934, as amended;

 

___ 

(iii) an insurance
company as defined in Section 2(13) of the Act;

 

___ 

(iv) an investment
company registered under the Investment Company Act of 1940, as
amended (the “Investment Act”) or a business
development company as defined in Section 2(a)(48) of the
Investment Act;

 

___ 

(v) a Small
Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958, as amended;

 

___ 

(vi) a plan
established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, where such plan has
total assets in excess of $5,000,000;

 

 

-23-

 

 

 

___ 

(vii) an employee
benefit plan within the meaning of Title 1 of the Employee
Retirement Income Security Act of 1974, as amended (the
“Employee Act”), where the investment decision is made
by a plan fiduciary, as defined in Section 3(21) of the Employee
Act, which is either a bank, savings and loan association,
insurance company, or registered investment adviser, or an employee
benefit plan that has total assets in excess of $5,000,000, or a
self-directed plan the investment decisions of which are made
solely by persons that are accredited investors;

 

___ 

(viii) a private
business development company, as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940, as amended;

 

___            

(ix) an
organization described in Section 501(c)(3) of the Internal Revenue
Code, a corporation, a Massachusetts or similar business trust, or
a partnership, not formed for the specific purpose of acquiring the
securities offered, with total assets in excess of
$5,000,000;

 

___ 

(x) a trust, with
total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is
directed by a “sophisticated” person, as described in
Rule 506(b)(2)(ii) promulgated under the Act, who has such
knowledge and experience in financial and business matters that he
or she is capable of evaluating the merits and risks of the
prospective investment;

 

___ 

(xi) an entity in
which all of the equity investors are persons or entities described
above (“accredited investors”). ALL EQUITY OWNERS MUST
COMPLETE “EXHIBIT A” ATTACHED HERETO.

 

9.A            

Do you have
sufficient knowledge and experience in financial and business
matters so as to be capable of evaluating the merits and risks
associated with investing in the Company?

 

_______                                            

_______

 

Yes                                            

No

 

ANSWER
QUESTION 9B ONLY IF THE ANSWER TO QUESTION 9A WAS
“NO.”

 

9.B            

If the answer to
Question 9A was “NO,” do you have a financial or
investment adviser (a) that is acting in the capacity as a
purchaser representative and (b) who has sufficient knowledge and
experience in financial and business matters so as to be capable of
evaluating the merits and risks associated with investing in the
Company?

 

_______                                            

_______

 

Yes                                            

No

 

If you
have a financial or investment adviser(s), please identify each
such person and indicate his or her business address and telephone
number in the space below. (Each such person must complete, and you
must review and acknowledge, a separate Purchaser Representative
Questionnaire which will be supplied at your request).

 

 

 

 

 

10.            

You have the right,
will be afforded an opportunity, and are encouraged to investigate
the Company and review relevant factors and documents pertaining to
the officers of the Company, and the Company and its business and
to ask questions of a qualified representative of the Company
regarding this investment and the properties, operations, and
methods of doing business of the Company.

 

 

-24-

 

 

 

Have you or has your purchaser
representative, if any, conducted any such investigation, sought
such documents or asked questions of a qualified representative of
the Company regarding this investment and the properties,
operations, and methods of doing business of the
Company?

 

_______                                            

_______

 

Yes                                            

No

 

If so, briefly
describe:                                                                                                                                           

 

 

 

If so,
have you completed your investigation and/or received satisfactory
answers to your questions?

 

_______                                            

_______

 

Yes                                            

No

 

11.            

Do you understand
the nature of an investment in the Company and the risks associated
with such an investment?

 

_______                                            

_______

 

Yes                                            

No

 

12.            

Do you understand
that there is no guarantee of any financial return on this
investment and that you will be exposed to the risk of losing your
entire investment?

 

_______                                            

_______

 

Yes                                            

No

 

 

 

13.            

Do you understand
that this investment is not liquid?

 

_______                                            

_______

 

Yes                                            

No

 

14.            

Do you have
adequate means of providing for your current needs and personal
contingencies in view of the fact that this is not a liquid
investment?

 

_______                                            

_______

 

Yes                                            

No

 

15.            

Are you aware of
the Company’s business affairs and financial condition, and
have you acquired all such information about the Company as you
deem necessary and appropriate to enable you to reach an informed
and knowledgeable decision to acquire the Interests?

 

_______                                            

_______

 

Yes                                            

No

 

16.            

Do you have a
“pre-existing relationship” with the Company or any of
the officers of the Company?

 

_______                                            

_______

 

Yes                                            

No

 

(For
purposes hereof, “pre-existing relationship” means any
relationship consisting of personal or business contacts of a
nature and duration such as would enable a reasonably prudent
investor to be aware of the character, business acumen, and general
business and financial circumstances of the person with whom such
relationship exists.)

 

If so,
please name the individual or other person with whom you have a
pre-existing relationship and describe the
relationship:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

 

-25-

 

17.            

Exceptions
to the representations and warranties made in Section 3.2 of the
Securities Purchase Agreement (if no exceptions, write
“none” – if left blank, the response will be
deemed to be “none”):
___________________________________________________

 

 

_____________________________________________________________________________

 

Dated:
_______________, 2018

 

If
purchaser is one or more individuals (all individuals must
sign):

 

 

 

(Type
or print name of prospective purchaser)

 

 

 

Signature
of prospective purchaser

 

 

 

Social
Security Number

 

 

 

(Type
or print name of additional purchaser)

 

 

 

Signature
of spouse, joint tenant, tenant in common or other signature, if
required

 

 

 

Social
Security Number

 

 

-26-

 

Annex A

 

Definition of Accredited Investor

 

The
securities will only be sold to investors who represent in writing
in the Securities Purchase Agreement that they are accredited
investors, as defined in Regulation D, Rule 501 under the Act which
definition is set forth below:

 

1.            

A natural person
whose net worth, or joint net worth with spouse, at the time of
purchase exceeds $1 million (excluding home); or

 

2.            

A natural person
whose individual gross income exceeded $200,000 or whose joint
income with that person’s spouse exceeded $300,000 in each of
the last two years, and who reasonably expects to exceed such
income level in the current year; or

 

3.            

A trust with total
assets in excess of $5 million, not formed for the specific purpose
of acquiring the securities offered, whose purchase is directed by
a sophisticated person described in Regulation D; or

 

4.            

A director or
executive officer of the Company; or

 

5.            

The investor is an
entity, all of the owners of which are accredited investors;
or

 

6.            

(a) bank as defined
in Section 3(a)(2) of the Act, or any savings and loan association
or other institution as defined in Section 3(a)(5)(A) of the Act,
(b) any broker or dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934, (c) an insurance Company as
defined in Section 2(13) of the Act, (d) an investment Company
registered under the Investment Company Act of 1940 or a business
development Company as defined in Section 2(a)(48) of such Act, (e)
a Small Business Investment Company licensed by the United States
Small Business Administration under Section 301(c) or (d) of the
Small Business Investment Act of 1958, (f) an employee benefit plan
established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political
subdivisions, if such plan has total assets in excess of $5
million, (g) an employee benefit plan within the meaning of Title I
of the Employee Retirement Income Securities Act of 1974, and the
employee benefit plan has assets in excess of $5 million, or the
investment decision is made by a plan fiduciary, as defined in
Section 3(21) of such act, that is either a bank, savings and loan
institution, insurance Company, or registered investment advisor,
or, if a self-directed plan, with an investment decisions made
solely by persons that are accredited investors, (h) a private
business development company as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940, or (i) an organization
described in Section 501(c)(3) of the Internal Revenue code,
corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the
securities offered, with assets in excess of $5
million.

 

 

 

 

-27-

 

 

EXHIBIT
“A” TO ACCREDITED INVESTOR QUESTIONNAIRE

 

ACCREDITED
CORPORATIONS, PARTNERSHIPS, LIMITED LIABILITY COMPANIES, TRUSTS OR
OTHER ENTITIES INITIALING QUESTION 8B(xi) MUST PROVIDE THE
FOLLOWING INFORMATION.

 

I
hereby certify that set forth below is a complete list of all
equity owners in __________________ [NAME OF ENTITY], a
                                              
[TYPE OF ENTITY] formed pursuant to the laws of the State
of                                    
.. I also certify that EACH
SUCH OWNER HAS INITIALED THE SPACE OPPOSITE HIS OR HER NAME
and that each such owner understands that by initialing that space
he or she is representing that he or she is an accredited
individual investor satisfying the test for accredited individual
investors indicated under “Type of Accredited
Investor.”

 

 

__________________________________________

signature of
authorized corporate officer, general partner or
trustee

 

Name of Equity
Owner                                                                           Type
of Accredited Investor1

 

1.                                                                                                                                           

 

2.                                                                                                                                           

 

3.                                                                                                                                           

 

4.                                                                                                                                           

 

5.                                                                                                                                           

 

6.                                                                                                                                           

 

7.                                                                                                                                           

 

8.                                                                                                                                           

 

9.                                                                                                                                           

 

10.                                                                                                                                           

 

 

 

1            

Indicate which
Subparagraph of 8.1 - 8.3 the equity owner satisfies.

 

-28-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]