Document:

Exhibit 4.6

 

FORM OF
WARRANT

 

THIS WARRANT (“WARRANT”)
AND THE WARRANT SHARES (AS DEFINED BELOW) HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN (OR WILL BE, IN THE CASE OF THE WARRANT
SHARES) ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
THE SALE OR DISTRIBUTION THEREOF.  NO
SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT
OF 1933.

 

No.              

 

THIS WARRANT SHALL BE VOID AFTER 5:00 P.M.
EASTERN TIME ON SEPTEMBER 30, 2010  (THE “EXPIRATION
DATE”).

 

LPATH, INC.

 

WARRANT TO
PURCHASE              SHARES OF

COMMON
STOCK, PAR VALUE $0.001 PER SHARE

 

For VALUE RECEIVED,                                     
(“Warrantholder”),
is entitled to purchase, subject to the provisions of this Warrant, from Lpath, Inc.,
a Nevada corporation (the “Company”),
at any time not later than 5:00 P.M., Eastern Time, on the Expiration Date
(as defined above), at an exercise price per share equal to $1.50 (the exercise
price in effect being herein called the “Warrant Price”),               
shares (“Warrant Shares”)
of the Company’s Common Stock, par value $0.001 per share (“Common Stock”).  The number of Warrant Shares purchasable upon
exercise of this Warrant and the Warrant Price shall be subject to adjustment
from time to time as described herein. 
This Warrant is being issued pursuant to that certain Common Stock and
Purchase Agreement, dated as of January 31, 2006, by and between the
Warrantholder and the Company (the “Purchase Agreement”).

 

Section 1.               Registration.  The Company shall maintain books for the
transfer and registration of this Warrant. 
Upon the initial issuance of this Warrant, the Company shall issue and
register the Warrant in the name of the Warrantholder.

 

Section 2.               Transfers.  As provided herein, this Warrant may be
transferred only pursuant to a registration statement filed under the
Securities Act of 1933, as amended (the “Securities Act”), or an exemption from such
registration.  Subject to such
restrictions, the Company shall transfer this Warrant from time to time upon
the books to be maintained by the Company for that purpose, upon surrender
thereof for transfer properly endorsed or accompanied by appropriate
instructions for transfer and such other documents as may be reasonably
required by the Company, including, if required

 

 

by the Company, an opinion of
its counsel to the effect that such transfer is exempt from the registration
requirements of the Securities Act, to establish that such transfer is being
made in accordance with the terms hereof, and a new Warrant shall be issued to
the transferee and the surrendered Warrant shall be canceled by the Company.

 

Section 3.               Exercise
of Warrant.  Subject and pursuant to
the provisions hereof, including Section 3(b) below, the exercise of
Warrant(s) by Warrantholder shall be subject to the terms set forth
hereinafter.

 

(a)           The
Warrantholder may exercise this Warrant in whole or in part at any time prior
to its expiration upon surrender of the Warrant, together with delivery of the
duly executed Warrant exercise form attached hereto as Appendix A (the “Exercise Agreement”)
and payment by cash, certified check or wire transfer of funds in United States
Dollars for the aggregate Warrant Price for that number of Warrant Shares then
being purchased, to the Company during normal business hours on any business
day at the Company’s principal executive offices (or such other office or
agency of the Company as it may designate by notice to the Warrantholder).  The Warrant Shares so purchased shall be
deemed to be issued to the Warrantholder or the Warrantholder’s designee, as
the record owner of such shares, as of the close of business on the date on
which all of the following has occurred: 
(i) this Warrant shall have been surrendered (or evidence of loss,
theft or destruction thereof and security or indemnity satisfactory to the
Company), (ii) the Warrant Price shall have been paid and (iii) the
completed Exercise Agreement shall have been delivered.  Certificates for the Warrant Shares so
purchased, representing the aggregate number of shares specified in the
Exercise Agreement, shall be delivered to the Warrantholder within a reasonable
time, not exceeding five (5) business days, after this Warrant shall have
been so exercised.  The certificates so
delivered shall be in such denominations as may be requested by the
Warrantholder and shall be registered in the name of the Warrantholder or such
other name as shall be designated by the Warrantholder.  If this Warrant shall have been exercised
only in part, then, unless this Warrant has expired, the Company shall, at its
expense, at the time of delivery of certificates representing the Warrant
Shares purchased upon such exercise, deliver to the Warrantholder a new Warrant
representing the number of shares with respect to which this Warrant shall not
then have been exercised.  As used
herein, “business day” means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of business.  Each exercise hereof shall constitute the
re-affirmation by the Warrantholder that the representations and warranties
contained in Section 2.2 of the LTI Purchase Agreement are true and
correct in all material respects with respect to the Warrantholder as of the
time of such exercise.

 

2

 

(b)           If at any time after one year from the date of
issuance of this Warrant there is no effective Registration Statement
registering the resale of the Warrant Shares by the Warrantholder at a time
when such Registration Statement is otherwise required to be effective pursuant
to the Registration Rights Agreement (as defined in Section 13 hereof)
(and subject to any suspension or blackout periods provided for therein), this
Warrant may also be exercised during such time by means of a “cashless exercise”
in which the Holder shall be entitled to receive a certificate for the number
of Warrant Shares equal to the quotient obtained by dividing [(A-B)(X)] by (A),
where:

 

(A)      =
the Closing Price (as hereinafter defined) on the Trading Day immediately
preceding the date of such election;

 

(B)       =
the Warrant Price of the Warrants, as adjusted; and

 

(X)      =
the number of Warrant Shares issuable upon exercise of the

 

Warrants in accordance with the terms of this
Warrant.

 

Notwithstanding the foregoing, no
Warrantholder shall be permitted to use the “cashless exercise” during an
Allowed Delay (as such term is defined in paragraph 2(c) of the
Registration Rights Agreement) that occurs during the period commencing on February 14
and ending on March 1 of each calendar and that relates to the updating of
the Registration Statement. 
If such Allowed Delay continues after March 1 of such calendar
year, then the Warrantholder may use the cashless exercise until such time as
the Registration Statement has become effective again.

 

Section 4.               Compliance
with the Securities Act of 1933.  The
Company may cause the legend set forth on the first page of this Warrant
to be set forth on each Warrant or similar legend on any Warrant Shares issued
upon exercise of this Warrant, unless counsel for the Company is of the opinion
as to any such security that such legend is unnecessary.

 

Section 5.               Payment
of Taxes.  The Company will pay any
documentary stamp taxes attributable to the initial issuance of Warrant Shares
issuable upon the exercise of the Warrant; provided, however, that
the Company shall not be required to pay any tax or taxes which may be payable
in respect of any transfer involved in the issuance or delivery of any
certificates for Warrant Shares in a name other than that of the Warrantholder
in respect of which such shares are issued, and in such case, the Company shall
not be required to issue or deliver any certificate for Warrant Shares or any
Warrant until the person requesting the same has paid to the Company the amount
of such tax or has established to the Company’s reasonable satisfaction that
such tax has been paid.  The
Warrantholder shall be responsible for income taxes due under federal, state or
other law, if any such tax is due.

 

Section 6.               Mutilated
or Missing Warrants.  In case this
Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue
in exchange and substitution of and upon cancellation of the mutilated Warrant,
or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new
Warrant of like tenor and for the purchase of a like number of Warrant Shares,
but only upon receipt of evidence reasonably satisfactory to the Company and
its legal counsel of such loss, theft or destruction of the Warrant, and with
respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond
with respect thereto, if requested by the Company.

 

3

 

Section 7.               Reservation
of Common Stock.  The Company hereby
represents and warrants that there have been reserved, and the Company shall at
all applicable times keep reserved until issued (if necessary) as contemplated
by this Section 7, out of the authorized and unissued shares of Common
Stock, sufficient shares to provide for the exercise of the rights of purchase
represented by this Warrant.  The Company
agrees that all Warrant Shares issued upon due exercise of the Warrant shall
be, at the time of delivery of the certificates for such Warrant Shares, duly
authorized, validly issued, fully paid and non-assessable shares of Common Stock
of the Company.

 

Section 8.               Adjustments.  Subject and pursuant to the provisions of
this Section 8, the Warrant Price and number of Warrant Shares subject to
this Warrant shall be subject to adjustment from time to time as set forth
hereinafter.

 

(a)           If
the Company shall, at any time or from time to time while this Warrant is
outstanding, pay a dividend or make a distribution on its Common Stock in
shares of Common Stock, subdivide its outstanding shares of Common Stock into a
greater number of shares or combine its outstanding shares of Common Stock into
a smaller number of shares or issue by reclassification of its outstanding
shares of Common Stock any shares of its capital stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then the number of Warrant Shares
purchasable upon exercise of the Warrant and the Warrant Price in effect
immediately prior to the date upon which such change shall become effective,
shall be adjusted by the Company so that the Warrantholder thereafter
exercising the Warrant shall be entitled to receive the number of shares of
Common Stock or other capital stock which the Warrantholder would have received
if the Warrant had been exercised immediately prior to such event upon payment
of a Warrant Price that has been adjusted to equal the product of (A) the
Warrant Price in effect immediately prior to such adjustment multiplied by
(B) a fraction, the numerator of which is equal to the number of Warrant
Shares purchasable pursuant hereto immediately prior to such adjustment and the
denominator of which is the number of Warrant Shares or other securities of the
Company resulting from such adjustment. 
An adjustment made pursuant to this paragraph shall become effective
immediately after the effective date of such event.

 

(b)           If
any capital reorganization, reclassification of the capital stock of the
Company, consolidation or merger of the Company with another corporation in
which the Company is not the survivor, or sale, transfer or other disposition
of all or substantially all of the Company’s assets to another corporation
shall be effected, then, as a condition of such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition,
lawful and adequate provision shall be made whereby each Warrantholder shall
thereafter have the right to purchase and receive upon the basis and upon the
terms and conditions herein specified and in lieu of the Warrant Shares
immediately theretofore issuable upon exercise of the Warrant, such shares of
stock, securities or assets as would have been issuable or payable with respect
to or in exchange for a number of Warrant Shares equal to the number of Warrant
Shares immediately theretofore issuable upon exercise of this Warrant had such
reorganization, reclassification, consolidation, merger, sale, transfer or
other disposition not taken place, and in any such case appropriate provision
shall be made with respect to the rights and interests of each Warrantholder to
the end that the provisions hereof (including, without limitation, provision
for adjustment of the Warrant Price) shall thereafter be applicable, as nearly
equivalent as may be practicable in relation to any shares of stock, securities
or assets thereafter deliverable upon the exercise hereof.

 

4

 

The Company shall not effect
any such consolidation, merger, sale, transfer or other disposition unless
prior to or simultaneously with the consummation thereof the successor
corporation (if other than the Company) resulting from such consolidation or
merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver
to the Warrantholder, at the last address of the Warrantholder appearing on the
books of the Company, such shares of stock, securities or assets as, in
accordance with the foregoing provisions, the Warrantholder may be entitled to
purchase, and the other obligations under this Warrant.  The provisions of this paragraph (b) shall
similarly apply to successive reorganizations, reclassifications,
consolidations, mergers, sales, transfers or other dispositions.

 

(c)           In
case the Company shall fix a payment date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation) of evidences of indebtedness or assets (other than cash dividends
or cash distributions payable out of consolidated earnings or earned surplus or
dividends or distributions referred to in Section 8(a)), or subscription
rights or warrants, the Warrant Price to be in effect after such payment date
shall be determined by multiplying the Warrant Price in effect immediately
prior to such payment date by a fraction, the numerator of which shall be the
total number of shares of Common Stock outstanding multiplied by the Market
Price (as defined below) per share of Common Stock immediately prior to such
payment date, less the fair market value (as determined by the Company’s Board
of Directors in good faith) of said assets or evidences of indebtedness so
distributed, or of such subscription rights or warrants, and the denominator of
which shall be the total number of shares of Common Stock outstanding
multiplied by such Market Price per share of Common Stock immediately prior to
such payment date.  “Market Price” as of a
particular date (the “Valuation
Date”) shall mean the following: (a) if the Common Stock is
then listed on a national stock exchange, the closing sale price of one share
of Common Stock on such exchange on the last trading day prior to the Valuation
Date; (b) if the Common Stock is then quoted on The Nasdaq Stock Market, Inc.
(“Nasdaq”) (whether through the National Market System, the SmallCapMarket or
the OTC Bulletin Board), the closing sale price of one share of Common Stock on
Nasdaq on the last trading day prior to the Valuation Date or, if no such
closing sale price is available, the average of the high bid and the low asked
price quoted on Nasdaq on the last trading day prior to the Valuation Date; or (c) if
the Common Stock is not then listed on a national stock exchange or quoted on
Nasdaq, the fair market value of one share of Common Stock as of the Valuation
Date, shall be determined in good faith by the Board of Directors of the
Company and the Warrantholder.  If the
Common Stock is not then listed on a national securities exchange or quoted on
Nasdaq, the Board of Directors of the Company shall respond promptly, in
writing, to an inquiry by the Warrantholder prior to the exercise hereunder as
to the fair market value of a share of Common Stock as determined by the Board
of Directors of the Company.  In the
event that the Board of Directors of the Company and the Warrantholder are
unable to agree upon the fair market value in respect of subpart (c) hereof,
the Company and the Warrantholder shall jointly select an appraiser, who is
experienced in such matters.  The
decision of such appraiser shall be final and conclusive, and the cost of such
appraiser shall be borne equally by the Company and the Warrantholder.  Such adjustment shall be made successively
whenever such a payment date is fixed.

 

(d)           An
adjustment to the Warrant Price shall become effective immediately after the
payment date in the case of each dividend or distribution and immediately after
the effective date of each other event which requires an adjustment.

 

5

 

(e)           In
the event that, as a result of an adjustment made pursuant to this Section 8,
the Warrantholder shall become entitled to receive any shares of capital stock
of the Company other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject thereafter
to adjustment from time to time in a manner and on terms as nearly equivalent
as practicable to the provisions with respect to the Warrant Shares contained
in this Warrant.

 

Section 9.               Fractional
Interest.  The Company shall not be
required to issue fractions of Warrant Shares upon the exercise of this
Warrant.  If any fractional share of
Common Stock would, except for the provisions of the first sentence of this Section 9,
be deliverable upon such exercise, the Company, in lieu of delivering such
fractional share, shall pay to the exercising Warrantholder an amount in cash
equal to the Market Price of such fractional share of Common Stock on the date
of exercise.

 

Section 10.             Benefits.  Nothing in this Warrant shall be construed to
give any person, firm or corporation (other than the Company and the
Warrantholder) any legal or equitable right, remedy or claim, it being agreed
that this Warrant shall be for the sole and exclusive benefit of the Company
and the Warrantholder.

 

Section 11.             Notices
to Warrantholder.  Upon the happening
of any event requiring an adjustment of the Warrant Price, the Company shall
promptly give written notice thereof to the Warrantholder at the address
appearing in the records of the Company, stating the adjusted Warrant Price and
the adjusted number of Warrant Shares resulting from such event and setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.  Failure to
give such notice to the Warrantholder or any defect therein shall not affect
the legality or validity of the subject adjustment.

 

Section 12.             Notices.  Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be
deemed effectively given as hereinafter described (i) if given by personal
delivery, then such notice shall be deemed given upon such delivery, (ii) if
given by Email or facsimile, then such notice shall be deemed given upon
receipt of confirmation of delivery or complete transmittal, (iii) if
given by mail, then such notice shall be deemed given upon the earlier of (A) receipt
of such notice by the recipient or (B) three days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All notices shall be addressed as follows: if
to the Warrantholder, at its address as set forth in the Company’s books and
records and, if to the Company, at the address as follows, or at such other
address as the Warrantholder or the Company may designate by ten days’ advance
written notice to the other:

 

If to the Company:

 

6335 Ferris Square

Suite A

San Diego, CA 92121

Attention: 
Controller

Fax: 
(858) 678-0900

 

6

 

With a copy to:

 

Eilenberg & Krause LLP

11 East 44th Street, 17th Floor

New York, NY 10017

Attention.: Wesley J. Paul, Esq.

Fax: 
(212) 986-2399

 

Section 13.             Registration
Rights.  The initial Warrantholder is
entitled to the benefit of certain registration rights with respect to the
Warrant Shares issued and issuable upon the exercise of this Warrant as provided
in the Registration Rights Agreement, dated as of January 31, 2006, by and
among the Company, the Warrantholder and the other investors listed therein;
and any subsequent Warrantholder may be entitled to such rights.

 

Section 16.             Successors.  All the covenants and provisions hereof by or
for the benefit of the Warrantholder shall bind and inure to the benefit of its
respective successors and assigns hereunder.

 

Section 17.             Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Warrant shall be governed by, and
construed in accordance with, the internal laws of the State of California,
without reference to the choice of law provisions thereof.  The Company and, by accepting this Warrant,
the Warrantholder, each irrevocably submits to the exclusive jurisdiction of
the state and Federal courts of the State of California located in San Diego
County for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Warrant and the transactions contemplated hereby.  Service of process in connection with any
such suit, action or proceeding may be served on each party hereto anywhere in
the world by the same methods as are specified for the giving of notices under
this Warrant.  The Company and, by
accepting this Warrant, the Warrantholder, each irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to
the laying of venue in such court.  The
Company and, by accepting this Warrant, the Warrantholder, each irrevocably
waives any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum.  EACH OF THE COMPANY AND, BY ITS ACCEPTANCE
HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN
ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS
BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

Section 18.             No
Rights as Stockholder.  Prior to the
exercise of this Warrant, the Warrantholder shall not have or exercise any
rights as a stockholder of the Company by virtue of its ownership of this
Warrant.

 

Section 19.             Amendment;
Waiver.  This Warrant is one of a
series of Warrants of like tenor issued by the Company pursuant to other
purchase agreements with the same terms as the Purchase Agreement and initially
covering an aggregate of 334,813 shares of Common Stock (collectively, the “Company Warrants”).  Any term of this Warrant may be amended or
waived (including the adjustment provisions included in Section 8 of this
Warrant) upon the written 

 

7

 

consent of the Company and the
holders of Company Warrants representing at least 50% of the number of shares
of Common Stock then subject to all outstanding Company Warrants (the “Majority Holders”); provided,
that (x) any such amendment or waiver must apply to all Company Warrants; and
(y) the number of Warrant Shares subject to this Warrant, the Warrant Price and
the Expiration Date may not be amended, and the right to exercise this Warrant
may not be altered or waived, without the written consent of the Warrantholder.

 

Section 20.             Section Headings.  The section headings in this Warrant are
for the convenience of the Company and the Warrantholder and in no way alter,
modify, amend, limit or restrict the provisions hereof.

 

[Signature appears on the next
page]

 

8

 

IN WITNESS
WHEREOF, the Company has caused this Warrant to be duly executed, as of the 31
day of January, 2006.

 

 

	
   

  	
  LPATH, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Scott Pancoast

  	
   

  
	
   

  	
  Name:

  	
  Scott Pancoast

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
						

 

9

 

APPENDIX A

LPATH, INC.—WARRANT EXERCISE
FORM

 

To Lpath, Inc.:

 

The undersigned hereby irrevocably elects to
exercise the right of purchase represented by the within Warrant (“Warrant”)
for, and to purchase thereunder by the payment of the Warrant Price and
surrender of the Warrant,                           
shares of Common Stock (“Warrant Shares”) provided for therein, and requests
that certificates for the Warrant Shares be issued as follows:

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City, State and Zip
  Code

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Federal Tax ID or Social Security No.

  	
   

  

 

	
  and delivered by

  	
  (certified mail to the above address, or

  
	
   

  	
  to such other address (specify):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ).

  

 

and, if the number of Warrant Shares shall not be all the Warrant
Shares purchasable upon exercise of the Warrant, that a new Warrant for the
balance of the Warrant Shares purchasable upon exercise of this Warrant be
registered in the name of the undersigned Warrantholder or the undersigned’s
Assignee as below indicated and delivered to the address stated below.

 

Dated:                                      ,
200    

 

	
  Note: The signature must correspond with

  	
  Signature:

  	
   

  	
   

  
	
  the name of the Warrantholder as written

  	
   

  	
   

  
	
  on the first page of the Warrant in
  every

  	
   

  	
   

  	
   

  
	
  particular, without alteration or
  enlargement

  	
   

  	
  Name (please print)

  	
   

  
	
  or any change whatever, unless the Warrant

  	
   

  	
   

  	
   

  
	
  has been assigned.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City, State and Zip Code

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Federal Identification No. or

  	
   

  
	
   

  	
   

  	
  Social Security No.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Assignee:Exhibit 10.8

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of December 1, 2005,
by and between LPATH THERAPEUTICS INC., a Delaware corporation (“Subsidiary”),
and LPATH, INC., a Nevada corporation (formerly known as Neighborhood
Connections, Inc.) (“Parent”).

 

WHEREAS, Subsidiary, Parent and Neighborhood Connections Acquisition
Corporation (“Neighborhood Sub”) entered into a Agreement and Plan of
Reorganization, dated as of July 15, 2005 (the “Merger Agreement”),
pursuant to which Parent acquired Subsidiary through a reverse
triangular merger in which Neighborhood Sub, a wholly owned subsidiary of
Parent formed solely for the purpose of facilitating the acquisition, merged
with and into Subsidiary, which was the surviving corporation and became wholly
owned by Parent (the “Merger”).

 

WHEREAS, in connection with and as a condition to the closing of the
Merger, Subsidiary raised approximately $6 million in gross proceeds from the
closing of a private placement of units consisting of two shares of Subsidiary
common stock and a warrant exercisable to purchase Subsidiary common stock (the
“Private Placement”), which occurred immediately prior to the Merger;

 

WHEREAS,
in connection with the Private Placement, Subsidiary entered into certain agreements
with the investors in the units, in particular, that certain (i) Common
Stock and Warrant Purchase Agreement, dated as of November 30, 2005 by and
between Subsidiary and each of the investors in the Private Placement (the “Purchase
Agreement”), (ii) Registration Rights Agreement, dated as of November 30,
2005 by and between Subsidiary and each of the investors in the Private
Placement (the “Registration Rights Agreement”), and  (iii) Investor Rights Agreement, dated
as of November 30, 2005 by and between Subsidiary and the investors named
therein (the “Investor Rights Agreement”; and together with the Purchase
Agreement and the Registration Rights Agreement, the “Investment Agreements”),
which agreements granted the investor parties thereto certain rights with
respect to Subsidiary common stock;

 

WHEREAS, pursuant to Section 8(o) of the
Agreement, as a condition to closing of the Merger, Parent agreed to assume the
obligations of Subsidiary under the Investment Agreements with respect to
Parent Class A common stock issued in exchange for the Subsidiary common
stock in the Merger;

 

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants set forth below, the parties hereto agree,
effective on the date first written above, as follows:

 

1.             Capitalized
terms used herein and not defined herein shall have the meanings assigned such
terms in the Merger Agreement.

 

2.             As
of the date hereof and upon the effectiveness of the Merger, Subsidiary hereby
irrevocably assigns and transfers all of its right, title and interest in, to 

 

 

and under, and all of its
duties and obligations under, the Investment Agreements to Parent.

 

3.             Parent
hereby accepts the assignment of all of Subsidiary’s right, title and interest
in, to and under the Investment Agreements made pursuant to Section 1 of
this Agreement, and hereby assumes and agrees to assume, perform and discharge
when due all liabilities and obligations of Subsidiary under or in respect of
the Investment Agreements with respect to the shares of Class A common
stock of Parent that were issued in the Merger.

 

4.             This
Agreement shall be governed by the laws of the State of California, without
regard to its conflicts of laws principles.

 

5.             This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

6.             This
Agreement shall inure to the benefit of the respective assigns and successors
of Parent and Subsidiary.

 

7.             In the event of a conflict between this
Agreement, the Merger Agreement and any of the Investment Agreements, the terms
of such Investment Agreement shall take precedence and control.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed in their names by their duly authorized
representatives.

 

 

	
   

  	
  LPATH, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
    By

  	
  /s/ Scott
  Pancoast

  	
   

  
	
   

  	
  Name: Scott
  Pancoast

  
	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LPATH THERAPEUTICS INC

  
	
   

  	
   

  	
   

  
	
   

  	
    By

  	
  /s/ Gary
  Atkinson

  	
   

  
	
   

  	
  Name: Gary
  Atkinson

  
	
   

  	
  Title: Vice
  President and Chief Financial

  
	
   

  	
  Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]