Document:

Exhibit 4.1

 

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

 

REGENERX BIOPHARMACEUTICALS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

February       ,
2008

 

Void After December 31, 2010

 

THIS CERTIFIES THAT, for value received,                           ,  or permitted
registered assigns (the “Holder”),
is entitled to subscribe for and purchase at the Exercise Price (defined below)
from REGENERX BIOPHARMACEUTICALS, Inc., a Delaware corporation (the “Company”) up to five-hundred
thousand (500,000) shares of the common stock of the Company, par value $0.001
per share (the “Common Stock”).   This Warrant has been issued pursuant to
that certain Securities Purchase Agreement between the Company and the Holder
dated as of the date hereof (the “Purchase
Agreement”).

 

1.                                      DEFINITIONS.

 

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

 

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

 

(b)                                 “Exercise Period” shall mean the period
commencing with the date  hereof  and ending at 5:30 p.m. New York City
time on December 31, 2010, unless sooner terminated as provided below.

 

(c)                                  “Exercise Price” shall mean $1.60 per
share, subject to adjustment pursuant to Section 5 below.

 

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

 

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

 

 

 

(f)                                    “Expiration Date” shall mean 5:30 p.m.
New York City time on December 31, 2010.

 

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

 

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

 

2.                                      VESTING AND
TERMINATION OF WARRANT

 

(a)                                  This Warrant shall vest according to the
following schedule: (i) one-third of the Exercise Shares shall be subject
to exercise upon the Closing, (ii) one-third of the Exercise Shares shall
be subject to exercise on or after December 31, 2008; and (iii) one-third
of the Exercise Shares shall be subject to exercise on or after December 31,
2009.

 

(b)                                 Notwithstanding the foregoing, on the
earlier of (i) the date the Company completes its repurchase of all of the
Shares issued under the Purchase Agreement pursuant to Section 7 thereof
or (ii) the Expiration Date, the portion of this Warrant not vested shall
be and become void and of no value and this Warrant shall be terminated.

 

3.                                      EXERCISE OF WARRANT.

 

3.1.                            Exercise of Warrant.

 

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

 

(b)                                 With respect to each exercise of this
Warrant pursuant to Section 3.2 above, the Exercise Date shall be deemed
to be the date the Exercise Price is received by the Company.  The Exercise Shares shall be deemed to have
been issued, and Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the Exercise Date. The person in whose name any certificate 

 

 

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or certificates
for Exercise Shares are to be issued upon exercise of this Warrant shall be
deemed to have become the holder of record of such shares on the Exercise Date,
irrespective of the date of delivery of such certificate or certificates,
except that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, such person shall be deemed to have
become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open.

 

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

 

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

 

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

 

4.                                      COVENANTS OF THE
COMPANY.

 

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

 

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

 

 

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as may be
necessary or appropriate in order to protect the exercise rights of the Holder
against impairment.

 

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

 

5.                                      ADJUSTMENT OF
EXERCISE PRICE AND EXERCISE SHARES.

 

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

 

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

 

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

 

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

 

(iii)                               Common Stock or additional stock or other
securities or property (including cash) by way of spinoff, split-up,
reclassification, combination of shares or similar corporate rearrangement
(other than shares of Common Stock pursuant to Section 5(a) above),
then and in each such case, the Holder hereof will be entitled to receive, in
addition to the number of shares of Common Stock receivable pursuant to the
Notice of Exercise, and without payment of any additional consideration
therefor, the amount of stock and other securities and property (including cash
in the cases referred to in clauses (ii) and (iii) above) which such
Holder would hold on the date of such exercise had such Holder been the holder
of record of such Common Stock as of the date on which holders of Common Stock
received or became entitled to receive such shares or all other additional
stock and other securities and property.

 

 

 

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

 

6.                                      FRACTIONAL SHARES.

 

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

 

7.                                      NO STOCKHOLDER
RIGHTS.

 

Other than as provided in Section 3.3 or otherwise herein, this
Warrant in and of itself shall not entitle the Holder to any voting rights or
other rights as a stockholder of the Company.

 

8.                                      TRANSFER OF WARRANT.

 

Subject to applicable laws and the restrictions on transfer set forth
on the first page of this Warrant and set forth in the Purchase Agreement,
including, without limitation, Section 7 thereof, this Warrant and all
rights hereunder are transferable, by the Holder in person or by duly
authorized attorney, upon delivery of this Warrant and the form of assignment
attached hereto to any transferee designated by Holder.   The transferee shall sign an investment
letter in form and substance reasonably satisfactory to the Company and its
counsel.

 

9.                                      LOST, STOLEN,
MUTILATED OR DESTROYED WARRANT.

 

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

 

10.                               NOTICES, ETC.

 

All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party
to be notified, (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on

 

 

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the next business day, (c) five days after having
been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of
receipt.   All communications shall be
sent to the Company at the address listed on the signature page hereto and
to Holder at the applicable address set forth on the applicable signature page to
the Purchase Agreement or at such other address as the Company or Holder may
designate by 10 days advance written notice to the other parties hereto.

 

11.                               ACCEPTANCE.

 

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

 

12.                               GOVERNING LAW.

 

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

 

13.                               AMENDMENT OR WAIVER.

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its duly authorized officer as of February       ,
2008.

 

	
   

  	
  REGENERX BIOPHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  J.J. Finkelstein

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  

 

 

 

 

 

 

 

7

 

NOTICE OF EXERCISE

 

TO:  REGENERX BIOPHARMACEUTICALS, INC.

 

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

 

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

 

 

 

(Name)

 

 

 

(Address)

 

 

 

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

 

 

 

	
  (Date)

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  (Print name)

  

 

 

8

 

 

ASSIGNMENT FORM

 

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

Do not use this form to purchase shares.)

 

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

 

	
  Name:

  	
   

  
	
   

  	
  (Please Print)

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
  (Please Print)

  
	
   

  	
   

  
	
  Dated:                       ,
  20    

  	
   

  
	
   

  	
   

  
	
  Holder’s Signature:

  	
   

  
	
   

  	
   

  
	
  Holder’s Address:

  	
   

  

 

 

 

 

 

 

 

 

 

 

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

 

 

9Exhibit 10.1

 

VOTING AGREEMENT

 

Each of the undersigned directors of 1st Independence Financial Group, Inc.
(“1st Independence”) hereby agrees in his individual capacity as a shareholder
to vote his shares of 1st Independence Common Stock that are registered in his
personal name (and agrees to use his reasonable efforts to cause all additional
shares of 1st Independence Common Stock owned jointly by him with any other
person or by his spouse) in favor of the Agreement and Plan of Merger by and
among 1st Independence, 1st Independence Bank, Inc. (“1st Bank”) and
MainSource Financial Group, Inc. (“MainSource”), dated February 26,
2008 (the “Agreement”).  In addition,
each of the undersigned directors hereby agrees not to make any transfers of
shares of 1st Independence with the purpose of avoiding his agreements set
forth in the preceding sentence and agrees to cause any transferee of such
shares to abide by the terms of this Voting Agreement.  Each of the undersigned is entering into this
Voting Agreement solely in his capacity as an individual shareholder and,
notwithstanding anything to the contrary in this Voting Agreement, nothing in
this Voting Agreement is intended or shall be construed to require any of the
undersigned, in his capacity as a director of 1st Independence or 1st Bank, to
act or fail to act in accordance with his fiduciary duties in such director
capacity. Furthermore, none of the undersigned makes any agreement or
understanding herein in his or her capacity as a director of 1st Independence or
1st Bank.

 

Dated this 26th day of February, 2008.

 

 

	
   

  	
   

  	
   

  
	
  Matthew C. Chalfant

  	
   

  	
  Ronald L. Receveur

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Jack L. Coleman, Jr.

  	
   

  	
  W. Dudley Shryock

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Thomas Les Letton

  	
   

  	
  H. Lowell
  Wainwright, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Stephen R. Manecke

  	
   

  	
  N. William White

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Charles L. Moore II

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