Document:

Exhibit 4.2

 

Exhibit B to the

Securities Purchase Agreement

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of September 22, 2003, by and
between MAXIM PHARMACEUTICALS, INC., a Delaware corporation (the “Company”),
and each Investor whose name appears on the signature pages hereof.

 

A.                                   The Company has agreed, on the terms and
subject to the conditions set forth in the Securities Purchase Agreement, dated
as of September 22, 2003 (the “Securities Purchase Agreement”), to issue
and sell Shares and a Warrant to each Investor. Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the
Securities Purchase Agreement.

 

B.                                     In order to induce each Investor to enter
into the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act and under applicable state
securities laws.

 

In consideration of the
execution and delivery of the Securities Purchase Agreement by each Investor,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

 

1.                                       DEFINITIONS.

 

For purposes of this
Agreement, the following terms shall have the meanings specified:

 

“Holder” means any person owning or having the right to acquire,
through exercise of the Warrants or otherwise, Registrable Securities,
including initially each Investor and thereafter any permitted assignee
thereof.

 

“Effective Date” means the date on which the Registration
Statement is declared effective by the Securities and Exchange Commission (the
“Commission”).

 

“Filing Deadline” means the thirtieth (30th) day
following the Closing Date.

 

“Permitted Suspension” has the meaning specified in paragraph
3(e).

 

“Registration Deadline” means, if the Commission does not review
the Registration Statement, the ninetieth (90th) day following the
Closing Date, and if the Commission conducts a review of the Registration
Statement (including a “monitor review”), the one 

 

 

hundred and twentieth (120th) day
following the Closing Date.

 

“Registration
Period” has the meaning specified in paragraph 2(b).

 

“Registration Statement” means a registration statement filed by
the Company with the Commission in the form required by the Securities Act
covering the resale of the Registrable Securities by the Holders.

 

“Registrable Securities” means the Shares and the Warrant Shares
(whether issued or issuable), and any shares of capital stock issued or
issuable from time to time in replacement of, in exchange for or otherwise in
respect of the Shares or the Warrant Shares.

 

2.                                       REGISTRATION.

 

(a)                                  Registration Statement.  On
or before the Filing Deadline, the Company shall prepare and file with the
Commission the Registration Statement on Form S-3 as a “shelf” registration
statement under Rule 415 covering the resale by the Holders of a number of
shares of Registrable Securities equal to (A) the aggregate number of Shares
issued to the Investors on the Closing Date (after giving effect to any stock
splits, stock dividends or similar events occurring since such date) plus
(B) the aggregate number of Warrant Shares issuable upon exercise of the
Warrants at the Exercise Price then in effect (without giving effect to any
limitation on such exercise). The Registration Statement shall state, to the
extent permitted by Rule 416 under the Securities Act, that it also covers such
indeterminate number of shares of Common Stock as may be required in order to
prevent dilution resulting from stock splits, stock dividends or similar
events.

 

(b)                                 Effectiveness.  The
Company shall use commercially reasonable efforts to cause the Registration
Statement to become effective as soon as practicable following the filing
thereof, but in no event later than the Registration Deadline. The Company
shall respond promptly to any and all comments made by the staff of the
Commission on the Registration Statement, and shall submit to the Commission,
within one (1) Business Day after the Company learns that no review of the Registration
Statement will be made by the staff of the Commission or that the staff of the
Commission has no further comments on the Registration Statement, as the case
may be, a request for acceleration of the effectiveness of the Registration
Statement to a time and date not later than forty-eight (48) hours after the
submission of such request. The Company will maintain the effectiveness of the
Registration Statement until the earliest to occur of (i) the date on which all
of the Registrable Securities eligible for resale thereunder have been publicly
sold pursuant to either the Registration Statement or Rule 144, (ii) the two
year anniversary of the Closing Date and (iii) the date on which all
Registrable Securities (in the reasonable opinion of counsel to the Company)
may be sold to the public pursuant to Rule 144(k) (the period beginning on the
Closing Date and ending on the earliest to occur of (i), (ii) and (iii) above
being referred to herein as the “Registration Period”).

 

(c)                                  Registration Default.  If
(A) the Registration Statement is not filed on or before the Filing Deadline or
declared effective by the Commission on or before the Registration 

 

2

 

Deadline, or (B) after the
Registration Statement has been declared effective by the Commission, sales of
Registrable Securities cannot be made by a Holder under the Registration
Statement for any reason not within the exclusive control of such Holder (other
than during a Permitted Suspension (as hereinafter defined) or with respect to
Registrable Securities as are then freely saleable pursuant to Rule 144(k))
(each of (A) and (B) being referred to herein as a “Registration Default”),
the Company shall make payments to each Holder equal, to for each thirty (30)
day period in which a Registration Default occurs (prorated for any period of
less than thirty days), one and one-half percent (1.5%) of the Purchase Price
paid by such Holder for the Registrable Securities that are the subject of such
Registration Default. Such payment shall be in addition to any other remedies
available to each Holder at law or in equity or pursuant to the terms hereof,
the other Transaction Documents, or otherwise.

 

3.                                       OBLIGATIONS OF THE COMPANY.

 

In addition to performing
its obligations hereunder, including without limitation those pursuant to
paragraphs 2(a), (b) and (c) above, the Company shall:

 

(a)                                  prepare and file with the Commission such
amendments and supplements to the Registration Statement and the prospectus
used in connection with the Registration Statement as may be necessary to
comply with the provisions of the Securities Act or to maintain the
effectiveness of the Registration Statement during the Registration Period, or
as may be reasonably requested by a Holder in order to incorporate information
concerning such Holder or such Holder’s intended method of distribution;

 

(b)                                 on or before the Closing, secure the listing
of all Registrable Securities on the Nasdaq National Market, and provide each
Holder with reasonable evidence thereof;

 

(c)                                  furnish to each Holder such number of copies
of the prospectus included in the Registration Statement, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents as such Holder may reasonably request in order to
facilitate the disposition of such Holder’s Registrable Securities;

 

(d)                                 use all commercially reasonable efforts to
register or qualify the Registrable Securities under the securities or “blue
sky” laws of such jurisdictions within the United States as shall be reasonably
requested from time to time by a Holder, and do any and all other acts or
things which may be necessary or advisable to enable such Holder to consummate
the public sale or other disposition of the Registrable Securities in such
jurisdictions; provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such jurisdiction;

 

(e)                                  upon becoming aware of the occurrence of any
event as a result of which the prospectus included in the Registration
Statement, as then in effect, contains an untrue statement of material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, (i) immediately notify 

 

3

 

each Holder of such occurrence,
(ii) as promptly as practicable thereafter, prepare, file and furnish to each
Holder a reasonable number of copies of a supplement or an amendment to such
prospectus as may be necessary so that such prospectus does not contain any
such untrue statement or omission, and (iii) promptly deliver copies of such
amendment or supplement to each Holder; provided, however, that,
upon a determination by the Board of Directors of the Company, made with the
advice of counsel, (A) that information concerning such transaction would be
required to be disclosed in connection with an offering registered under the
Securities Act and (B) that it would not be in the Company’s best interests to
disclose such information publicly, the Company may suspend the use of the
Registration Statement by the Holders for no more than three (3) occurrences in
any twelve (12) month period, each such occurrence not to exceed fifteen (15)
days and, except in the case where such information relates to approval of the
Company’s products by a Governmental Authority, with at least thirty (30) days
having elapsed between each such occurrence (a “Permitted Suspension”);
and provided, further, that the Company shall immediately (i)
notify each Holder in writing of the existence of a Permitted Suspension (but
in no event, without the prior written consent of such Holder, shall the
Company disclose to such Holder any of the facts or circumstances regarding any
material non-public information giving rise to such Permitted Suspension) and
(ii) notify each Holder in writing of the termination of such Permitted
Suspension;

 

(f)                                    use commercially reasonable efforts to
prevent the issuance of any stop order or other order suspending the
effectiveness of the Registration Statement and, if such an order is issued, to
obtain the withdrawal thereof at the earliest possible time and to notify each
Holder of the issuance of such order and the resolution thereof;

 

(g)                                 furnish to each Holder, on the date that the
Registration Statement becomes effective, a letter, dated such date, of outside
counsel representing the Company addressed to such Holder, confirming the
effectiveness of the Registration Statement and, to the knowledge of such
counsel, the absence of any stop order;

 

(h)                                 provide to each Holder and its
representatives the opportunity to conduct a reasonable inquiry of the
Company’s financial and other records during normal business hours and make
available its officers, directors and employees for questions regarding
information which such Holder may reasonably request in order to fulfill any
due diligence obligation on its part;

 

(i)                                     upon request of a Holder, permit counsel for
such Holder to review the Registration Statement and all amendments and
supplements thereto, and any comments made by the staff of the Commission
concerning such Holder and/or the transactions contemplated by the Transaction
Documents and the Company’s responses thereto, within a reasonable period of
time (but in no event less than three (3) Business Days after such Holder has
received such documents) prior to the filing thereof with the Commission (or,
in the case of comments made by the staff of the Commission, within a
reasonable period of time following the receipt thereof by the Company); and

 

(j)                                     in the event that, at any time, the number of
shares available under the Registration Statement is insufficient to cover the
number of Registrable Securities eligible for resale thereunder, including
those issuable under the Warrants (such number to be determined using

 

4

 

the Exercise Price in effect on
such dates and without regard to any restriction on the ability of a Holder to
exercise such Holder’s Warrant as of such date) the Company shall promptly
amend the Registration Statement or file a new registration statement, in any
event as soon as practicable, but not later than the tenth (10th)
day following written notice from a Holder of the occurrence of such event, so
that the Registration Statement or such new registration statement, or both,
covers all of the Registrable Securities eligible for resale thereunder.  Any Registration Statement filed pursuant to
this paragraph 4 shall state that, to the extent permitted by Rule 416 under
the Securities Act, such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable with respect
to the Shares or upon exercise of the Warrants in the event of a stock
dividend, stock split or similar event. Unless and until such amendment or new
Registration Statement becomes effective, each Holder shall have the rights
described in Section 2(c) above.

 

4.                                       OBLIGATIONS OF EACH HOLDER.

 

In connection with the
registration of Registrable Securities pursuant to the Registration Statement,
each Holder shall:

 

(a)  timely furnish to the Company in writing such
information regarding itself and the intended method of disposition of such
Registrable Securities as the Company shall reasonably request in order to
effect the registration thereof;

 

(b)  upon receipt of any notice from the Company
of the happening of any event of the kind described in paragraphs 3(e) or 3(f),
immediately discontinue any sale or other disposition of such Registrable
Securities pursuant to such Registration Statement until the filing of an
amendment or supplement as described in paragraph 3(e) or withdrawal of the
stop order referred to in paragraph 3(f), and use commercially reasonable
efforts to maintain the confidentiality of such notice and its contents;

 

(c) to the extent required
by applicable law, deliver a prospectus to the purchaser of such Registrable
Securities;

 

(d)  notify the Company when it has sold all of
the Registrable Securities held by it; and

 

(e)  notify the Company in the event that any
information supplied by such Holder in writing for inclusion in such Registration
Statement or related prospectus is untrue or omits to state a material fact
required to be stated therein or necessary to make such information not
misleading in light of the circumstances then existing; immediately discontinue
any sale or other disposition of such Registrable Securities pursuant to such
Registration Statement until the filing of an amendment or supplement to such
prospectus as may be necessary so that such prospectus does not contain any
such untrue statement or omission.

 

5

 

5.                                       INDEMNIFICATION.

 

In the event that any
Registrable Securities are included in the Registration Statement under this
Agreement:

 

(a)                                  To the extent permitted by law, the Company
shall indemnify and hold harmless each Holder, the officers, directors,
employees, agents and representatives of such Holder, and each person, if any,
who controls such Holder within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), against
any losses, claims, damages, liabilities or reasonable out-of-pocket expenses
(whether joint or several) (collectively, including legal or other expenses
reasonably incurred in connection with investigating or defending same, “Losses”),
insofar as any such Losses arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in such
Registration Statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, or (ii)
the omission or alleged omission to state therein a material fact required to
be stated therein, or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  Subject to the provisions of paragraph 6(c)
below, the Company will reimburse such Holder, and each such officer, director,
employee, agent, representative or controlling person, for any legal or other
expenses as reasonably incurred by any such entity or person in connection with
investigating or defending any Loss; provided, however, that the foregoing
indemnity shall not apply (A) to amounts paid in settlement of any Loss if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), (B) to any Loss to the extent that such Loss is
based upon and is in conformity with written information furnished by such
person expressly for use in such Registration Statement, (C) to any Loss where
such Loss arises out of or is related to the failure of such Holder to comply
with the covenants and agreements contained in this Agreement respecting sales
of Registrable Securities, or (D) to any Loss insofar as it relates to any such
untrue statement or alleged untrue statement or omission or alleged omission
made in the preliminary prospectus but eliminated or remedied in the amended
prospectus on file with the SEC at the time the Registration Statement becomes
effective or in the amended prospectus filed with the SEC pursuant to Rule
424(b) or in the prospectus subject to completion under Rule 434 of the
Securities Act, which together meet the requirements of Section 10(a) of
the Securities Act (the “Final Prospectus”), as long as a copy of the
Final Prospectus is furnished by the Company to such Holder for delivery prior
to the sale giving rise to such Loss.

 

(b)                                 To the extent permitted by law, each Holder
who is named in such Registration Statement as a selling stockholder, acting
severally and not jointly, shall indemnify and hold harmless the Company, the
officers, directors, employees, agents and representatives of the Company, and
each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act, against any Losses to the extent (and only
to the extent) that any such Losses are based upon and in conformity with
written information furnished by such Holder expressly for use in such
Registration Statement. Subject to the provisions of paragraph 6(c) below, such
Holder will reimburse any legal or other expenses as reasonably incurred by the
Company and any such officer, director, employee, agent, representative, or
controlling person, in connection with

 

6

 

investigating or defending any
such Loss; provided, however, that the foregoing indemnity shall not apply to
amounts paid in settlement of any such Loss if such settlement is effected
without the consent of such Holder (which consent shall not be unreasonably
withheld); and provided, further, that, in no event shall any indemnity under
this subsection 6(b) exceed the net proceeds resulting from the sale of
the Registrable Securities sold by such Holder under such Registration
Statement.

 

(c)                                  Promptly after receipt by an indemnified
party under this Section 6 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in and to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the reasonably incurred fees and
expenses of one such counsel for all indemnified parties to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate under applicable
standards of professional conduct due to actual or potential conflicting
interests between such indemnified party and any other party represented by
such counsel in such proceeding.  The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action, to the extent prejudicial to its
ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 6 with respect to
such action, but the omission so to deliver written notice to the indemnifying
party will not relieve it of any liability that it may have to any indemnified
party otherwise than under this Section 6 or with respect to any other action
unless the indemnifying party is materially prejudiced as a result of not
receiving such notice.

 

(d)                                 In the event that the indemnity provided in
paragraph (a) or (b) of this Section 6 is unavailable or insufficient to
hold harmless an indemnified party for any reason, the Company and each Holder
agree, severally and not jointly, to contribute to the aggregate Losses to
which the Company or such Holder may be subject in such proportion as is
appropriate to reflect the relative fault of the Company and such Holder in
connection with the statements or omissions which resulted in such Losses;
provided, however, that in no case shall such Holder be responsible for any
amount in excess of the net proceeds resulting from the sale of the Registrable
Securities sold by it under the Registration Statement.  Relative fault shall be determined by
reference to whether any alleged untrue statement or omission relates to
information provided by the Company or by such Holder.  The Company and each Holder agree that it would
not be just and equitable if contribution were determined by pro rata allocation or any other method of
allocation which does not take account of the equitable considerations referred
to above.  Notwithstanding the
provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who is not guilty of
such fraudulent misrepresentation.  For
purposes of this Section 6, each person who controls a Holder within the
meaning of either the Securities Act or the Exchange Act and each officer,
director, employee, agent or representative of such Holder shall have the same
rights to contribution as such Holder, and each person who controls the Company
within the meaning of either the Securities Act or the Exchange Act and each
officer, director, employee, agent or representative of the Company

 

7

 

shall have the same rights to
contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d).

 

6.                                       REPORTS.

 

With a view to making
available to each Holder the benefits of Rule 144 under the Securities Act (“Rule
144”) and any other similar rule or regulation of the Commission that may
at any time permit such Holder to sell securities of the Company to the public
without registration, the Company agrees to use commercially reasonable efforts
to:

 

(a)                                  make and keep public information available,
as those terms are understood and defined in Rule 144;

 

(b)                                 file with the Commission in a timely manner
all reports and other documents required of the Company under the Securities
Act and the Exchange Act; and

 

(c)                                  furnish to such Holder, so long as such
Holder owns any Registrable Securities, forthwith upon written request (i) a
written statement by the Company, if true, that it has complied with the
reporting requirements of Rule 144, the Securities Act and the Exchange Act,
(ii) to the extent not publicly available through the Commission’s EDGAR
database, a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested by such Holder in connection
with such Holder’s compliance with any rule or regulation of the Commission
which permits the selling of any such securities without registration.

 

7.                                       MISCELLANEOUS.

 

(a)                                  Expenses of Registration.  All
reasonable expenses, other than underwriting discounts and commissions and fees
and expenses of counsel to each Holder, incurred in connection with the
registrations, filings or qualifications described herein, including (without
limitation) all registration, filing and qualification fees, printers’ and
accounting fees, the fees and disbursements of counsel for the Company, and the
fees and disbursements incurred in connection with the opinion and letters
described in paragraph 4(h) hereof, shall be borne by the Company.

 

(b)                                 Amendment; Waiver.  Except
as expressly provided herein, neither this Agreement nor any term hereof may be
amended or supplemented unless such amendment or supplement is in writing, the
Company delivers a copy of such amendment or supplement to each Holder, and
obtains the written consent of each Holder. No provision hereof may be waived
other than by a written instrument executed by or on behalf of the party
against whom enforcement of any such waiver is sought. The failure of any party
to exercise any right or remedy under this Agreement or otherwise, or the delay
by any party in exercising such right or remedy, shall not operate as a waiver
thereof.

 

(c)                                  Notices.  Any notice, demand or request
required or permitted to be given by

 

8

 

the Company or a Holder
pursuant to the terms of this Agreement shall be in writing and shall be deemed
delivered (i) when delivered personally or by verifiable facsimile
transmission, unless such delivery is not made prior to 5:00 p.m. (eastern
time) on a Business Day, in which case such delivery will be deemed to be made
on the next succeeding Business Day, (ii) on the next succeeding Business Day
after timely delivery to an overnight courier and (iii) on the Business Day
actually received by the intended recipient if deposited in the U.S. mail
(certified or registered mail, return receipt requested, postage prepaid),
addressed as follows:

 

If to the Company:

 

Maxim Pharmaceuticals, Inc.

8899 University Center Lane, Suite 400

San Diego, CA 92122

Attn: Tony Altig, Chief
Financial Officer

Tel:  (858) 453-4040

Fax: (858) 453-5005

 

with a copy to:

 

Cooley Godward LLP

4401 Eastgate Mall

San Diego, CA 92121

Attn:  Lance Bridges, Esq.

Tel:  (858) 550-6000

Fax:
(858) 550-6420

 

and if to a Holder, to such address as shall
be designated by such Holder in writing to the Company.

 

(d)                                 Assignment.  Upon the transfer of a
Warrant or Registrable Securities by a Holder, the rights of such Holder
hereunder with respect to such Warrant (or part thereof) or securities so transferred
shall be assigned automatically to the transferee thereof, and such transferee
shall thereupon be deemed to be a “Holder” for purposes of this Agreement, as
long as: (i) the Company is, within a reasonable period of time following such
transfer, furnished with written notice of the name and address of such
transferee, (ii) the transferee agrees in writing with the Company to be bound
by all of the provisions hereof, (iii) such transfer is made in accordance with
the applicable requirements of the Securities Purchase Agreement and (iv) such
transfer is made with respect to not less than Registrable Securities
consisting of or exercisable into (without regard to any limitation on such
exercise) at least 100,000 shares of Common Stock (such number subject to
adjustment in the event of a stock split, stock dividend or similar event),
provided that such assignment may be effected without regard to this clause
(iv) in the event that such transfer is made to an Affiliate of such Holder; provided,
however, that the registration rights granted in this Agreement shall
not be transferred to any person or entity that acquires a Warrant or
Registrable Securities pursuant to an effective registration statement under
the Securities Act or pursuant to a public transaction under Rule 144 or any
successor provision thereto.

 

9

 

(e)                                  Counterparts. 
This Agreement may be executed in counterparts, each of which shall be
deemed an original, and all of which together shall be deemed one and the same
instrument.  This Agreement, once
executed by a party, may be delivered to any other party hereto by facsimile
transmission.

 

(f)                                    Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware applicable to contracts made and to be performed
entirely within the State of Delaware.

 

 

[Signature
Pages to Follow]

 

10

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Castle Creek Healthcare
  Partners LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Thomas A. Frei

  	
   

  
	
   

  	
  Name:  Thomas A. Frei

  
	
   

  	
  Title:  Managing Director of
  the Investment Manager

  
							

 

11

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  RHP Master Fund, Ltd.

  	
   

  
	
   

  	
  By:

  	
  Rock Hill Investment
  Management, L.P.

  	
   

  
	
   

  	
  By:

  	
  RHP General Partner, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Keith Marlowe

  	
   

  
	
   

  	
  Name:  Keith Marlowe

  
	
   

  	
  Title:  Director

  
							

 

11.1

 

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  SF Capital Partners Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Brian H. Davidson

  	
   

  
	
   

  	
  Name:  Brian H. Davidson

  
	
   

  	
  Title:  Authorized Signatory

  
							

 

11.2

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Smithfield Fiduciary LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Adam J. Chill

  	
   

  
	
   

  	
  Name:  Adam J. Chill

  
	
   

  	
  Title:  Authorized Signatory

  
							

 

11.3

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Mainfield Enterprises Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Avi Vigder

  	
   

  
	
   

  	
  Name:  Avi Vigder

  
	
   

  	
  Title:  Authorized Signatory

  
							

 

11.4

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this Registration
Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Longwood Partners, LP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  John P. McNiff

  	
   

  
	
   

  	
  Name:  John P. McNiff

  
	
   

  	
  Title:  Director

  
							

 

11.5

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Stratford Partners, LP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Chad Comiteau

  	
   

  
	
   

  	
  Name:  Chad Comiteau

  
	
   

  	
  Title:  G.P.

  
							

 

11.6

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  ProMed Offshore Fund, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Barry Kurokawa

  	
   

  
	
   

  	
  Name:  Barry Kurokawa

  
	
   

  	
  Title:  Managing Director

  
							

 

11.7

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  ProMed Partners, LP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Barry Kurokawa

  	
   

  
	
   

  	
  Name:  Barry Kurokawa

  
	
   

  	
  Title:  Managing Director

  
							

 

11.8

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Vertical Ventures, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Joshua Silverman

  	
   

  
	
   

  	
  Name:  Joshua Silverman

  
	
   

  	
  Title:  Partner

  
							

 

11.9

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Midsummer Investment, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Scott Kaufman

  	
   

  
	
   

  	
  Name:  Scott Kaufman

  
	
   

  	
  Title:  Managing Director
  Midsummer Capital LLC

  as investment advisor to Midsummer Investment Ltd.

  
							

 

11.10

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  American High Growth
  Equities Retirement Trust

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Elyse R. Goodman

  	
   

  
	
   

  	
  Name:  Elyse R. Goodman for
  Brad Butler

  
	
   

  	
  Title:  Trustee

  
							

 

11.11

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Omicron Master Trust

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Bruce Bernstein

  	
   

  
	
   

  	
  Name:  Bruce Bernstein

  
	
   

  	
  Title:  Managing Partner

  
							

 

11.12

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Satellite Asset
  Management, L.P.,

  on behalf of one or more Account(s) under

  its discretionary investment authority

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Brian S. Kriftcher

  	
   

  
	
   

  	
  Name:  Brian S. Kriftcher

  
	
   

  	
  Title:  Chief Operating
  Officer & Principal

  
							

 

11.13

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Integral Capital Partners
  V Side Fund, L.P.

  	
   

  
	
   

  	
  By

  	
  ICP Management V, LLC

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Pamela K. Hagenah

  	
   

  
	
   

  	
  Name:  Pamela K. Hagenah

  
	
   

  	
  Title:  Manager

  
							

 

11.14

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Integral Capital Partners
  V, L.P.

  	
   

  
	
   

  	
  By

  	
  Integral Capital
  Management V, LLC

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Pamela K. Hagenah

  	
   

  
	
   

  	
  Name:  Pamela K. Hagenah

  
	
   

  	
  Title:  Manager

  
							

 

11.15

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this Registration
Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Integral Capital Partners
  VI  L.P.

  	
   

  
	
   

  	
  By

  	
  Integral Capital
  Management VI, LLC

  	
   

  
	
   

  	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Pamela K. Hagenah

  	
   

  
	
   

  	
  Name:  Pamela K. Hagenah

  
	
   

  	
  Title:  Manager

  
							

 

11.16

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Integral Capital Partners
  V SLP Side Fund, LLC

  	
   

  
	
   

  	
  By

  	
  ICP Management V, LLC

  	
   

  
	
   

  	
   

  	
  its Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Pamela K. Hagenah

  	
   

  
	
   

  	
  Name:  Pamela K. Hagenah

  
	
   

  	
  Title:  Manager

  
							

 

11.17

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Portside Growth and
  Opportunity Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Jeffrey Smith

  	
   

  
	
   

  	
  Name:  Jeffrey Smith

  
	
   

  	
  Title:  Authorized Person

  
							

 

11.18

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Cranshire Capital, LP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Mitchell P. Kopin

  	
   

  
	
   

  	
  Name:  Mitchell P. Kopin

  
	
   

  	
  Title:  President - Downsview
  Capital

  
	
   

  	
             The General Partner

  
							

 

11.19

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Micro Capital Fund LP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher P. Swenson

  	
   

  
	
   

  	
  Name:  Christopher P. Swenson

  
	
   

  	
  Title:  Vice-President

  
							

 

11.20

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Micro Capital Fund Ltd.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Christopher P. Swenson

  	
   

  
	
   

  	
  Name:  Christopher P. Swenson

  
	
   

  	
  Title:  Vice-President

  
							

 

11.21

 

IN WITNESS WHEREOF, the
Company and the undersigned Investor have executed and delivered this
Registration Rights Agreement as of the date first written above.

 

 

	
   

  	
  MAXIM PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anthony E. Altig

  	
   

  
	
   

  	
  Name: 
  Anthony E. Altig

  
	
   

  	
  Title:  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Investor:  

  	
  Michael & Shelia
  Alessandro

  	
   

  
	
   

  	
  JTWROS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Michael Alessandro & Shelia Alessandro

  	
   

  
	
   

  	
  Name:  

  
	
   

  	
  Title:  

  
							

 

11.22Exhibit 4.3

 

Exhibit A to the

Securities Purchase Agreement

 

THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR
TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER. SUBJECT TO
COMPLIANCE WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS,  THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE
PLEDGED OR HYPOTHECATED IN CONNECTION WITH A BONAFIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY THIS WARRANT OR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT.

 

WARRANT TO PURCHASE COMMON STOCK

 

OF

 

MAXIM PHARMACEUTICALS, INC.

 

	
  Issue Date: September 23, 2003

  	
  Warrant
  No.       

  

 

THIS CERTIFIES
that
                                            
or any subsequent holder hereof (the “Holder”), has the right to
purchase from MAXIM PHARMACEUTICALS, INC.,
a Delaware corporation (the “Company”), up to
                    
fully paid and nonassessable shares of the Company’s common stock, par value
$.001 per share (the “Common Stock”), subject to adjustment as provided
herein, at a price per share equal to the Exercise Price (as defined below), at
any time beginning on the date which is the six (6) month anniversary of the
date on which this Warrant is issued (the date of such issuance being referred
to as the “Issue Date”) and, subject to Section 6(c) hereof, ending
at 5:00 p.m., pacific time, on the date that is five and one-half (5-1/2) years
after the Issue Date (the “Expiration Date”).  This Warrant is issued pursuant to a Securities Purchase
Agreement, dated as of September 22, 2003 (the “Securities Purchase
Agreement”).  Capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth
in the Securities Purchase Agreement.

 

 

1.                                       Exercise.

 

(a)                                  Right to Exercise;
Exercise Price.  The Holder shall
have the right to exercise this Warrant at any time and from time to time
during the period beginning on the six (6) month anniversary of the Issue Date
and ending on the Expiration Date as to all or any part of the shares of Common
Stock covered hereby (the “Warrant Shares”).  The “Exercise Price” for each Warrant Share purchased by
the Holder upon the exercise of this Warrant shall be equal to one hundred and
ten percent (110%) of the Market Price on the Effective Date (subject to
adjustment for the events specified in Section 6 below), provided,
that if the Exercise Price is equal to or less than the Closing Bid Price on
the Trading Day immediately prior to the Effective Date (subject to adjustment
for the events specified in Section 6 below), for purposes of this Warrant
the Exercise Price will be deemed to be equal to such Closing Bid Price plus
$.01.

 

(b)                                 Exercise Notice.  In order to exercise this Warrant, the
Holder shall send by facsimile transmission, at any time prior to 5:00 p.m.,
pacific time, on the Business Day on which the Holder wishes to effect such
exercise (the “Exercise Date”), to the Company (with a copy to the
Transfer Agent (as defined below)) an executed notice of exercise in the form
attached hereto as Exhibit A (the “Exercise Notice”), the original
Warrant and, in the case of a Cash Exercise (as defined below), the Exercise
Price.  In the case of a dispute as to
the calculation of the Exercise Price or the number of Warrant Shares issuable
hereunder (including, without limitation, the calculation of any adjustment
pursuant to Section 6 below), the Company shall promptly issue to the
Holder the number of Warrant Shares that are not disputed and shall submit the
disputed calculations to a certified public accounting firm of national
recognition (other than the Company’s independent accountants) within three (3)
Business Days following the date on which the Exercise Notice is delivered to
the Company. The Company shall cause such accountant to calculate the Exercise
Price and/or the number of Warrant Shares issuable hereunder and to notify the
Company and the Holder of the results in writing no later than three (3)
Business Days following the day on which such accountant received the disputed
calculations (the “Dispute Procedure”). Such accountant’s calculation
shall be deemed conclusive absent manifest error.  The fees of any such accountant shall be borne by the party whose
calculations were most at variance with those of such accountant.

 

(c)                                  Holder of Record.  The Holder shall, for all purposes, be
deemed to have become the holder of record of the Warrant Shares specified in
an Exercise Notice on the Exercise Date specified therein, irrespective of the
date of delivery of such Warrant Shares. 
Except as specifically provided herein, nothing in this Warrant shall be
construed as conferring upon the Holder hereof any rights as a stockholder of
the Company prior to the Exercise Date.

 

(d)                                 Cancellation of
Warrant.  This Warrant shall be
canceled upon its exercise and, if this Warrant is exercised in part, the
Company shall, at the time that it delivers Warrant Shares to the Holder
pursuant to such exercise as provided herein, issue a new warrant, and deliver
to the Holder a certificate representing such new warrant, with terms identical
in all respects to this Warrant (except that such new warrant shall be exercisable
into the number of shares of Common Stock with respect to which this Warrant
shall remain unexercised); provided, however, that the Holder
shall be entitled to exercise all or any portion of such new warrant at any
time following the time at which this Warrant is exercised, regardless of
whether the

 

2

 

Company has actually issued
such new warrant or delivered to the Holder a certificate therefor.

 

2.                                       Delivery of
Warrant Shares Upon Exercise.  Upon
receipt of an Exercise Notice pursuant to Section 1 above, the Company
shall, (A) in the case of a Cash Exercise (as defined below) no later than the
close of business on the later to occur of (i) the third (3rd) Business Day
following the Exercise Date set forth in such Exercise Notice and (ii) such
later date on which the Company shall have received payment of the Exercise
Price, (B) in the case of a Cashless Exercise (as defined below), no later than
the close of business on the third (3rd) Business Day following the Exercise
Date set forth in such Exercise Notice, and (C) with respect to Warrant Shares
that are the subject of a Dispute Procedure, the close of business on the third
(3rd) Business Day following the determination made pursuant to
paragraph 1(b) (each of the dates specified in (A), (B) or (C) being referred
to as a “Delivery Date”), issue and deliver or caused to be delivered to
the Holder the number of Warrant Shares as shall be determined as provided
herein. The Company shall effect delivery of Warrant Shares to the Holder by,
as long as the Transfer Agent participates in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer program (“FAST”), crediting the
account of the Holder or its nominee at DTC (as specified in the applicable
Exercise Notice) with the number of Warrant Shares required to be delivered, no
later than the close of business on such Delivery Date. In the event that the
Transfer Agent is not a participant in FAST, or if the Warrant Shares are not
otherwise eligible for delivery through FAST, or if the Holder so specifies in
an Exercise Notice or otherwise in writing on or before the Exercise Date, the
Company shall effect delivery of Warrant Shares by delivering to the Holder or
its nominee physical certificates representing such Warrant Shares, no later
than the close of business on such Delivery Date.

 

3.                                       Failure to
Deliver Warrant Shares.

 

In the event that the Holder effects a sale
of Common Stock in anticipation of receiving Warrant Shares upon an exercise,
and has not received certificates (without any restrictive legend except as
expressly required by the Securities Purchase Agreement) representing the
number of Warrant Shares specified in the applicable Exercise Notice on or
before the Delivery Date therefor (an “Exercise Default”), the Holder
shall have the right to receive from the Company an amount equal to (A) the
aggregate amount paid by the Holder for shares of Common Stock purchased by the
Holder in order to make delivery on such sale minus (B) the aggregate
Exercise Price for such Warrant Shares (the payment of which shall not relieve
the Company from its obligation to deliver such Warrant Shares to the Holder);
provided, that if, in lieu of or in addition to purchasing shares of Common
Stock for the purpose of making delivery on such sale, the Holder borrows
shares of Common Stock in order to make such delivery, the Holder shall have
the additional right to be reimbursed by the Company for all costs associated
with effecting such borrowing transaction.

 

The Holder’s rights and remedies hereunder
are cumulative, and no right or remedy is exclusive of any other.  In addition to the amounts specified herein,
the Holder shall have the right to pursue all other remedies available to it at
law or in equity (including, without limitation, a decree of specific
performance and/or injunctive relief). The amounts specified herein shall be
paid to the Holder in immediately available funds on or before the fifth (5th)
Business Day following written notice thereof from the Holder.

 

3

 

4.                                       Exercise
Limitations.  In no event shall the
Holder be permitted to exercise this Warrant, or part thereof, if, upon such
exercise, the number of shares of Common Stock beneficially owned by the Holder
(other than shares which would otherwise be deemed beneficially owned except
for being subject to a limitation on conversion or exercise analogous to the
limitation contained in this Section 4), would exceed 4.99% of the
number of shares of Common Stock then issued and outstanding (the “Exercise
Limit”). As used herein, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the rules thereunder. To the extent that the limitation contained
in this Section 4 applies, the submission of an Exercise Notice by the
Holder shall be deemed to be the Holder’s representation that this Warrant is
exercisable pursuant to the terms hereof and the Company shall be entitled to
rely on such representation without making any further inquiry as to whether
this Section 4 applies.  Nothing
contained herein shall be deemed to restrict the right of a Holder to exercise
this Warrant, or part thereof, at such time as such exercise will not violate
the provisions of this Section 4. 
This Section 4 may not be amended by the parties; provided, however,
that, in the event of a Major Transaction (as defined below), the Holder shall
have the right to increase the Exercise Limit to a percentage not greater than
9.9% by delivering notice thereof to the Company at any time following the
public announcement of such transaction.

 

5.                                       Payment of
the Exercise Price; Cashless Exercise. 
The Holder may pay the Exercise Price in either of the following forms
or, at the election of Holder, a combination thereof:

 

(a)                                  through a cash
exercise (a “Cash Exercise”) by delivering immediately available funds,
or

 

(b)                                 if
an effective Registration Statement is not available for the resale all of the
Warrant Shares issuable hereunder at the time an Exercise Notice is delivered
to the Company, through a cashless exercise (a “Cashless Exercise”).  The Holder may effect a Cashless Exercise by
surrendering this Warrant to the Company and noting on the Exercise Notice that
the Holder wishes to effect a Cashless Exercise, upon which the Company shall
issue to the Holder the number of Warrant Shares determined as follows:

 

X = Y x (A-B)/A

 

where:                                                                                                             X
= the number of Warrant Shares to be issued to the Holder;

 

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

 

A = the Market Price as of the Exercise Date;
and

 

B = the Exercise Price.

 

For purposes of Rule 144, it is intended and acknowledged that the
Warrant Shares issued in a Cashless Exercise transaction shall be deemed to
have been acquired by the Holder, and the

 

4

 

holding period for the Warrant Shares required by Rule 144 shall be
deemed to have been commenced, on the Issue Date.

 

6.                                       Anti-Dilution
Adjustments; Distributions; Other Events. The Exercise Price and the number
of Warrant Shares issuable hereunder shall be subject to adjustment from time
to time as provided in this Section 6. 
In the event that any adjustment of the Exercise Price or the number of
Warrant Shares as required herein results in a fraction of a cent or fraction
of a share, as applicable, such Exercise Price or number of Warrant Shares
shall be rounded up or down to the nearest cent or share, as applicable.

 

(a)                                  Subdivision
or Combination of Common Stock.  If
the Company, at any time after the Issue Date, subdivides (by any stock split,
stock dividend, recapitalization, reorganization, reclassification or
otherwise) its shares of Common Stock into a greater number of shares, then
after the date of record for effecting such subdivision, the Exercise Price in
effect immediately prior to such subdivision will be proportionately
reduced.  If the Company, at any time
after the initial issuance of this Warrant, combines (by reverse stock split,
recapitalization, reorganization, reclassification or otherwise) its shares of
Common Stock into a smaller number of shares, then, after the date of record
for effecting such combination, the Exercise Price in effect immediately prior to
such combination will be proportionally increased.

 

(b)                                 Distributions.  If the Company or any of its Subsidiaries
shall at any time distribute to holders of Common Stock (or to a holder, other
than the Company, of the common stock of any such Subsidiary) cash, evidences
of indebtedness or other securities or assets including any dividend or
distribution in shares of capital stock of a Subsidiary of the Company
(collectively, a “Distribution”) then, in any such case, the Holder of
this Warrant shall be entitled to receive, at the same time as such assets are
received by a holder of such stock, the same amount and type of securities and
assets being distributed pursuant to such Distribution as though the Holder
was, as of the record date for such Distribution, the holder of a number of
shares of Common Stock into which this Warrant is exercisable as of such record
date (without regard to any limitation on exercise of this Warrant).

 

(c)                                  Major
Transactions.  In the event of a
merger, consolidation, business combination, tender offer, exchange of shares,
recapitalization, reorganization, redemption or other similar event, as a
result of which shares of Common Stock of the Company shall be changed into the
same or a different number of shares of the same or another class or classes of
stock or securities or other assets of the Company or another entity or the
Company shall sell all or substantially all of its assets (each of the
foregoing being a “Major Transaction”), the Company will give the Holder
at least twenty (20) days’ prior written notice of the closing of such Major
Transaction, and:  (i) in the event that
the holders of Common Stock receive consideration consisting of any combination
of cash, common stock or other assets (the “Major Transaction Consideration”)
that has a value per share of Common Stock that is less than $32.50 (as
adjusted for stock splits, stock dividends and similar events) (the “Major
Transaction Threshold”), the Holder shall be permitted to exercise this
Warrant in whole or in part at any time prior to the closing of such Major
Transaction and shall be entitled to receive, for each share of Common Stock
issued or issuable to the Holder pursuant to any such exercise, the same per
share consideration payable with respect to all other shares of Common Stock in
connection with

 

5

 

such Major Transaction, and
(ii) in the event that the Holder retains any portion of this Warrant following
such closing, the Company will cause the surviving or, in the event of a sale
of assets, purchasing entity, as a condition precedent to such Major
Transaction, to assume the obligations of the Company under this Warrant, with
such adjustments to the Exercise Price and the securities covered hereby as may
be necessary in order to preserve the economic benefits of this Warrant to the
Holder; provided, however, that if the  value per share of the Major Transaction Consideration is equal
to or greater than the Major Transaction Threshold, this Warrant shall expire
as to the unexercised portion of this Warrant at the time of such closing.

 

(d)                                 Adjustments;
Additional Shares, Securities or Assets. 
In the event that at any time, as a result of an adjustment made
pursuant to this Section 6, the Holder of this Warrant shall, upon
exercise of this Warrant, become entitled to receive securities or assets
(other than Common Stock) then, wherever appropriate, all references herein to
shares of Common Stock shall be deemed to refer to and include such shares
and/or other securities or assets; and thereafter the number of such shares
and/or other securities or assets shall be subject to adjustment from time to
time in a manner and upon terms as nearly equivalent as practicable to the
provisions of this Section 6. Any adjustment made herein that results in a
decrease or increase in the Exercise Price shall also effect a proportional
increase or decrease, as the case may be, in the number of shares of Common
Stock into which this Warrant is exercisable.

 

7.                                       Fractional
Interests.

 

No fractional shares or scrip representing
fractional shares shall be issuable upon the exercise of this Warrant, but on
exercise of this Warrant, the Holder hereof may purchase only a whole number of
shares of Common Stock.  If, on exercise
of this Warrant, the Holder hereof would be entitled to a fractional share of
Common Stock or a right to acquire a fractional share of Common Stock, the
Company shall, in lieu of issuing any such fractional share, pay to the Holder
an amount in cash equal to the product resulting from multiplying such fraction
by the Market Price as of the Exercise Date.

 

8.                                       Transfer of
this Warrant.

 

The Holder may sell, transfer, assign, pledge
or otherwise dispose of this Warrant, in whole or in part, as long as such sale
or other disposition is made in the pursuant to an effective registration
statement or an exemption to the registration requirements of the Securities
Act.  Upon such transfer or other
disposition, (A) the Holder shall deliver this Warrant to the Company together
with a written notice to the Company, substantially in the form of the Transfer
Notice attached hereto as Exhibit B (the “Transfer Notice”), indicating
the person or persons to whom this Warrant shall be transferred and, if less
than all of this Warrant is transferred, the number of Warrant Shares to be
covered by the part of this Warrant to be transferred to each such person, and
(B) the transferee of this Warrant shall deliver to the Company an investment
representation letter in a form reasonably satisfactory to counsel to the
Company. Within three (3) Business Days of receiving a Transfer Notice, the
original of this Warrant and such representation letter, the Company shall
deliver to the each transferee designated by the Holder a Warrant or Warrants
of like tenor and terms for the appropriate number of Warrant Shares and, if
less than all this Warrant is transferred, shall deliver to the Holder a
Warrant for the remaining 

 

6

 

number of Warrant Shares.

 

9.                                       Benefits of
this Warrant.

 

This Warrant shall be for the sole and
exclusive benefit of the Holder of this Warrant and nothing in this Warrant
shall be construed to confer upon any person other than the Holder of this
Warrant any legal or equitable right, remedy or claim hereunder.

 

10.                                 Loss, theft,
destruction or mutilation of Warrant.

 

Upon receipt by the Company of evidence of
the loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of indemnity reasonably satisfactory to the
Company, and upon surrender of this Warrant, if mutilated, the Company shall
execute and deliver a new Warrant of like tenor and date.

 

11.                                 Notice or Demands.

 

Any notice, demand or request required or
permitted to be given by the Company or the Holder pursuant to the terms of
this Warrant shall be in writing and shall be deemed delivered (i) when
delivered personally or by verifiable facsimile transmission, unless such
delivery is made on a day that is not a Business Day, in which case such
delivery will be deemed to be made on the next succeeding Business Day, (ii) on
the next Business Day after timely delivery to an overnight courier and (iii)
on the Business Day actually received if deposited in the U.S. mail (certified
or registered mail, return receipt requested, postage prepaid), addressed as
follows:

 

If to the Company:

 

Maxim Pharmaceuticals, Inc.

8899 University Center Lane, Suite 400

San Diego, CA 92122

Attn: Tony Altig, Chief Financial Officer

Tel:  (858) 453-4040

Fax: (858) 453-5005

 

with a copy to:

 

Cooley Godward LLP
4401 Eastgate Mall

San Diego, CA 92121

Attn:  Lance Bridges, Esq.

Tel:  (858) 550-6000

Fax: (858) 550-6420

 

and if to the Holder, to such address as shall be designated by the
Holder in writing to the Company.

 

7

 

12.                                 Applicable Law.

 

This Warrant
is issued under and shall for all purposes be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts made
and to be performed entirely within the State of Delaware.

 

 

[Signature
Page to Follow]

 

8

 

IN WITNESS WHEREOF, the Company has duly
executed and delivered this Warrant as of the date first above written.

 

 

	
   

  	
  Maxim
  Pharmaceuticals, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Anthony E. Altig

  	
   

  
	
   

  	
  Name: Anthony E. Altig

  
	
   

  	
  Title: Chief Financial Officer

  

 

9

 

EXHIBIT A to WARRANT

 

EXERCISE NOTICE

 

The undersigned Holder hereby irrevocably
exercises the right to
purchase                         of
the shares of Common Stock (“Warrant Shares”) of MAXIM PHARMACEUTICALS,
INC. evidenced by the attached Warrant (the “Warrant”).  Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.                                       Form of Exercise
Price.  The Holder intends that payment
of the Exercise Price shall be made as:

 

             
a Cash Exercise with respect to
                                         
Warrant Shares; and/or

 

             
a Cashless Exercise with respect to
                                         
Warrant Shares, as permitted by Section 5(b) of the attached Warrant.

 

2.                                       Payment of
Exercise Price.  In the event that the
Holder has elected a Cash Exercise with respect to some or all of the Warrant
Shares to be issued pursuant hereto, the Holder shall pay the sum of
$                             
to the Company in accordance with the terms of the Warrant.

 

 

	
  Date: 

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name of Registered Holder

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
						

 

10

 

EXHIBIT B to WARRANT

 

TRANSFER NOTICE

 

FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant
hereby sells, assigns and transfers unto the person or persons named below the
right to purchase
               
shares of the Common Stock of MAXIM PHARMACEUTICALS, INC. evidenced by the
attached Warrant.

 

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name of Registered Holder

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  Transferee Name and Address:

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

 

11

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