Document:

exv10w23

 

EXHIBIT 10.23

Associated Bank

PROMISSORY NOTE

	 	 	 	 	 	 	 
	Borrower:

	 	BROADVIEW MEDIA, INC.
	 	Lender:
	 	ASSOCIATED BANK MINNESOTA, NATIONAL
	 

	 	TERRY L MYHRE
	 	 	 	ASSOCIATION
	 

	 	4455 W 77TH ST
	 	 	 	1801 RIVERSIDE AVENUE
	 

	 	MINNEAPOLIS, MN 55435 
	 	 	 	MINNEAPOLIS, MN 55454 

	 	 	 	 	 	 	 	 	 
	Principal Amount:

	 	$500,000.00 
	 	Initial Rate:
	 	6.000% 
	 	Date of Note: December 18, 2003 

PROMISE TO PAY. Broadview Media, Inc.; and Terry L Myhre (“Borrower”) jointly and severally
promise to pay to ASSOCIATED BANK MINNESOTA, NATIONAL ASSOCIATION (“Lender”), or order, in lawful
money of the United States of America, the principal amount of Five Hundred Thousand & 00/100
Dollars ($500,000.00) or so much as may be outstanding, together with interest on the unpaid
outstanding principal balance of each advance. Interest shall be calculated from the date of each
advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in accordance with the following payment schedule:

SUBJECT TO ANY PAYMENT CHANGES RESULTING FROM CHANGES IN THE INDEX, BORROWER WILL PAY THIS
LOAN IN 9 PRINCIPAL PAYMENTS OF $8,333.33 EACH AND ONE FINAL PRINCIPAL AND INTEREST PAYMENT OF
$427,125.03. BORROWER’S FIRST PRINCIPAL PAYMENT IS DUE JANUARY 18, 2004, AND ALL SUBSEQUENT
PRINCIPAL PAYMENTS ARE DUE ON THE SAME DAY OF EACH MONTH AFTER THAT. IN ADDITION, BORROWER WILL
PAY REGULAR MONTHLY PAYMENTS OF ALL ACCRUED UNPAID INTEREST DUE AS OF EACH PAYMENT DATE, BEGINNING
JANUARY 18, 2004, WITH ALL SUBSEQUESNT INTEREST PAYMENTS TO BE DUE ON THE SAME DAY OF EACH MONTH
AFTER THAT. BORROWER’S FINAL PAYMENT DUE OCTOBER 31, 2004, WILL BE FOR ALL PRINCIPAL AND ALL
ACCRUED INTEREST NOT YET PAID.

Unless otherwise agreed or required by applicable law, payments will be applied first to any
accrued unpaid interest; then to principal; and then to any late charges. The annual interest rate
for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest
rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the
actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender’s
address shown above or at such other place as Lender may designate in writing.

VARIABLE INTEREST RATE. The Interest rate on this Note is subject to change from time to time
based on changes in an index which is the Lender’s Prime Rate (the “Index”). This is the rate
Lender charges, or would charge, on short-term unsecured loans to its most creditworthy commercial
customers. This rate may or may not be the lowest rate available from Lender at any given time.
Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change
will not occur more often than each DAY. Borrower understands that Lender may make loans based on
other rates as well. The Index currently is 4.000% per annum. The interest rate to be applied to
the unpaid principal balance of this Note will be at a rate of 2.000 percentage points over the
Index, adjusted if necessary for any minimum and maximum rate limitations described below,
resulting in an initial rate of 6.000% per annum. Notwithstanding the foregoing, the variable
interest rate or rates provided for in this Note will be subject to the following minimum and
maximum rates. NOTICE: Under no circumstances will the interest rate on this Note be less than
5.000% per annum or more than the maximum rate allowed by applicable law.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully
as of the date of the loan and will not be subject to refund upon early payment (whether voluntary
or as a result of default), except as otherwise required by law. Except for the foregoing,
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation
to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the
principal balance due. Borrower agrees not to send Lender payments marked “paid in full”, “without
recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender. All written communications concerning disputed amounts, including
any check or other payment instrument that indicates that the payment constitutes “payment in full”
of the amount owed or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: ASSOCIATED BANK, P.O. BOX 19097 GREEN BAY, WI
54307-9097.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid
portion of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its
option, may, if permitted under applicable law, increase the variable interest rate on this Note to
7.000 percentage points over the Index. The interest rate will not exceed the maximum rate
permitted by applicable law.

 

1

 

PROMISSORY NOTE

(Continued)

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under
this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents or to comply with
or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension
of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property or Borrower’s
ability to repay this Note or perform Borrower’s obligations under this Note or any of the related
documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in
any material respect, either now or at the time made or furnished or becomes false or misleading at
any time thereafter.

Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Borrower or by any governmental agency against any collateral securing the loan. This includes a
garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity of
reasonableness of the claim which is the basis of the creditor or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an
adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the indebtedness or any guarantor, surety, or
accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the
common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender
believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on this Note
and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits
under applicable law, Lender’s reasonable attorneys’ fees and Lender’s legal expenses, whether or
not there is a lawsuit, including reasonable attorneys’ fees, expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), and appeals. If not
prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums
provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal
law and the laws of the State of Minnesota. This Note has been accepted by Lender in the State of
Minnesota.

DISHONORED ITEM FEE. Borrower will pay fee to Lender of $25.00 if Borrower makes a payment on
Borrower’s loan and the check or preauthorized charge with which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law.

 

2

 

PROMISSORY NOTE

(Continued)

Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the indebtedness against any and all such accounts, and at Lender’s option, to
administratively freeze all such accounts to allow Lender to protect Lender’s charge and setoff
rights provided in this paragraph.

COLLATERAL. Borrower acknowledges this Note is secured by all security agreements, guarantees,
mortgages, and other security instruments previously granted, contemporaneously granted, and
granted in the future.

LINE OF CREDIT. This Note evidences a revolving line of credit. Up to the principal amount of
this Note and subject to the terms and conditions hereof, Borrower may borrow, repay, and
re-borrow. Advances under this Note, as well as directions for payment from Borrower’s accounts,
may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need
not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all
sums either: (A) advanced in accordance with the instructions of an authorized person or (B)
credited to any of Borrower’s accounts with Lender. The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note or by Lender’s internal records,
including daily computer print-outs. Lender will have no obligation to advance funds under this
Note if: (A)
Borrower or any guarantor is in default under the terms of this Note or any agreement that Borrower
or any guarantor has with Lender, including any agreement made in connection with the signing of
this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any
guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s guarantee
of this Note or any other loan with Lender; (D) Borrower has applied funds provided pursuant to
this Note for purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

INTIAL NOTE RATE PROVISION. The Initial Note Rate is as of DECEMBER 17, 2003.

BUSINESS LOAN AGREEMENT. If Borrower and Lender have either previously or contemporaneously
entered into a Business Loan Agreement, it is agreed that this Note is subject to the terms and
conditions of said agreement.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and its successors and assigns.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this
Note without losing them. Each Borrower understands and agrees that, with or without notice to
Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured
or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time for payment or other terms of any
indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c)
exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security,
with or without the substitution of new collateral; (d) apply such security and direct the order
or manner of sale thereof, including without limitation, any non-judicial sale permitted by the
terms of the controlling security agreements, as Lender in its discretion may determine; (e)
release, substitute, agree not to sue, or deal with any one or more of Borrower’s sureties,
endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f)
determine how, when and what application of payments and credits shall be made on any other
indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees
or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and
notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly
stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker
or endorser, shall be released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender’s security interest in the
collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or
notice to anyone other than the party with whom the modification is made. The obligations under
this Note are joint and several.

SECTION DISCLOSURE. This loan is made under Minnesota Statutes, Section 48.195.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING
THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

BROADVIEW MEDIA, INC.

	 	 	 	 	 
	By:

	 	/s/ Mark Red White
 

MARK RED WHITE, COO OF BROADVIEW MEDIA, INC.
	 	 
	 
	 	 	 	 
	x

	 	/s/ Terry L. Myhre
 

TERRY L MYHRE, Individually
	 	 

 

3warrantdocument

    

        Exhibit 4.14

        

          

          

          THE
            SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
            AND
            HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
            (THE
“ACT”), OR ANY STATE SECURITIES LAW. SUCH SECURITIES MAY NOT BE SOLD OR
            TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH SALE OR
            TRANSFER
            IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS
            OF THE ACT
            OR THE ISSUER HAS RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
            REASONABLY ACCEPTABLE TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED
            UNDER THE
            ACT OR APPLICABLE STATE SECURITIES LAWS.
            THESE
            SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
            MAY BE
            PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH
            SECURITIES.

          

          

          

          DOR
            BIOPHARMA, INC.

          

          

          

          Warrant
            for the Purchase of Shares of

          Common
            Stock

          

          No. CSW-        Shares

                                  Original
            Issue Date
            February 9, 2007

          

          

          FOR
            VALUE
            RECEIVED, DOR BIOPHARMA, INC., a Delaware corporation (the "Company"),
            hereby certifies that
            ___________ (the“Holder”),
            is
            entitled to purchase from the Company, at any time or from time to time
            commencing after the Original Issue Date and expiring at 5:00 P.M., New
            York
            City time, on the second (2nd) anniversary after the Original Issue Date
            (as
            such date may be changed pursuant to Section 2 hereof, the “Expiration
            Date”
being
            February
            8, 20121 , _________________,
            fully
            paid and non-assessable shares of Common Stock, par value $.001 per share,
            of
            the Company (the “Warrant
            Shares”)
            for a
            per share exercise price equal to $0.59
            per
            share (the “Per
            Share Warrant Price”).
            The
            Per Share Warrant Price is subject to adjustment as hereinafter provided.
            Capitalized terms used and not otherwise defined in this Warrant shall
            have the
            meanings specified in Section 9, unless the context otherwise
            requires.

          

          1. Exercise
            of Warrant.
            

          

          (a) This
            Warrant may be exercised, in whole at any time or in part from time to
            time,
            commencing after the Original Issue Date and expiring at 5:00 P.M., New
            York
            City time, on the Expiration Date (with the Exercise Notice at the end
            of this
            Warrant duly executed) at the address set forth in Section 10 hereof,
            together
            with payment of the Per Share Warrant Price multiplied by the number
            of Warrant
            Shares to which such exercise relates made by delivery to the Company
            of one or
            more types of Permitted Consideration.

          

           

          (b) If
            this
            Warrant is exercised in part, the Company will deliver to the Holder
            within
            three Trading Days of the date such Holder delivers to the Company this
            Warrant
            and an Exercise Notice, together with the payment of the aggregate Per
            Share
            Warrant Price for such exercise, a new Warrant covering the Warrant Shares
            which
            have not been exercised. By the expiration of the third Trading Day following
            the Holder’s delivery of a Warrant, together with an Exercise Notice and the
            payment of the aggregate Per Share Warrant Price for such exercise, the
            Company
            will (i) issue a certificate or certificates in the name of the Holder
            for the
            largest number of whole shares of the Common Stock to which the Holder
            shall be
            entitled and, if this Warrant is exercised in whole, in lieu of any fractional
            share of the Common Stock to which the Holder shall be entitled, pay
            to the
            Holder cash in an amount equal to the fair value of such fractional share
            (determined by reference to the closing sales price of the Common Stock
            on the
            date of the Exercise Notice), and (ii) deliver the other securities and
            properties receivable upon the exercise of this Warrant, or the proportionate
            part thereof if this Warrant is exercised in part, pursuant to the provisions
            of
            this Warrant.

          

          (c) If,
            one
            year after the Original Issue Date, the Warrant Shares to be issued are
            not
            registered and available for resale by the Holder pursuant to a registration
            statement in accordance with the Registration Rights Agreement entered
            into on
            the date hereof, then the Holder may, at its election exercised in its
            sole
            discretion, exercise this Warrant in whole or in part and, in lieu of
            making a
            cash payment of Permitted Consideration, elect instead to receive upon
            such
            exercise the “Net Number” of shares of Common Stock determined according to the
            following formula:

          

          Net
            Number = (A
            x
            B) - (A x C)

          B

          For
            purposes of the foregoing formula:

          

          A=the
            total number of Warrant Shares with respect

          to
            which
            this Warrant is then being exercised.

          

          B=the
            average of the closing sales prices for the five

          Trading
            Days immediately prior to (but not including) 

          the
            day
            that the Holder delivers the Exercise Notice at issue.

          

          C=the
            Per
            Share Warrant Price;

          

          provided,
            however that Holder may not exercise this Warrant in whole or in part
            pursuant
            to this Section 1(c) if a registration statement has been filed but the
            Holder
            is not permitted to use the prospectus included in such registration
            statement.

          

          (d) If,
            by
            the third Trading Day after the date that the Holder delivers an Exercise
            Notice, together with the payment of the aggregate Per Share Warrant
            Price for
            such exercise, the Company fails to deliver the required number of Warrant
            Shares in the manner required pursuant to Section 1(b), then the Holder
            will
            have the right to rescind such exercise.

          

          (e) If,
            by
            the third Trading Day after the date that the Holder delivers an Exercise
            Notice, together with the payment of the aggregate Per Share Warrant
            Price for
            such exercise, the Company fails to deliver the required number of Warrant
            Shares in the manner required pursuant to Section 1(b), and if after
            such third
            Trading Day and prior to the receipt of such Warrant Shares, the Holder
            purchases (in an open market transaction or otherwise) shares of Common
            Stock to
            deliver in satisfaction of a sale by the Holder of the Warrant Shares
            which the
            Holder anticipated receiving upon such exercise (a "Buy-In"),
            then
            the Company shall (1) pay in cash to the Holder the amount by which (x)
            the
            Holder's total purchase price (including brokerage commissions, if any)
            for the
            shares of Common Stock so purchased exceeds (y) the amount obtained by
            multiplying (A) the number of Warrant Shares that the Company was required
            to
            deliver to the Holder in connection with the exercise at issue by (B)
            the
            closing bid price of the Common Stock at the time of the obligation giving
            rise
            to such purchase obligation and (2) at the option of the Holder, either
            reinstate the portion of the Warrant and equivalent number of Warrant
            Shares for
            which such exercise was not honored or deliver to the Holder the number
            of
            shares of Common Stock that would have been issued had the Company timely
            complied with its exercise and delivery obligations hereunder. The Holder
            shall
            provide the Company written notice indicating the amounts payable to
            the Holder
            in respect of the Buy-In.

          

          (f) Notwithstanding
            anything to the contrary contained herein, the number of shares of Common
            Stock
            that may be acquired by the Holder upon any exercise of this Warrant
            shall be
            limited to the extent necessary to insure that, following such exercise,
            the
            total number of shares of Common Stock then beneficially owned by such
            Holder
            and its affiliates and any other persons whose beneficial ownership of
            Common
            Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the
            Exchange Act, does not exceed 4.999% of the total number of issued and
            outstanding shares of Common Stock (including for such purpose the shares
            of
            Common Stock issuable upon such exercise). For such purposes, beneficial
            ownership shall be determined in accordance with Section 13(d) of the
            Exchange
            Act and the rules and regulations promulgated thereunder. Each delivery
            of an
            Exercise Notice will constitute a representation by the Holder that it
            has
            evaluated the limitation set forth in this paragraph and determined that
            issuance of the full number of Warrant Shares requested in such Exercise
            Notice
            is permitted under this paragraph. This provision shall not restrict
            the number
            of shares of Common Stock which a Holder may receive or beneficially
            own in
            order to determine the amount of securities or other consideration that
            such
            Holder may receive in the event of a Fundamental Transaction as contemplated
            in
            Section 3. By written notice to the Company, the Holder may waive the
            provisions
            of this Section but any such waiver will not be effective until the 61st
            day
            after such notice is delivered to the Company.

          

          (g) Notwithstanding
            anything to the contrary contained herein, the number of shares of Common
            Stock
            that may be acquired by the Holder upon any exercise of this Warrant
            (or
            otherwise in respect hereof) shall be limited to the extent necessary
            to insure
            that, following such exercise (or other issuance), the total number of
            shares of
            Common Stock then beneficially owned by such Holder and its affiliates
            and any
            other persons whose beneficial ownership of Common Stock would be aggregated
            with the Holder's for purposes of Section 13(d) of the Exchange Act,
            does not
            exceed 9.999% of the total number of issued and outstanding shares of
            Common
            Stock (including for such purpose the shares of Common Stock issuable
            upon such
            exercise). For such purposes, beneficial ownership shall be determined
            in
            accordance with Section 13(d) of the Exchange Act and the rules and regulations
            promulgated thereunder. Each delivery of an Exercise Notice will constitute
            a
            representation by the Holder that it has evaluated the limitation set
            forth in
            this paragraph and determined that issuance of the full number of Warrant
            Shares
            requested in such Exercise Notice is permitted under this paragraph.
            This
            provision shall not restrict the number of shares of Common Stock which
            a Holder
            may receive or beneficially own in order to determine the amount of securities
            or other consideration that such Holder may receive in the event of a
            Fundamental Transaction as contemplated in Section 3. This restriction
            may not
            be waived.

          

          2. Company’s
            Option to Change Expiration Date.
            

          

          Notwithstanding
            anything herein to the contrary, in the event that (i) the closing sales
            price
            per share of Common Stock is in excess of 300% of
            the
            Per Share Warrant Price (as may be adjusted pursuant to Section 3) for
            twenty (20) Trading Days during any thirty (30) consecutive Trading Days,
            (ii)
            the Warrant Shares are either registered for resale pursuant to an effective
            registration statement naming the Holder as a selling stockholder thereunder
            (and the prospectus thereunder is available for use by the Holder as
            to all then
            available Warrant Shares) or freely transferable without volume restrictions
            pursuant to Rule 144(k) promulgated under the Securities Act, as determined
            by
            counsel to the Company pursuant to a written opinion letter addressed
            and in
            form and substance reasonably acceptable to the Holder and the transfer
            agent
            for the Common Stock, during the entire twenty (20) Trading Day period
            referenced in (i) above through the expiration of the Call Date as set
            forth in
            the Company’s notice pursuant to this Section (the “Call
            Condition Period”),
            and
            (iii) the Company shall have complied in all material respects with its
            obligations under this Warrant and under the Purchase Agreement, then,
            subject
            to the conditions set forth in this Section, the Company may, in its
            sole
            discretion, elect to change the Expiration Date to 5:00 P.M., New York
            City time
            on the date that is thirty (30) days after written notice thereof (a
            “Call
            Notice”)
            is
            received by the Holder (the “Call
            Date”)
            at the
            address last shown on the records of the Company for the Holder or given
            by the
            Holder to the Company for the purpose of notice; provided, that the conditions
            to giving such notice must be in effect at all times during the Call
            Condition
            Period or any such notice shall be null and void. The Company and
            the Holder agree that, if and to the extent Section 1(f) or (g) of
            this Warrant would restrict the ability of the Holder to exercise this
            Warrant
            in the event of a delivery of a Call Notice, then notwithstanding anything
            to the contrary set forth in the Call Notice, the Call Notice shall be
            deemed
            automatically amended to apply only to such portion of this Warrant as may
            be exercised by the Holder by the Call Date in accordance with Section
            1(f) and
            (g).  The Holder will promptly (and, in any event, prior to the Call Date)
            notify the Company in writing following receipt of a Call Notice
            if Section 1(f) or (g) would restrict its exercise of the Warrant,
            specifying therein the number of Warrant Shares so restricted.

          

          3. Certain
            Adjustments.
            The Per
            Share Warrant Price and number of Warrant Shares issuable upon exercise
            of this
            Warrant are subject to adjustment from time to time as set forth in this
            Section
            3.

          

          (a)
            If
            the Company, at any time while this Warrant is outstanding, (i) pays
            a stock
            dividend on its Common Stock or otherwise makes a distribution on any
            class of
            capital stock that is payable in shares of Common Stock, (ii) subdivides
            outstanding shares of Common Stock into a larger number of shares, or
            (iii)
            combines outstanding shares of Common Stock into a smaller number of
            shares,
            then in each such case the Per Share Warrant Price shall be multiplied
            by a
            fraction of which the numerator shall be the number of shares of Common
            Stock
            outstanding immediately before such event and of which the denominator
            shall be
            the number of shares of Common Stock outstanding immediately after such
            event.
            Any adjustment made pursuant to clause (i) of this paragraph shall become
            effective immediately after the record date for the determination of
            shareholders entitled to receive such dividend or distribution, and any
            adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
            effective immediately after the effective date of such subdivision or
            combination.

          

          (b)
            If,
            at any time while this Warrant is outstanding, (1) the Company effects
            any
            merger or consolidation of the Company with or into another person, (2)
            the
            Company effects any sale of all or substantially all of its assets in
            one or a
            series of related transactions, (3) any tender offer or exchange offer
            (whether
            by the Company or another Person) is completed pursuant to which holders
            of
            Common Stock are permitted to tender or exchange their shares for other
            securities, cash or property, or (4) the Company effects any reclassification
            of
            the Common Stock or any compulsory share exchange pursuant to which the
            Common
            Stock is effectively converted into or exchanged for other securities,
            cash or
            property (in any such case, a "Fundamental
            Transaction"),
            then
            thereafter this Warrant shall represent the right to receive, upon exercise
            of
            this Warrant, the same amount and kind of securities, cash or property
            as it
            would have been entitled to receive upon the occurrence of such Fundamental
            Transaction if it had been, immediately prior to such Fundamental Transaction,
            the holder of the number of Warrant Shares then issuable upon exercise
            in full
            of this Warrant (the "Alternate
            Consideration").
            For
            purposes of any such exercise, the determination of the Per Share Warrant
            Price
            shall be appropriately adjusted to apply to such Alternate Consideration
            based
            on the amount of Alternate Consideration issuable in respect of one share
            of
            Common Stock in such Fundamental Transaction, and the Company shall apportion
            the Per Share Warrant Price among the Alternate Consideration in a reasonable
            manner reflecting the relative value of any different components of the
            Alternate Consideration. If holders of Common Stock are given any choice
            as to
            the securities, cash or property to be received in a Fundamental Transaction,
            then the Holder shall be given the same choice as to the Alternate Consideration
            it receives upon any exercise of this Warrant following such Fundamental
            Transaction. At the Holder's option and request, any successor to the
            Company or
            surviving entity (and, if an entity different from the successor or surviving
            entity, the entity whose capital stock or assets the Holders of Common
            Stock are
            entitled to receive as a result of such Fundamental Transaction) in such
            Fundamental Transaction shall, either (1) issue to the Holder a new warrant
            substantially in the form of this Warrant and consistent with the foregoing
            provisions and evidencing the Holder's right to purchase the Alternate
            Consideration for the aggregate Per Share Warrant Price upon exercise
            thereof,
            or (2) purchase the Warrant from the Holder for a purchase price, payable
            in
            cash within five trading days after such request (or, if later, on the
            effective
            date of the Fundamental Transaction), equal to the Black Scholes value
            of the
            remaining unexercised portion of this Warrant on the date of such request.
            The
            terms of any agreement pursuant to which a Fundamental Transaction is
            effected
            shall include terms requiring any such successor or surviving entity
            (and, if an
            entity different from the successor or surviving entity, the entity whose
            capital stock or assets the Holders of Common Stock are entitled to receive
            as a
            result of such Fundamental Transaction) to comply with the provisions
            of this
            paragraph (b) and insuring that the Warrant (or any such replacement
            security)
            will be similarly adjusted upon any subsequent transaction analogous
            to a
            Fundamental Transaction.

          

          (c) Simultaneously
            with any adjustment to the Per Share Warrant Price pursuant to Section
            3(a), the
            number of Warrant Shares that may be purchased upon exercise of this
            Warrant
            shall be increased or decreased proportionately, so that after such adjustment
            the aggregate Per Share Warrant Price payable hereunder for the adjusted
            number
            of Warrant Shares shall be the same as the aggregate Per Share Warrant
            Price in
            effect immediately prior to such adjustment.

          

          (d) All
            calculations under this Section 3 shall be made to the nearest cent or
            the
            nearest 1/100th
            of a
            share, as applicable. The number of shares of Common Stock outstanding
            at any
            given time shall not include shares owned or held by or for the account
            of the
            Company.

          

          (e) Upon
            the
            occurrence of each adjustment pursuant to this Section 3, the Company
            at its
            expense will 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 Per Share Warrant Price and adjusted number
            or type
            of Warrant 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.

          

          4. Fully
            Paid Stock; Taxes.
            

          

          The
            Company agrees that the shares of Common Stock represented by each and
            every
            certificate for Warrant Shares delivered on the exercise of this Warrant
            shall
            at the time of such delivery, be validly issued and outstanding, fully
            paid and
            nonassessable, and not subject to preemptive rights or rights of first
            refusal,
            and the Company will take all such actions as may be necessary to assure
            that
            the par value or stated value, if any, per share of the Common Stock
            is at all
            times equal to or less than the then Per Share Warrant Price. The Company
            further covenants and agrees that it will pay, when due and payable,
            any and all
            Federal and state stamp, original issue or similar taxes which may be
            payable in
            respect of the issue of any Warrant Share or any certificate thereof
            to the
            extent required because of the issuance by the Company of such
            security.

          

          5. Registration
            Under Securities Act .
            

          

          (a)
            The
            Holder shall, with respect to the Warrant Shares, have the registration
            rights
            set forth in the Registration Rights Agreement. By acceptance of this
            Warrant,
            the Holder agrees to comply with the provisions of the Registration Rights
            Agreement.

          

          (b) Until
            the
            later of (i) such time as the Holder shall be eligible to resell all
            of its
            Warrant Shares without volume restrictions pursuant to Rule 144(k) promulgated
            under the Securities Act (assuming Holder is not an “affiliate” of the Company,
            as defined in Rule 144), as evidenced by a legal opinion to such effect
            delivered by the Company’s counsel and acceptable to each of the Company’s
            transfer agent and the Holder, or (ii) the date on which all Warrant
            Shares have
            been sold under a Registration Statement or pursuant to Rule 144 (“Rule
            144”)
            as
            promulgated under the Securities Act, the Company shall use its reasonable
            best
            efforts to file with the Securities and Exchange Commission all current
            reports
            and the information as may be necessary to enable the Holder to effect
            sales of
            the Warrant Shares in reliance upon Rule 144 promulgated under the Securities
            Act.

           

          6. Investment
            Intent; Restrictions on Transferability. 

          

          (a) The
            Holder represents, by accepting this Warrant that it understands that
            this
            Warrant and any securities obtainable upon exercise of this Warrant have
            not
            been registered for sale under Federal or state securities laws and are
            being
            offered and sold to the Holder pursuant to one or more exemptions from
            the
            registration requirements of such securities laws. Certificates representing
            Warrant Shares may, for so long as required in accordance with the Purchase
            Agreement, bear the restrictive legend set forth on the first page hereof.
            The
            Holder understands that the Holder must bear the economic risk of such
            Holder’s
            investment in this Warrant and any Warrant Shares or other securities
            obtainable
            upon exercise of this Warrant for an indefinite period of time, as this
            Warrant
            and such Warrant Shares or other securities have not been registered
            under
            Federal or state securities laws and therefore cannot be sold unless
            subsequently registered under such laws, or an exemption from such registration
            is available.

          

          (b) The
            Holder, by such Holder’s acceptance of this Warrant, represents to the Company
            that such Holder is acquiring this Warrant and will acquire any Warrant
            Shares
            or other securities obtainable upon exercise of this Warrant for such
            Holder’s
            own account for investment and not with a view to, or for sale in connection
            with, any distribution thereof in violation of the Securities Act. The
            Holder
            agrees that this Warrant and any such Warrant Shares or other securities
            will
            not be sold or otherwise transferred unless (i) a registration statement
            with
            respect to such transfer is effective under the Securities Act or (ii)
            such sale
            or transfer is made pursuant to one or more exemptions from the Securities
            Act.

          

          7. Loss,
            Theft, Destruction or Mutilation of Warrant.
            

          

          Upon
            receipt of evidence satisfactory to the Company of the loss, theft, destruction
            or mutilation of this Warrant, and of indemnity reasonably satisfactory
            to the
            Company, if lost, stolen or destroyed, and upon surrender and cancellation
            of
            this Warrant, if mutilated, the Company shall execute and deliver to
            the Holder,
            a new Warrant of like date, tenor and denomination.

          

          8. Warrant
            Holder Not Stockholder.
            

          

          This
            Warrant does not confer upon the Holder any right to vote or to consent
            to or
            receive notice as a stockholder of the Company, as such, in respect of
            any
            matters whatsoever, or any other rights or liabilities as a stockholder,
            prior
            to the exercise hereof; this Warrant does, however, require certain notices
            to
            Holders as set forth herein.

          

          9. Definitions.

          

          In
            addition to the terms defined elsewhere in this Warrant, the following
            terms
            have the following meanings:

          

          “Closing
            Date”
shall
            have the meaning given such term in the Purchase Agreement.

          

            “Common
            Stock”
shall
            mean the Common Stock, par value $.001 per share, of the Company, for
            which the
            Warrant is exercisable and any securities into which such common stock
            may
            hereafter be classified.

          

          “Exchange
            Act”
means
            the Securities Exchange Act of 1934, as amended.

          

          “Holder”
shall
            mean the holder of this Warrant and “Holders”
shall
            mean the holder of this Warrant and the holders of all other
            Warrants.

          

          “Majority
            of the Holders”
shall
            mean Holders of Warrants representing more than fifty percent (50%) of
            the
            shares of Common Stock obtainable upon exercise of the Warrants then
            outstanding.

          

          “Permitted
            Consideration”
shall
            mean (a) cash or other funds immediately available to the Company or
            (b) Warrant
            Shares in the event of a net exercise in accordance with the terms
            hereof.

          

          "Purchase
            Agreement"
            shall
            mean that certain Securities Purchase Agreement, dated as of January
            ___, 2007
            by and among the Company and the investors named therein, pursuant to
            which,
            among other things, the initial Holder purchased this Warrant. 

          

          "Registration
            Rights Agreement"
            shall
            mean that certain Registration Rights Agreement, dated as of January
            ___ 2007 by
            and among the Company and the investor parties thereto.  

          

          “Securities
            Act”
means
            the Securities Act of 1933, as amended.

          

          “Trading
            Day”
means
            (i) a day on which the Common Stock is traded on a Trading Market, or
            (ii) if
            the Common Stock is not listed on a Trading Market (other than the OTC
            Bulletin
            Board), a day on which the Common Stock is traded in the over-the-counter
            market, as reported by the OTC Bulletin Board, or (iii) if the Common
            Stock is
            not quoted on the OTC Bulletin Board, a day on which the Common Stock
            is quoted
            in the over-the-counter market as reported by the National Quotation
            Bureau
            Incorporated (or any similar organization or agency succeeding to its
            functions
            of reporting prices); provided, that in the event that the Common Stock
            is not
            listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading
            Day
            shall mean a Business Day.

          

          “Warrants”
shall
            mean this Warrant, all similar Warrants issued on the date hereof and
            all
            warrants hereafter issued in exchange or substitution for this Warrant
            or such
            similar Warrants.

          

          10. Communication.
            

          

          All
            notices and communications hereunder shall be in writing and shall be
            deemed to
            be duly given if sent by registered or certified mail, return receipt
            requested,
            via a national recognized overnight mail delivery service, or by facsimile
            (provided the sender receives a machine-generated confirmation of successful
            transmission), if to the Company, to: 

          

          If
            to the
            Company:

          

          DOR
            BioPharma Inc.

          1101
            Brickell Avenue

          Suite
            701
            South

          Miami,
            Florida 33131

          Attn: James
            Clavijo

          Fax:
             (786)
            425-3853

          

          With
            a
            copy to (except in the case of Exercise Notices, Assignments and Partial
            Assignments):

          

          Edwards
            Angell Palmer & Dodge LLP

          350
            E.
            Las Olas Boulevard

          Suite
            1150

          Fort
            Lauderdale, Florida 33301-4215

          Attn: Leslie
            J.
            Croland, P.A.

          Fax: (904)
            727-2601

          

          If
            to the
            Holder of this Warrant, to such Holder at the address listed on the records
            of
            the Company.

          

          11. Reservation
            of Warrant Shares; Listing.
            

          

          The
            Company shall at all times prior to the Expiration Date have authorized
            and in
            reserve, and shall keep available, solely for issuance and delivery upon
            the
            exercise of this Warrant, the shares of the Common Stock and other securities
            and properties as from time to time shall be receivable upon the exercise
            of
            this Warrant, free and clear of all restrictions on sale or transfer,
            other than
            under Federal or state securities laws, and free and clear of all preemptive
            rights and rights of first refusal.

          

          12. Headings;
            Severability.
            

          

          The
            headings of this Warrant have been inserted as a matter of convenience
            and shall
            not affect the construction hereof. In case any one or more of the provisions
            of
            this Warrant shall be invalid or unenforceable in any respect, the validity
            and
            enforceability of the remaining terms and provisions of this Warrant
            shall not
            in any way be affected or impaired thereby and the parties will attempt
            in good
            faith to agree upon a valid and enforceable provision which shall be
            a
            commercially reasonable substitute therefor, and upon so agreeing, shall
            incorporate such substitute provision in this Warrant.

          

          13. Applicable
            Law.
            

          

          This
            Warrant shall be governed by and construed in accordance with the law
            of the
            State of New York without giving effect to the principles of conflicts
            of law
            thereof.

          

          14. Specific
            Performance.
            The
            Company agrees that the remedies at law of the Holder of this Warrant
            in the
            event of any default or threatened default by the Company in the performance
            of
            or compliance with any of the terms of this Warrant are not and will
            not be
            adequate and that, to the fullest extent permitted by law, such terms
            maybe
            specifically enforced by a decree for the specific performance of any
            obligation
            contained herein or by an injunction against a violation of any of the
            terms
            hereof or otherwise.

          

          15. Amendment,
            Waiver, etc. 

          

          Except
            as
            expressly provided herein, neither this Warrant nor any term hereof may
            be
            amended, waived, discharged or terminated other than by a written instrument
            signed by the party against whom enforcement of any such amendment, waiver,
            discharge or termination is sought; provided,
            however, that any provisions hereof may be amended, waived, discharged
            or
            terminated upon the written consent of the Company and the Majority of
            the
            Holders; provided,
            that
            neither the Per Share Warrant Price, Sections 1(f) or 1(g), nor the Expiration
            Date (subject to Section 2), nor this Section 15 may be amended without
            the
            consent of each affected Holder.

          [Signature
            Page Follows]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          IN
            WITNESS WHEREOF, the Company has caused this Warrant to be duly signed
            by its
            President and its corporate seal to be hereunto affixed and attested
            by its
            Secretary as of the Original Issue Date first above referenced.

          

          DOR
            BIOPHARMA, INC. 

          

          

          

          By: _________________________ 

          Name:
             _________________________

          Title:
             _________________________

          

          ATTEST:

          

          

          _____________________________

          Secretary

          [Corporate
            Seal]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          ASSIGNMENT

          

          FOR
            VALUE
            RECEIVED _______________ hereby sells, assigns and transfers unto
            ____________________ the foregoing Warrant and all rights evidenced thereby,
            and
            does irrevocably constitute and appoint _____________________, attorney,
            to
            transfer said Warrant on the books of DOR Biopharma, Inc.

          

          Dated:_______________   Signature:____________________

          

          Address:______________________

          

          PARTIAL
            ASSIGNMENT

          

          FOR
            VALUE
            RECEIVED _______________ hereby assigns and transfers unto ____________________
            the right to purchase _______ shares of the Common Stock, par value $.001
            per
            share, of DOR BioPharma, Inc. covered by the foregoing Warrant, and a
            proportionate part of said Warrant and the rights evidenced thereby,
            and does
            irrevocably constitute and appoint ____________________, attorney, to
            transfer
            that part of said Warrant on the books of DOR BioPharma, Inc.

          

          Dated:_______________   Signature:____________________

          

          Address:______________________

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXERCISE
            NOTICE

           

          
            

The
            undersigned hereby elects to purchase _____________ shares of Common
            Stock of
            DOR BioPharma, Inc. pursuant to the attached Warrant, and, if such Holder
            is not
            utilizing the cashless (or net) exercise provisions set forth in the
            Warrant,
            encloses herewith (if the undersigned shall not be utilizing the net
            exercise
            provisions of the Warrant) $________ in cash, certified or official bank
            check
            or checks or other immediately available funds, which sum represents
            the
            aggregate Per Share Warrant Price for the number of shares of Common
            Stock to
            which this Exercise Notice relates, together with any applicable taxes
            payable
            by the undersigned pursuant to the Warrant.

          

          By
            its
            delivery of this Exercise Notice, the undersigned represents and warrants
            to the
            Company that in giving effect to the exercise evidenced hereby the Holder
            will
            not beneficially own in excess of the number of shares of Common Stock
            (determined in accordance with Section 13(d) of the Securities Exchange
            Act of
            1934) permitted to be owned under Section 1(f) or 1(g) (as applicable)
            of this
            Warrant to which this notice relates.

          

          By
            its
            delivery of this Exercise Notice, the undersigned represents and warrants
            to the
            Company that it is an "accredited investor" as defined in Rule 501(a)
            under the
            Securities Act of 1933.

          

          The
            undersigned requests that certificates for the shares of Common Stock
            issuable
            upon this exercise be issued in the name of

           

          PLEASE
            INSERT SOCIAL SECURITY OR

           

           

          TAX
            IDENTIFICATION NUMBER

           

          (Please
            print name and address)

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