Document:

SETTLEMENT AGREEMENT AND MUTUAL RELEASE

 

This Settlement
Agreement and Mutual Release (“Agreement”), is entered into by and between MultiCell Technologies,
Inc., a Delaware corporation (“MultiCell”), and Monarch Pointe Fund, Ltd. – in liquidation (“Monarch”),
represented by Stuart Mackellar, managing partner of Zolfo Cooper (BVI) Limited, in his capacity as the liquidator of Monarch (the
“Liquidator”), as of October 19, 2012 (the “Effective Date”).

 

RECITALS

 

Whereas,
as of the date hereof, Monarch holds 5,734 shares of MultiCell’s Series I Convertible Preferred Stock (the “Series
I Shares”) and 7,891 shares of MultiCell’s Series B Convertible Preferred Stock (the “Series B
Shares” and together with the Series I Shares, the “Preferred Shares”);

 

Whereas,
on September 24, 2012, the Liquidator sent MultiCell a notice (the “Notice”) stating that it wished to
convert the Preferred Series into shares of MultiCell’s common stock, par value $0.01 per share (the “Common
Stock”), pursuant to the terms of the Certificate of Designation of Series I Convertible Preferred Stock of MultiCell
and the Certificate of Designation of Series B Convertible Preferred Stock of MultiCell, respectively;

 

Whereas,
in the Notice, the Liquidator also stated that Monarch was owed additional shares of Common Stock as unpaid dividends (the “Dividends”)
on certain Preferred Shares;

 

Whereas,
the parties had a good faith disagreement regarding the number of shares of Common Stock to be issued pursuant to Monarch in respect
of the conversion of the Preferred Shares and the Dividends; and

 

Whereas,
the parties desire to enter into this Agreement in order to resolve all claims and discharge all obligations with respect to any
agreements between them.

 

AGREEMENT

 

In consideration of
the covenants contained herein and the issuance of shares of Common Stock by MultiCell to Monarch hereinafter provided, the parties
agree as follows:

 

1.                 
Share Issuance. Promptly following the execution of this Agreement, MultiCell shall issue Monarch
Fifty Six Million Four Hundred Twenty Nine Thousand Two Hundred Fifty (56,429,250) shares of Common Stock (the “Settlement
Shares”) in respect of: (i) the conversion of the Preferred Shares; and (ii) any and all Dividends owed Monarch
on the Preferred Shares. The Settlement Shares shall be issued in accordance with the terms of Exhibit A hereto.

 

2.                 
Mutual Release. Conditioned upon the issuance of the Settlement Shares provided by Section 1, MultiCell
and Monarch, on behalf of themselves and their respective affiliates, assigns, agents, officers, directors, employees, attorneys,
representatives and successors, fully release and discharge each other and each other’s affiliates, assigns, agents, officers,
directors, employees, attorneys, representatives and successors (each, a “Released Party”), from any
and all claims and actions of every kind or nature whatsoever, which they, or any of them, presently have, had, or claim to have,
whether known or unknown, arising from or connected in any way with the Preferred Shares, the Dividends or any agreement or course
of dealing between them relating to or connected with the Preferred Shares or the Dividends; provided, however,
that nothing in this section or otherwise in this Agreement shall be, or be construed as, being effective or of force as to (a)
any claim of breach or default of the terms of this Agreement or (b) any rights Monarch may have as the holder of the Settlement
Shares.

 

 

3.                 
Waiver. Each party has read and understands Section 1542 of the California Civil Code which provides
that:

 

A general release
does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

Each of them expressly waives any benefits
under that section or similar law of any applicable jurisdiction. Notwithstanding Section 1542 of the California Civil Code and
any similar laws, this Agreement shall act as a release of all claims the parties have against each other, whether such claims
are currently known, unknown, foreseen or unforeseen. Each party understands and acknowledges the significance and consequence
of such specific waiver of Section 1542 of the California Civil Code and any similar law of any other applicable jurisdiction.
The parties acknowledge that they may hereafter discover facts different from, or in addition to, those which they now believe
to be true with respect to the release of claims, and agree that this Agreement shall remain effective in all respects, notwithstanding
such different or additional facts, or the discovery thereof.

 

4.                 
Termination of Prior Agreements. Upon the execution of this Agreement between the parties and
the issuance of the Settlement Shares as provided by Section 1, all prior agreements between the parties, to the extent still
in effect, shall be terminated and of no further force or effect, and thereafter neither party shall have any further obligations
or duties with respect to any such prior agreement.

 

5.                 
Binding Effect. This Agreement shall be binding upon
and shall inure to the benefit of the heirs, executors, administrators, estates, successors and assigns of the parties hereto.

 

6.                 
Governing Law.
This Agreement shall be governed by and construed under the laws of the State of California without reference to its conflicts
of laws principles.

 

8.                 
Amendment. This Agreement cannot be modified, changed or revised, except by a written modification
executed by all the parties hereto.

 

9.                  Attorneys’
Fee. In the event of any controversy or dispute arising out of
this Agreement, the prevailing party shall be entitled to recover from the other party its reasonable expenses, including,
but without limitation, attorneys’ fees and costs actually incurred.

 

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10.             
No Assignment of Claims. The parties hereto herein represent and warrant that they have not assigned or
transferred or purposed to assign or transfer any claim, demand, debt, liability, damage, obligation, action or cause of action
against any other Released Party, to any other person or entity.

 

11.             
Compromise. This Agreement is acknowledged by the parties to be a compromise settlement and does not constitute
an admission of fact, law, liability or otherwise by any party.

 

12.             
Review and Understanding. It is expressly agreed and understood by the parties hereto that they have carefully
reviewed this Agreement, that they understand its terms, that they have had the opportunity to seek legal advice with respect
to this Agreement, and that they have relied wholly upon their own judgment and knowledge and have not been influenced to any
extent whatsoever making this Agreement by any representations or statements made by any other party or anyone acting on behalf
of any other party.

 

13.             
Interpretation. This Agreement shall not be interpreted against a party by virtue of such party’s
participation in the drafting of the Agreement or any provisions hereof.

 

14.             
Counterparts; Execution by Facsimile. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of
an executed counterpart of this Agreement by facsimile or similar electronic means shall be equally as effective as delivery of
an original executed counterpart of this Agreement.

 

15.             
Expenses.
Each party shall be solely responsible for and shall pay when due all costs and expenses that such party incurs with respect to
the negotiation, execution, delivery and performance of this Agreement.

 

16.             
Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

17.             
Public Statements.
MultiCell and Monarch shall consult with each other before issuing, and provide each other the opportunity to review and comment
upon, any press release, public filing or other public statement with respect to the transactions contemplated hereby, and shall
not issue any such press release or make any such public filing or public statement prior to such consultation, except as may
be required by applicable law.

 

 

[SIGNATURES APPEAR ON
FOLLOWING PAGE]

 

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In
Witness Whereof, the parties hereto have executed this Settlement Agreement
and Mutual Release as of the Effective Date.

 

	 	MULTICELL TECHNOLOGIES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Jerry Newmin
	 	 	Name: Jerry Newmin
	 	 	Title: Chairman and Chief
Executive Officer
	 	 	 
	 	 	 
	 	MONARCH POINTE FUND, LTD.
	 	 	 
	 	 	 
	 	By:	/s/ Stuart Mackellar
	 	 	Stuart Mackellar, Managing Partner of Zolfo Cooper (BVI) Limited, in his capacity as the Liquidator of Monarch Pointe Fund, Ltd (and without personal liability) 

 

    	 

    	 	

    
 

Exhibit
A

 

 

		A.	Within [fourteen (14)] days of the date of this Agreement, Monarch will provide MultiCell with
written instructions (the “Instructions”) for the issuance of the Settlement Shares. The Instructions may call for
issuing the Settlement Shares to Monarch or its designee in certificated or book entry form. The Instructions may also call for
MultiCell to (or to cause its transfer agent to) consult with Monarch’s broker to ensure that the Settlement Shares are appropriately
delivered, in a manner to facilitate the prompt sale of the Settlement Shares.

 

		B.	Promptly (and in any event, within [three (3) business] days after receipt of the Instructions,
MultiCell will issue the Settlement Shares in accordance with the Instructions. Upon issuance, the Settlement Shares shall validly
issued, fully paid, non-assessable, and free from any liens or encumbrances.

 

		C.	For the avoidance of doubt, the releases and waivers by Monarch set forth in Sections 2 and 3 of
this Agreement shall not be effective until the Settlement Shares are issued (and delivered) in accordance with the Instructions.

 

		D.	At or around the date of this Agreement, Monarch will deliver to MultiCell’s counsel a letter
(in the form previously agreed) containing certain representations and warranties of Monarch. Based on the assumption that such
representations and warranties are (in all material respects) true and correct, MultiCell hereby represents and warrants to Monarch
that the Settlement Shares shall be: (1) freely tradable by Monarch pursuant to Rule 144 of the Securities Act of 1933, as amended;
and (2) shall not contain any restrictive notations, stop transfer instructions or the like.Exhibit 4.1

 

THIS CONVERTIBLE PROMISSORY NOTE AND THE
SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

CONVERTIBLE PROMISSORY NOTE

 

	$XXX,XXX	 	October 19, 2012
	 	 	Rockville, Maryland
	 	 	 

 

For value received,
RegeneRx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), promises to pay to ___________
(the “Holder”), the principal sum of $XXX,XXX. Interest shall accrue from the date of this Convertible
Promissory Note (this “Note”) on the unpaid principal amount at a rate equal to five percent (5%) per annum.
 This Note is one of a series of Convertible Promissory Notes containing substantially identical terms and conditions issued
pursuant to that certain Convertible Note and Warrant Purchase Agreement dated as of October 19, 2012. Such Notes are referred
to herein as the “Notes” and the holders thereof are referred to herein as the “Holders”.
This Note is subject to the following terms and conditions.

 

1.           Maturity.
Unless converted or repaid pursuant to Section 2 or Section 3, the entire unpaid principal sum of this Note, together with accrued
and unpaid interest thereon, will be payable upon the written demand of the Holder at any time after October __, 2014 (the “Maturity
Date”). Subject to Section 3, interest shall accrue on this Note but shall not be due and payable until the written demand
of the Holder on or after the Maturity Date.  Notwithstanding the foregoing, the entire unpaid principal sum of this Note,
together with accrued and unpaid interest thereon, shall become immediately due and payable upon the commission of any act of bankruptcy
by the Company, the execution by the Company of a general assignment for the benefit of creditors, the filing by or against the
Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition
without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or trustee to take possession of the
property or assets of the Company.

 

2.           Conversion.

 

(a)Optional
Conversion. At any time prior to repayment of this Note, the outstanding principal amount of this Note and accrued but
unpaid interest on this Note (the “Conversion Amount”) may, at the option of the Holder, be voluntarily converted
into shares of common stock, $0.001 par value per share (the “Common Stock”) of the Company or such other securities
or property for which this Note may become convertible as a result of any adjustment described in Section 2(b). The number of shares
of Common Stock to be issued upon such conversion shall be equal to (i) the Conversion Amount divided by (ii) the Conversion Price
(as defined below). The Conversion Price shall initially be equal to $0.15 per share.

 

    	 

    	 	

    
 

(b)Adjustment.

 

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

 

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

 

(A)Common Stock
or any shares of stock or other securities which are at any time directly or indirectly convertible into or exchangeable for Common
Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other
distribution (other than a dividend or distribution covered in Section 2(b)(i) above),

 

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

 

(C)Common Stock
or additional stock or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination
of shares or similar corporate rearrangement (other than shares of Common Stock pursuant to Section 2(b)(i) above),

 

    	-2-

    	 	

    
 

then and in each such case, the Holder
hereof will be entitled to receive, in addition to the number of shares of Common Stock receivable pursuant to the Notice of Conversion,
and without payment of any additional consideration therefor, the amount of stock and other securities and property (including
cash in the cases referred to in clauses (B) and (C) above) which such Holder would hold on the date of such exercise had such
Holder been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled
to receive such shares or all other additional stock and other securities and property.

 

(iii)Upon the occurrence of each
adjustment pursuant to this Section 2(b), the Company at its expense will, at the written request of the Holder, promptly compute
such adjustment in accordance with the terms of this Note and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Conversion Price and adjusted number or type of shares or other securities issuable upon conversion of
this Note (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.

 

(c)Mechanics
and Effect of Conversion. No fractional shares of the Company’s Common Stock will be issued upon conversion of this
Note. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company will pay to the Holder in cash
the amount of the unconverted principal and interest balance of this Note that would otherwise be converted into such fractional
share. Upon conversion of this Note pursuant to this Section 2, the Holder shall surrender this Note at the principal offices of
the Company, along with a duly executed Conversion Notice in the form attached as Appendix A hereto. At its expense, the Company
will, as soon as practicable thereafter, cause to be issued and delivered to such Holder a certificate or certificates for the
number of shares to which such Holder is entitled upon such conversion, together with a check payable to the Holder for any cash
amounts payable as described herein. Upon conversion of this Note, the Company will be forever released from all of its obligations
and liabilities under this Note with regard to that portion of the principal amount and accrued interest being converted including
without limitation the obligation to pay such portion of the principal amount and accrued interest.

 

3.           Payment
Terms. All payments shall be made in lawful money of the United States of America at such place as the Holder hereof may
from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable
and the remainder applied to principal. Prepayment of this Note may be made only upon the written consent of a Majority in Interest
(as defined below); provided, that all of the Notes shall be prepaid on a pro rata basis.

 

    	-3-

    	 	

    
 

4.           Transfer;
Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Notwithstanding the foregoing, the Holder may not assign, pledge, or otherwise transfer
this Note without the prior written consent of the Company, except for transfers to affiliates. Subject to the preceding sentence,
this Note may be transferred only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied
by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, a new convertible promissory
note for the same principal amount and interest will be issued to, and registered in the name of, the transferee. Interest and
principal are payable only to the registered holder of this Note.

 

5.           Governing
Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

6.           Notices.
Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient upon receipt, when delivered personally
or by courier, overnight delivery service or confirmed facsimile or e-mail, or forty-eight (48) hours after being deposited in
the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at
such party’s address, facsimile number or e-mail as set forth below or as subsequently modified by written notice.

 

7.           Amendments
and Waivers. Any term of this Note may be amended or waived only with the written consent of the Company and the holders
of a majority of the aggregate principal amount of the Notes then outstanding (a “Majority in Interest”).
Any amendment or waiver effected in accordance with this Section 7 shall be binding upon the Company, the Holder and each
transferee of this Note.

 

8.           Stockholders,
Officers and Directors Not Liable. In no event shall any stockholder, officer or director of the Company be liable for
any amounts due or payable pursuant to this Note.

 

9.           Counterparts.
This Note may be executed in two or more counterparts, all of which together shall constitute one and the same instrument. This
Note may also be executed and delivered by facsimile or other electronic delivery of signature.

 

10.           Titles
and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered
in construing or interpreting this Note.

 

[Signature Page Follows]

 

 

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This Note is executed
and delivered as of the date first set forth above.

 

 

	 	COMPANY:
	 	 
	 	REGENERX BIOPHARMACEUTICALS, INC.
	 	 
	 	 
	 	By: _________________________________
	 	J.J. Finkelstein
	 	Chief Executive Officer
	 	 
	 	Address:

 

 

 

 

AGREED TO AND ACCEPTED:

 

___________________________

 

 

___________________________

(signature)

 

Address:

 

 

 

    	-5-

    	 	

    
 

Appendix A

 

Conversion
Notice

 

 

 

To convert this Note in accordance with Section 2(a), check
this box: o

 

If you want the stock certificate made out in another person’s
name fill in the form below:

 

 

	Print or type other person’s name, address and zip code:	 	________________________
	 	 	________________________
	 	 	________________________
	 	 	________________________

 

 

	Date:  _______________________	 	Your signature:	________________________
	 	 	(Sign exactly as your name appears on the Note)

 

  

Deliver this Notice with the original Note to the offices of
the Company in accordance with Section 2(c) of the Note.

 

    	-6-

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