Document:

ex4_1.htm

EXHIBIT 4.1

 

ERHC ENERGY INC.

SHAREHOLDER SUBSCRIPTION RIGHTS AGREEMENT

(dated December 27, 2012)

 

	
 

	

Number of Shares

Covered by Basic

Subscription Rights

	
 

	

Aggregate Price of 

FULL Exercise

of Basic

Subscription Rights

	 
	
 

	
 

	
 

	
 

	 

Ladies and Gentlemen:

The undersigned, having received and read your prospectus supplement dated December 27, 2012 (the “Prospectus Supplement”), understand that as shareholders of ERHC ENERGY INC.  (the “Company”) as of  December 17, 2012 (the “Record Date”), they are being given basic subscription rights entitling them to subscribe for up to the number of shares of the Company’s common stock shown above, at a subscription price of $0.075 per share.

The undersigned further understand that if and only if they fully exercise their basic subscription rights, they are also being given an over-subscription privilege allowing them to subscribe for an unlimited number of additional shares (up to the total number of shares offered) of the same, subject to availability.  The precise number of shares subject to the over-subscription privilege cannot be determined until it is known how many shares remain available after the exercise of all shareholders’ basic subscription rights.  If sufficient shares of common stock are available, over-subscription requests will be honored in full.  If over-subscription requests exceed the number of shares available, the available shares of common stock among rights holders who exercise their over-subscription privileges will be allocated pro ratably among them, based on the respective number of shares such shareholder held as of the Record Date over the outstanding shares of the common stock at the Record Date (in each case, without giving effect to the number of shares subscribed for under the basic subscription privilege), as described in the Prospectus Supplement.  The basic subscription right and the over-subscription privilege are referred to collectively as the “subscription rights.”  For more information concerning the subscription rights, please refer to the Prospectus Supplement.

Subscription rights are irrevocable once delivered as provided herein and may not be withdrawn without the consent of the Company.

Subscription rights must be exercised prior to 5:00pm, central time, on January 31, 2013 (the “Expiration Date”), and unexercised rights at the Expiration Date will expire without value.

Neither the Company nor its board of directors or management makes any recommendation to any shareholder as to whether to exercise the subscription rights.  Each shareholder must make his or her own decision whether to exercise subscription rights and purchase shares and, if so, how many shares to purchase.  Each shareholder is urged to carefully review the information contained or referred to in the Prospectus Supplement when deciding whether to exercise his or her subscription rights to purchase shares of the Company’s common stock.

The undersigned acknowledges and agrees that, if the Company’s determines in its sole discretion that the distribution of the subscription rights to the undersigned would require that the undersigned obtain prior clearance or approval from any state, federal or non-U.S. regulatory authority for the ownership or exercise of such subscription rights (or the ownership of additional shares pursuant to the exercise thereof), then such subscription rights are null and void and may not be held or exercised by the undersigned.

By properly completing, executing and timely delivering this Subscription Rights Agreement, accompanied by payment in full for the shares subscribed for hereby, the undersigned indicates his or her intention to subscribe to that number of shares of the Company’s common stock as set forth herein, upon the terms and subject to the conditions specified in the Prospectus Supplement.

 

  

  

  

 

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY

 

(Note: Please refer to the accompanying Instructions For Use Of ERHC Energy Inc. Shareholder Subscription Rights Agreement for further explanation of how to complete this Subscription Rights Agreement.)

	
1. 

	
DELIVERY OF SUBSCRIPTION RIGHTS AGREEMENT:

Delivery by first class mail, by overnight courier or by hand delivery of this completed Subscription Rights Agreement, signed by the undersigned (with any signatures required to be guaranteed so guaranteed) and accompanied by payment in full for the shares subscribed for, must be received (and payment cleared) by the Expiration Date, unless extended, at:

 

Corporate Stock Transfer, Inc.

Attn: Operations Department

3200 Cherry Creek South Drive, Suite 430

Denver, Colorado 80209

If you send your Subscription Rights Agreement(s) and subscription price payment by mail, we recommend that you send them by registered mail, properly insured, with return receipt requested. Subscription rights not exercised prior to the Expiration Date will expire without value. (Note: Delivery other than in the manner or to the address listed above will not constitute valid delivery.) Do not send this Subscription Rights Agreement or payment to the Company.

	
2. 

	
EXERCISE OF SUBSCRIPTION RIGHTS

Upon the terms and subject to the conditions specified in the Prospectus Supplement, the undersigned hereby subscribe(s) for the following shares of the Company’s common stock:

 

	
a)

	
Basic Subscription Privilege – FULL Exercise

	
 

	
A

	
 

	
Subscription is hereby made for ALL of the shares covered by the basic subscription rights as set forth above, for the aggregate Subscription Price set forth above

	
 

	
o

	
 

	
 

	
 

	
Only one of Box A or

Box B may be checked

	
 

	
 

	
 

	
 

	
b)

	
Basic Subscription Privilege – PARTIAL Exercise

	
 

	
B

	
 

	
Subscription is hereby made for FEWER THAN ALL of the shares covered by the basic subscription rights.

	
 

	
o

	
 

	
If Box B is checked, please complete the following two items:

	
 

	
 

	
 

	
Number of shares subscribed for:

	
 

	
 

	
 

	
Subscription Price ($0.075 multiplied by the number of shares subscribed for):

	
$

	
 

	
 

	
 

 

	
 

	
 

	
c)

	
Over-subscription Privilege

	
 

	
C

	
 

	
Subscription is hereby made in addition to the shares covered by the basic subscription rights.  [Note:  In order to be eligible to purchase shares pursuant to the over-subscription privilege, you must have checked Box A above for the exercise of your FULL basic subscription rights.]

	
 

	
o

	
 

	
 

	
 

	
 

	
 

	
If Box C is checked, please complete the following two items:

	
 

	
 

	
 

	
Number of shares subscribed for:

	
 

	
 

	
 

	
Subscription Price ($0.075 multiplied by the number of shares subscribed for):

	
$

	
 

  

2

  

	
3. 

	
PAYMENT OF SUBSCRIPTION PRICE

	TOTAL Subscription Price:	
$

	
 

	 	
(Sum of Subscription Price set forth in top portion of this Subscription Rights Agreement (if Box A is checked) or set forth under Box B (if checked), plus  Subscription Price set forth under Box C (if checked), as applicable.)

	
 

	
 

Payment for the shares subscribed for hereby is being made by the following method (check one):

o         Certified or uncertified check payable to “Corporate Stock Transfer, Inc. (as Subscription Agent for ERHC Energy Inc.)”

o         Bank draft (cashier’s check) payable to “Corporate Stock Transfer, Inc. (as Subscription Agent for ERHC Energy Inc.)”

o         Wire transfer of immediately available funds directly to the account maintained by Corporate Stock Transfer, Inc. (as Subscription Agent for ERHC Energy Inc.) for purposes of accepting subscriptions in this rights offering, at Key Bank, 1675 Broadway, Suite 300, Denver, CO  80202, ABA # 307070267, Account # 765071004376, Corporate Stock Transfer FBO ERHC Energy Inc., with reference to the subscription rights holder's name.

	
4. 

	
SPECIAL INSTRUCTIONS

a)            The undersigned wishes that shares subscribed for hereby be registered differently, as follows:

(Note:  Unless indicated otherwise below, shares will be registered in the same manner as set forth at the top of this Subscription Rights Agreement.)

 

	
Name in Which Shares are to be Registered

	
 

	
Number of Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
(Please Print)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(Please Print)

	
 

	
 

b)            The undersigned wishes that shares subscribed for hereby be delivered to an address other than as shown at the top portion of this Agreement, as follows:

 

	
 

	
Mailing Address:

	
 

	
 

	
City

	
State

	
Zip Code

	
Telephone

 

	
5. 

	
SIGNATURE 

 

	
 Date:

	
 

	
 

	
Date:

	
 

	
 

 

	
 

	
 

	
 

	
 

	
 

	
Signature (Subscriber)

	
 

	
Signature (Subscriber)

	
 

	
 

	
 

	
 

	
 

	
 

	
Please print title or capacity

(if other than individual shareholder)

	
 

	
Please print title or capacity

(if other than individual shareholder)

  

3

  

	
6.

	
SIGNATURE GUARANTY

(complete only if Item 3 above completed)

	
Dated:

	  	  
	  	  	  
	
Signature Guaranteed:

	  	  
	  	
(Name of Bank or Firm)

	  	  
	  	  
	  	
(Authorized Signature)

IMPORTANT:  The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

 

 

 4Exhibit 10.02

 

	
         
	
        

        CLASS A WARRANT
	 
	
         

        NO. __
	
         

        TONIX PHARMACEUTICALS HOLDING CORP.
	
         

        ________ Shares

	 	 	 

 WARRANT TO PURCHASE COMMON
STOCK

 

VOID AFTER 5:30 P.M., EASTERN 

 TIME, ON THE EXPIRATION DATE

 

THIS WARRANT AND ANY SHARES ACQUIRED
UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION
PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.

 

FOR VALUE RECEIVED, TONIX
PHARMACEUTICALS HOLDING CORP., a Nevada corporation (the “Company”), hereby agrees to sell upon the terms and
on the conditions hereinafter set forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as hereinafter defined)
to ________ or registered assigns (the “Holder”), under the terms as hereinafter set forth, ________
(________) fully paid and non-assessable shares of the Company’s Common Stock, par value $0.001 per share (the “Warrant
Stock”), at a purchase price of $0.60 per share (the “Warrant Price”), pursuant to this warrant (this
“Warrant”). The number of shares of Warrant Stock to be so issued and the Warrant Price are subject to adjustment
in certain events as hereinafter set forth. The term “Common Stock” shall mean, when used herein, unless the
context otherwise requires, the stock and other securities at the time receivable upon the exercise of this Warrant.

 

1.    
      Exercise of Warrant.

 

a.           The
Holder may exercise this Warrant according to its terms by surrendering this Warrant to the Company at the address set forth in
Section 9, the Notice of Exercise attached hereto having then been duly executed by the Holder, accompanied by cash, certified
check or bank draft in payment of the purchase price, in lawful money of the United States of America, for the number of shares
of the Warrant Stock specified in the Notice of Exercise, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern
Time, on December 21, 2017 (the “Expiration Date”).

 

    	 

    	 

    

  

b.           Notwithstanding
anything contained herein to the contrary, if at any time after six (6) months from the date of issuance of this Warrant there
is no effective registration statement registering, or no current prospectus available for, the resale of all of the shares of
Warrant Stock issuable hereunder, then the Holder may, in its sole discretion, exercise this Warrant in whole or in part by means
of a “cashless exercise” in lieu of making a cash payment, and the Holder shall then be entitled to receive a certificate
for the number of shares of Warrant Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A) =	VWAP (as defined below) on the business day immediately preceding the date of such election;
	 	 	 
	 	(B) =	the Warrant Price of this Warrant, as adjusted; and
	 	 	 
	 	(X) =	the number of shares of Warrant Stock issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

 

For purposes of this
Warrant, “VWAP” means, for any date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market (as defined below), the daily volume weighted average price
of the Common Stock for the ten (10) trading days prior to such date (or the nearest preceding date) on the Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. New York City time
to 4:00 p.m. New York City time); (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the
Common Stock for the ten (10) trading days prior to such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if
the Common Stock is not then listed or quoted on the OTC Bulletin Board and if prices for the Common Stock are then reported in
the “Pink Sheets” published by Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of
reporting prices), the average bid price per share of the Common Stock so reported for the twenty (20) trading days prior to such
date; or (d) in all other cases, the fair market value of a share of Common Stock as determined in good faith by the Company’s
board of directors. For purposes of this Warrant, “Trading Market” means the following markets or exchanges
on which the Common Stock is listed or quoted for trading on the date in question: the New York Stock Exchange, NYSE Amex, NASDAQ
Capital Market, NASDAQ Global Market, NASDAQ Global Select Market, or OTC Bulletin Board.

 

c.           This
Warrant may be exercised in whole or in part so long as any exercise in part hereof would not involve the issuance of fractional
shares of Warrant Stock. If exercised in part, the Company shall deliver to the Holder a new Warrant, identical in form, in the
name of the Holder, evidencing the right to purchase the number of shares of Warrant Stock as to which this Warrant has not been
exercised, which new Warrant shall be signed by the Chairman, Chief Executive Officer, President and the Secretary of the Company.
The term Warrant as used herein shall include any subsequent Warrant issued as provided herein.

 

d.           No
fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. The Company shall
pay cash in lieu of fractions with respect to the Warrants based upon the fair market value of such fractional shares of Common
Stock (which shall be the closing price of such shares on the exchange or market on which the Common Stock is then traded) at the
time of exercise of this Warrant.

 

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e.           In
the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so purchased,
registered in the name of the Holder, shall be delivered to the Holder within a reasonable time after such rights shall have been
so exercised. The person or entity in whose name any certificate for the Warrant Stock is issued upon exercise of the rights represented
by this Warrant shall for all purposes be deemed to have become the holder of record of such shares immediately prior to the close
of business on the date on which the Warrant was surrendered and payment of the Warrant Price and any applicable taxes was made,
irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a date when
the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the
opening of business on the next succeeding date on which the stock transfer books are open. The Company shall pay any and all documentary
stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Common Stock on exercise of this
Warrant.

 

2.    
      Disposition of Warrant Stock and Warrant.

 

a.           The
Holder hereby acknowledges that this Warrant and any Warrant Stock purchased pursuant hereto are, as of the date hereof, not registered:
(i) under the Securities Act of 1933, as amended (the “Act”), on the ground that the issuance of this Warrant
is exempt from registration under Section 4(2) of the Act as not involving any public offering or (ii) under any applicable state
securities law because the issuance of this Warrant does not involve any public offering; and that the Company’s reliance
on the Section 4(2) exemption of the Act and under applicable state securities laws is predicated in part on the representations
hereby made to the Company by the Holder that it is acquiring this Warrant and will acquire the Warrant Stock for investment for
its own account, with no present intention of dividing its participation with others or reselling or otherwise distributing the
same, subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its control.

 

To the extent the Warrant
or Warrant Stock has not been registered for resale pursuant to the Act, the Holder hereby agrees that it will not sell or transfer
all or any part of this Warrant and/or Warrant Stock unless and until it shall first have given notice to the Company describing
such sale or transfer and furnished to the Company either (i) an opinion, reasonably satisfactory to counsel for the Company, of
counsel (skilled in securities matters, selected by the Holder and reasonably satisfactory to the Company) to the effect that the
proposed sale or transfer may be made without registration under the Act and without registration or qualification under any state
law, or (ii) an interpretative letter from the Securities and Exchange Commission to the effect that no enforcement action will
be recommended if the proposed sale or transfer is made without registration under the Act.

 

b.           If,
at the time of issuance of the shares issuable upon exercise of this Warrant, no registration statement is in effect with respect
to such shares under applicable provisions of the Act, the Company may at its election require that the Holder provide the Company
with written reconfirmation of the Holder’s investment intent and that any stock certificate delivered to the Holder of a
surrendered Warrant shall bear legends reading substantially as follows:

 

    	A-3

    	 

    

 

“THE SHARES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

 

In addition, so long as the foregoing legend
may remain on any stock certificate delivered to the Holder, the Company may maintain appropriate “stop transfer” orders
with respect to such certificates and the shares represented thereby on its books and records and with those to whom it may delegate
registrar and transfer functions.

 

3.      
    Reservation of Shares. The Company hereby agrees that at all times there shall be
reserved for issuance upon the exercise of this Warrant such number of shares of its Common Stock as shall be required for
issuance upon exercise of this Warrant. The Company further agrees that all shares which may be issued upon the exercise of
the rights represented by this Warrant will be duly authorized and will, upon issuance and against payment of the exercise
price, be validly issued, fully paid and non-assessable, free from all taxes, liens, charges and preemptive rights with
respect to the issuance thereof, other than taxes, if any, in respect of any transfer occurring contemporaneously with such
issuance and other than transfer restrictions imposed by federal and state securities laws.

 

4.       
   Exchange, Transfer or Assignment of Warrant. This Warrant is exchangeable, without expense,
at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other Warrants of different denominations, entitling the Holder or Holders thereof to purchase in the
aggregate the same number of shares of Common Stock purchasable hereunder. Upon surrender of this Warrant to the Company or
at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient
to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee
named in such instrument of assignment and this Warrant shall promptly be canceled. This Warrant may be divided or combined
with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its
stock transfer agent, if any, together with a written notice specifying the names and denominations in which new Warrants are
to be issued and signed by the Holder hereof.

 

5.     
     Capital Adjustments. This Warrant is subject to the following further
provisions:

 

a.           Recapitalization,
Reclassification and Succession. If any recapitalization of the Company or reclassification of its Common Stock or any
merger or consolidation of the Company into or with a corporation or other business entity, or the sale or transfer of all or substantially
all of the Company’s assets or of any successor corporation’s assets to any other corporation or business entity (any
such corporation or other business entity being included within the meaning of the term “successor corporation”) shall
be effected, at any time while this Warrant remains outstanding and unexpired, then, as a condition of such recapitalization, reclassification,
merger, consolidation, sale or transfer, lawful and adequate provision shall be made whereby the Holder of this Warrant thereafter
shall have the right to receive upon the exercise hereof as provided in Section 1 and in lieu of the shares of Common Stock immediately
theretofore issuable upon the exercise of this Warrant, such shares of capital stock, securities or other property as may be issued
or payable with respect to or in exchange for a number of outstanding shares of Common Stock equal to the number of shares of Common
Stock immediately theretofore issuable upon the exercise of this Warrant had such recapitalization, reclassification, merger, consolidation,
sale or transfer not taken place, and in each such case, the terms of this Warrant shall be applicable to the shares of stock or
other securities or property receivable upon the exercise of this Warrant after such consummation.

 

    	A-4

    	 

    

 

b.           Subdivision
or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall subdivide or
combine its Common Stock, the number of shares of Warrant Stock purchasable upon exercise of this Warrant and the Warrant Price
shall be proportionately adjusted.

 

c.           Stock
Dividends and Distributions. If the Company at any time while this Warrant is outstanding and unexpired shall issue or pay
the holders of its Common Stock, or take a record of the holders of its Common Stock for the purpose of entitling them to receive,
a dividend payable in, or other distribution of, Common Stock, then (i) the Warrant Price shall be adjusted in accordance with
Section 5(f) and (ii) the number of shares of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to the
number of shares of Common Stock that the Holder would have owned immediately following such action had this Warrant been exercised
immediately prior thereto.

 

d.           Stock
and Rights Offering to Stockholders. If the Company shall at any time after the date of issuance of this Warrant distribute
to all holders of its Common Stock any shares of capital stock of the Company (other than Common Stock) or evidences of its indebtedness
or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s
earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to
in the immediately preceding paragraph) (any of the foregoing being hereinafter in this paragraph called the “Securities”),
then in each such case, the Company shall reserve shares or other units of such Securities for distribution to the Holder upon
exercise of this Warrant so that, in addition to the shares of the Common Stock to which such Holder is entitled, such Holder will
receive upon such exercise the amount and kind of such Securities which such Holder would have received if the Holder had, immediately
prior to the record date for the distribution of the Securities, exercised this Warrant.

 

e.           Warrant
Price Adjustment. Except as otherwise provided herein, whenever the number of shares of Warrant Stock purchasable upon exercise
of this Warrant is adjusted, as herein provided, the Warrant Price payable upon the exercise of this Warrant shall be adjusted
to that price determined by multiplying the Warrant Price immediately prior to such adjustment by a fraction (i) the numerator
of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately prior to such adjustment,
and (ii) the denominator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately
thereafter.

 

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f.            Certain
Shares Excluded. The number of shares of Common Stock outstanding at any given time for purposes of the adjustments set forth
in this Section 5 shall exclude any shares then directly or indirectly held in the treasury of the Company.

 

g.           Deferral
and Cumulation of De Minimis Adjustments. The Company shall not be required to make any adjustment pursuant to this Section
5 if the amount of such adjustment would be less than one percent (1%) of the Warrant Price in effect immediately before the event
that would otherwise have given rise to such adjustment. In such case, however, any adjustment that would otherwise have been required
to be made shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or
adjustments so carried forward, shall amount to not less than one percent (1%) of the Warrant Price in effect immediately before
the event giving rise to such next subsequent adjustment.

 

h.           Duration
of Adjustment. Following each computation or readjustment as provided in this Section 5, the new adjusted Warrant Price and
number of shares of Warrant Stock purchasable upon exercise of this Warrant shall remain in effect until a further computation
or readjustment thereof is required.

 

6.     
     Limitation on Exercises. The Company shall not affect the exercise of this
Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such
exercise, the Holder (together with such Holder’s affiliates) would beneficially own in excess of 9.99% of the shares
of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is
being made, but shall exclude shares of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised
portion of this Warrant beneficially owned by such Holder and its affiliates and (B) exercise or conversion of the
unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its
affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a
limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended. To the extent that the limitation contained in this Section 6 applies, the
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
affiliate) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the
submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder together with any affiliate) and of which portion of this
Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no
obligation to verify or confirm the accuracy of the determination. For purposes of this Warrant, in determining the number of
outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in
(1) the Company's most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and
Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the
Company setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral
request of the Holder, the Company shall within one (1) business day confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the
Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The
restriction described in this Section 6 may be waived by the holder from time to time, in whole or in part, upon sixty-one
(61) days prior notice from the Holder to the Company to increase or decrease such percentage to any other percentage not in
excess of 19.99%. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 6 to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.

 

    	A-6

    	 

    

 

7.       
   Notice to Holders.

 

a.           Notice
of Record Date. In case:

 

(i)          the
Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the exercise
of this Warrant) for the purpose of entitling them to receive any dividend (other than a cash dividend payable out of earned surplus
of the Company) or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right;

 

(ii)         of
any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation with or
merger of the Company into another corporation, or any conveyance of all or substantially all of the assets of the Company to another
corporation; or

 

(iii)        of
any voluntary dissolution, liquidation or winding-up of the Company;

 

then, and in each such case, the Company
will mail or cause to be mailed to the Holder hereof at the time outstanding a notice specifying, as the case may be, (i) the date
on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any, is to be fixed, as of which the holders
of record of Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution or winding-up. Such notice shall be
mailed at least thirty (30) days prior to the record date therein specified, or if no record date shall have been specified therein,
at least thirty (30) days prior to such specified date, provided, however, failure to provide any such notice shall not affect
the validity of such transaction.

 

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b.           Certificate
of Adjustment. Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company shall promptly make a certificate
signed by its Chairman, Chief Executive Officer, President, Vice President, Chief Financial Officer or Treasurer, setting forth
in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was
calculated and the Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant after giving
effect to such adjustment, and shall promptly cause copies of such certificates to be mailed (by first class mail, postage prepaid)
to the Holder of this Warrant.

 

8.      
    Loss, Theft, Destruction or Mutilation. Upon receipt by the Company of evidence
satisfactory to it, in the exercise of its reasonable discretion, of the ownership and 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, in the case of mutilation, upon surrender and cancellation thereof, the Company will execute and deliver in lieu
thereof, without expense to the Holder, a new Warrant of like tenor dated the date hereof.

 

9.    
      Warrant Holder Not a Stockholder. The Holder of this Warrant, as such,
shall not be entitled by reason of this Warrant to any rights whatsoever as a stockholder of the Company.

 

10.         Notices.
Any notice required or contemplated by this Warrant shall be deemed to have been duly given if transmitted by registered or certified
mail, return receipt requested, or nationally recognized overnight delivery service, to the Company at its principal executive
offices located at 509 Madison Avenue, Suite 306, New York, New York 10022, Attention: Seth Lederman, or to the Holder at the name
and address set forth in the Warrant Register maintained by the Company.

 

11.         Choice
of Law. THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

 

12.         Jurisdiction
and Venue. The Company and Holder hereby agree that any dispute which may arise between them arising out of or in connection
with this Warrant shall be adjudicated before a court located in New York County, New York and they hereby submit to the exclusive
jurisdiction of the federal and state courts of the State of York located in New York County with respect to any action or legal
proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any
such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum, relating to
or arising out of this Warrant or any acts or omissions relating to the sale of the securities hereunder, and consent to the service
of process in any such action or legal proceeding by means of registered or certified mail, return receipt requested, in care of
the address set forth herein or such other address as either party shall furnish in writing to the other.

 

[SIGNATURE PAGE FOLLOWS]

 

    	A-8

    	 

    

 

IN WITNESS WHEREOF, the
Company has duly caused this Warrant to be signed on its behalf, in its corporate name and by its duly authorized officers, as
of this 21st day of December, 2012.

 

	 	TONIX PHARMACEUTICALS HOLDINGS CORP.
	 	 	 
	 	 	By:	 
	 	 	 	Name:  Seth Lederman
	 	 	 	Title:  Chief Executive Officer

 

    	A-9

    	 

    

 

NOTICE OF EXERCISE

 

		TO:	Tonix Pharmaceuticals Holding Corp.

509 Madison Avenue

Suite 306

New York, New York 10022

Attn: Seth Lederman

Tel: (212) 980-9155

Fax: (212) 923-5700

 

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

 

(2)         Payment
shall take the form of (check applicable box):

 

 ̈         in
lawful money of the United States; or

 

 ̈         if
permitted, the cancellation of __________ shares of Warrant Stock in order to exercise this Warrant with respect to ____________
shares of Warrant Stock (using a VWAP of $______ for this calculation), in accordance with the formula and procedure set forth
in subsection 1(b).

 

 ̈         if
permitted, the cancellation of such number of shares of Warrant Stock as is necessary, in accordance with the formula and procedure
set forth in subsection 1(b), to exercise this Warrant with respect to the maximum number of shares of Warrant Stock purchasable
pursuant to a cashless exercise.

 

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

 

 

 

 

The shares of Warrant
Stock shall be delivered to the following DWAC Account Number, if permitted, or by physical delivery of a certificate to:

 

 

 

 

 

 

 

 

 

 

(4)         Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities
Act of 1933, as amended.

 

    	A-10

    	 

    

[SIGNATURE OF HOLDER]

 

	Name of Investing Entity: 	 

 

	Signature of Authorized Signatory of Investing Entity: 	 

 

	Name and Title of Authorized Signatory: 	 

 

	Date: 	 

 

    	A-11

    	 

    

 

ASSIGNMENT FORM 

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

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

_____________________________________ whose address is

 

_______________________________________________

 

_______________________________________________

 

Dated:  _________________,         

 

	Holder’s Name: 	 

 

	Holder’s Signature: 	 

 

	Name and Title of Signatory: 	 

 

	Holder’s Address: 	 

 

	Signature Guaranteed: 	 

 

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

 

    	A-12

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