Document:

EX-10.1

Exhibit 10.1

FIFTH AMENDMENT TO CREDIT AGREEMENT

          FIFTH AMENDMENT, dated as of July 24, 2008 (this “Amendment”), to the Credit and
Guaranty Agreement, dated as of July 19, 2007, as amended by the First Amendment and Waiver to
Credit Agreement, dated as of November 9, 2007, the Second Amendment to Credit Agreement, dated as
of March 12, 2008, the Third Amendment to Credit Agreement, dated as of March 26, 2008, the Fourth
Amendment to Credit Agreement, dated as of July 18, 2008 and that certain letter agreement dated
February 26, 2008 (as further amended, restated or otherwise modified from time to time, the
“Credit Agreement”), by and among Proliance International Inc., a Delaware corporation
(“Holdings” and the “Borrower”), certain domestic subsidiaries of the Borrower
listed as a “Guarantor” on the signature pages thereto (together with each other Person (as defined
in the Credit Agreement) that guarantees all or any portion of the Obligations (as defined in the
Credit Agreement) from time to time, each a “Guarantor” and collectively, the
“Guarantors”), the lenders from time to time party thereto (each a “Lender” and
collectively, the “Lenders”), Silver Point Finance, LLC, a Delaware limited liability
company (“Silver Point”), as collateral agent for the Agents (as hereinafter defined) and
the Lenders (in such capacity, together with its successors and assigns in such capacity, if any,
the “Collateral Agent”), and as administrative agent for the Agents and the Lenders (in
such capacity, together with its successors and assigns in such capacity, if any, the
“Administrative Agent” and together with the Collateral Agent, each an “Agent” and
collectively, the “Agents”) and Silver Point as lead arranger (in such capacity, together
with its successors and assigns in such capacity, if any, the “Lead Arranger”).

          WHEREAS, capitalized terms used in these recitals shall have the respective meanings set forth
in the Credit Agreement unless otherwise defined herein.

          WHEREAS, the Credit Parties have requested that the Agents and the Lenders amend certain
provisions of the Credit Agreement, subject to the terms and conditions set forth in this
Amendment.

          WHEREAS, the Agent and the Lenders are willing to agree to this requested Amendment, but only
upon the terms and subject to the conditions set forth herein.

          NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Credit Parties, the Agents and the Lenders hereby agree as follows:

          1. Definitions. All capitalized terms used herein and not otherwise defined herein
are used herein as defined in the Credit Agreement.

          2. Defined Terms in the Credit Agreement. Section 1.1 of the Credit Agreement is
hereby amended, as follows:

               (a) New Definitions. Section 1.1 of the Credit Agreement is hereby amended by adding
the definitions of the following terms thereto, in alphabetical order, to read in their entirety as
follows:

 

 

               “‘Fifth Amendment’ means the Fifth Amendment to the Credit Agreement, dated as of July 24,
2008, by and among the Credit Parties, the Requisite Lenders and the Agents.”

               “‘Fifth Amendment Effective Date’ has the meaning ascribed to the term “Fifth Amendment
Effective Date” in the Fifth Amendment.”

          3. Section 2.9 — Default Interest. Section 2.9 of the Credit Agreement is hereby
amended by adding the following sentence at the end thereof:

               “Notwithstanding the foregoing, if after the Fifth Amendment Effective Date and on or prior to
September 15, 2008, Holdings has failed to prepay the Tranche A Term Loans pursuant to Section
2.14(b) either (i) in an amount of not less than $10,000,000 with the Net Insurance/Condemnation
Proceeds from the Southaven Casualty Event or (ii) in an amount of not less than $15,000,000 with
the proceeds from the Capital Raise, then each reference in this Section 2.9 to “two percent (2%)”
shall thereafter be deemed to be amended to refer to “three percent (3%)”.”

          4. Section 2.14(b)(ii) — Application of Insurance/Condemnation Proceeds. Section
2.14(b)(ii) of the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

               “(ii) Any mandatory prepayment of any Loan pursuant to Section 2.13(b) shall be applied as
follows:

               first, to prepay principal of the Tranche A Term Loans in an amount up
to $5,000,000 of Net Insurance/Condemnation Proceeds in the aggregate;

               second, to (i) prepay principal of the Revolving Loans in an amount
equal to 50% of the remaining amount of Net Insurance/Condemnation Proceeds
after giving effect to the mandatory prepayment in clause first hereof
(which shall be applied first, to prepay principal of the Revolving
A Loans, and second, to prepay principal of the Revolving B Loans)
and (ii) prepay principal of the Tranche A Term Loans in an amount equal to
50% of the remaining amount of Net Insurance/Condemnation Proceeds after
giving effect to the mandatory prepayment in clause first hereof; and

               third, to any other Obligations then outstanding.”

          5. Section 2.23 — Southaven Insurance Proceeds Reserve. The following new Section
2.23 is hereby added to the Credit Agreement to read as follows:

          “2.23 Southaven Insurance Proceeds Reserve. The Agents, the Borrowing Base Agent, the Lenders
and Holdings hereby agree that the Southaven Insurance Proceeds Reserve (as defined in the
Insurance Proceeds Letter) shall be (i) reduced to $3,000,000 on the Fifth Amendment Effective
Date, (ii) so long as no Event of Default has occurred and is

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continuing, further reduced to $0 on the date Holdings delivers to the Administrative Agent a final
insurance settlement agreement with respect to the Southaven Casualty Event, in form and substance
reasonably satisfactory to the Administrative Agent, duly executed by Holdings and its insurance
company, and (iii) increased to $5,000,000 on the earlier of (x) the occurrence and continuation of
an Event of Default and (y) August 31, 2008. Notwithstanding the foregoing, so long as no Event of
Default has occurred and is continuing, the Southaven Insurance Proceeds Reserve shall be
permanently reduced to $0 if Holdings has (i) delivered to the Administrative Agent a final
insurance settlement agreement with respect to the Southaven Casualty Event, in form and substance
reasonably satisfactory to the Administrative Agent, duly executed by Holdings and its insurance
company and (ii) consummated the Capital Raise on or before September 30, 2008 and applied the cash
proceeds thereof in accordance with Section 2.14(b); provided, that if Holdings has not
consummated the Capital Raise on or before September 30, 2008, but (i) the sole remaining condition
to such consummation is obtaining the approval of such Capital Raise by Holdings’ shareholders,
then the deadline to consummate the Capital Raise shall be extended to November 30, 2008 or (ii)
the Administrative Agent, in its sole discretion, has agreed in writing to extend such deadline,
then the deadline to consummate the Capital Raise shall be extended to November 15, 2008.

          6. Section 6.7(c) — Consolidated Adjusted EBITDA. Section 6.7(c) of the Credit
Agreement is hereby amended by adding the following sentence at the end thereof:

               “Notwithstanding the foregoing, if Holdings fails to consummate the Capital Raise on or prior
to December 31, 2008, the reference to “$27,500,000” in this Section 6.7(c) shall thereafter be
amended to be “$28,000,000”.”

          7. Conditions to Effectiveness. This Amendment shall become effective (the “Fifth
Amendment Effective Date”) only upon satisfaction in full of the following conditions
precedent:

          (a) Collateral Agent shall have received counterparts of this Amendment that bear the
signatures of each Credit Party, each Agent and the Requisite Lenders.

          (b) Except as set forth in the Second Amendment, the Third Amendment and the Fourth Amendment,
the representations and warranties contained herein, in Section IV of the Credit Agreement and in
each other Credit Document are true and correct in all material respects on and as of the Fifth
Amendment Effective Date as though made on and as of such date, except to the extent that any such
representation or warranty expressly relates solely to an earlier date (in which case such
representation or warranty shall be true and correct in all material respects on and as of such
earlier date).

          (c) Borrower shall have paid to Administrative Agent all amounts due and owing to any Agent or
any Lender in connection with this Amendment and the Credit Documents.

          (d) No Default or Event of Default shall have occurred and be continuing on the Fifth
Amendment Effective Date or would result from this Amendment becoming effective in accordance with
its terms.

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          (e) All legal matters incident to this Amendment shall be reasonably satisfactory to the
Agents and their respective counsel.

          8. Representations and Warranties. Each Credit Party represents and warrants as
follows:

          (a) Organization, Good Standing, Etc. Each Credit Party (i) is a corporation, limited
liability company or limited partnership, duly organized, validly existing and in good standing
under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and
authority to execute and deliver this Amendment, consummate the transactions contemplated hereby
and perform the Credit Agreement, as amended and modified hereby and (iii) is duly qualified to do
business and is in good standing in each jurisdiction in which the character of the properties
owned or leased by it or in which the transaction of its business makes such qualification
necessary other than in such jurisdictions where the failure to be so qualified and in good
standing could not reasonably be expected to have a Material Adverse Effect.

          (b) Authorization, Etc. The execution, delivery and performance by each Credit Party
of this Amendment and the performance by each Credit Party of the Credit Agreement, as amended and
modified hereby (i) have been duly authorized by all necessary action, (ii) do not and will not
contravene its charter or by-laws, its limited liability company or operating agreement or its
certificate of partnership or partnership agreement, as applicable, or any applicable law, or any
contractual restriction binding on or otherwise affecting it or any of its properties, (iii) do not
and will not result in or require the creation of any Lien (other than pursuant to any Credit
Document) upon or with respect to any of its properties, and (iv) do not and will not result in any
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
material permit, license, authorization or approval applicable to its operations or any of its
properties.

          (c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Credit Party of this Amendment or the performance by any
Credit Party of the Credit Agreement, as amended and modified hereby.

          (d) Enforceability of Credit Documents. Each of this Amendment and the Credit
Agreement, as amended and modified hereby, is a legal, valid and binding obligation of the Credit
Parties which are party hereto or thereto, enforceable against such Credit Parties in accordance
with its terms, except as enforceability may be limited by equitable principles and by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally.

          (e) Representations and Warranties; No Default. Except as set forth in the Second
Amendment, the Third Amendment and the Fourth Amendment, the representations and warranties
contained herein, in Section IV of the Credit Agreement and in each other Credit Document are true
and correct in all material respects on and as of the Fifth Amendment Effective Date as though made
on and as of such date, except to the extent that any such representation or warranty expressly
relates solely to an earlier date (in which case such representation or warranty shall be true and
correct in all material respects on and as of such

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earlier date); and no Default or Event of Default shall have occurred and be continuing on the
Fifth Amendment Effective Date or would result from this Amendment becoming effective in accordance
with its terms.

          9. Effect of Amendment; Continued Effectiveness of the Credit Agreement.

          (a) Ratifications. Except as otherwise expressly provided herein, (i) the Credit
Agreement and the other Credit Documents are, and shall continue to be, in full force and effect
and are hereby ratified and confirmed in all respects, except that on and after the Fifth Amendment
Effective Date (A) all references in the Credit Agreement to “this Agreement”, “hereto”, “hereof”,
“hereunder” or words of like import referring to the Credit Agreement shall mean the Credit
Agreement as amended and modified by this Amendment, and (B) all references in the other Credit
Documents to the “Credit Agreement”, “thereto”, “thereof”, “thereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as amended and modified by this
Amendment, (ii) to the extent that the Credit Agreement or any other Credit Document purports to
pledge to the Collateral Agent, or to grant to the Collateral Agent a security interest in or lien
on, any collateral as security for the Obligations or the Guaranteed Obligations, such pledge or
grant of a security interest or lien is hereby ratified and confirmed in all respects, and (iii)
the execution, delivery and effectiveness of this Amendment shall not operate as an amendment of
any right, power or remedy of the Agents or the Lenders under the Credit Agreement or any other
Credit Document, nor constitute an amendment of any provision of the Credit Agreement or any other
Credit Document. This Amendment shall be effective only in the specific instances and for the
specific purposes set forth herein and does not allow for any other or further departure from the
terms and conditions of the Credit Agreement or any other Credit Document, which terms and
conditions shall remain in full force and effect.

          (b) No Waivers. Except as expressly set forth herein, this Amendment is not a waiver
of, or consent to, any Default or Event of Default now existing or hereafter arising under the
Credit Agreement or any other Credit Document and the Agents and the Lenders expressly reserve all
of their rights and remedies under the Credit Agreement and the other Credit Documents in respect
of all such Defaults or Events of Default not waived or consented to hereby, by the Second
Amendment, by the Third Amendment or by the Fourth Amendment, under applicable law or otherwise.

          (c) Amendment as Credit Document. Each Credit Party confirms and agrees that this
Amendment shall constitute a Credit Document under the Credit Agreement. Accordingly, it shall be
an Event of Default under the Credit Agreement if any representation or warranty made or deemed
made by any Credit Party under or in connection with this Amendment shall have been incorrect in
any material respect when made or deemed made or if any Credit Party fails to perform or comply
with any covenant or agreement contained herein.

          10. Release. Each Credit Party hereby acknowledges and agrees that: (a) neither it
nor any of its Affiliates has any claim or cause of action against any Agent, the Borrowing Base
Agent or any Lender (or any of their respective Affiliates, officers, directors, employees,
attorneys, consultants or agents) and (b) each Agent, the Borrowing Base Agent, and each Lender has
heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit
Parties and their Affiliates under the Credit Agreement and the other

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Credit Documents. Notwithstanding the foregoing, the Agents, the Borrowing Base Agent and the
Lenders wish (and the Credit Parties agree) to eliminate any possibility that any past conditions,
acts, omissions, events or circumstances would impair or otherwise adversely affect any of the
Agents’, the Borrowing Base Agent’s and the Lenders’ rights, interests, security and/or remedies
under the Credit Agreement and the other Credit Documents. Accordingly, for and in consideration
of the agreements contained in this Amendment and other good and valuable consideration, each
Credit Party (for itself and its Affiliates and the successors, assigns, heirs and representatives
of each of the foregoing) (collectively, the “Releasors”) does hereby fully, finally,
unconditionally and irrevocably release and forever discharge each Agent, the Borrowing Base Agent,
each Lender and each of their respective Affiliates, officers, directors, employees, attorneys,
consultants and agents (collectively, the “Released Parties”) from any and all debts,
claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions,
proceedings and causes of action, in each case, whether known or unknown, contingent or fixed,
direct or indirect, and of whatever nature or description, and whether in law or in equity, under
contract, tort, statute or otherwise (collectively, “Claims”), which any Releasor has
heretofore had or now or hereafter can, shall or may have against any Released Party by reason of
any act, omission or thing whatsoever done or omitted to be done (collectively, “Actions”)
on or prior to the Fifth Amendment Effective Date arising out of, connected with or related in any
way to this Amendment, the Credit Agreement or any other Credit Document, or any act, event or
transaction related or attendant thereto done or omitted to be done on or prior to the Fifth
Amendment Effective Date, or the agreements of any Agent, the Borrowing Base Agent or any Lender
contained therein, or the possession, use, operation or control of any of the assets of any Credit
Party, or the making of any Loans or other advances, or the management of such Loans or advances or
the Collateral on or prior to the Fifth Amendment Effective Date. For the avoidance of doubt,
nothing contained in this Amendment shall be deemed to release or discharge any Released Party from
any Claims arising out of, in connection with or related in any way to Actions occurring after the
date of this Amendment.

          11. Miscellaneous.

          (a) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which shall be deemed to be an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally
effective as delivery of an original executed counterpart of this Amendment.

          (b) Headings. Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.

          (c) Governing Law. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of New York.

          (d) Expenses. The Borrower will pay on demand all reasonable fees, costs and expenses
of the Agents, the Borrowing Base Agent and the Lenders in connection with the preparation,
execution and delivery of this Amendment and all documents incidental hereto,

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including, without limitation, the reasonable fees, disbursements and other charges of Schulte
Roth & Zabel LLP, counsel to Administrative Agent and Collateral Agent, and of McGuireWoods LLP,
counsel to Borrowing Base Agent. In addition, the Borrower will pay all costs and expenses,
including attorneys’ fees (including allocated costs of internal counsel) and costs of settlement,
incurred by any Agent, Borrowing Base Agent and Lenders in enforcing any Obligations of or in
collecting any payments due from any Credit Party hereunder or under the other Credit Documents by
reason of any Default or Event of Default (including in connection with the sale of, collection
from, or other realization upon any of the Collateral or the enforcement of the Guaranty) or in
connection with any refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work out” or pursuant to any insolvency or bankruptcy cases or proceedings
(including, without limitation, the costs and expenses of any advisers retained by Agents, the
Borrowing Base Agent and Lenders; provided, that so long as no Event of Default has
occurred and is continuing the Borrower shall not be responsible for costs and expenses of CRS in
excess of $25,000).

[Remainder of this page intentionally left blank]

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

PROLIANCE INTERNATIONAL, INC.

 	 
	 	By:  	/s/Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

AFTERMARKET LLC

 	 
	 	By:  	/s/Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	AFTERMARKET DELAWARE
CORPORATION

 	 
	 	By:  	/s/Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock    	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PROLIANCE INTERNATIONAL
HOLDING CORPORATION

 	 
	 	By:  	/s/Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock    	 
	 	 	Title:  	President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENTS AND LEAD ARRANGER:

SILVER POINT FINANCE, LLC, as
Administrative Agent, Lead Arranger and
Collateral Agent

 	 
	 	By:  	/s/Frederick H. Fogel
 	 
	 	 	Name:  	Frederick H. Fogel 	 
	 	 	Title Authorized Signatory 	 
	 

	 	 	 	 	 
	 	LENDERS:

SPF CDO I, LTD., as a Lender

 	 
	 	By:  	/s/Frederick H. Fogel
 	 
	 	 	Name:  	Frederick H. Fogel 	 
	 	 	Title Authorized Signatory 	 
	 

	 	 	 	 	 
	 	FIELD POINT III, LTD. as a Lender

 	 
	 	By:  	/s/Frederick H. Fogel
 	 
	 	 	Name:  	Frederick H. Fogel 	 
	 	 	Title Authorized Signatory: 	 
	 

	 	 	 	 	 
	 	FIELD POINT IV, LTD. as a Lender

 	 
	 	By:  	/s/Frederick H. Fogel
 	 
	 	 	Name:  	Frederick H. Fogel 	 
	 	 	Title Authorized Signatory 	 
	 

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	BORROWING BASE AGENT AND
LENDER:

WELLS FARGO FOOTHILL, LLC, as Borrowing Base

Agent and a Lender

 	 
	 	By:  	/s/ Jonathan Boynton
 	 
	 	 	Name:  	Jonathan Boynton 	 
	 	 	Title Vice PresidentEX-4.1

Exhibit 4.1

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION,
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH
TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.

	 		
	July 30, 2008
	 	NO. 1

MARSHALL EDWARDS, INC.

(INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE)

WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK

     FOR VALUE RECEIVED, MARSHALL EDWARDS, INC., a Delaware corporation (the “Company”), hereby
certifies that JOHN O’CONNOR (the “Holder”) is entitled, subject to the provisions of this Warrant,
to purchase from the Company, up to 46,083 fully paid and non-assessable shares of Common Stock at
a price of $2.17 per share (the “Exercise Price”).

     The term “Common Stock” means the Common Stock, par value $.00000002 per share, of the
Company. The number of shares of Common Stock to be received upon the exercise of this Warrant may
be adjusted from time to time as hereinafter set forth. The shares of Common Stock deliverable
upon such exercise, and as adjusted from time to time, are hereinafter referred to as “Warrant
Shares.” The term “Company” means and includes the corporation named above as well as (i) any
immediate or more remote successor corporation resulting from the merger or consolidation of such
corporation (or any immediate or more remote successor corporation of such corporation) with
another corporation, or (ii) any corporation to which such corporation (or any immediate or more
remote successor corporation of such corporation) has transferred its property or assets as an
entirety or substantially as an entirety.

     Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of
reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if
mutilated, the Company shall execute and deliver a new Warrant of like tenor and date. Any such
new Warrant executed and delivered shall constitute an additional contractual obligation on
the part of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall
be at any time enforceable by anyone.

 

 

     The Holder agrees with the Company that this Warrant is issued, and all the rights hereunder
shall be held subject to, all of the conditions, limitations and provisions set forth herein.

     1. CASH EXERCISE OF WARRANT. This Warrant may be exercised, in whole or in part, at
any time, or from time to time during the period commencing the date hereof and expiring 5:00 p.m.
Eastern Time on July 30, 2013 (the “Expiration Date”), by presentation and surrender of this
Warrant to the Company at its principal office with the Warrant Exercise Form attached hereto duly
executed and accompanied by payment (either in cash or by certified or official bank check, payable
to the order of the Company) of the Exercise Price for the number of shares of Common Stock
specified in such form and instruments of transfer, if appropriate, duly executed by the Holder or
his or her duly authorized attorney. If this Warrant should be exercised in part only, the Company
shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant of like
terms evidencing the rights of the Holder thereof to purchase the balance of the shares of Common
Stock purchasable hereunder. Upon receipt by the Company of this Warrant, together with the
Exercise Price, at its office in proper form for exercise, the Holder shall be deemed to be the
holder of record of the shares of Common Stock issuable upon such exercise, notwithstanding that
the stock transfer books of the Company shall then be closed or that certificates representing such
shares of Common Stock shall not then be actually delivered to the Holder. The Holder 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. RESERVATION OF SHARES. The Company will at all times reserve for issuance and
delivery upon exercise of this Warrant all shares of Common Stock or other shares of capital stock
of the Company from time to time issuable upon exercise of this Warrant. All such shares shall be
duly authorized and, when issued upon such exercise, shall be validly issued, fully paid and
non-assessable and free of all preemptive rights.

     3. SETTLEMENT OF SHARES. In no event shall the Company be liable for, or the Holder
be entitled to receive, (a) physical settlement in Warrant Shares unless the conditions and
requirements set forth herein have been satisfied or (b) any net-cash settlement or other
consideration in lieu of physical settlement in Warrant Shares.

     4. EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable,
without expense, at the option of the Holder, upon presentation and surrender hereof to the
Company, 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 with an Assignment Form annexed hereto duly executed and
funds sufficient to pay any transfer tax, subject to the provisions of Sections 7 and 11 hereof,
the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee
named in such instrument of assignment (and in the event of a partial transfer, a new Warrant to
the Holder for the portion of such Warrant not transferred) and this Warrant shall promptly be
cancelled. This Warrant may be divided or combined with other Warrants that carry the same rights
upon presentation hereof at

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the office of the Company, 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. RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be entitled to any
rights of a shareholder in the Company, either at law or in equity, and the rights of the Holder
are limited to those expressed in this Warrant.

     6. ANTI-DILUTION PROVISIONS.

          6.1 Adjustment of Exercise Price In Connection With Recapitalization, Reorganization,
Consolidation, Merger, Etc. In case (i) the outstanding shares of the Common Stock shall be
subdivided into a greater number of shares, (ii) a dividend or other distribution in Common Stock
shall be paid in respect of Common Stock, (iii) the outstanding shares of Common Stock shall be
combined into a smaller number of shares thereof, or (iv) any shares of the Company’s capital stock
are issued by reclassification of the Common Stock (including any reclassification upon a
consolidation or merger in which the Company is the continuing corporation), the Exercise Price in
effect immediately prior to such subdivision, combination or reclassification or at the record date
of such dividend or distribution shall simultaneously with the effectiveness of such subdivision,
combination or reclassification or immediately after the record date of such dividend or
distribution be proportionately adjusted to equal the product obtained by multiplying the Exercise
Price by a fraction, the numerator of which is the number of outstanding shares of Common Stock (on
a fully diluted basis) after giving effect to such combination, subdivision, reclassification or
dividend and the denominator of which is the number of outstanding shares of Common Stock (on a
fully diluted basis) outstanding immediately prior to such combination, subdivision,
reclassification or dividend.

          For purposes of this Warrant, “on a fully diluted basis” means that all outstanding options,
rights or Warrants to subscribe for shares of Common Stock and all securities convertible into or
exchangeable for shares of Common Stock (such options, rights, Warrants and securities are,
collectively, referred to herein as “Convertible Securities”) and all options or rights to acquire
Convertible Securities have been exercised, converted or exchanged.

          Whenever the Exercise Price per share is adjusted as provided in the immediately preceding
paragraph, the number of shares of Common Stock purchasable upon conversion of the Warrant
immediately prior to such Exercise Price adjustment shall be adjusted, effective simultaneous with
the Exercise Price adjustment, to equal the product obtained (calculated to the nearest full share)
by multiplying such number of shares of Common Stock by a fraction, the numerator of which is the
Exercise Price per share in effect immediately prior to such Exercise Price adjustment and the
denominator of which is the Exercise Price per share in effect upon such Exercise Price adjustment,
which adjusted number of shares of Common Stock shall thereupon be the number of shares of Common
Stock purchasable upon conversion of the Warrant until further adjusted as provided herein.

          6.2 Adjustment of Securities Issuable In Connection with Reorganization, Consolidation,
Merger, Liquidation Etc. In case of any reorganization of the Company (or any other
corporation, the securities of which are at the time receivable on the exercise of this

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 Warrant) after the date hereof or in case after such date the Company (or any such other
corporation) shall consolidate with or merge into another corporation or convey all or
substantially all of its assets to another corporation or liquidate, then, and in each such case,
the Holder of this Warrant upon the exercise thereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation, merger, conveyance or liquidation, shall be
entitled to receive, in lieu of the securities and property receivable upon the exercise of this
Warrant prior to such consummation, the securities or property to which such Holder would have been
entitled upon such consummation if such Holder had exercised this Warrant immediately prior
thereto; in each such case, the terms of this Warrant shall be applicable to the securities or
property receivable upon the exercise of this Warrant after such consummation.

          6.3 No Dilution. The Company will not, by amendment of its Restated Certificate of
Incorporation or through reorganization, consolidation, merger, dissolution, issue or sale of
securities, sale of assets or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against dilution or other
impairment. Without limiting the generality of the foregoing, while this Warrant is outstanding,
the Company (a) will not permit the par value, if any, of the shares of Common Stock receivable
upon the exercise of this Warrant to be above the amount payable therefor upon such exercise and
(b) will take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue or sell fully paid and non-assessable shares of Common Stock upon the
exercise of this Warrant.

          6.4 Certificate as to Adjustments. In each case of an adjustment in the number of
shares of Warrant Shares receivable on the exercise of this Warrant, the Company at its expense
will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a
certificate executed by an executive officer of the Company setting forth such adjustment and
showing in detail the facts upon which such adjustment is based. The Company will forthwith mail a
copy of each such certificate to the Holder.

          6.5 Notices of Record Date, Etc. In case:

               (a) the Company shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive any dividend (other than a cash dividend at the same rate as the rate of
the last cash dividend theretofore paid) or other distribution, or any right to subscribe for,
purchase or otherwise acquire any shares of stock of any class or any other securities, or to
receive any other right; or

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

               (c) of any voluntary or involuntary dissolution, liquidation or winding up of the Company,
then, and in each such case, the Company shall mail or cause to be mailed to

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each Holder of the Warrant 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
to which the holders of record of Common Stock (or such other securities at the time receivable
upon the exercise of the Warrant) shall be entitled to exchange their shares of Common Stock (or
such other securities) for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding up. Such
notice shall be mailed at least 20 days prior to the date therein specified and the Warrant may be
exercised prior to said date during the term of the Warrant.

     7. TRANSFER TO COMPLY WITH THE SECURITIES ACT. This Warrant and any Warrant Shares
have not been and will not be registered under the Securities Act of 1933, as amended (the
“Securities Act”) or the securities laws of any state of the United States and are therefore
“restricted securities” within the meaning of Rule 144 under the Securities Act, that (A) can be
offered, sold, pledged or otherwise transferred only (1) (a) to a person who the seller reasonably
believes is a Qualified Institutional Buyer in a transaction meeting the requirements of Rule 144A
under the Securities Act, (b) in a transaction meeting the requirements of Rule 144 under the
Securities Act, (c) outside the United States to a non-US person in a transaction meeting the
requirements of Rule 903, Rule 904 and Rule 905 under the Securities Act and in compliance with
applicable local laws and regulations or (d) in accordance with another exemption from the
registration requirements of the Securities Act (and based upon an opinion of counsel if the
Company so requests), (2) to the Company or (3) pursuant to an effective registration statement
and, in each case, in accordance with any applicable securities laws of any state of the United
States or any other applicable jurisdiction and (B) the purchaser will, and each subsequent holder
is required to, notify any subsequent purchaser from it of the resale restrictions set forth in (A)
above.

     8. LEGEND. Unless the shares of Warrant Shares have been registered under the
Securities Act, upon exercise of any of the Warrants and the issuance of any of the shares of
Warrant Shares, all certificates representing such securities shall bear on the face thereof
substantially the following legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION,
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.

5

 

     9. NOTICES. All notices required hereunder shall be in writing and shall be deemed
given when delivered personally, by facsimile or overnight delivery or within two days after
mailing when mailed by certified or registered mail, return receipt requested, to the Company at
its principal office, or to the Holder at the address set forth on the record books of the Company,
or at such other address of which the Company or the Holder has been advised by notice hereunder.

     10. APPLICABLE LAW. The Warrant is issued under and shall for all purposes be
governed by and construed in accordance with the laws of the State of New York, without giving
effect to the choice of law rules thereof.

     11. SUCCESSORS AND ASSIGNS. This Warrant cannot be transferred or assigned by the
Holder without the prior written consent of the Company.

(SIGNATURE ON FOLLOWING PAGE)

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     IN WITNESS HEREOF, the Company has caused this Warrant to be signed on its behalf, in its
corporate name, by its duly authorized officer, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	MARSHALL EDWARDS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David R. Seaton	 	 
	 

	 	Name:
	 	 

David R. Seaton
	 	 
	 

	 	Title:
	 	Chief Financial Officer & Secretary	 	 

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WARRANT EXERCISE FORM

     The undersigned hereby irrevocably elects to exercise the rights contained within the Warrant
to the extent of purchasing                     shares of Common Stock of Marshall Edwards, Inc., a Delaware
corporation (the “Company”), and hereby makes payment of $                      in payment therefor. By its
exercise hereof, the undersigned confirms and agrees that it has complied and will comply with all
applicable restrictions on the offer, sale, pledge or other transfer of the shares of Common Stock
of the Company as set forth in the Warrant.

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 

	 	 
	 

	 	Signature, if jointly held
	 
	 	 
	 

	 	 
	 

	 	Date

8

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