Document:

lnn-ex101_25.htm

 

Exhibit 10.1

 

 

Certain identified information has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

 

 

 

 

 

 

 

 

 

LINDSAY CORPORATION

MANAGEMENT INCENTIVE PLAN (MIP)

2021

 Plan Year

 

 

 

 

 

 

____________________________

Senior Vice President - HR/Date

 

                                                                            ________________________

                   Chief Financial Officer/Date

 

________________________

Chief Executive Officer/Date

 

 

 

 

Table of Contents

 

1.Purpose1

2.Definitions1

3.Effective Date2

4.Eligibility for Participation2

5.Enrollment in the Plan2&3

6.Determination of Target Payout Levels3&4

7.Basis of Awards4,5,&6

8.Changes in Employment Status5&7

9.Administration7

10.  Attachments........8

 

 

 

 

 

1.Purpose

 

The purpose of the Management Incentive Plan (the “Plan”) is to:

 

	
 
	
•
	
Encourage performance consistent with the Company’s business strategy. 

 

	
 
	
•
	
Focus on near-term performance results as well as progress toward the achievement of long-term objectives.

	
 
	
•
	
Strengthen the link between performance and pay by delivering awards based on measurable corporate and individual goals.

 

 

2.Definitions

 

The terms used in this Plan have the meanings set forth below.

 

	
 
	
A.
	
“Company” shall mean Lindsay Corporation.

 

	
 
	
B.
	
“Committee” shall mean the Human Resources and Compensation Committee of the Company’s Board of Directors.

 

	
 
	
C.
	
“Financial Performance Component” shall mean the portion of a Participant’s Plan award that is based on the Company’s and specific Market financial performance as defined in Section 7B.

 

	
 
	
D.
	
"Named Executive Officers" shall mean the executives of the Company listed in the Executive Compensation section of the Company’s Proxy Statement, other executive officers of the Company for SEC reporting purposes and any other elected officers.

 

	
 
	
E.
	
“Participant” shall mean a key employee eligible for awards under the terms outlined in Section 4 of this Plan.

 

	
 
	
F.
	
“Plan” shall mean Lindsay Corporation Management Incentive Plan.

	
 
	
G.
	
“Strategic Goal Performance Component” shall mean the portion of a Participant’s Plan award that is based on Company performance relative to certain strategic goals established in accordance with Section 7C.

 

 

         1

 

3.Effective Date

 

The Plan shall be effective as of September 1, 2020 and will be in effect for the 2021 bonus year.  The 2021 bonus year is defined as September 1, 2020 through August 31, 2021.

 

 

4.Eligibility for Participation

 

	
 
	
A.
	
Participation in the Plan is limited to individuals in positions which have significant responsibility for and impact on the Company’s corporate performance.

 

	
 
	
B.
	
Only the Named Executive Officers are eligible to be considered for participation in the Plan.  

 

	
 
	
C.
	
Participation in the Plan does not guarantee or entitle any employee to participate in any bonus plan enacted in the future.  Participation in the Plan at any target bonus level does not guarantee or entitle any employee to be eligible to participate at any similar target bonus level in any bonus plan which may be enacted in the future.

 

 

5.Enrollment in the Plan

 

	
 
	
A.
	
Initial Enrollment

At the beginning of the Plan year, each Participant must be enrolled in the Plan subject to the approvals and eligibility criteria set forth in Sections 4 and 6. The enrollment process is as follows: 

i.Plan Participants will participate in the Plan at the target percentage set forth opposite his or her name on Exhibit A. 

 

ii.The Company’s Chief Executive Officer will review the participant list and projected bonus costs of enrolled employees with the Committee.  The Committee provides final approval on the aggregate potential cost of the Plan.

 

	
 
	
B.
	

 

         2

 

	
 
		
Mid-year Enrollment

When hiring or promoting employees during the Plan year who may be eligible for participation in the Plan, the following procedures must be followed:

 

i.Prior to the commencement of the recruiting or promotion process, the hiring manager consults with Human Resources to determine the position’s eligibility for participation in the Plan and the recommended target bonus amount.

ii.Offer letters indicating bonus Plan participation and target bonus award opportunities to new hires and/or promoted employees must be reviewed by the CEO or, in the case of a Named Executive Officer, by the Committee.  Target bonus recommendations must be approved before communication to a prospective Participant.  Generally, employees hired or promoted during the fourth quarter 2021 are not eligible to participate in the 2021 Plan.

 

 

6.Determination of Target Payout Levels

 

	
 
	
A.
	
Incentive awards will be calculated as a percentage of the Participant’s annual base salary received during the Plan year, provided that annual base salary increases which are made during the first quarter of the Plan year will be treated for purposes of calculating a Participant’s bonus as if they had been made at the beginning of the Plan year.  The impact of promotions or other adjustments to base pay made after the annual pay adjustment noted above will be prorated for the time in effect.  While award amounts will vary based on the range of award opportunity and an assessment of individual performance results, the target award opportunities for each Participant are set forth opposite his or her name on Exhibit A.  Actual participation is subject to approval by the CEO and by the Committee.  Actual participation is based on an assessment of the individual's position impact on the organization.

 

	
 
	
B.
	
If a Participant’s Plan target award opportunity (Target % of Salary as set forth above) changes due to promotion into a grade level with a higher target bonus, the Participant’s bonus will be calculated based on his or her annual salary during the Plan year and a pro-rated bonus award.  The pro-rated bonus award will reflect the portion of the Plan year spent in each grade level (e.g., 26 weeks at 40% and 26 weeks at 50%).  In evaluating the performance of Participants who change positions during the Plan year, consideration will be given to the length of time and results in each position.  Actual award decisions will be made by the CEO or, in the case of a Named Executive Officer, by the Committee.  Generally, fourth quarter promotions will not result in an increase in a Participant’s target award opportunity. 

	
 
	
C.
	
Examples of various award calculations are included with this Plan document as Attachment A.

 

         3

 

	
 
		

	
 
	
D.
	
The Committee will determine the award payments to the Named Executive Officers.

	
 
	
E.
	
Award payments will be calculated on an annual basis and paid in accordance with the Company’s normal payroll cycle.  Payments will be made within 75 days following the Plan year.  The payment date may be changed at any time and for any reason at the discretion of the CEO, or in the case of a Named Executive Officer, with approval of the Committee, but may not be later than March 15 following the end of the Plan year for which the award is paid.

 

7.Basis of Awards

 

	
 
	
A.
	
Measurable performance objectives for each Plan Participant will be established at the beginning of the Plan year (or at mid-year for mid-year hires or newly eligible employees).  In 2021, consideration will be given to:

i.Financial Performance Component:  Company and Market financial performance vs. Plan performance objectives in accordance with Section 7B.

ii.Strategic Goal Performance Component:  Company performance relative to strategic goals established in accordance with Section 7C. 

iii.Financial and Strategic Goal Performance Components will be added to reach a Participant’s total bonus. The relative weighting between these Components for each Participant is set forth opposite his or her name on Exhibit A.

 

	
 
	
B.
	
At the beginning of the Plan year, the objectives for the Financial Performance Component are identified and approved by the Committee and are set forth on Exhibit B.

i.Recommended award amounts may range from 0 - 200% of the Financial Performance Component of the Participant’s target award, based on performance.   

ii.Percentages between the threshold, intermediate, target, and maximum award will be interpolated.

iii.In the event of an acquisition, actual results for the selected financial performance metrics (e.g., revenue, operating margin) will be adjusted by subtracting the Board-approved business case for each acquisition for purposes of award payout calculations, unless the Committee approves a modification to include any such items.  Any transaction costs associated with any acquisition considered, pursued or closed shall be added back to profitability.

iv.In the event of a divestiture, actual results for the selected financial performance metrics will be adjusted by including the Board-approved budget 

 

         4

 

(and removing actual performance results) for each divestiture for purposes of award payout calculations, unless the Committee approves a modification to any such items.  If a planned divestiture is not included in the budget, its financial performance metrics will not be included in the calculation of the Financial Performance Component if the divestiture is not complete by the end of the fiscal year.  Any transaction costs associated with any divestiture considered, pursued or closed shall be added back to profitability.  

v.Award payout calculations shall exclude the positive or negative impact of any adjustments to the accrual for environmental remediation liability or unbudgeted expenses related to the existing contamination at the Lindsay facility as disclosed in the Company’s SEC filings.

vi.Award payout calculations shall be adjusted to remove Project Foundation consulting fees, if any, from the resulting operating margin calculation which were not included in the annual budget.

vii.Award payout calculations may be adjusted for any items of gain, loss or expense (i) from non-cash impairments; (ii) related to loss contingencies identified in the Company’s 10-K; (iii) that are unusual in nature or infrequent in occurrence; (iv) related to the disposal of a segment of a business; or (v) related to a change in accounting principle. The Plan also permits adjustments to remove the effects of changes in the tax law.

 

	
 
	
C.
	
At the beginning of the Plan year, the objectives for the Strategic Goal Performance Component are identified and approved by the Committee and are set forth on Exhibit B.  

 

i.Objectives under the Strategic Goal Performance Component may be linked to team-based goals, if appropriate.

 

ii.Recommended award amounts may range from 0% - 200% of the target amount under the Strategic Goal Performance Component.  Recommended award amounts will be based on an assessment of the Participant or Company’s performance, as applicable, relative to objectives established under the Strategic Goal Performance Component as set forth on Exhibit B. 

 

iii.The “Payout (as % of Target Individual Performance Component)” represents the payout relative to target award for the Strategic Goal Performance Component of the Plan.

 

8.Changes in Employment Status

 

	
 
	
A.
	
Participants who cease to be employees of the Company during the Plan year will not be eligible to receive an award.  Only active employees on the date that the bonus is paid will be eligible to receive an award.  Any exceptions will require the approval of the CEO, or in the case of a Named Executive Officer, the Committee.

 

 

         5

 

	
 
	
B.
	
In the event that a Participant transfers out of an eligible position into an ineligible position within the Company, the employee may be eligible for a prorated bonus award based upon the approval of the CEO, or in the case of a Named Executive Officer, the Committee.

	
 
	
C.
	
In all cases awards will be calculated and paid according to the provisions in Sections 6 and 7 of this Plan document.

 

9.Administration

 

	
 
	
A.
	
General authority for Plan administration and responsibility for ongoing Plan administration will rest with the Committee of the Company’s Board of Directors.  The Committee has sole authority for decisions regarding interpretation of the terms of this Plan.

 

	
 
	
B.
	
The Company reserves the right to amend or change the Plan in whole or in part at any time during the Plan year.  Amendments to the Plan require the approval of the Committee.

 

	
 
	
C.
	
Participation in the Plan does not constitute a contract of employment nor a contractual agreement of payment.  It shall not affect the right of the Company to discharge, transfer, or change the position of a Participant.  The Plan shall not be construed to limit or prevent the Company from adopting or changing, from time to time, any rules, standards or procedures affecting the Participant’s employment with the Company or any Company affiliate, including those which affect bonus payouts.

 

	
 
	
D.
	
If any provision of this Plan is found to be illegal, invalid or unenforceable under present or future laws, that provision shall be severed from the Plan.  If such a provision is severed, this Plan shall be construed and enforced as if the severed provision had never been part of it and the remaining provisions of this Plan shall remain in full force and effect and shall not be affected by the severed provisions or by its severance from this Plan.  In place of any severed provision there shall be added automatically as part of this Plan a provision as similar in terms to the severed provision as may be possible and be legal, valid and enforceable.

 

E. This is not an ERISA plan.  This is a bonus program. 

 

         6

 

ATTACHMENT A

Award Calculation Guidelines

 

The following examples are to be used as guidelines in calculating bonus awards at the end of the 2021 Plan year.  Managers should use their discretion in calculating actual bonus awards and may consider exceptions to the calculations below when necessary.  Any such exceptions must be fully documented and are subject to review and approval by the Chief Executive Officer, or in the case of a Named Executive Officer, the Committee.

 

	
 
	
Full Year Participation
	
 
	
 
	
 
	
Mid-Year Promotion
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Strategic Goal Performance Score:
	
 
	
 
	
 
	
Strategic Goal Performance Score:
	
100
	
 

	
 
	
Financial Performance Score:
	
100.00
	
 
	
 
	
Financial Performance Score:
	
100.00%
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Pre-Promotion Calculation
	
 
	
 

	
 
	
Strategic Goal Score
	
100
	
 
	
 
	
Strategic Goal Score
	
100
	
 

	
 
	
Total Incentive Plan %
	
40%
	
 
	
 
	
Total Incentive Plan %
	
40%
	
 

	
 
	
% Strategic to Total Incentive Plan Participation
	
20%
	
 
	
 
	
% Strategic to Total Incentive Plan Participation
	
20%
	
 

	
 
	
Base Salary
	
$150,000
	
 
	
 
	
Base Salary
	
$150,000
	
 

	
 
	
Strategic Goal Performance Payout
	
$12,000
	
 
	
 
	
Strategic Goal Performance Payout
	
$12,000
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Financial Score
	
100%
	
 
	
 
	
Financial Score
	
100%
	
 

	
 
	
Total Incentive Plan %
	
40%
	
 
	
 
	
Total Incentive Plan %
	
40%
	
 

	
 
	
% Financial to Total Incentive Plan Participation
	
80%
	
 
	
 
	
% Financial to Total Incentive Plan Participation
	
80%
	
 

	
 
	
Base Salary
	
$150,000
	
 
	
 
	
Base Salary
	
$150,000
	
 

	
 
	
Financial Performance Payout
	
$48,000
	
 
	
 
	
Financial Performance Payout
	
$48,000
	
 

	
 
	
Incentive Amount
	
$60,000
	
 
	
 
	
Incentive Amount
	
$60,000
	
 

	
 
	
Time Period (weeks)
	
52
	
 
	
 
	
Time Period (weeks)
	
26
	
 

	
 
	
Proration Factor
	
1
	
 
	
 
	
Proration Factor
	
0.5
	
 

	
 
	
Prorated Payout for Time Period
	
$60,000
	
 
	
 
	
Prorated Payout for Time Period
	
$30,000
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Partial Year Participation
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Strategic Goal Performance Score:
	
100
	
 
	
 
	
 
	
 
	
 

	
 
	
Financial Performance Score:
	
100.00%
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Post Promotion Calculation
	
 
	
 

	
 
	
Strategic Goal Score
	
100
	
 
	
 
	
Strategic Goal Score
	
100
	
 

	
 
	
Total Incentive Plan %
	
40%
	
 
	
 
	
Total Incentive Plan %
	
50%
	
 

	
 
	
% Strategic to Total Incentive Plan Participation
	
20%
	
 
	
 
	
% Strategic to Total Incentive Plan Participation
	
20%
	
 

	
 
	
Base Salary
	
$150,000
	
 
	
 
	
Base Salary
	
$200,000
	
 

	
 
	
Strategic Goal Performance Payout
	
$12,000
	
 
	
 
	
Strategic Goal Performance Payout
	
$20,000
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Financial Score
	
100%
	
 
	
 
	
Financial Score
	
100%
	
 

	
 
	
Total Incentive Plan %
	
40%
	
 
	
 
	
Total Incentive Plan %
	
50%
	
 

	
% Financial to Total Incentive Plan Participation
	
80%
	
 
	
 
	
% Financial to Total Incentive Plan Participation
	
80%
	
 

	
 
	
Base Salary
	
$150,000
	
 
	
 
	
Base Salary
	
$200,000
	
 

	
 
	
Financial Performance Payout
	
$48,000
	
 
	
 
	
Financial Performance Payout
	
$80,000
	
 

	
 
	
Incentive Amount
	
$60,000
	
 
	
 
	
Incentive Amount
	
$100,000
	
 

	
 
	
Time Period (weeks)
	
30
	
 
	
 
	
Time Period (weeks)
	
26
	
 

	
 
	
Proration Factor
	
0.576923
	
 
	
 
	
Proration Factor
	
0.5
	
 

	
 
	
Prorated Payout for Time Period
	
$34,615
	
 
	
 
	
Prorated Payout for Time Period
	
$50,000
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Total Prorated Incentive Amount
	
$80,000
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

[**The appendix that includes Financial Performance and Strategic Goal Component Elements and Weighting for Fiscal Year 2021 constitutes confidential information and has been omitted from this filing because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.**]

 

         7Exhibit
4.2

 

NEITHER
THIS SECURITY NOR THE SECURITIES issuable upon exercise hereof HAS BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR “BLUE SKY
LAWS,” AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

	Warrant
    No. ______	 	Void
    after 5:00 p.m. Eastern Time on October [  ], [2025] (subject to Section 2 herein, the “Expiration Date”)

 

October
[  ], 2020

 

ANIXA
BIOSCIENCES, INC.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK

 

This
Warrant is issued to ACORN MANAGEMENT PARTNERS, L.L.C. (the “Holder”) by ANIXA BIOSCIENCES, INC., a
Delaware corporation (the “Company”), pursuant to the terms of that certain Professional Relations and
Consulting Agreement, dated as of October [ ], 2020, by and among the Company and the Holder (the “Agreement”).

 

1.
Purchase of Shares. Subject to the terms and conditions hereinafter set forth, the Holder of this Warrant is entitled,
upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the
Holder hereof in writing), to purchase from the Company up to SIXTY THOUSAND (60,000) shares of the Company’s Common Stock
(the “Common Stock”) at the Exercise Price.

 

2.
Exercise Period. This Warrant shall vest and become exercisable such that TEN THOUSAND (10,000) shares underlying the Warrant
shall vest and become exercisable on the last day of each month beginning on October 31, 2020 through March 31, 2021. The vested
and exercisable portion of this Warrant may be exercised at any time on or prior to the Expiration Date. Notwithstanding the foregoing,
if the Agreement is terminated for any reason, the vesting of this Warrant pursuant to this Section 2 shall immediately cease,
the unvested portion of this Warrant shall immediately expire unexercised and the Termination Date of this Warrant shall be accelerated
such that this Warrant shall terminate thirty (30) calendar days after the termination of the Agreement. For the avoidance of
any doubt, by way of example, if the Agreement is terminated on December 15, 2020, this Warrant shall be exercisable for 20,000
shares of Common Stock and shall expire on January 14, 2021.

 

    	1 

     

    

  

3.
Exercise Price. The initial Exercise Price of this Warrant shall be $[___] per share as adjusted for stock splits, stock
dividends, combinations and the like.

 

4.
Method of Exercise. While this Warrant remains outstanding and is exercisable in accordance with Section 2 above, the Holder
may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

 

(a)
the surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its principal offices during
normal business hours on any business day prior to the Expiration Date; and

 

(b)
the payment to the Company of an amount equal to the aggregate Exercise Price for the number of shares of Common Stock being purchased
in the form of cash or certified or bank check payable to the order of the Company.

 

The
Company agrees that the shares of Common Stock issuable upon exercise of the Warrants shall be deemed to be issued to the Holder
as the record holder of such shares as of the close of business on the date on which this Warrant shall have been surrendered
and payment made for such shares as aforesaid. Notwithstanding the foregoing, no such surrender shall be effective to constitute
the person or entity entitled to receive such shares as the record holder thereof while the transfer books of the Company for
the Common Stock are closed for any purpose (but not for any period in excess of five (5) days); but any such surrender of this
Warrant for exercise during any period while such books are so closed shall become effective for exercise immediately upon the
reopening of such books, as if the exercise had been made on the date this Warrant was surrendered and for the number of shares
of Common Stock and at the Exercise Price in effect at the date of such surrender. This Warrant and all rights and options hereunder
shall expire on the Expiration Date, and shall be wholly null and void and of no value to the extent this Warrant is not exercised
before it expires.

 

5.
Cashless Exercise. In lieu of exercising this Warrant in cash as described in Section 4, this Warrant may also be exercised,
in whole or in part, at such time by means of a “cashless exercise” in which the Holder, upon exercise, shall be entitled
to receive a number of shares of Common Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A) =	 the five (5) day VWAP on the trading day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the notice of exercise;
	 	 	 
	 	(B) =	 the Exercise Price of this Warrant, as adjusted hereunder; and 
	 	 	 
	 	(X) =	 the number of shares of Common Stock that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

  

    	2 

     

    

  

Upon
a cashless exercise, the Holder shall receive shares in accordance with the terms of Section 4 above, provided that no cash payment
will be required with the surrendered Warrant and notice of exercise. For purposes of this Section 5, “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 “national securities exchange,” the daily volume weighted average price of the Common Stock
for 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 4:02 p.m. (New York City time)), (b) if the Common
Stock is then quoted on the OTCQB or OTCQX, the volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or
OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or
a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the
Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall
be paid by the Company.

 

6.
Certificates for Common Stock. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates
for the number of shares of Common Stock so purchased shall be issued as soon as practicable thereafter, and in any event within
five (5) days of the delivery of the exercise notice and other deliverables required herein. Notwithstanding the foregoing, the
Company, at its sole discretion, may elect to issue the shares of Common Stock so exercised in uncertificated, book entry form
on the books and records of the Company.

 

7.
Issuance of Common Stock. The Company covenants that the shares of Common Stock, when issued pursuant to the exercise of
this Warrant, will be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect
to the issuance thereof; provided, however, that the Holder shall be required to pay any and all taxes that may be payable in
respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the then Holder
as reflected upon the books of the Company.

 

8.
Adjustment of Exercise Price and Number of Shares of Common Stock. The number of and kind of securities purchasable upon
exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

 

(a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately
before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 8(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and
shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

    	3 

     

    

  

(b)
Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization or change in
the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section
8(a) above), then the Company shall make appropriate provision so that the Holder of this Warrant shall have the right at any
time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant,
the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification,
reorganization or change by a Holder of the same number of shares of Common Stock as were purchasable by the Holder of this Warrant
immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with
respect to the rights and interest of the Holder of this Warrant so that the provisions hereof shall thereafter be applicable
with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments
shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same.

 

(c)
Notice of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable upon exercise
of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of shares
of Common Stock or other securities or property thereafter purchasable upon exercise of this Warrant.

 

(d)
No Fractional Shares or Scrip. If as a result of any adjustment pursuant to this Section 8, the Holder would be entitled
to receive a fractional interest in a share of Common Stock, the Company will, upon exercise, round down to the nearest whole
number of shares of Common Stock issuable to the Holder.

 

9.
Restrictive Legend. The shares of Common Stock received upon exercise of this Warrant (unless registered under the Act)
shall be stamped or imprinted with a legend in substantially the following form:

 

“The
shares represented by this Certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
and have been acquired for investment and not with a view to, or in connection with, the sale or distribution thereof. No transfer
of these shares or any interest therein may be made except: (i) pursuant to an effective registration statement under the Act;
(ii) pursuant to and in accordance with the terms and conditions of Rule 144; or (iii) pursuant to an opinion of counsel satisfactory
to the issuer that such transfer does not require registration under the Act.”

 

    	4 

     

    

  

10.
Transfer of Warrant.

 

(a)
Limitation on Transfer. The Holder shall not, directly or indirectly, sell, give, assign, hypothecate, pledge, encumber,
grant a security interest in or otherwise dispose of (whether by operation of law or otherwise) (each a “Transfer”)
this Warrant or any right, title or interest herein or hereto, except in accordance with the provisions of this Warrant. Any attempt
to Transfer this Warrant, in whole or in part, or any rights hereunder in violation of the preceding sentence shall be null and
void ab initio and the Company shall not register any such Transfer.

 

(b)
Transfer Procedures. If the Holder wishes to Transfer this Warrant to a transferee (a “Transferee”)
under this Section 10, the Holder shall give notice to the Company through the use of the assignment form attached hereto as Exhibit
B of its intention to make any Transfer permitted under this Section 10 not less than five (5) days prior to effecting such Transfer,
which notice shall state the name and address of each Transferee to whom such Transfer is proposed. This Warrant may, in accordance
with the terms hereof, be transferred in whole or in part. If this Warrant is transferred in whole, the assignee shall receive
a new Warrant (registered in the name of such assignee or its nominee) which new Warrant shall cover the number of shares assigned.
If this Warrant is transferred in part, the assignor and assignee shall each receive a new Warrant (which, in the case of the
assignee, shall be registered in the name of the assignee or its nominee), each of which new Warrant shall cover the number of
shares not so assigned and in respect of which no such exercise has been made in the case of the assignor and the number of shares
so assigned, in the case of the assignee.

 

(c)
Transfers in Compliance with Law: Substitution of Transferee. Notwithstanding any other provision of this Warrant, no Transfer
may be made pursuant to this Section 10 unless (a) the Transferee has agreed in writing to be bound by the terms and conditions
hereto, (b) the Transfer complies in all respects with the applicable provisions of this Warrant, and (c) the Transfer complies
in all respects with applicable federal and state securities laws, including, without limitation, the Securities Act. If requested
by the Company in its reasonable judgment, the transferring Holder shall supply to the Company (x) an opinion of counsel, at such
transferring Holder’s expense, to the effect that such Transfer complies with the applicable federal and state securities
laws; and (y) a written statement to the Company, in such form as it may reasonably request, certifying that the Transferee is
an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

11.
Rights of Stockholders. Except as described elsewhere herein, no holder of this Warrant shall be entitled, as a Warrant
holder, to vote or receive dividends or be deemed the holder of shares of Common Stock or any other securities of the Company
which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to
confer upon the holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation,
merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise
until the Warrant shall have been exercised and the shares of Common Stock purchasable upon the exercise hereof shall have become
deliverable, as provided herein.

 

    	5 

     

    

  

12.
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the shares
of Common Stock issuable upon exercise of this Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation
of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

13.
Authorized Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of all of the shares issuable upon the exercise
of any purchase rights under this Warrant.

 

14.
Entire Agreement. This Warrant constitutes the entire agreement between the Company and the Holder with respect to the
Warrant.

 

15.
Notices. All notices and other communications required or permitted hereunder shall be in writing, shall be effective when
given, and shall in any event be deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with the U.S.
Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered
by hand, (c) one business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid,
if such overnight delivery is requested, or (d) one business day after the business day of facsimile transmission, if delivered
by facsimile transmission with copy by first class mail, postage prepaid, and shall be addressed (i) if to the Holder, at the
Holder’s address as set forth in the Agreement, and (ii) if to the Company, at the address as set forth in the Agreement,
or at such other address as a party may designate by ten days advance written notice to the other party pursuant to the provisions
above.

 

16.
Governing Law. This Warrant and all actions arising out of or in connection with this Warrant shall be governed by and
construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and
as to all other matters shall be governed by and construed in accordance with the internal laws of the State of Delaware, without
regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

17.
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant.

 

18.
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company. The provisions of this Warrant are
intended to be for the benefit of any Holder from time to time of this Warrant.

  

19.
Amendment and Waiver. No provision of this Warrant shall be waived or modified without the written consent of the Company
and the Holder.

 

20.
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

[Signature
Page Follows]

 

    	6

     

    

  

Issued
this ___ day of ____________, 2020

 

	 	ANIXA
    BIOSCIENCES, INC.
	 	 	 
	 	By:	            
	 	Name:	 
	 	Title:	 

 

ANIXA
BIOSCIENCES, INC.

SIGNATURE PAGE TO WARRANT TO PURCHASE COMMON STOCK 

 

    	 

     

    

  

EXHIBIT
A TO WARRANT

 

NOTICE
OF EXERCISE

 

TO:
Anixa Biosciences, Inc.

3150
Almaden Expressway, Suite 250

San
Jose, CA 95118

Attention:
Michael Catelani

 

	1.	The
    undersigned hereby elects to purchase __________ shares of Common Stock pursuant to the terms of the attached Warrant).
	 	 
	2.	The
    undersigned elects to exercise the attached Warrant:

 

	 	[  ]	by
    means of a cash payment, and tenders herewith payment in full for the purchase price of the shares being purchased, together
    with all applicable transfer taxes, if any.
	 	 	 
	 	[  ]	by
    the cancellation of such number of shares of Common Stock underlying the Warrant as is necessary, in accordance with the formula
    set forth in Section 5, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable
    pursuant to the cashless exercise procedure set forth in Section 5.

 

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

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	(Address)	 

 

	 	 	 
	 	 	(Signature)
	 	 	 
	 	 	(Name)
	 	 	 
	(Date)	 	(Title)

 

    	 

     

    

  

EXHIBIT
B TO WARRANT

 

FORM
OF TRANSFER

(To
be signed only upon transfer of Warrant)

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________ the right
represented by the attached Warrant to purchase ____________ shares of Common Stock of Anixa Biosciences, Inc. to which the attached
Warrant relates.

 

Dated:
____________________

 

	 	 	 
	 		

                                                                              (Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

	 	 	 
	 	Address:	
	 	 	 
	 	 	 

 

Signed
in the presence of:

 

 _________________________

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