Document:

ex10-32.htm

EXHIBIT 10.32

 

	  	
WARRANT

	  
	
NO. B __

	  	
150,000 Shares

WARRANT TO PURCHASE COMMON STOCK

VOID AFTER 5:30 P.M., EASTERN

TIME, ON THE EXPIRATION DATE

THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

FOR VALUE RECEIVED, Cell Source, Inc.  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,  One Hundred Fifty Thousand (150,000)  fully paid and non-assessable shares of the Company’s common stock (the “Common Stock”), par value $0.001 per share (the “ Warrant Stock ”), at a purchase price of $0.75 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 and property at the time receivable upon the exercise of this Warrant.

1. Exercise of Warrant and Redemption 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 10, 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 March 25, 2019 (the “ Expiration Date ”).

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 or President and the Secretary or Assistant Secretary of the Company. The term Warrant as used herein shall include any subsequent Warrant issued as provided herein.

 

 

  

  

  

 

b. 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.

c. 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 three (3) trading days after such rights shall have been so exercised (the “ Warrant Stock Delivery Date ”). 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.

d. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates representing the Warrant Stock pursuant to an exercise on or prior to the Warrant Stock Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock which the Holder anticipated receiving upon such exercise (a “ Buy-In ”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of shares of Warrant Stock that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

e. Redemption of Warrant

(i) General.  Prior to the Expiration Date, the Company shall have the option, subject to the conditions set forth herein, to redeem all of the Warrants then outstanding upon not less than thirty (30) days nor more than sixty (60) days prior written notice to the Warrant Holders at any time provided that, at the time of delivery of such notice (i) there is an effective registration statement covering the resale of the Warrant Shares, and (ii) the average trading price of the Company’s Common Stock , or shares into which the Common Stock  have been exchanged, for each of the twenty (20) consecutive trading days prior to the date of the notice of redemption is at least $2.50, as proportionately adjusted to reflect any stock splits, stock dividends, combination of shares or like events, with an average daily trading volume during such period of 100,000 shares.

 

 

  

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(ii) Notice.  Notice of redemption will be effective upon mailing in accordance with this Section and such date may be referred to below as the “Notice Date.”  Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to the Holders of the Warrants to be redeemed at their last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder received such notice.

(iii) Redemption Date and Redemption Price.  The notice of redemption shall state the date set for redemption, which date shall be not less than thirty (30) days, or more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company shall not mail the notice of redemption unless all funds necessary to pay for redemption of the Warrants to be redeemed shall have first been set aside by the Company for the benefit of the Warrant Holders so as to be and continue to be available therefor. The redemption price to be paid to the Warrant Holders will be $0.01 for each share of Common Stock of the Company to which the Warrant Holder would then be entitled upon exercise of the Warrant being redeemed, as adjusted from time to time as provided herein (the “Redemption Price”).

(iv) Exercise.  Following the Notice Date, the Warrant Holders may exercise their Warrants in accordance with Section 1 of this Warrant between the Notice Date and 5:00 p.m. Eastern Time on the Redemption Date and such exercise shall be timely if the form of election to purchase duly executed and the Warrant Exercise Price for the shares of Common Stock to be purchased are actually received by the Company at its principal offices prior to 5:00 p.m. Eastern Time on the Redemption Date.

(v) Mailing. If any Warrant Holder does not wish to exercise any Warrant being redeemed, he should mail such Warrant to the Company at its principal offices after receiving the notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption Date, notwithstanding that any Warrant subject to redemption shall not have been surrendered for redemption, the obligation evidenced by all Warrants not surrendered for redemption or effectively exercised shall be deemed no longer outstanding, and all rights with respect thereto shall forthwith cease and terminate, except only the right of the holder of each Warrant subject to redemption to receive the Redemption Price for each share of Common Stock  to which he would be entitled if he exercised the Warrant upon receiving notice of redemption of the Warrant subject to redemption held by him.

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 “Securities Act”), on the ground that the issuance of this Warrant is exempt from registration under Section 4(2) of the Securities 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, as the case may be, 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.

  

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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) 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:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.”

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.

 

 

  

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

a. Intentionally Omitted.

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 Shareholders. 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. Intentionally Omitted.

f. 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.

g. 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.

h. 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 (1%) percent of the Warrant Price in effect immediately before the event giving rise to such next subsequent adjustment.

 

 

  

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i. 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.

a. Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion of the Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise would exceed, when aggregated with all other shares of Common Stock owned by the Holder at such time, the number of shares of Common Stock which would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules thereunder) more than 4.99% of all of the Common Stock outstanding at such time; provided , however , that upon the Holder providing the Corporation with sixty-one (61) days’ advance notice (the “4.99% Waiver Notice”) that the Holder would like to waive this Section 6 (a) with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 6 (a) will be of no force or effect with regard to all or a portion of this Warrant referenced in the 4.99% Waiver Notice.

b. Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion of this Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise, when aggregated with all other shares of Common Stock owned by the Holder at such time, would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock outstanding at such time (the “ 9.99% Beneficial Ownership Limitation ” and the lower of the 9.99% Beneficial Ownership Limitation and the 4.99% Beneficial Ownership Limitation then in effect, the “ Maximum Percentage ”).

c. By written notice to the Company, the Holder may from time to time decrease the Maximum Percentage to any other percentage specified in such notice

d. 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 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.

  

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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.

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, Attn: Chief Executive Officer, or to the Holder at the name and address set forth in the Warrant Register maintained by the Company.

  

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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.

13. Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent signed by both (a) the Company and (b) holders of Warrants representing a majority of the Warrant Stock then outstanding and not exercised

 

 

[Signature Page Follows]

 

  

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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 8th day of March, 2016.

 

By:

 

Name:

 

Title:

 

 

  

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NOTICE OF EXERCISE

 

TO:

 

	
  

	
Tel: (___) ___-____

 

	
  

	
Fax: (___) ___-____

 

 

(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:

 

£ in lawful money of the United States

 

 

 

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:

 

 

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

 

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:

 

 

Signature of Authorized Signatory of Investing Entity:

 

 

Name and Title of Authorized Signatory:

 

 

Date:

 

 

  

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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.

 

  

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Instructions

 

To subscribe for Securities:

 

	
1.

	
ALL Investors should Complete and Return Section 1 (Investor Profile) and Section 15.

 

	
2.

	
ALL Investors should Complete, Sign and Deliver the Omnibus Signature Page for the subscription of the Securities (Section 2).

 

	
3.

	
Individual Investors (including joint tenants, tenants in common, grantors of revocable trusts and IRAs) should Complete and Initial (as applicable) sections 3 – 7.

 

	
4.

	
Entity Investors (including corporations, partnerships, trusts and limited liability companies) should Complete and Initial (as applicable) sections 8 – 13.

 

	
5.

	
Funds should be wired to the account provided in the Wire Transfer Information page attached hereto.

 

	
6.

	
Completed forms should be emailed to:

 

Itamar Shimrat

 

Cell Source, Inc.

57 West 57th Street, Suite 400 New York, NY 10019

T: 646 612 7554 F: 646 612-7545

ishimrat@cell-source.com

 

Questions regarding completion of the attached Transaction Documents should be directed to Itamar Shirmrat at the contact information above.

 

Thank you for your interest,

 

Cell Source, Inc.

 

  

12Exhibit 4.1

 

 

WARRANTS FOR ORDINARY SHARES

 

edap tms s.a.

 

	Warrants: _______	Issue Date: April 14, 2016
	 	 
	Warrant Shares: _______	Initial Exercise Date: October 14, 2016

 

 

 

 

THESE WARRANTS FOR ORDINARY SHARES (the “Warrant”)
certify that, for value received, _____________ or its registered assigns (as the same may be registered from time to time in the
books of the Custodian, the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after October 14, 2016 (the “Initial Exercise Date”)
and on or prior to the close of business on the two (2) year anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for up to ______ ordinary shares of EDAP TMS S.A., a French société
anonyme (the “Company”), par value €0.13 per share (the “Ordinary Shares”). The
Ordinary Shares issuable upon exercise of these Warrants are referred to as the “Warrant Shares”. The Ordinary Shares
issuable upon the exercise of the Warrants will be represented by American Depositary Receipts (“ADRs”), each
ADR evidencing one (1) American Depositary Share (“ADS”) and each ADS representing one (1) Ordinary Share. The
subscription price of one Warrant Share under these Warrants shall be equal to the Exercise Price, as defined in Section 2(b).
For the avoidance of doubt, exercise may only be made for a whole number of Ordinary Share and references herein to Ordinary Shares
in Section 2 shall also include ADRs evidencing ADSs, representing corresponding Ordinary Shares.

 

Attached hereto as Annex A is a certificate
(certificat d'inscription en compte) evidencing ownership of the Warrants duly executed by the Custodian and the Company
and registered in the name of the initial Holder, together with a certified copy of the Warrant Register (as defined in Section
4(c) below). Attached hereto as Annex A-1, is an officer’s certificate confirming that the terms and conditions of
the Holder’s Warrant set forth in the Warrant Register are the same as the terms and conditions set forth herein. For the
avoidance of doubt, the present document shall in no event be deemed as the certificate referred to in article R. 211-7 of the
French Code monétaire et financier and shall only be deemed, for purposes of French law, to set forth the terms and
conditions of this Warrant.

 

Section 1.    Definitions. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“Purchase Agreement”), dated April 7, 2016, among the Company and the purchasers signatory thereto.

 

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Section 2.    Exercise.

 

a)                 
Exercise of Warrant. Exercise of the purchase rights provided by the Warrants may be made, in whole or in part, at
any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company and the
Custodian (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the
address of such Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise in the
form attached hereto as Annex B (the “Notice of Exercise”) for a whole number of Ordinary Shares only. Within
three (3) Trading Days of the date of exercise, the Holder shall deliver to the Company the aggregate Exercise Price for the shares
specified in the applicable Notice of Exercise by wire transfer. No ink original Notice of Exercise shall be required, nor shall
any medallion guarantee (other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has
purchased all of the Warrant Shares available hereunder and the Warrants have been exercised in full. Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of
lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant
Shares purchased. The Holder, the Company and the Custodian shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business
Day of receipt of such notice. The Holder and any assignee, by acceptance of the Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)                 
Exercise Price. The exercise price per share of the Ordinary Shares under this Warrant shall be $4.50, subject
to adjustment hereunder to the extent that such Exercise Price remains higher than the nominal value of the Ordinary Shares at
the time of exercise, or, if lower than the nominal value of the Ordinary Shares, the nominal value of the Ordinary Shares (the
“Exercise Price”).

 

    	 	2	 

     

    

c)                 
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to this Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise the Holder and its Affiliates and any other Person
or entity whose beneficial ownership of Ordinary Shares would be aggregated with the Holder’s for the purposes of Section
13(d) of the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange
Act” and such Persons, “Attribution Parties”), would beneficially own in excess of 4.999% of the total
number of then issued and outstanding Ordinary Shares (the “Beneficial Ownership Limitation”). For purposes
of the foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and its Affiliates and Attribution Parties
shall include the number of Ordinary Shares issuable upon exercise of this Warrant with respect to which such determination is
being made, but shall exclude the number of Ordinary Shares which are issuable upon (A) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder, its Affiliates and Attribution Parties and (B) exercise or conversion
of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Ordinary
Share Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Holder, its Affiliates and Attribution Parties. Except as set forth in the preceding sentence, for purposes of this
Section 2(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the
Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(c) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder, its Affiliates and Attribution Parties) 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 Affiliates
and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers
a Notice of Exercise that such Notice of Exercise has not violated the restrictions set forth in this paragraph and the Company
shall have no obligation to verify or confirm the accuracy of such determination. For purposes of this Section 2(c), in determining
the number of outstanding Ordinary Shares, a Holder may rely on the number of outstanding Ordinary Shares as stated in the most
recent of the following: (A) the Company’s most recent filing with the U.S. Securities and Exchange Commission (the “SEC”);
(B) a more recent public announcement by the Company; or (C) a more recent notice by the Company or the Transfer Agent setting
forth the number of Ordinary Shares. Upon the written request of a Holder, the Company shall within two (2) Trading Days confirm
in writing to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares
shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by
the Holder since the date as of which such number of outstanding Ordinary Shares was reported. Notwithstanding the foregoing, the
Beneficial Ownership Limitation provisions of this Section 2(c) may be waived by the Holder, at the election of the Holder, upon
not less than 61 days’ prior notice to the Company to change the Beneficial Ownership Limitation to 9.999% of the number
of Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary Shares upon exercise of this Warrant
held by the Holder, its Affiliates or Attribution Parties and the provisions of this Section 2(c) shall continue to apply.

 

    	 	3	 

     

    

Upon such a change by a Holder of
the Beneficial Ownership Limitation from such 4.999% limitation to such 9.999% limitation, the Beneficial Ownership Limitation
may not be further waived by the Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2(c) 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. The limitations contained in this paragraph shall apply to a successor
holder of this Warrant.

 

d)                
Mechanics of Exercise.

 

                                                     
    i.            Delivery
of ADSs Upon Exercise. ADSs shall be transmitted by the Custodian to the Holder by crediting the account of the
Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system if the
Company is then a participant in such system and either (A) there is an effective registration statement permitting the
issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) the shares are eligible for resale by the
Holder without volume or manner-of-sale limitations pursuant to Rule 144 and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the delivery to the
Company of the Notice of Exercise (the “Warrant Share Delivery Date”), provided that the Company shall not
be obligated to deliver the Warrant Shares hereunder unless the Company has received the aggregate Exercise Price (and, if
required by the terms hereunder, the surrender of the Warrant) from the Holder on or before the Warrant Share Delivery Date;
provided further, however, that if the Company has not received the aggregate Exercise Price by the Warrant Share Delivery
Date, the Warrant Share Delivery Date shall be one (1) Trading Day after the Company has received the aggregate Exercise
Price from the Holder. The Warrant Shares shall be deemed to have been issued, and the Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record of such shares for all corporate purposes,
as of the date on which the Warrant Shares have been inscribed to the Holders’ account in the Company’s register
corresponding to the date on which the Warrant has been exercised, with payment to the Company of the Exercise Price and all
taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares,
having been paid. Notwithstanding anything herein to the contrary, upon delivery of the Notice of Exercise the Holder shall
be deemed for purposes of Regulation SHO under the Exchange Act to have become the holder of the Warrant Shares irrespective
of the date of delivery of the Warrant Shares. While any Warrants remain outstanding, the Company shall maintain a Custodian
that participates in the DTC Fast Automated Securities Transfer Program.

 

                                                          ii.            Delivery of
New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of ADSs, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all
other respects be identical with this Warrant (as may be amended or supplemented from time to time).

 

    	 	4	 

     

    

                                                          iii.            Rescission
Rights Upon Failure to Deliver ADSs. If in the case of any Notice of Exercise such ADSs are not delivered to or as directed
by the applicable Holder by the Warrant Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company
at any time on or before its receipt of such ADSs, to rescind such exercise, in which event the Company shall promptly return to
the Holder any original Warrant delivered to the Company and the Holder shall promptly return to the Company or the Custodian the
ADSs representing the Warrant Shares underlying this Warrant unsuccessfully tendered for exercise to the Company or the Custodian,
as the case may be (if surrendered).

 

                                                           iv.            Compensation
for Buy-In on Failure to Timely Deliver ADSs Upon Exercise. In addition to any other rights available to the Holder, if the
Company fails to cause the Custodian to deliver to the Holder such ADS by the Warrant Share Delivery Date, and if after such date
the Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise) or the Holder’s brokerage
firm otherwise purchases, ADSs to deliver in satisfaction of a sale by the Holder of the ADSs which the Holder anticipated receiving
upon such exercise relating to such Warrant Share Delivery Date (a “Buy-In”), then the Company shall (A) pay
in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions,
if any) for the ADSs so purchased exceeds (y) the amount obtained by multiplying (1) the aggregate number of ADSs that the Holder
was entitled to receive from the exercise at issue multiplied by (2) the actual sale price at which the sell order giving rise
to such purchase obligation was executed (including any brokerage commissions), and (B) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such
exercise shall be deemed rescinded) or deliver to the Holder the number of ADSs that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases ADSs having a total purchase
price of $11,000 to cover a Buy-In with respect to an attempted exercise of this Warrant with respect to which the actual sale
price of the Warrant Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000,
under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall
provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the
Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver ADSs upon exercise of this Warrant as required pursuant to the terms hereof.

 

    	 	5	 

     

    

                                                          v.           
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round down to the previous whole share.

 

                                                          vi.            Charges, Taxes
and Expenses. The issuance of ADSs on exercise of this Warrant shall be made without charge to the Holder for any documentary
stamp or similar taxes that may be payable in respect of the issue or delivery of such ADSs, provided that the Company shall not
be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such ADS
upon exercise in a name other than that of the Holder of this Warrant and the Company shall not be required to issue or deliver
such ADSs unless or until the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such
tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

                                                          vii.            Closing of
Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

(e)        If there is no effective registration statement registering
the issuance of all of the Warrant Shares underlying this Warrant at any time after the Initial Exercise Date and on or prior to
the Termination Date, notwithstanding anything to the contrary contained herein, the Holder shall be permitted to exercise this
Warrant by delivery of a Notice of Exercise, and, within two (2) Trading Days following the delivery of such Notice of Exercise,
deliver to the Company the aggregate Exercise Price with respect to such exercise.  Upon delivery of a Notice of Exercise
during a Registration Failure Period (as defined below), the Company shall (1) be required to pay in cash to the Holder on each
Trading Day during the Registration Failure Period an amount equal to 1.0% of the product of (A) the number of Warrant Shares exercised
by the Holder pursuant to the immediately preceding sentence, and (B) the VWAP of the ADSs on the Exercise Date, and (2) on the
Trading Day immediately following the end of the Registration Failure Period, deliver all Warrant Shares required to be delivered
pursuant to the Notice of Exercise by crediting the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system.  The Company shall pay any cash amounts owed pursuant to clause (A)
of the immediately preceding sentence no later than two (2) Business Days after a written request by the Holder (which may be made
by facsimile or electronic mail). As used herein, “Registration Failure Period” means the period (x) beginning
on the date of delivery of a Notice of Exercise at a time when there is no registration statement registering the issuance of all
of the Warrant Shares underlying this Warrant at any time after the Initial Exercise Date and on or prior to the Termination Date,
and (y) ending on the later to occur of (A) the date of delivery of all Warrant Shares required to be delivered pursuant to the
Notice of Exercise by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit
or Withdrawal at Custodian system and (B) the date that there is a registration statement registering the issuance of all Warrant
Shares underlying this Warrant.

 

    	 	6	 

     

    

Section 3.      Certain Adjustments.

 

a)                 
Share Dividends and Share Splits. If the Company, at any time while this Warrant is outstanding: (A) pays a share
dividend or otherwise makes a distribution or distributions payable in Ordinary Shares or any Ordinary Share Equivalents (which,
for the avoidance of doubt, shall not include any Ordinary Shares issued by the Company upon exercise of this Warrant), (B) subdivides
outstanding Ordinary Shares into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding
Ordinary Shares into a smaller number of shares, or (D) issues by reclassification of the Ordinary Shares 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 Ordinary Shares (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator
shall be the number of Ordinary Shares 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;
provided that in no event shall the Exercise Price be adjusted to a price less than the lowest exercise price allowed by applicable
law. Any adjustment made pursuant to this Section 3(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 reclassification.

 

b)                 
Subsequent Rights Offerings. In addition to any adjustment pursuant to Section 3(a) herein, if at any time the Company
grants, issues or sells any Ordinary Share Equivalents or rights to purchase stock, warrants, securities or other property pro
rata to the record holders of any class of shares of Ordinary Shares (the “Purchase Rights”), then the Holder
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder
could have acquired if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).

 

    	 	7	 

     

    

c)                 
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, (A) distributes, in compliance
with French corporate law, part of its reserves to all holders of Ordinary Shares (and not to the Holders), or (B) modifies, by
means of issuance of preferred shares, the rights of holders of Ordinary Shares to dividend distributions, then in each such case
the Exercise Price shall be adjusted and in the case of clause (A) above will be adjusted by multiplying such Exercise Price in
effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a
fraction of which the denominator shall be the VWAP (as defined below) determined as of the record date mentioned above, and of
which the numerator shall be such VWAP on such record date less the then market value at such record date of the portion of such
reserves so distributed applicable to one outstanding Ordinary Share as determined by the Board of Directors of the Company in
good faith; provided that in no event shall the Exercise Price be adjusted to a price less than the lowest exercise price allowed
by applicable law. Any adjustment required pursuant to this paragraph (c) shall be described in a notice delivered to the Holder
as provided under French corporate law. Such adjustment shall be made whenever any such distribution is made and shall become effective
immediately after the record date mentioned above. “VWAP” means, for any date, the price determined by the first
of the following clauses that applies: (a) if the ADSs are then listed or quoted on a Trading Market, the daily volume weighted
average price of the ADSs for such date (or the nearest preceding date) on the Trading Market on which the ADSs are 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 ADSs are not then listed or quoted on a Trading Market and if prices for the ADSs 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 most recent bid price per share of the ADSs so reported; or (c) in all other cases, the fair market value of an ADS as determined
by an independent appraiser selected in good faith by the Holders and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.

 

    	 	8	 

     

    

d)                
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares are
effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one
or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by
the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such
stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(c) on the exercise of this Warrant), the number of Ordinary Shares of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of Ordinary Shares for which this Warrant is exercisable
immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(c) on the exercise of this Warrant).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one (1) Ordinary Share in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting
the relative value of any different components of the Alternate Consideration. If holders of Ordinary Shares are given any choice
as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice
as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company
shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option
of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the
relative value of the Ordinary Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	9	 

     

    

e)                 
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of Ordinary Shares deemed to be issued and outstanding as
of a given date shall be the sum of the number of Ordinary Shares (excluding treasury shares, if any) issued and outstanding.

 

f)                  
Notice to Holder.

 

                                                         
i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
deliver to each Holder by facsimile or e-mail a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

                                                           ii.            Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary
Shares, (C) the Company shall authorize the granting to all holders of the Ordinary Shares rights or warrants to subscribe
for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Ordinary Shares, any consolidation or merger to
which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Ordinary Shares are converted into other securities, cash or property, (E) the Company
shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in
each case, the Company shall cause to be delivered by facsimile or e-mail to the Holder at its last facsimile or e-mail
address as it shall appear upon the Warrant Register of the Company, at least twenty (20) calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of
which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or
warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Ordinary
Shares of record shall be entitled to exchange their Ordinary Shares for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such
notice or any defect therein or in the delivering thereof shall not affect the validity of the corporate action required to
be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC
pursuant to a Current Report on Form 6-K. The Holder shall remain entitled to exercise this Warrant during the 20-day period
commencing on the date of such notice through the effective date of the event triggering such notice.

 

    	 	10	 

     

    

Section 4.     Transfer of Warrant.

 

a)                 
Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder
are transferable, in whole or in part, upon written notice substantially in the form attached hereto in Annex C (the “Transfer
Notice”) duly executed by the Holder or its agent or attorney and sent to the principal office of the Company and the Custodian,
together with surrender of this Warrant and wire of funds sufficient to pay any transfer taxes payable upon the making of such
transfer on the Company’s bank account specified in Annex D or such other account following due notification to the
Holder. Upon such notice and surrender and, if required, such payment, the Company shall transcribe the transfer and inscribe the
assignee or assignees as shareholder(s) in its registers and execute and deliver a new Warrant or Warrants in the name of the assignee
or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without
having a new Warrant issued. Notwithstanding the foregoing, the Company shall have the right to decline to make a transfer of the
Warrant or Warrants if such transfer would be made to a competitor of the Company.

 

b)                 
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

    	 	11	 

     

    

c)                 
Warrant Register. The Company or the Custodian, as applicable, shall register this Warrant, upon records to be maintained
by the Company or the Custodian as applicable, for that purpose (the “Warrant Register”), in the name of the
record Holder hereof from time to time. Prior to due presentment for transfer to the Company, the Company and any agent of the
Company may treat the Person in whose name this Warrant is duly registered on the Warrant as the owner hereof for the purpose of
any exercise hereof or any distribution, and for all other purposes, and neither the Company nor any such agent shall be affected
by notice to the contrary. The Warrant may be assigned or sold in whole or in part only by registration of such assignment or sale
on the Warrant Register. Upon its receipt of a Transfer Notice to assign or sell all or part of a Warrant by the Holder, the Company
or the Custodian, as applicable, shall record the information contained therein in the Warrant Register and the Company shall issue
or cause to be issued one or more new Warrants in compliance with Section 4(a) above.

 

Section 5.      Miscellaneous.

 

a)                 
No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

 

b)                 
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, 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, if mutilated, the Company will make and deliver a new Warrant of like
tenor and dated as of such cancellation, in lieu of such Warrant.

 

c)                 
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

d)                
Authorized Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from
its authorized and unissued Ordinary Shares a sufficient number of shares to provide for the issuance of the Ordinary Shares upon
the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of executing share certificates to execute and issue the necessary
certificates, if any, for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take
all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation
of any applicable law or regulation, or of any requirements of the Trading Market upon which the Ordinary Shares may be listed.
The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and free from all taxes, liens and charges created by the Company in respect
of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

    	 	12	 

     

    

Except and to the extent as waived or consented to by
the Holder, the Company shall not by any action, including, without limitation, amending its by-laws (statuts) or through
any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities 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 actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (A) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (B) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid Warrant Shares upon the exercise of this Warrant, and (C) use commercially reasonable efforts
to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment
in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

 

e)                 
Governing Law; Jurisdiction. Other than Sections 5(n), 5(o) and (p), which shall be governed by French law, and subject
to the mandatory provisions of French law applicable to the Warrant and the Warrant Shares, all questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of conflicts of law thereof.

 

Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against
a Holder, the Company or any of their respective affiliates, directors, officers, shareholders, partners, members, employees or
agents, to the exclusion of any actions or legal proceedings involving the representative of the Masse of Holders referred
to in Section 5 o)) shall be commenced exclusively in the state and federal courts sitting in the City of New York. The Company
and the Holders hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of the Warrant), and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. The Company and
the Holders to the fullest extent permitted by law hereby irrevocably waive personal service of process and consent to process
being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agree that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding
to enforce any provisions of the Transaction Documents, then the prevailing party in such action, suit or proceeding shall be reimbursed
by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

    	 	13	 

     

    

f)                  
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

 

g)                 
Notices. Any and all notices provided hereunder shall be delivered in accordance with the notice provisions of the
Purchase Agreement.

 

h)                 
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to
any liability of the Holder for the purchase price of any Ordinary Shares or as a stockholder of the Company, whether such liability
is asserted by the Company or by creditors of the Company.

 

i)                   
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 and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

j)                   
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations provided
herein shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time
of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

    	 	14	 

     

    

k)                 
Amendment. Subject to Section 5(o), this Warrant may be modified or amended or the provisions hereof waived with
the written consent of the Company and the Holder. No consideration shall be offered or paid to any Person to amend or consent
to waiver or modification of any provision of this Warrant unless the same consideration is also offered to all of the holders
of Warrants.

 

l)                   
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.

 

m)               
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

n)                 
Maintenance of the Rights of a Holder of a Warrant Under French Anti-Dilution Statutes. To the extent not already
covered by Section 3, the French antidilution provisions of paragraph 1° (but excluding paragraphs 2° and 3°) of the
second alinea of Article L.228-99 of the French Commercial Code shall apply.

 

 o)                 Representation of Holders of the Warrants

 

                                                                   
i.            
In accordance with Article L.228-103 of the French Commercial Code, Holders of the Warrants will be aggregated together
in a collective group (the “Masse”). The Masse will be an independent legal entity.

 

                                                                 
ii.              A general meeting of the Holders of the Warrants shall be called to authorize all modifications of the terms and conditions
of the Warrants, and to vote on all decisions and actions of the representative of the Masse in accordance with Section
5(o)(iv) that, by law, must be submitted for its approval.

 

                                                                iii.               In
accordance with Article L.228-47 of the French Commercial Code, the representative of the Masse will be:
Aether Financial Services, a company incorporated under French law with registered offices at 2, Square La Bruyère
– 75009 Paris, France, France, , an E.U. citizen with his or her domicile in France.

 

                                                               
iv.              The representative of the Masse will have the power to carry-out, on behalf of the Masse, all actions of
administrative nature (actes de gestion) necessary to protect the interests of the Holders, it being expressly provided
that it shall not be entitled to take any decision, commence any action, exercise or waive any right on behalf of the Masse,
alter, waive, amend or terminate any provision of any of the Warrants without in each case, being expressly authorized by a general
meeting of the Holders voting with a two-thirds majority.

 

                                                                 
v.             The
representative of the Masse will exercise its duties until dissolution, resignation or termination of its duties by a general
meeting of the Holders of the Warrants or until it becomes unable to act. Its appointment shall automatically cease on the date
of final or total redemption, prior to maturity or otherwise, of the Warrants. This appointment will be automatically extended,
where applicable, until the final conclusion of any legal proceedings in which the representative is involved and the enforcement
of any judgments rendered or settlements made.

 

    	 	15	 

     

    

                                                               
vi.              The representative of the Masse shall be entitled to remuneration of €700 (seven hundred euros) per year, payable
by the Company on each anniversary of the Initial Exercise Date (or the immediately following Business Day) from 2016 to 2018 inclusive
so long as the Warrants remain outstanding on such date.

 

                                                             
vii.               The
Company will also bear the costs of (i) calling and holding general meetings of the Holders, (ii) publishing their decisions,
(iii) the designation of the representative(s) of the Masse, (iv) the administrative and management costs of the Masse,
and (v) the general meetings of the Masse.

 

                                                           
viii.                 General meetings of the Holders shall be held at the registered office of the Company or such other place as is specified
in the call notice of the meeting. Each Holder shall have the right, during the period of 15 days prior to any general meeting
of the Masse, to examine and take copies of, or to cause an agent to do so on its behalf, at the registered office or administrative
headquarters of the Company or, as the case may be, at such other place as is specified in the call notice for such meeting, the
text of the resolutions to be proposed and any reports to be presented to the meeting.

 

                                                               
ix.             
This provisions of this section are intended solely for compliance with the French Commercial Code. Nothing contained herein
or in any other Transaction Document, and no action taken by any Holder pursuant thereto, shall be deemed to constitute the Holders
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in
any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.

 

p)                 
Preferential Subscription Rights and Priority Subscription Period. The Company’s shareholders have waived their
preferential subscription rights with respect to the issuance of this Warrant and the Warrant Shares issuable upon exercise hereof
and no priority subscription period is applicable.

 

q)                 
Currency. All amounts owing under the Warrants or any Transaction Document that, in accordance with their terms,
are paid in cash shall be paid in U.S. dollars. All amounts denominated in other currencies shall be converted in the U.S. dollar
equivalent amount in accordance with the Exchange Rate on the date of payment. “Exchange Rate” means,
in relation to any amount of currency to be converted into United States dollars pursuant to the Warrants, the United States dollar
exchange rate as published in The Wall Street Journal on the relevant date of calculation (it being understood and agreed that
where an amount is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of
such period of time).

 

    	 	16	 

     

    

r)               Taxes. As of the date
hereof, the subscription of Ordinary Shares upon the exercise in whole or in part of the Warrants would not be subject to withholding
tax in France.

 

s)              Judgment Currency.

 

(i)If, for the purpose of obtaining
or enforcing judgment against the Company in any court in any jurisdiction, it becomes necessary to convert into any other currency
(such other currency being hereinafter in this Section 5(s) referred to as the “Judgment Currency”) an amount
due in United States dollars under the Warrants, the parties agree, to the fullest extent that they may effectively do so, that
the conversion shall be made at the Exchange Rate prevailing on the business day immediately preceding:

 

(A) the date of actual payment
of the amount due; or

 

(B) in the event that the court
determines that such date should be another date, such court-determined date (the date as of which such conversion is made pursuant
to this Section 5(s)(i)(B) being hereinafter referred to as the “Judgment Conversion Date”).

 

(ii)    If there is a change in the
Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable
party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted
at the Exchange Rate prevailing on the date of payment, will produce the amount of United States dollars which could have been
purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on
the Judgment Exercise Date.

 

(iii)    Any amount due from the Company
under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts
due under or in respect of the Warrants.

 

 

********************

 

(Signature Page Follows)

 

 

    	 	17	 

     

    

 

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be duly executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	 	 EDAP TMS S.A.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: Marc Oczachowski
	 	 	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

ANNEX A

 

CERTIFICAT D’INSCRIPTION EN COMPTE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

ANNEX A-1

 

OFFICER’S CERTIFICATE

 

To:

On [          ], 2016

 

Dear Sir:

 

You will find attached a “certificat d’inscription en
compte” issued by CACEIS, and a copy of CACEIS Warrant Register (“comptes d’actionnaires”).

 

We hereby confirm that the securities being the subject of such certificate
and being recorded in the Warrant Register are the bons de souscription d’actions, the terms and conditions of which
are attached hereto.

 

Yours sincerely,

 

..............................................

On the name and for the account of EDAP-TMS

Name:

Title:

 

 

 

 

 

 

 

 

    	 	20	 

     

    

ANNEX B

 

NOTICE OF EXERCISE

WARRANTS EXPIRING IN 2018

 

To:EDAP TMS S.A.

Attn: Blandine Confort

Corporate Secretary

Address Parc d’Activités La Poudrette Lamartine,

4/6 rue du Dauphiné,

69120 Vaulx en Velin, France

Tel: +33(4) 72 15 31 50

Fax: +33(4) 72 15 31 44

 

With a copy to:

CACEIS CORPORATE TRUST

Laetitia Delauney

Address14 rue Rouget de Lisle

92862 Issy Les Moulineaux, France

Tel: +33(1) 57 78 31 56

Fax: +33(1) 57 78 32 19

 

Reference is made to the certificate evidencing the terms and conditions
of the bons de souscription d’actions issued on April 14, 2016 and expiring on October 14, 2018 (the “Warrants”)
issued to the undersigned by EDAP-TMS S.A. (the “Company”). Capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the terms and conditions of the Warrant.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any amounting to $[     ].

 

(2)  
Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other
name as is specified below.

 

_______________________________

 

 

The Warrant Shares shall be delivered by physical delivery of a certificate to:

 

Address:

 

 

 

or to the following account as set out below.

 

    	 	21	 

     

    

Name of Holder's Broker:

Address of Broker:

 

Contact Person at Broker:

 

Broker's DTC Participant Number:

Account Number to receive ADRs:

 

 

[SIGNATURE OF HOLDER]

 

Name of Holder: _____________________________________________

Signature of Authorized Signatory of Holder: ______________________________

Address of Holder: _____________________________________

Facsimile number of Holder: ________________________________

Name of Authorized Signatory: ___________________________________________

Title of Authorized Signatory: _________________________________________

Date:________________________________________________

 

IMPORTANT: Please provide a copy of the documents below with this notice of exercise.

 

(i) passport or national id card of the Authorized Signatory, and 

(ii) power of attorney, mandate, proof of authority to sign on behalf of the Holder,
or any equivalent document entitling the Authorized Signatory to sign on behalf of the holder

 

CACEIS IS HEREBY INSTRUCTED BY THE HOLDER IDENTIFIED ABOVE TO DEPOSIT THE ORDINARY SHARES
INTO WHICH THE WARRANT IS BEING EXERCISED PURSUANT TO THIS NOTICE WITH THE DEPOSITARY FOR ISSUE BY THE DEPOSITARY OF THE APPLICABLE
NUMBER OF CORRESPONDING ADRs TO THE BENEFICIARY.

 

PLEASE CHECK IF APPLICABLE:

 

[   ] CACEIS IS HEREBY INSTRUCTED TO DELIVER OR CAUSE TO BE DELIVERED ADRs TO THE HOLDER;
PROVIDED THAT BY CHECKING THIS BOX THE HOLDER HEREBY REPRESENTS AND WARRANTS TO THE COMPANY AND CACEIS THAT AT THE TIME OF DELIVERY
THE RELEVANT ORDINARY SHARES (AND CORRESPONDING ADRS) MAY BE TRANSFERRED PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT.

 

 

 

    	 	22	 

     

    

ANNEX C

 

TRANSFER NOTICE

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

	
        To: EDAP-TMS S.A.

        Attn: Blandine Confort

        Corporate Secretary

        AddressParc d’Activités La Poudrette Lamartine,

        4/6 rue du Dauphiné,

        69120 Vaulx en Velin, France

        Tel: +33(4) 72 15 31 50

        Fax: +33(4) 72 15 31 44

         
	
        With a copy to:

        CACEIS CORPORATE TRUST

        Laetitia Delauney

        Address14 rue Rouget de Lisle

        92862 Issy Les Moulineaux, France

        Tel: +33(1) 57 78 31 56

        Fax: +33(1) 57 78 32 19

         

 

 

ASSIGNMENT ORDER

 

FROM SECURITIES NOT CONSIDERED AS EUROCLEAR FRANCE

 

	(a)                 	 	 
	(b)               Désignation 	 	(i)                  
	 	 	 	 
	Of the Company                    EDAP TMS SA	 	 
	 	(ii)                	 	 
	Securities         WARRANT	ISIN CODE  ___________________________	 	(iii)             Date       _____________
	 	 	 	 
	Quantity (in letters)   	 	Quantity    
	 	 	(en figures)    ___________
	 	 	 
	 	 	 
	 
	WARRANTS – EDAP Term _______________ – CODE _______________
	 

  

ARTICLE II.NAME OF THE DESIGNATING PARTY

 

 

Mr. _______________

___________________

___________________

___________________

 

 

    	 	23	 

     

    

ASK FOR THE EXECUTION OF THE FOLLOWING ACTION: ASSIGNMENT

 

To the benefit of 

___________________

___________________

___________________

___________________

(Physical Address)

 

 

	 	 	 	 	 	 	 	 	 
	1.1  SIGNATURE OF ADMINISTRATOR OF WARRANTS (CACEIS CT)	 	 	SIGNATURE OF 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	REGISTERED DATE	 	 	Date	 	 	 
	Date	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

NB: Warrants will be registered by CACEIS in pure nominative form

 

CACEIS Corporate Trust

Société anonyme au capital de 12 000 000
€

439 430 976 R.C.S. Paris - TVA : FR 84439430976

Siège social : 1-3 Place Valhubert - 75013 PARIS

Adresse de l’établissement principal : 14
rue Rouget de Lisle - 92130 Issy-les-Moulineaux

Adresse postale : 14, rue Rouget de Lisle 92862 Issy-les-Moulineaux
Cedex 9 - France

www.caceis.com

    	 	24	 

     

    

 

ANNEX D

 

COMPANY’S BANK ACCOUNT DETAILS

FOR THE PAYMENT OF THE EXERCISE PRICE

 

 

Account Owner at Natixis, Lyon branch:

EDAP-TMS

C/O Technomed Medical Systems

4, rue du Dauphiné

69120 Vaulx-en-Velin

France

 

International Bank Account Number:

FR76 3000 7530 2904 2931 1600 091

 

Bank Identifier Code :

NATXFRPPXXX

 

 

 

 

 

 

 

 

 

25

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