Document:

Unassociated Document

 

Exhibit 10.1

PLAN SUPPORT AGREEMENT

This PLAN SUPPORT AGREEMENT is made and entered into as of August 26, 2011 (this “Agreement”) by and among NUTRITION 21, INC. (“N21 INC.”), a New York corporation, NUTRITION 21, LLC (“N21 LLC”), a New York limited liability company, ICELAND HEALTH, LLC (“Iceland Health”), a New York limited liability company, HEART’S CONTENT, INC. (“Heart’s Content” and, together with N21 INC., N21 LLC and Iceland Health, the “Company”), a New York corporation, and the SERIES J SHAREHOLDERS (as defined below) signatory hereto (the “SUPPORTING SHAREHOLDERS”).  The Company and the SERIES J SHAREHOLDERS and any subsequent person or entity that becomes a party hereto in accordance with the terms hereof are referred herein as the “Parties” and individually as a “Party.”

W H E R E A S

A.           On September 10, 2007, the Company sold 17,750 shares of Series J 8% Convertible Preferred Stock (the “Series J Preferred Stock”) to certain parties (the “Series J Shareholders”) pursuant to Securities Purchase Agreement, dated as of September 10, 2007, as reflected in the Certificate of Amendment of the Certificate of Certificate of Incorporation of Nutrition 21 (the “Certificate of Incorporation”) in exchange for $17,750,000.

B.           Pursuant to the Certificate of Incorporation, the Company, subject to restrictions set forth in the Certificate of Incorporation and New York law was to redeem the Series J Preferred Stock on September 10, 2011.

C.           Nutrition 21 is unable to redeem the Series J Preferred Stock.

D.           Prior to the date hereof, representatives of the Company and certain of the Series J Shareholders have engaged in arm’s length, good faith negotiations regarding a financial restructuring of the Company and satisfaction of the Company’s indebtedness to the Company’s creditors and the cancellation of the Company’s Equity Securities (as defined below), including the Series J Shareholders, pursuant to the terms and conditions set forth in the Plan (as defined below) and this Agreement (the “Restructuring”).

E.           The Company and the Supporting Shareholders have agreed to implement the Restructuring of the Company via a sale of substantially all of the Company’s assets pursuant to Bankruptcy Code (as defined below) section 363 (the “Sale”) and to distribute the proceeds thereof and any other remaining assets of the Company pursuant to the terms and conditions set forth in the Plan consistent with the terms hereof.

F.           In the exercise of its business judgment and consistent with its fiduciary duties, the Company has decided to commence voluntary reorganization proceedings (collectively, the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) to effect the Restructuring through the Plan that implements and is otherwise consistent with the terms and conditions set forth in the Plan and this Agreement.

  

  

  

 

G.           This Agreement and the Plan set forth the agreement among the Parties concerning their commitment, subject to the terms and conditions hereof and thereof, to implement the Restructuring.

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Party, intending to be legally bound, hereby agrees as follows:

 

	
  

	
1.

	
Definitions.  The following terms shall have the following definitions:

“Auction” means the auction for the Sale of the Assets pursuant to any order of the Bankruptcy Court.

“Ballot” means the ballot distributed with the Plan for voting on the Plan.

“Business Day” means any day other than Saturday, Sunday and any day that is a legal holiday or a day on which banking institutions in New York, New York are authorized by law or other governmental action to close.

“Claim” means a claim, as defined in Bankruptcy Code Section 101(5), against the Company.

“Commencement Date” means the date upon which voluntary petitions are filed by the Company to commence the Chapter 11 Case.

“Disclosure Statement” means the disclosure statement in respect of the Plan, which shall be in form and substance reasonably satisfactory to the Supporting Shareholders.

“Equity Security” means an equity security, as defined in Bankruptcy Code Section 101(16), issued by the Company.

“KEIP” means that certain key employee incentive plan the terms of which are set forth on Exhibit B hereto.

“Disputed Claims” means any claims against the Company filed on account of those certain causes of action or potential causes of action set forth on Schedule 1 hereto.

“Material Adverse Change” means any change, effect, event, occurrence, development, circumstance or state of facts occurs which has had or would reasonably be expected to (i) have a materially adverse effect on the Company’s ability to perform its obligations under this Agreement and the Plan or (ii) have a materially adverse effect on or prevent or materially delay the consummation of the transactions contemplated by this Agreement.  For the avoidance of doubt, (i) the filing of voluntary petitions commencing the Chapter 11 Case contemplated by this Agreement or (ii) the Sale being authorized for an amount less than $17,500,000 shall not constitute a Material Adverse Change.

  

-2-

  

 

“Person” means an individual, a partnership, a joint venture, a limited liability company, a corporation, a trust, an unincorporated organization, a group or any legal entity or association.

“Plan” means a plan of reorganization in respect of the Chapter 11 Case the terms of which are substantially consistent with the Plan Term Sheet.

“Plan Term Sheet” means the material terms of a plan of reorganization in respect of the Chapter 11 Case set forth on Exhibit A hereto.

“Plan Effective Date” means the date the Plan shall be substantially consummated.

“Sale Procedures Motion” means a motion, in form and substance reasonably acceptable to counsel for the Supporting Shareholders, to be filed with the Bankruptcy Court seeking relief on shortened notice to conduct the Sale and for approval of sale procedures in connection therewith.

“Series J Shareholder Interests” means the Equity Securities held by the Series J Shareholders in Nutrition 21 solely on account of the Series J Preferred Stock.

“Severance Claims” means the contingent claims of the Severance Recipients on account of severance obligations solely in the amounts set forth on Exhibit C hereto.

2.           Acknowledgment.  The Company acknowledges that (i) the Series J Preferred Stock constitutes Equity Securities validly issued and authorized by the Company and has no objection, dispute, disallowance, defense, counterclaim, avoidance, or offset of any kind or nature with respect to the Series J Preferred Stock and (ii) the Stated Value (as defined in the Certificate of Incorporation), plus any accrued and unpaid dividends thereon as provided for in the Certificate of Incorporation will equal at least $17,750,000 as of the Commencement Date (the “Stated Value Amount”).

3.           Delivery of Budgets.

	
  

	
A.

	
Attached hereto as Exhibit C is a pro forma rolling thirteen week cash flow budget for the Company on a consolidated basis (the “Initial Cash Flow Budget”).  On or before each Friday beginning with September 2, 2011, the Company shall deliver an updated pro forma thirteen week rolling cash flow budget (each such budget, together with the Initial Cash Flow Budget, a “Cash Flow Budget”) shall (i) be updated to reflect the Company and its subsidiaries’ current forecasts and results, and (ii) commencing with September 9, 2011 a reconciliation of the actual results for the immediately preceding week period to the projected results for the immediately proceeding week as set forth in the Cash Flow Budget and a detailed explanation of all material variances from the Cash Flow Budget.

  

-3-

  

	
  

	
B.

	
The Company agrees that all payments shall be made and expenses incurred in accordance with the Cash Flow Budget; provided, however, that it shall not be deemed a breach of this Agreement if the actual payments or expenses incurred for any two particular weeks do not exceed more than 10% of the aggregate budgeted payments and expenses for such two week period; provided, however that this Section 3B shall not apply to any fees or expenses due or charged by professionals retained by or to be paid by the Company’s bankruptcy estate in connection with the Bankruptcy Cases or any fees payable to the Office of the United States Trustee.

4.           Milestones.  The Company shall comply with the following and file the following documents on or prior to the date indicated for each such material action or document below (each, a “Milestone”), subject to change based upon the Bankruptcy Court’s availability and mutual agreement of the Parties:

 

	
  

	
A.

	
The Commencement Date will occur on a date mutually agreed to by the Company and Supporting Shareholders (but in no event later than August 29, 2011);

	
  

	
B.

	
On or prior to the fifth day of the Bankruptcy Cases, the Company shall file with the Bankruptcy Court the Sale Procedures Motion;

	
  

	
C.

	
On or prior to the 25th day of the Bankruptcy Cases, the Company shall file the Disclosure Statement for the Plan and procedures for soliciting votes with respect to the Plan along with a copy of the Plan;

	
  

	
D.

	
On or prior to the 30th day of the Bankruptcy Cases, the Bankruptcy Court shall enter an order, in form and substance acceptable to counsel for the Supporting Shareholders, approving the Sale Procedures Motion;

	
  

	
E.

	
On or prior to October 25, 2011, the Company shall conduct the Auction;

 

  

-4-

  

 

	
  

	
F.

	
On or prior to November 1, 2011, the Bankruptcy Court shall have entered an order approving the Sale to the person or entity selected as the highest and best bidder at the Auction and approved the asset purchase agreement in connection therewith;

	
  

	
G.

	
On or prior to five business days following the Auction, the Company shall have filed an amendment to the Disclosure Statement as necessary to comply with Bankruptcy Code section 1125 with respect to the results of the Auction (the “Amendment”);

	
  

	
H.

	
If the Bankruptcy Cases are not administered as “small business cases” as defined in Bankruptcy Code section 101(51C), on or prior to the fifteenth day following the filing of the Amendment the Bankruptcy Court shall enter an order approving the Disclosure Statement; and

	
  

	
I.

	
On or prior to the 30th day following the filing of the Amendment, the Bankruptcy Court shall enter an order confirming the Plan and approving the Disclosure Statement.

5.           Commitment of the Supporting Shareholders.  For so long as this Agreement remains in effect, and subject to the Company fulfilling its obligations as provided hereto the Supporting Shareholders shall:

	
  

	 

	
  

	
A.

	
Timely vote or cause to be voted the Series J Preferred Stock and any other Claims or Equity Securities now or hereafter beneficially owned or acquired by it or for which it now or hereafter serves as the nominee, investment manager or advisor for beneficial holders thereof, in favor of the Plan in accordance with the applicable procedures set forth in the Disclosure Statement and accompanying solicitation materials, and timely return a duly-executed Ballot in connection therewith, and to support the transactions contemplated therein and to be effected thereby, provided, however, that the Supporting Shareholders shall not be obligated to vote in favor of the Plan if the terms thereof are materially inconsistent with the Plan Term Sheet.

	
  

	
B.

	
Support the Sales Procedures Motion and not object thereto.

	
  

	
C.

	
Support confirmation of and not object or support or encourage any other party to object to confirmation of the Plan, or otherwise commence any proceeding to oppose or alter the Plan or support an alternative restructuring or an alternative plan of reorganization.

 

  

-5-

  

 

	
  

	
D.

	
Support payment of the Severance Claims and not object thereto or support or encourage any other party or cause any other party to object to any Severance Claims; provided, that no Severance Claim is greater than the Severance Claim set forth on Exhibit C hereto opposite each Severance Recipients’ (as defined in Exhibit C hereto) name; provided, further, that with respect to an individual Severance Recipient such individual has not been employed by the purchaser of the Company’s assets following the Sale.

	
  

	
E.

	
Support the KEIP and not object to the KEIP or any payments thereunder or support or encourage any other party or cause any other party to object thereto; provided that the final terms thereof are not more favorable to the KEIP Recipients (than the terms set forth in Exhibit B hereto).  For the avoidance of doubt it is acknowledged that (i) KEIP Recipients all have agreed to the treatment and further that they shall be entitled to payments under the KEIP even if they are employed by the purchaser of the Company’s assets following the Sale, (ii) that, if the KEIP is approved by the Bankruptcy Court and the KEIP Recipients have been offered and tendered their respective payments thereunder, each KEIP Recipient shall waive any severance claims they may have against the Company; and (iii) if the KEIP is not approved, the KEIP Recipients shall be entitled to assert severance claims provided that the Supporting Shareholders reserve their rights to object to any severance claim asserted by a KEIP Participant.

	
  

	
F.

	
Except as otherwise permitted herein, not withdraw, change or revoke its vote or support (or cause its vote or support (as applicable) to be withdrawn, changed or revoked) with respect to the Plan, the Sale, Disclosure Statement, the Severance Claims or the KEIP; and except as otherwise permitted herein, not take any other action, including, without limitation, initiating or joining any legal proceeding, that is inconsistent with, or that would materially prevent, hinder or delay the consummation of, the Restructuring, Sale, Plan, allowance of the Severance Claims or implementation of the KEIP.

Notwithstanding the foregoing, nothing in this Agreement shall be construed to prohibit the Supporting Shareholders from appearing as a party-in-interest in any matter to be adjudicated in the Chapter 11 Case so long as such appearance and the positions advocated in connection therewith are not materially inconsistent with this Agreement and are not for the purpose of materially hindering, delaying or preventing the confirmation and consummation of the Plan.

  

-6-

  

 

6.           Commitment of the Company.  Subject to its fiduciary duties as debtor in possession, the Company agrees to use its best efforts to (i) support and complete the Restructuring, the Sale and all transactions contemplated by the Plan in accordance with the Milestones, (ii) take any and all necessary and appropriate actions in furtherance of the Restructuring, the Sale and the Plan, (iii) complete the Restructuring, the Sale and achieve confirmation of the Plan in accordance with the Milestones, including, without limitation, by filing the Plan, Disclosure Statement and all other documents necessary or appropriate in connection with the Sale, the Disclosure Statement and the Plan, with the Bankruptcy Court in accordance with the Milestones, (iv) not take any other action that is inconsistent with, or that would delay or obstruct the proposed solicitation as to or confirmation or consummation of the Plan and (v) object to any Disputed Claims.

7.           Effective Date.  This Agreement shall be effective as of the date of receipt by the Company of a counterpart of this Agreement duly executed and delivered by a number of Series J Shareholders holding, with the power to vote in connection with the Plan (when solicited), at least 67% of the Series J Shareholder Interests.

8.           Termination.  This Agreement may be terminated (unless such Party seeking to terminate either (i) caused the Termination Event (as defined below) or (ii) is in material breach of its obligations under this Agreement, upon the occurrence of any of the following events (each a “Termination Event”):

 

	
  

	
A.

	
At the option of the Supporting Shareholders, if the Company files any motion or pleading with the Bankruptcy Court that is not consistent in any material respect with this Agreement or the Plan;

 

	
  

	
B.

	
At the option of the Supporting Shareholders, if the Company fails to comply with (i) Section 3A hereof within five (5) business days of any deadline contained therein or (ii) Section 3B hereof;

 

	
  

	
C.

	
At the option of the Supporting Shareholders, if the Bankruptcy Court grants relief that is materially inconsistent with this Agreement or the Plan and the Company fails to obtain the entry of one or more orders reconsidering, reversing or otherwise removing any Material Adverse Change caused by such grant within ten (10) Business Days thereof;

 

	
  

	
D.

	
At the option of the Supporting Shareholders, if the Company fails to commence the Chapter 11 Case on or before September 1, 2011;

 

	
  

	
E.

	
At the option of the Supporting Shareholders, if the Company fails to obtain entry of an order confirming the Plan by December 26, 2011;

 

  

-7-

  

 

	
  

	
F.

	
At the option of the Supporting Shareholders, if the Plan Effective Date shall not have occurred by January 15, 2012;

 

	
  

	
G.

	
At the option of the Supporting Shareholders, upon the occurrence of a Material Adverse Change;

 

	
  

	
H.

	
At the option of the Supporting Shareholders, if the Company withdraws the Plan or files, proposes or otherwise supports any plan of reorganization other than the Plan;

 

	
  

	
I.

	
At the option of the Company, if the Supporting Shareholder breach any of their obligations in Section 5 hereof;

 

	
  

	
J.

	
Entry of an order by the Bankruptcy Court, or any other court of competent jurisdiction, declaring, in a final nonappealable order, that this Agreement is unenforceable.

 

	
  

	
K.

	
An interim or permanent trustee, a responsible officer or an examiner with powers beyond the duty to investigate and report (as set forth in sections 1106(a)(3) and (4) of the Bankruptcy Code) shall be appointed to oversee or operate the Company in the Bankruptcy Cases.

 

	
  

	
L.

	
The Bankruptcy Cases shall have been dismissed or converted to cases under chapter 7 of the Bankruptcy Code.

The date on which this Agreement is terminated in accordance with the foregoing provisions shall be referred to as the “Termination Date.”  The act of termination by any Party pursuant to this Agreement shall not be a violation of the automatic stay of Section 362 of the Bankruptcy Code; provided, however, that nothing herein shall prejudice any Party’s rights to argue that the termination was not proper under the terms of this Agreement.

9.           Transfer of Equity Securities and Claims.  If, following execution of this Agreement by the Supporting Shareholders, any Supporting Shareholder sells or otherwise transfers or disposes of all or any of its Series J Preferred Stock, Equity Securities or any Claim (any of the foregoing, a “Transfer”) to any Person (each such Person, a “Transferee”), the Transferee must, as a condition precedent to such Transfer execute an assumption agreement to this Agreement in form and substance reasonably acceptable to the Company pursuant to which the Transferee shall agree to be bound by the terms of this Agreement.  Any Transfer in violation of this section shall be void ab initio.

  

-8-

  

 

10.           Entire Agreement.  This Agreement, including the exhibits, schedules and annexes hereto constitutes the entire agreement of the Parties with respect to the subject matter of this Agreement, and supersedes all other prior negotiations, agreements and understandings, whether written or oral, among the Parties with respect to the subject matter of this Agreement.

11.           No Waiver.  Nothing herein shall be construed as a waiver by any Party of any or all of such Party’s rights, and the Parties expressly reserve any and all of their respective rights.  Pursuant to Federal Rule of Evidence 408, state law equivalents and any other applicable rules of evidence, this Agreement and all negotiations relating hereto shall not be admissible into evidence in any proceeding other than a proceeding to enforce its terms.

12.           Reservation of Rights.  This Agreement and the Plan are part of a proposed compromise and settlement of the Series J Interests by and between the Company and the Supporting Shareholders.  Except as expressly provided in this Agreement, nothing herein is intended to, or does, in any manner waive, limit, impair or restrict the ability of each of the Parties hereto to protect and preserve their rights, remedies and interests.  Except as expressly set forth herein, nothing herein shall be deemed an admission of any kind.  If the transactions contemplated herein are not consummated, or if this Agreement is terminated for any reason, the parties hereto fully reserve any and all of their rights, pursuant to Federal Rule of Evidence 408 and any applicable state rules.

13.           Representations and Warranties of all Parties.  Each Party represents to each other Party that, as of the date of this Agreement, (a) such Party is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization, and has all requisite corporate, partnership or limited liability company power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its respective obligations under, this Agreement; (b) the execution and delivery of this Agreement and the performance of such Party’s obligations hereunder have been duly authorized by all necessary corporate or other action on its part; (c) the execution, delivery and performance of this Agreement by such Party do not and shall not (i) violate any provision of law, rule or regulation applicable to it or any of its subsidiaries or its certificate of incorporation, bylaws or other organizational documents or those of any of its subsidiaries or (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it or any of its subsidiaries is a party or under its certificate of incorporation, by-laws or other organizational documents; and (d) such Party (i) is a sophisticated Person with respect to the matters set forth in this Agreement; (ii) has adequate information to make an informed decision to enter into this Agreement; and (iii) has independently and without reliance upon any other Party, and based on such information as such Party has deemed appropriate, made its own analysis and decision to enter into this Agreement.

14.           Additional Representations and Warranties of the Supporting Shareholders. Each Supporting Shareholder represents and warrants that it holds or has the power to vote in connection with the Plan (when solicited), the Series J Shareholder Interests set forth on its respective signature page hereto.

  

-9-

  

 

15.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which, when so executed, shall constitute the same instrument and the counterparts may be delivered by facsimile transmission or by electronic mail in portable document format (.pdf).

16.           Amendments.  Except as otherwise provided herein, this Agreement may not be modified, amended or supplemented without prior written consent of the Company and the Supporting Shareholders.

17.           Headings.  The headings of the sections, paragraphs and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof.

18.           Specific Performance.  It is understood and agreed by the Parties that money damages would be an insufficient remedy for any breach of this Agreement by any Party and each non-breaching Party shall be entitled to specific performance and injunctive or other equitable relief as a remedy of any such breach, including, without limitation, an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder.

19.           Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to such state’s choice of law provisions which would require the application of the law of any other jurisdiction.  By its execution and delivery of this Agreement, each of the Parties irrevocably and unconditionally agrees for itself that any legal action, suit or proceeding against it with respect to any matter arising under or arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered in any such action, suit or proceeding, may be brought in the United States District Court for the District of New York, and by execution and delivery of this Agreement, each of the Parties irrevocably accepts and submits itself to the exclusive jurisdiction of such court, generally and unconditionally, with respect to any such action, suit or proceeding.  Notwithstanding the foregoing consent to New York jurisdiction, if the Chapter 11 Case is commenced, each Party agrees that the Bankruptcy Court shall have exclusive jurisdiction of all matters arising out of or in connection with this Agreement.

20.           WAIVER OF JURY TRIAL.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

21.           Severability.  If any provision of this Agreement is found by any court of competent jurisdiction to be invalid or unenforceable, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the fullest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

  

-10-

  

 

22.           Notices.  All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally, by internationally recognized overnight courier service, by facsimile transmission, or by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses or facsimile numbers:

If to the Company:

  

Nutrition 21, Inc.

4 Manhattanville Road

Purchase, NY 10577

Attn: Alan Kirschbaum

Telephone: (914) 701-4548

Facsimile:  (877) 270-9170

E-mail: akirschbaum@nutrition21.com

 

with a copy to (which shall not constitute notice):

Richards Kibbe & Orbe LLP

One World Financial Center

New York, NY  10281-1003

Attn:  Michael Friedman, Esq.

Telephone:  (212) 530-1846

Facsimile:  (917) 344-8846

E-mail:  mfriedman@rkollp.com

If to the Supporting Shareholders:

At the address set forth on the signature pages hereto

with a copy to (which shall not constitute notice):

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, NY 10022

Attn:  Adam Friedman, Esq.

Attn:  Michael Fox, Esq.

Telephone: 212-451-2300

Facsimile:  (212) 451-2222

E-mail: afriedman@olshanlaw.com

E-mail: mfox@olshanlaw.com

  

-11-

  

 

Any notice given by delivery, mail or courier shall be effective when received.  Any notice given by facsimile shall be effective upon oral or machine confirmation of transmission.

23.           Remedies Cumulative.  All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise of any right, power, or remedy thereof by any Party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such Party.

24.           No Third-Party Beneficiaries.  The terms and provisions of this Agreement are intended solely for the benefit of the Parties hereto, the KEIP Recipients and the Severance Recipients and their respective successors and permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any other Person (other than the KEIP Recipients and the Severance Recipients).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

-12-

  

IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first written above.

	 	

NUTRITION 21, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Alan Kirschbaum	 
	 	 	 	 
	 	Name: 	Alan Kirschbaum	 
	 	 	 	 
	 	Title: 	CFO	 
	 	 	 	 

	 	

NUTRITION 21, LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Alan Kirschbaum	 
	 	 	 	 
	 	Name: 	Alan Kirschbaum	 
	 	 	 	 
	 	Title: 	CFO	 
	 	 	 	 

 

	 	

ICELAND HEALTH, LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Alan Kirschbaum	 
	 	 	 	 
	 	Name: 	Alan Kirschbaum	 
	 	 	 	 
	 	Title: 	CFO	 
	 	 	 	 

	 	

HEART’S CONTENT, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Alan Kirschbaum	 
	 	 	 	 
	 	Name: 	Alan Kirschbaum	 
	 	 	 	 
	 	Title: 	CFO	 
	 	 	 	 

 

 

 

 

	 	

SUPPORTING SHAREHOLDERS:

	 
	 	 	 
	 	 	 
	 	

MIDSUMMER CAPITAL LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Michel A. Amsalem	 
	 	 	 	 
	 	Name: 	Michel A. Amsalem	 
	 	 	 	 
	 	Title: 	President	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 5,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 
	 	

295 Madison Avenue, 38th Floor, New York, NY 10017

	 

[signatures to continue on following page]

 

  

  

  

	 	

PHARMACHEM LABORATORIES, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ David A. Holmes	 
	 	 	 	 
	 	Name: 	David A. Holmes	 
	 	 	 	 
	 	Title: 	C.E.O.	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 3,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 

 

[signatures to continue on following page]

 

  

  

  

	 	

ISLANDIA, LP

	 
	 	 	 	 
	
 

	
By: 

	/s/ Richard O. Berner	 
	 	 	 	 
	 	Name: 	Richard O. Berner	 
	 	 	 	 
	 	Title: 	President of John Lang, Inc., GP	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 2,500

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 
	 	

485 Madison Avenue, 23rd Floor, New York, NY 10022

	 

[signatures to continue on following page]

 

  

  

  

	 	

UBS-O’CONNOR

	 
	 	 	 	 
	
 

	
By: 

	/s/ James M. Hnilo	 
	 	 	 	 
	 	Name: 	James M. Hnilo	 
	 	 	 	 
	 	Title: 	Manager, General Counsel	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 2,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 

[signatures to continue on following page]

 

  

  

  

	 	

ENABLE GROWTH PARTNERS, L.P.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Mitch Levine	 
	 	 	 	 
	 	Name: 	Mitch Levine	 
	 	 	 	 
	 	Title: 	Managing Partner	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held:1,500

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 

[signatures to continue on following page]

 

  

  

  

	 	

SHEA VENTURES, LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ John C. Morrissey	 
	 	 	 	 
	 	Name: 	John C. Morrissey	 
	 	 	 	 
	 	Title: 	Managing Director	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 1,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 
	 	

655 Brea Canyon Rd., Walnut, CA 91789

	 

 

[signatures to continue on following page]

 

  

  

  

	 	

ROCKMORE INVESTMENT MASTER FUND LTD

	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael Di Lania	 
	 	 	 	 
	 	Name: 	Michael Di Lania	 
	 	 	 	 
	 	Title: 	General Counsel	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 1,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 
	 	

c/o Rockmore Capital, LLC

	 
	 	

150 East 58th Street, 28th Floor, New York, NY 10155

	 

 

[signatures to continue on following page]

 

  

  

  

	 	

ROSWELL CAPITAL PARTNERS

	 
	 	 	 	 
	
 

	
By: 

	/s/ Charles M. Whiteman	 
	 	 	 	 
	 	Name: 	Charles M. Whiteman	 
	 	 	 	 
	 	Title: 	Director Private Equity	 
	 	 	 	 
	 	

Number of Series J Shareholder Interests Held: 1,000

	 
	 	 	 	 
	 	

Address for notice purposes:

	 
	 	 	 	 
	 	

1120 Sanctuary Parkway, Suite 325, Alpharetta, GA 30009

	 

 

[signatures to continue on following page]

 

  

  

  

ACKNOWLEDGED AND AGREED

TO WITH RESPECT TO SECTION 5E:

KEIP PARTICIPANTS:

/s/ Alan Kirschbaum

Alan Kirschbaum

/s/ James Komorowski

James Komorowski

/s/ Benjamin Sporn

Benjamin Sporn

/s/ William Levi

William Levi

  

  

  

 

Exhibit A

PLAN TERM SHEET

 

 

Any Plan filed with the Bankruptcy Court shall provide that:

 

	
Initial Plan Distributions to holders of Administrative Expenses and Claims

	
On the effective date of the Plan (the “Effective Date”), the following distributions (the “Effective Date Payments”) shall be made as follows:

 

First, to pay in full, in cash any administrative expenses of the Bankruptcy Cases, including the KEIP, allowed by the Bankruptcy Court pursuant to Bankruptcy Code sections 503 and 507 and any estimated professional fees of the Company not yet allowed;

 

Second, to pay in full, in cash any priority unsecured claims allowed by the Bankruptcy Court pursuant to Bankruptcy Code sections 502 and 507, plus interest from the Commencement Date until the date of repayment at the lesser of (i) the rate established by the Bankruptcy Court or (ii) the rate set forth in any agreement between the holder of the Claim and the Company; and

 

Third, to pay in full, in cash any unsecured claims allowed by the Bankruptcy Court pursuant to Bankruptcy Code section 502, plus interest from the Commencement Date until the date of repayment at the lesser of (i) the rate established by the Bankruptcy Court or (ii) the rate set forth in any agreement between the holder of the Claim and the Company.

	 	 
	
Creation of Liquidating Trust

	
On the plan effective date, a liquidating trust (the “Liquidating Trust”) will be created for the benefit of holders of Equity Securities.

	 	 
	
Trust Assets

	
The Liquidating Trust’s assets (the “Trust Assets”) shall include all of the Company’s assets (the “Assets”), including any and all causes of action (including any avoidance claims under chapter 5 of the Bankruptcy Code) and the proceeds from the sale (the “Sale Proceeds”) less the Effective Date Payments (the “Remaining Sale Proceeds”).

	 	 
	
Purpose of Liquidating Trust

	
The Liquidating Trust shall have all power necessary to (i) object to or continue the prosecution of any objection to any Claim or Equity Security interest and (ii) liquidate any and all of the Company’s remaining assets, including prosecuting any claims and causes of action transferred to the Liquidating Trust; provided, however, that none of the Remaining Sale Proceeds shall be used to prosecute any causes of action unless sufficient reserves have been made for the payment of all disputed Claims in full, in cash.

 

  

  

  

 

	
Distributions from Liquidating Trust

	
Following the effective date, the Liquidating Trust shall establish a reserve for the payment in full, in cash of all administrative expenses not paid on the Effective Date and all disputed Claims (plus interest).  Upon such administrative expenses or disputed Claims becoming allowed they shall be promptly paid by the Liquidating Trust.

 

Subject to the establishment of appropriate reserves, the Liquidating Trust shall distribute the proceeds of the Trust Assets as follows:

 

First, to pay the Stated Value Amount; and

 

Second, the remainder, if any, to holders of the Junior Securities (as defined in the Certificate of Incorporation).

	 	 
	
Releases

	
The Plan shall provide release, injunction and exculpation provisions, substantially similar to those appearing below.

 

On and after the effective date of the Plan (the “Effective Date”), for good and valuable consideration, including the services of the Releasees (as defined below)to facilitate the expeditious restructuring of the Debtors and the implementation of the Plan, each of the Releasees shall be deemed to have unconditionally released one another from any and all Claims, obligations, rights, suits, damages, remedies and liabilities whatsoever, including any Claims that could be asserted on behalf of the Debtors, whether known or unknown, foreseen or unforeseen, existing or hereafter arising, in law, equity or otherwise, that the Releasees or their subsidiaries would have been legally entitled to assert in their own right (whether individually or collectively) or on behalf of the holder of any Claim or Equity Security or other person or entity, based in whole or in part upon any act or omission, transaction, agreement, event or other occurrence taking place on or before the Effective Date; provided, however, that these releases will have no effect on the liability of any Releasee arising from any act constituting fraud, gross negligence or willful misconduct.

 

On and after the Effective Date of the Plan, for good and valuable consideration, each holder of a Claim or Equity Security shall be deemed to have unconditionally released the Releasees from any and all claims, obligations, rights, suits, damages, remedies and liabilities whatsoever, including any claims that could be asserted on behalf of the Debtors, whether known or unknown, foreseen or unforeseen, existing or hereafter arising, in law, equity or otherwise, that such holder of a Claim would have been legally entitled to assert in its own right (whether individually or collectively), based in whole or in part upon any act or omission, transaction, agreement, event or other occurrence taking place on or before the Effective Date, in any way relating or pertaining to (w) the purchase or sale, or the rescission of a purchase or sale, of any security of the Debtors, (x) the Debtors, (y) the Chapter 11 Cases or (z) the negotiation, formulation and preparation of the Plan, or any related agreements, instruments or other document including, without limitation, the Liquidating Trust; provided, however, that these releases will have no effect on the liability of any Releasee arising from any act constituting fraud, gross negligence or willful misconduct.

 

“Releasees” means the Debtors’ officers and directors and the Debtors’ employees and consultants (and each of the Debtors' attorneys, financial advisors, investment bankers, accountants, and other professionals) and the Series J Preferred Shareholders and their respective attorneys, financial advisors, investment bankers, accountants and professionals.Unassociated Document

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE 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. THIS SECURITY AND 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.

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

ADVAXIS INC.

 

	
Warrant Shares: __________

	
Initial Exercise Date: __________

  

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _________ (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 the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on ___________ (the “Termination Date”) but not thereafter, to subscribe for and purchase from Advaxis, Inc. a Delaware corporation (the “Company”), up to _________ shares (the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.             Definitions. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)           “Common Stock” means the shares of the Company’s common stock, par value $0.001 per share.

 

(b)           “Common Stock Equivalents” means any securities of the Company or its subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any Convertible Security, Option or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

(c)           “Convertible Securities” means any shares or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

  

 

  

(d)           “Options” means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

(e)           “Person” means any individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

(f)           “Trading Day” means any day on which the Common Stock is traded on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

 

(g)           “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTCQB Marketplace or the OTC Bulletin Board (or any successors to any of the foregoing).

 

(h)           “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

  

2

  

Section 2.              Exercise.

 

(a)           Exercise of Warrant. Exercise of the purchase rights represented by this Warrant 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 of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (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); and, in the case of an exercise for cash, within 3 Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. 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 Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within 3 Trading Days of the date the final Notice of Exercise is delivered to the Company. 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 and the Company 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 1 Trading Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, 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 Common Stock under this Warrant shall be $0.15 subject to adjustment hereunder (the “Exercise Price”).

 

(c)           Cashless Exercise. If at any time after the Initial Exercise Date there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately preceding the date of such election; 

 

(B) = the Exercise Price of this Warrant, as adjusted; and

 

(X) = the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

  

3

  

(d)           Holder’s Restrictions. 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 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, such Holder (together with such Holder’s affiliates, and any other person or entity acting as a group together with such Holder or any of such Holder’s affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by such Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and such 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(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in the discretion of the Holder, and the submission of a Notice of Exercise in the form annexed hereto shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder together with any affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have the right to rely upon Holder’s representations set forth therein. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to such 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 such Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2(d) may be waived by such Holder, at the election of such Holder, upon not less than 61 days’ prior notice to the Company to change the Beneficial Ownership Limitation to 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant, and the provisions of this Section 2(d) shall continue to apply. Following such a change by a Holder of the Beneficial Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the Beneficial Ownership Limitation may be further waived by such Holder from time to time at Holder’s option. 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(d) 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.

  

4

  

(e)           Mechanics of Exercise.

 

(i)           Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is a participant in such system and there is an effective registration statement permitting the resale of the Warrant Shares by the Holder, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise within 3 Trading Days from the delivery to the Company of the Notice of Exercise Form (not including the date of delivery for purposes of calculating such 3 Trading Day period), surrender of this Warrant (if required) and in the case of exercise for cash payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Warrant Shares shall be deemed to have been issued, and 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 purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vi) prior to the issuance of such shares, have been paid. If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $20 per Trading Day (increasing to $40 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such certificates are delivered.

 

(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 the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of 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.

 

(iii)         Rescission Rights. If the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Shares pursuant to this Section 2(e)(ii) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

  

5

  

(iv)        Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. 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 certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date at a time when such Warrant Shares are freely tradable by the Holder pursuant to an effective registration statement or an applicable exemption to the Securities Act of 1933, as amended (the “Securities Act”), 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 Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount 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 (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) 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 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 (1) 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..

 

(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 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 up to the next whole share.

 

(vi)        Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

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

  

6

  

Section 3.             Certain Adjustments.

 

(a)           Stock Dividends and Splits. If the Company, at any time after the date hereof while this Warrant is outstanding: (A) pays a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 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 re-classification.

 

(b)           Pro Rata Distributions. If the Company, at any time after the date hereof while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to Holders of the Warrants) evidence of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock, then in each such case the Exercise Price shall be adjusted by multiplying the 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 determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors of the Company in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

  

7

  

(c)           Fundamental Transaction. If, at any time after the date hereof while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (each “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, the number of shares of Common Stock 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 merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event. 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 share of Common Stock 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 Common Stock 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. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3(c) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a Trading Market, the Company or any successor entity shall pay at the Holder’s option, exercisable at any time concurrently with or within 30 days after the consummation of the Fundamental Transaction, an amount of cash equal to the value of this Warrant as determined in accordance with the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of Common Stock equal to the VWAP of the Common Stock for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction and (iii) an expected volatility equal to the 100 day volatility obtained from the “HVT” function on Bloomberg L.P. determined as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction.

 

(d)           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 shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

(e)           Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

  

8

  

(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 mail to the Holder a notice setting forth the Exercise Price after such adjustment 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 Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common Stock 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 Common Stock, 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 Common Stock is 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 mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined below) of the Company, at least 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 Common Stock 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 Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice.

 

Section 4.             Transfer of Warrant.

 

(a)           Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees 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. A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

  

9

  

(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 Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

(c)           Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

(d)           Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope reasonably acceptable to the Company) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, and (ii) the Holder or transferee execute and deliver to the Company a letter with respect to the investment intent of the transferee in form and substance acceptable to the Company, and (iii) the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a) promulgated under the Securities Act.

 

Section 5.             Miscellaneous.

 

(a)           No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(e)(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 or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

(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 Trading Day, then such action may be taken or such right may be exercised on the next succeeding Trading Day.

  

10

  

(d)           Authorized Shares.

 

The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant 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 stock certificates to execute and issue the necessary certificates 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 Common Stock 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, be duly authorized, validly issued, fully paid and nonassessable 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).

 

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 certificate of incorporation 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 and nonassessable 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.

  

11

  

(e)           Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.  The Company and the Holder hereby irrevocably submit to the exclusive jurisdiction of the state or 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, and hereby irrevocably waive, and agree 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 brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  The Company and the Holder hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Warrant 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 manner permitted by law. THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVE ANY RIGHT THEY MAY HAVE, AND AGREE NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)           Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

 

(g)          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, notwithstanding the fact that all rights hereunder terminate on the Termination Date. 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 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 Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

(h)          Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (c) five (5) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to (a) in the case of the Company to Advaxis, Inc., 305 College Road East, Princeton, New Jersey 08540, Attention: Mark J. Rosenblum, with a copy (which shall not constitute notice) to Greenberg Traurig, LLP, The MetLife Building, 200 Park Avenue, New York, NY 10166, Attention: Robert H. Cohen, Esq.; Fax#: (212) 801-6400 or (b) in the case of the Holder, to _____________ or at such other address as such party may designate by ten (10) days advance written notice to the other parties hereto.

 

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

  

12

  

(j)           Remedies. 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.

 

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

 

(l)           Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

(m)         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.

 

(n)         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.

 

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

  

13

  

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

 

	  	
ADVAXIS, INC.

	  	  
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

 

  

 

  

NOTICE OF EXERCISE

 

TO:  ADVAXIS, INC.

 

(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.

 

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

 

	
  

	
o

	
in lawful money of the United States; or

 

	
  

	
o

	
[if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)          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 to the following DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

(5)          Representation Regarding Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained herein, this Notice of Exercise shall constitute a representation by the holder of the Warrant submitting this Notice of Exercise that, after giving effect to the exercise provided for in this Notice of Exercise, such holder (together with its affiliates) will not have beneficial ownership (together with the beneficial ownership of such Person’s affiliates) of a number of shares of Common Stock of Advaxis, Inc. which exceeds the Beneficial Ownership Limitation of the total outstanding shares of Company Common Stock as determined pursuant to the provisions of Section 2(d) of the Warrant.

  

 

  

[SIGNATURE OF HOLDER]

 

	
Name of Investing Entity:

	  

	
Signature of Authorized Signatory of Investing Entity:

	  

	
Name of Authorized Signatory:

	  

	
Title of Authorized Signatory:

	  

	
Date:

	  

 

  

2

  

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 Signature:     

	
_____________________________

	 	 
	
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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]