Document:

THIS
SECURITY HAS 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.

 

COMMON
STOCK PURCHASE WARRANT

 

PROCESSA
PHARMACEUTICALS, INC.

 

	Warrant
    Shares: 	[              ]	 	Initial
    Exercise Date: November 15, 2018
	 	 	 	Issue
    Date: May 15, 2018

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [      ]
or its assigns (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 Initial Exercise Date and on or prior to 5:00 p.m. New York time
on June 29, 2021 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Processa Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), up to [                 ]
shares (as subject to adjustment hereunder, 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. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Securities Purchase Agreement”), dated as of May 15, 2018, among the Company and
the holders signatory thereto.

 

Section
2. Exercise.

 

(a)
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 (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 the Holder appearing on the books
of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto.
Within two (2) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price
for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.
No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or 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 Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within two (2) 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 within one (1) Business Day of receipt of such notice. The
Holder and any assignee, by acceptance of this 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.

 

    	1

    	 

    

 

(b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $2.724, subject to
adjustment hereunder (the “Exercise Price”).

 

(c)
Cashless Exercise. If, after the six month anniversary of the Initial Exercise Date, at the time of exercise hereof there
is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the
Warrant Shares to the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by
dividing [(A-B)*(X)] by (A), where:

 

	 	(A)
    =	the
    last VWAP immediately preceding the date of delivery of the Notice of Exercise giving rise to the applicable “cashless
    exercise,” as set forth in the applicable Notice of Exercise (to clarify, the “last VWAP” will be the last
    VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading
    Market is open, the prior Trading Day’s VWAP shall be used in this calculation);
	 	 	 
	 	(B)
    =	the
    Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)
    =	the
    number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised, and the
holding period of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees
not to take any position contrary to this Section 2(c). For avoidance of doubt, no “cashless exercise” under this
Section 2(c) may occur (i) during the first six months following the Initial Exercise Date or (ii) after the six months following
the Initial Exercise Date if there is not an
effective registration statement registering the issuance of the Warrant Shares to the Holder.

 

    	2

    	 

    

 

“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 4:00 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

(d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) 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) this Warrant is being exercised via “cashless exercise”,
and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is two (2) Trading Days after the delivery to the Company of the Notice
of Exercise (such date, the “Warrant Share Delivery Date”).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, with 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(d)(v) prior
to the issuance of such shares, having been paid.

 

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 Warrant Shares, 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.

 

iii.
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

    	3

    	 

    

 

iv.
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, pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise
Price.

 

v.
Charges, Taxes and Expenses. Issuance of 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 Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares 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 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. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required
for same-day electronic delivery of the Warrant Shares.

 

vi.
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.

 

(e)
Call Provision. If at any time prior to the expiration of, or the exercise by the Holder of this Warrant the closing price
(as reported by the OTC Markets or a Trading Market, if listed) of Company’s Common Stock is equal to 200% or more than
the Exercise Price for twenty (20) consecutive Trading Days (the “Trading Price Condition”), the Company shall
have the right to call, redeem and cancel this Warrant on the tenth day after written notice by the Company to the Holder and
payment to the Holder in cash of $0.0001 per Warrant Share. To effectively exercise this call provision, such written notice of
intent to exercise the call provision under this Section 2(e) must be provided by the Company no later than the close of business
on the second Trading Day following satisfaction of the Trading Price Condition. The Holder may exercise this Warrant on a cash
basis (or cashless basis if there is not an effective registration statement registering
the issuance of the Warrant Shares to the Holder) after written notice by the Company, but before the tenth day after such written
notice, which exercise shall nullify the Company’s right to call, redeem and cancel this Warrant. Failure by the Company
to provide timely notice shall preclude the Company from exercising this call provision with respect to the satisfaction of the
Trading Price Condition over that twenty (20) consecutive Trading Day period but shall not preclude the Company from exercising
this call provision with respect to satisfaction of the Trading Price Condition over any other subsequent twenty (20) consecutive
Trading Days. The Company may not call, redeem or cancel any portion of this Warrant that may not be exercised during the ten
(10) day notification period pursuant to the restrictions on exercise in Section 2(a).

 

    	4

    	 

    

 

Section
3. Certain Adjustments.

 

(a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (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)
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.

 

(c)
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 the Holder by facsimile or email 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 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, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (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 email to the Holder at its last facsimile number of email address as it shall appear upon the Warrant Register
of the Company, (unless such notice is filed with the Commission, which in such case, no additional notice is required to be provided
to the Holder), at least 10 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 deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. The Holder shall remain 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 except as may otherwise be expressly set
forth herein.

    	5

    	 

    

 

Section
4. Transfer of Warrant.

 

(a)
Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) 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, 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. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within two (2) Trading
Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. 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.

 

(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 initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

    	6

    	 

    

 

(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.

 

Section
5. Miscellaneous.

 

(a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder 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 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 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 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 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 and payment for such Warrant Shares in accordance herewith, 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).

 

    	7

    	 

    

 

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 (i) 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, (ii) 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 (iii) 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)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the provisions of the Securities Purchase Agreement.

 

(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)
Non-waiver. 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 the Holder’s rights, powers or remedies.

 

(h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Securities Purchase Agreement.

 

(i)
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 Common Stock or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

(j)
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.

 

(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 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.

 

    	8

    	 

    

 

(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.

 

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

 

(Signature
Page Follows)

 

    	9

    	 

    

 

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.

 

	 	PROCESSA
    PHARMACEUTICALS, INC.
	 	 	 
	 	By:	                              
	 	Name:
    	 
	 	Title:	 

 

    	10

    	 

    

 

NOTICE
OF EXERCISE

 

	TO:	PROCESSA PHARMACEUTICALS,
    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):
	 	 
	 	[  ]
    in lawful money of the United States; or
	 	 
	 	[  ]
    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 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:

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity:                                                                                                                                                                                  

 

Signature
of Authorized Signatory of Investing Entity:                                                                                                                              

 

Name
of Authorized Signatory:                                                                                                                                                                        

 

Title
of Authorized Signatory:                                                                                                                                                                          

 

Date:
                                                     

 

    	 

    	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

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

 

	Name:	 
	 	(Please
    Print)
	Address:	 
	 	(Please
    Print)
	Dated:
    _______________ __, ______	 
	 	 
	Holder’s
    Signature:                                                     
	 
	Holder’s
                                         Address:Blueprint

 

Exhibit 10.3

 

 

 

SECURITIES PURCHASE AGREEMENT

 

between

 

CEL-SCI CORPORATION

 

and

 

ERGOMED plc

 

dated as
of

 

 

May 16, 2018

 

 

	

 

 

 

 

TABLE OF CONTENTS

 

	

ARTICLE I DEFINITIONS

	

3

	

ARTICLE II PURCHASE AND SALE

	

5

	

Section 2.01 Purchase and Sale.

	

5

	

Section 2.02 Transactions Effected at the
Closing.

	

6

	

Section 2.03 Closing.

	

6

	

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

	

6

	

Section 3.01 Organization, Qualification and Authority of the
Company.

	

6

	

Section 3.02 Valid Issuance of Shares.

	

6

	

Section 3.03 No Conflicts; Consents.

	

7

	

Section 3.04 Brokers.

	

7

	

Section 3.05 Offering.

	

7

	

Section 3.06 Reports and Financial Statements; Absence of Certain
Changes.

	

7

	

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF
CREDITOR

	

8

	

Section 4.01 Organization and Authority of
Creditor.

	

8

	

Section 4.02 No Conflicts; Consents.

	

8

	

Section 4.03 Restricted Securities.

	

8

	

Section 4.04 Brokers.

	

8

	

ARTICLE V CONDITIONS TO CLOSING

	

8

	

Section 5.01 Conditions to Obligations of All
Parties.

	

8

	

Section 5.02 Conditions to Obligations of
Creditor.

	

9

	

Section 5.03 Conditions to Obligations of the
Company.

	

10

	

ARTICLE VI COVENANTS

	

10

	

Section 6.01 Affirmative Covenants of the
Company.

	

10

	

Section 6.02 Negative Covenant of Creditor.

	

11

	

Section 6.03 Application of Resale Proceeds.

	

11

	

Section 6.04 Further Assurances.

	

11

	

ARTICLE VII INDEMNIFICATION

	

11

	

Section 7.01 Survival.

	

11

	

Section 7.02 Indemnification By Company.

	

11

	

Section 7.03 Payments.

	

12

	

Section 7.04 Tax Treatment of Indemnification
Payments.

	

12

	

Section 7.05 Effect of Investigation.

	

12

	

Section 7.06 Exclusive Remedies.

	

12

	

ARTICLE VIII MISCELLANEOUS

	

12

	

Section 8.01 Expenses.

	

12

	

Section 8.02 Notices.

	

13

	

Section 8.03 Interpretation.

	

14

	

Section 8.04 Headings.

	

14

	

Section 8.05 Severability.

	

14

	

Section 8.06 Entire Agreement.

	

14

	

Section 8.07 Successors and Assigns.

	

14

	

Section 8.08 No Third-Party Beneficiaries.

	

14

	

Section 8.09 Amendment and Modification;
Waiver.

	

15

	

Section 8.10 Governing Law; Submission to Jurisdiction; Waiver of
Jury Trial.

	

15

	

Section 8.11 Counterparts.

	

15

 

 

2

 

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this
"Agreement"),
dated as of May 16, 2018, is entered into by and between CEL-SCI
Corporation, a Colorado corporation (the "Company")
and Ergomed plc, a public limited company organized under the laws
of England and Wales ("Creditor").

 

Recitals

WHEREAS, the Company has authorized the
issuance by the Company of up to 600,000 shares (the
"Shares") of the Company’s Common Stock, par
value $0.01 per share (the "Common
Stock");

 

WHEREAS, as of the date of this Agreement,
the Company owes Creditor $1,691,890.74, as detailed in
Annex A
(the "Debt"), in connection with a certain
co-development agreement dated as of April 19, 2013, as amended
(the "Co-development
Agreement"), a certain
master services agreement of the same date (the
"MSA")
and the clinical trial orders making up an integral part of the MSA
(the "CTOs", and together with the Co-development
Agreement and MSA, the "Principal Relationship
Agreements");
and

 

WHEREAS, the Company wishes to issue the Shares to Creditor in
exchange for Creditor agreeing to provisionally forebear collection
of the Debt and to allow partial satisfaction of the Debt balance
in an amount equal to the Net Proceeds, if any, received by
Creditor upon any resale by Creditor of the Shares, subject to the
terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as
follows:

 

ARTICLE
I

DEFINITIONS

 

The following terms have the meanings specified or referred to in
this Agreement:

 

"Action" means any claim, action, cause of action,
demand, lawsuit, arbitration, inquiry, audit, notice of violation,
proceeding, litigation, citation, summons, subpoena or
investigation of any nature, civil, criminal, administrative,
regulatory or otherwise, whether at law or in
equity.

 

"Affiliate"
of a Person means any other Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term "control"
(including the terms "controlled by" and "under common control
with") means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by
contract or otherwise .

 

"Agreement"
has the meaning set forth in the
preamble.

 

"Business
Day" means any day except
Saturday, Sunday or any other day on which commercial banks located
in London or Colorado are authorized or required by Law to be
closed for business.

 

 

 

3

 

 

"Closing"
has the meaning set forth in Section 2.03.

 

"Closing
Date" has the meaning set
forth in Section
2.03.

 

"Co-development
Agreement" has the
meaning set forth in the recitals.

 

"Common
Stock" has the meaning
set forth in the recitals.

 

"Company"
has the meaning set forth in the
preamble.

 

"Contracts"
means all contracts, leases, deeds, mortgages, licenses,
instruments, notes, loans, commitments, undertakings, indentures,
joint ventures and all other agreements, commitments and legally
binding arrangements, whether written or
oral.

 

"Creditor"
has the meaning set forth in the
preamble.

 

"Creditor
Indemnitees" has the
meaning set forth in Section 7.02.

 

"CTOs" has the meaning set forth in the
recitals.

 

"Debt" has the meaning set forth in the
recitals.

 

"Disclosure
Schedules" means the
Disclosure Schedules delivered by the Company and Creditor
concurrently with the execution and delivery of this
Agreement.

 

"Dollars or
$" means the lawful
currency of the United States.

 

"Encumbrance"
means any charge, claim, community property interest, pledge,
condition, equitable interest, lien (statutory or other), option,
security interest, mortgage, easement, encroachment, right of way,
right of first refusal, or restriction of any kind, including any
restriction on use, voting, transfer, receipt of income or exercise
of any other attribute of ownership.

 

"Exchange
Act" has the meaning set
forth in Section
3.06.

 

"Governmental
Authority" means any
federal, state, local or foreign government or political
subdivision thereof, or any agency or instrumentality of such
government or political subdivision, or any self-regulated
organization or other non-governmental regulatory authority or
quasi-governmental authority (to the extent that the rules,
regulations or orders of such organization or authority have the
force of Law), or any arbitrator, court or tribunal of competent
jurisdiction.

 

"Governmental
Order" means any order,
writ, judgment, injunction, decree, stipulation, determination or
award entered by or with any Governmental
Authority.

 

"Law" means any statute, law, ordinance,
regulation, rule, code, order, constitution, treaty, common law,
judgment, decree, other requirement or rule of law of any
Governmental Authority.

 

 

 

4

 

 

"Losses" means losses, damages, liabilities,
deficiencies, Actions, judgments, interest, awards, penalties,
fines, costs or expenses of whatever kind, including reasonable
attorneys' fees and the cost of enforcing any right to
indemnification hereunder and the cost of pursuing any insurance
providers; provided,
that "Losses" shall not include punitive damages, except
in the case of fraud or to the extent actually awarded to a
Governmental Authority or other third
party.

 

"Material Adverse
Effect" means any event,
occurrence, fact, condition or change that is, or could reasonably
be expected to become, individually or in the aggregate, materially
adverse to the business, results of operations, prospects,
condition (financial or otherwise) or assets of the
Company.

 

"MSA" has the meaning set forth in the
recitals.

 

"Net
Proceeds" means proceeds
in cash, checks or wire transfers, as and when received by Creditor
upon the sale of any Shares, net of out-of-pocket fees, costs and
expenses paid or payable by Creditor as a result of or relating to
the sale of the Shares (including brokers’ fees, commissions
or discounts and other transaction fees incurred in connection with
such sale).

 

"Permits"
means all permits, licenses, franchises, approvals, authorizations,
registrations, certificates, variances and similar rights obtained,
or required to be obtained, from Governmental
Authorities.

 

"Person" means an individual, corporation,
partnership, joint venture, limited liability company, Governmental
Authority, unincorporated organization, trust, association or other
entity.

 

"Registration
Statement" has the
meaning set forth in Section 6.01(c).

 

"Representative"
means, with respect to any Person, any and all directors, officers,
employees, consultants, financial advisors, counsel, accountants
and other agents of such Person.

 

"SEC" has the meaning set forth in
Section
3.06.

 

"SEC
Documents" has the
meaning set forth in Section 3.06.

 

"Securities
Act" has the meaning set
forth in Section
3.05.

 

"Shares" has the meaning set forth in the
recitals.

 

ARTICLE
II

PURCHASE AND SALE

 

Section 2.01 Purchase and Sale.
Subject to the terms and
conditions set forth herein, at the Closing, the Company shall
issue 600,000 Shares to Creditor in exchange for Creditor agreeing
to provisionally forbear collection of the Debt and to allow
partial satisfaction of the Debt balance in an amount equal to the
Net Proceeds, if any, from any resales of Shares, subject to
Section 6.01(c)
and
6.03.

 

 

 

5

 

 

Section 2.02 

 

Section 2.03 Transactions Effected at
the Closing. 

 

(a) At
the Closing, Creditor shall deliver to the
Company:

 

(i) all documents, instruments or certificates
required to be delivered by Creditor at or prior to the Closing
pursuant to Section
5.03 of this
Agreement.

 

(b) At
the Closing, the Company shall deliver to
Creditor:

 

(i) stock
certificates evidencing the Shares; and

 

(ii) all agreements, documents, instruments or
certificates required to be delivered by the Company at or prior to
the Closing pursuant to Section 5.02 of this
Agreement.

 

Section 2.04 Closing.
Subject to the terms and
conditions of this Agreement, the purchase and sale of the Shares
contemplated hereby shall take place at a closing (the
"Closing")
remotely by electronic mail, or at such other time or on such other
date or at such other place or by such other method as the Company
and Creditor may mutually agree upon orally or in writing (the day
on which the Closing takes place, the "Closing
Date"). If the Closing
does not take place prior to May 16, 2018, either party may
terminate this Agreement by written notice to the other
party.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

 

The Company represents and warrants to
Creditor that the statements contained in this ARTICLE III are true and correct as of the date
hereof.

 

Section 3.01 Organization,
Qualification and Authority of the Company. The Company is a corporation duly organized,
validly existing and in good standing under the Laws of the state
of Colorado and has full corporate power and authority to (a) enter
into this Agreement, to carry out its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and
delivery by the Company of this Agreement, the performance by the
Company of its obligations hereunder and the consummation by the
Company of the transactions contemplated hereby have been duly
authorized by all requisite corporate action on the part of the
Company. This Agreement has been duly executed and delivered by the
Company, and (assuming due authorization, execution and delivery by
Creditor) this Agreement constitutes a legal, valid and binding
obligation of the Company enforceable against the Company in
accordance with its terms.

 

Section 3.02 Valid Issuance of
Shares. The Shares,
when issued, sold and delivered in accordance with the terms of
this Agreement for the consideration expressed herein, will be duly
and validly issued, fully paid, and non-assessable, and will be
free of any Encumbrances or restrictions on transfer other than
restrictions on transfer under this Agreement or under applicable
securities laws or Encumbrances created or imposed by
Creditor.

 

 

 

6

 

 

Section 3.03 No Conflicts;
Consents. The execution,
delivery and performance by the Company of this Agreement, and the
consummation of the transactions contemplated hereby, do not and
will not: (a) conflict with or result in a violation or breach of,
or default under, any provision of the certificate of
incorporation, by-laws or other organizational documents of the
Company; (b) conflict with or result in a violation or breach of
any provision of any Law or Governmental Order applicable to the
Company; (c) except as set forth in Section 3.03 of the Disclosure Schedules, require the
consent or waiver of, notice to or other action by any Person
under, give rise to any rights under, conflict with, result in a
violation or breach of, constitute a default or an event that, with
or without notice or lapse of time or both, would constitute a
default under, result in the acceleration of or create in any party
the right to accelerate, terminate, modify or cancel any Contract
to which the Company is a party or by which the Company is bound or
to which any of its properties and assets are subject or any Permit
affecting the properties, assets or business of the Company
(including without limitation any Contract with respect to any
outstanding rights of first refusal, rights of first offer,
pre-emptive rights, anti-dilution rights ,redemption or repurchase
rights or registration rights); or (d) result in the creation or
imposition of any Encumbrance on any properties or assets of the
Company. Except as set forth in Section 3.03 of the Disclosure Schedules, no consent,
approval, Permit, Governmental Order, declaration or filing with,
or notice to, any Governmental Authority is required by or with
respect to the Company in connection with the execution and
delivery of this Agreement and the consummation of the transactions
contemplated hereby.

 

Section 3.04 Brokers.
No broker, finder or investment
banker is entitled to any brokerage, finder's or other fee or
commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of the
Company.

 

Section 3.05 Offering.
Subject in part to the truth and
accuracy of Creditor’s representations set forth in Article
IV of this Agreement, the offer, sale and issuance of the Shares
are exempt from the registration requirements of the Securities Act
of 1933, as amended (the "Securities
Act"), and will not
result in a violation of the qualification or registration
requirements of any applicable securities laws of any U.S. state or
any jurisdiction outside the U.S., and neither the Company nor any
authorized agent acting on its behalf will take any action
hereafter that would cause the loss of such
exemption.

 

Section 3.06  Reports and Financial
Statements; Absence of Certain Changes. The Company has filed all reports,
schedules, forms, statements and other documents required to be
filed by the Company with the Securities and Exchange Commission
(the "SEC") pursuant to the Securities Act and the
reporting requirements of the Securities Exchange Act of 1934, as
amended (the "Exchange
Act") (such documents,
together with any documents otherwise filed by the Company with the
SEC, the "SEC
Documents"), and has
previously furnished or made available to Creditor true and
complete copies of such SEC Documents and shall promptly deliver or
make available to Creditor any SEC Documents filed between the date
hereof and the Closing Date. None of such SEC Documents, as of
their respective dates (and as amended through the date hereof),
contained or, with respect to SEC Documents filed after the date
hereof, will contain any untrue statement of material fact or omit
to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under
which they were made, not misleading. Since March 31, 2018, there
has been no event that would have a Material Adverse Effect, except
as disclosed in Section
3.06 of the Disclosure
Schedules and in the SEC Documents.

 

 

 

7

 

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF
CREDITOR

 

Creditor represents and warrants to the
Company that the statements contained in this ARTICLE IV are true and correct as of the date
hereof.

 

Section 4.01 Organization and
Authority of Creditor. Creditor is a public limited company
properly organized under the Laws of England and Wales. Creditor
has all requisite power and authority to enter into this Agreement,
to carry out its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery by
Creditor of this Agreement, the performance by Creditor of its
obligations hereunder and the consummation by Creditor of the
transactions contemplated hereby have been duly authorized by all
requisite action on the part of Creditor. This Agreement has been
duly executed and delivered by Creditor, and (assuming due
authorization, execution and delivery by the Company) this
Agreement constitutes a legal, valid and binding obligation of
Creditor enforceable against Creditor in accordance with its
terms.

 

Section 4.02 No Conflicts;
Consents. The execution,
delivery and performance by Creditor of this Agreement, and the
consummation of the transactions contemplated hereby, do not and
will not: (a) conflict with or result in a violation or breach of,
or default under, any provision of the constitutional or other
organizational documents of Creditor; (b) conflict with or result
in a violation or breach of any provision of any Law or
Governmental Order applicable to Creditor; or (c) require the
consent, notice or other action by any Person under any Contract to
which Creditor is a party. No consent, approval, Permit,
Governmental Order, declaration or filing with, or notice to, any
Governmental Authority is required by or with respect to Creditor
in connection with the execution and delivery of this Agreement and
the consummation of the transactions contemplated
hereby.

 

Section 4.03 Restricted
Securities. Creditor
acknowledges that the Shares are not registered under the
Securities Act, or any state securities laws, and that the Shares
may not be transferred or sold except pursuant to the registration
provisions of the Securities Act or pursuant to an applicable
exemption therefrom and subject to state securities laws and
regulations, as applicable.

 

Section 4.04 Brokers.
No broker, finder or investment
banker is entitled to any brokerage, finder's or other fee or
commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of
Creditor.

 

ARTICLE
V

CONDITIONS TO
CLOSING

 

Section 5.01 Conditions to Obligations
of All Parties. The
obligations of each party to consummate the transactions
contemplated by this Agreement shall be subject to the fulfilment,
at or prior to the Closing, of each of the following
conditions:

 

 

 

8

 

 

(a) No
Governmental Authority shall have enacted, issued, promulgated,
enforced or entered any Governmental Order which is in effect and
has the effect of making the transactions contemplated by this
Agreement illegal, otherwise restraining or prohibiting
consummation of such transactions or causing any of the
transactions contemplated hereunder to be rescinded following
completion thereof.

 

(b) The Company shall have received all
consents, authorizations, orders and approvals from the
Governmental Authorities referred to in Section 3.03, in each case, in form and
substance reasonably satisfactory to Creditor and the Company, and
no such consent, authorization, order and approval shall have been
revoked.

 

Section 5.02 Conditions to Obligations
of Creditor. The
obligations of Creditor to consummate the transactions contemplated
by this Agreement shall be subject to the fulfilment or Creditor's
waiver (with the exception of (b) below), at or prior to the
Closing, of each of the following
conditions:

 

(a) The
representations and warranties of the Company contained in Article
III shall be true on and as of the Closing with the same effect as
though such representations and warranties had been made on and as
of the Closing Date.

 

(b)  The
Company will have received the approval of the NYSE American for
the issuance of the Shares. The Company (i) will take all
reasonable steps to obtain such approval as soon as possible, (ii)
maintain the listing until all of the Shares have been sold or
returned to the Company and (iii) pay all of the reasonable and
customary fees and expenses incurred in connection with the listing
of the Shares. In the event that the Shares are not listed with the
NYSE American in accordance with the foregoing or the listing
ceases to be maintained at any time, Creditor shall have a right to
return any unsold Shares to the Company for
cancellation.

 

(c) This
Agreement shall have been executed and delivered by the parties
thereto and true and complete copies thereof shall have been
delivered to Creditor.

 

(d) Creditor
shall have received a certificate of the Secretary or an Assistant
Secretary (or equivalent officer) of the Company
certifying:

 

(i) that
attached thereto are true and complete copies of all resolutions
and other consents adopted by the board of directors and
stockholders of the Company authorizing and approving the
execution, delivery, filing and performance of this Agreement and
the consummation of the transactions contemplated hereby, and that
all such resolutions and consents are in full force and effect as
of the Closing and are all the resolutions and consents adopted in
connection with the transactions contemplated
hereby;

 

(ii) that
attached thereto are true and complete copies of the certificate of
incorporation and by-laws of the Company and that such
organizational documents are in full force and effect as of the
Closing; and

 

(iii) the
names and signatures of the officers of the Company authorized to
sign this Agreement and the other documents to be delivered
hereunder.

 

 

 

9

 

 

(e) The
Company shall have delivered to Creditor a good standing
certificate (or its equivalent) for the Company from the secretary
of state or similar Governmental Authority of the jurisdiction
under the Laws in which the Company is
organized.

 

(f) The
Company shall have delivered, or caused to be delivered, to
Creditor each of the following, each in form and substance
satisfactory to Creditor:

 

(i) stock certificates evidencing the Shares;
and

 

(ii) such
other documents or instruments as Creditor reasonably requests and
are reasonably necessary to consummate the transactions
contemplated by this Agreement.

 

Section 5.03 Conditions to Obligations
of the Company. The
obligations of the Company to consummate the transactions
contemplated by this Agreement shall be subject to the fulfillment
or the Company's waiver, at or prior to the Closing, of each of the
following conditions:

 

(a) The
representations and warranties of Creditor contained in Article IV
shall be true on and as of the Closing with the same effect as
though such representations and warranties had been made on and as
of the Closing Date.

 

(b) This
Agreement shall have been executed and delivered by the parties
thereto and true and complete copies thereof shall have been
delivered to the Company.

 

ARTICLE
VI

COVENANTS

 

Section 6.01 Affirmative Covenants of
the Company. Unless the
Company has received the prior written consent or waiver of
Creditor, the Company shall be subject to each of the following
covenants:

 

(a) The
Company shall at all times maintain under the Laws of the state of
Colorado its valid corporate existence and good standing and (ii)
all material Permits necessary to the conduct of its
businesses.

 

(b) The
Company shall comply with all Laws applicable to it or its
business, properties or assets, the violation of which would
reasonably be expected to have a Material Adverse
Effect.

 

(c) Promptly following the Closing, the Company
shall register the Shares under a Registration Statement on Form
S-1 under the Securities Act (the "Registration
Statement"). The Company
(i) will take all reasonable steps to have the Registration
Statement declared effective as soon as possible, (ii) maintain the
effectiveness of such Registration Statement until all of the
Shares have been sold thereunder or the Shares can be sold pursuant
to Rule 144 of the Securities Act, and (iii) pay all of the
reasonable and customary fees and expenses incurred in connection
with the registration of the Shares. In the event that the Shares
are not registered on the Registration Statement in accordance with
the preceding sentence or the Registration Statement ceases to be
effective at any time, Creditor shall have a right to return any
unsold Shares to the Company for
cancellation.

 

 

 

10

 

 

(d) In the event that for any reason any of the
Shares have not been resold by Creditor as of December 31, 2018,
Creditor may, as its option, return the Shares to the Company for
cancellation. The Company
shall perform and observe all of its obligations and covenants set
forth in this Agreement.

 

Section 6.02  Negative Covenant
of Creditor. Unless
Creditor has received the prior written consent or waiver of the
Company, Creditor shall not sell more than 5% of that day’s
trading volume on any single day.

 

Section 6.03 Debt
Reduction/Application of Net Proceeds. The Debt owed will be
reduced by $1,710,000, which was the fair market value of the
600,000 shares of the Company’s common stock as of Close on
May 15, 2018. The Debt will be increased or decreased, as the case
may be, by the amount received by the Creditor from the Net
Proceeds received by the Creditor from the sale of the Shares. If
the Net Proceeds received by the Creditor from the sale of the
Shares is less than $1,710,000, the Debt will be increased by the
difference between $1,710,000 and the Net Proceeds. If the Net
Proceeds received by the Creditor from the sale of the Shares is
more than $1,710,000, the Debt will be reduced by the difference
between $1,710,000 and the Net Proceeds. Any Net Proceeds received
in excess of the Debt will be applied towards satisfaction of any
future amounts owed to Creditor by the Company in connection with
the Principal Relationship Agreements. The Creditor shall not sell
the Shares to the extent that Net Proceeds exceed the total of $8.2
million or any other total amount pursuant to an amendment of the
Principal Relationship Agreements (“the Ceiling”). If
the Ceiling is achieved with Net Proceeds, the Creditor will return
all unsold Shares to the Company within 30 (thirty) days from
achieving the Ceiling.

 

Section 6.04 Further
Assurances. Following the
Closing, each of the parties hereto shall, and shall cause their
respective Affiliates to, execute and deliver such additional
documents, instruments, conveyances and assurances and take such
further actions as may be reasonably required to carry out the
provisions hereof and give effect to the transactions contemplated
by this Agreement.

 

ARTICLE
VII

INDEMNIFICATION

 

Section 7.01 Survival. The
representations and warranties, covenants and agreements contained
herein shall survive the Closing and shall remain in full force and
effect following the Closing Date.

 

Section 7.02 Indemnification By
Company. Subject to the
other terms and conditions of this ARTICLE VII, the Company shall indemnify and
defend each of Creditor and its Affiliates and their respective
Representatives (collectively, the "Creditor
Indemnitees") against,
and shall hold each of them harmless from and against, and shall
pay and reimburse each of them for, any and all Losses incurred or
sustained by, or imposed upon, the Creditor Indemnitees based upon,
arising out of, with respect to or by reason
of:

 

(a) any
inaccuracy in or breach of any of the representations or warranties
of the Company contained in this Agreement or in any certificate or
instrument delivered by or on behalf of the Company pursuant to
this Agreement; or

 

 

 

11

 

 

(b) any
breach or non-fulfillment of any covenant, agreement or obligation
to be performed by the Company pursuant to this
Agreement.

 

Section 7.03 Payments.
Once a Loss is agreed to by the
Company or finally adjudicated to be payable pursuant to
this ARTICLE VII, the
Company shall satisfy its obligations within 15 Business Days of
such agreement or final, non-appealable adjudication by wire
transfer of immediately available funds.

 

Section 7.04 Tax Treatment of
Indemnification Payments. All indemnification payments made under this
Agreement shall be treated by the parties as an adjustment to the
Net Proceeds for Tax purposes, unless otherwise required by
Law.

 

Section 7.05 Effect of
Investigation. Neither
the representations, warranties and covenants of the Company, nor
the right to indemnification of any Creditor Indemnitee making a
claim under this ARTICLE
VII with respect thereto,
shall be affected or deemed waived by reason of any investigation
made by or on behalf of an Creditor Indemnitee (including by any of
its Representatives) or by reason of the fact that an Creditor
Indemnitee or any of its Representatives knew or should have known
that any such representation or warranty is, was or might be
inaccurate or by reason of an Creditor Indemnitee's waiver of any
condition set forth in Section 5.02.

 

Section 7.06 Exclusive
Remedies. The parties
acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims (other than claims arising from
breach of contract, fraud, criminal activity or willful misconduct
on the part of a party hereto in connection with the transactions
contemplated by this Agreement) for any breach of any
representation, warranty, covenant, agreement or obligation set
forth herein or otherwise relating to the subject matter of this
Agreement, shall be pursuant to the indemnification provisions set
forth in this ARTICLE
VII. In furtherance of the foregoing, each party hereby waives, to
the fullest extent permitted under Law, any and all rights, claims
and causes of action for any breach of any representation,
warranty, covenant, agreement or obligation set forth herein or
otherwise relating to the subject matter of this Agreement it may
have against the other parties hereto and their Affiliates and each
of their respective Representatives arising under or based upon any
Law, except pursuant to the indemnification provisions set forth in
this ARTICLE VII. Nothing
in this Section
7.06 shall limit any
Person's right to seek and obtain any equitable relief to which any
Person shall be entitled or to seek any remedy on account of any
party's fraudulent, criminal or intentional
misconduct.

 

ARTICLE
VIII

MISCELLANEOUS

 

Section 8.01 Expenses.
Except as otherwise expressly
provided herein, all costs and expenses of either party, including,
without limitation, fees and disbursements of counsel, financial
advisors and accountants, incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by
the party who incurred the costs and
expenses.

 

 

12

 

 

Section 8.02 Notices.
All notices, requests, consents,
claims, demands, waivers and other communications hereunder shall
be in writing and shall be deemed to have been given (a) when
delivered by hand (with written confirmation of receipt); (b) when
received by the addressee if sent by a nationally recognized
overnight courier (receipt requested); (c) on the date sent by
facsimile or e-mail of a PDF document (with confirmation of
transmission) if sent during normal business hours of the
recipient, and on the next Business Day if sent after normal
business hours of the recipient or (d) on the seventh day after the
date mailed, by certified or registered mail, return receipt
requested, postage prepaid. Such communications must be sent to the
respective parties at the following addresses (or at such other
address for a party as shall be specified in a notice given in
accordance with this Section 8.02):

 

If to the
Company:

CEL-SCI Corporation

 

8229
Boone Boulevard, Suite 802

 

Vienna,
Virginia 22182

 

Facsimile:
(703) 506-9471

 

E-mail: grkersten@cel-sci.com,

 

Attention: 
Geert Kersten, Chief Executive Officer

 

with a copy to:  

Hart & Hart, LLC

 

Facsimile: 
(303) 839-5414

 

E-mail: harttrinen@aol.com

 

Attention: 
William T. Hart

 

If to
Creditor: 

Ergomed plc

 

The Surrey
Research Park

 

26-28
Frederick Sanger Road

 

Guildford,
Surrey GU2 7YD

 

United
Kingdom

 

Facsimile:
+385 1 4628 501

 

E-mail: stephen.stamp@ergomedplc.com

 

Attention:
Stephen Stamp, Chief Financial Officer

 

with a copy to:

Covington
& Burling LLP

 

265
Strand

 

London
WC2R 1BH

 

Facsimile:

+44 20 7067 2222

 

E-mail: kwiggert@cov.com

 

Attention: 
Kristian Wiggert

 

 

 

 

13

 

 

Section 8.03 Interpretation.
For purposes of this Agreement,
(a) the words "include," "includes" and "including" shall be deemed
to be followed by the words "without limitation"; (b) the word "or"
is not exclusive; and (c) the words "herein," "hereof," "hereby,"
"hereto" and "hereunder" refer to this Agreement as a whole. Unless
the context otherwise requires, references herein: (x) to Articles,
Sections, Disclosure Schedules and Exhibits mean the Articles and
Sections of, and Disclosure Schedules and Exhibits attached to,
this Agreement; (y) to an agreement, instrument or other document
means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted
by the provisions thereof and (z) to a statute means such statute
as amended from time to time and includes any successor legislation
thereto and any regulations promulgated thereunder. This Agreement
shall be construed without regard to any presumption or rule
requiring construction or interpretation against the party drafting
an instrument or causing any instrument to be drafted. The
Disclosure Schedules and Exhibits referred to herein shall be
construed with, and as an integral part of, this Agreement to the
same extent as if they were set forth verbatim
herein.

 

Section 8.04 Headings.
The headings in this Agreement
are for reference only and shall not affect the interpretation of
this Agreement.

 

Section 8.05 Severability.
If any term or provision of this
Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect
any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other
jurisdiction. Upon such determination that any term or other
provision is invalid, illegal or unenforceable, the parties hereto
shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in
a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to
the greatest extent possible.

 

Section 8.06 Entire Agreement.
This Agreement constitutes the
sole and entire agreement of the parties to this Agreement with
respect to the subject matter contained herein and therein, and
supersedes all prior and contemporaneous understandings and
agreements, both written and oral, with respect to such subject
matter. In the event of any inconsistency between the statements in
the body of this Agreement and those in the Exhibits and Disclosure
Schedules (other than an exception expressly set forth as such in
the Disclosure Schedules), the statements in the body of this
Agreement will control.

 

Section 8.07 Successors and
Assigns. This Agreement
shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns.
Neither party may assign its rights or obligations hereunder
without the prior written consent of the other party, which consent
shall not be unreasonably withheld or delayed; provided, that
Creditor may, without the prior written consent of the Company,
assign all or any portion of its rights under this Agreement to one
or more of its direct or indirect wholly-owned subsidiaries. No
assignment shall relieve the assigning party of any of its
obligations hereunder.

 

Section 8.08 No Third-Party
Beneficiaries. Except as
provided in ARTICLE VII,
this Agreement is for the sole benefit of the parties hereto and
their respective successors and permitted assigns and nothing
herein, express or implied, is intended to or shall confer upon any
other Person or entity any legal or equitable right, benefit or
remedy of any nature whatsoever under or by reason of this
Agreement.

 

 

 

14

 

 

Section 8.09 Amendment and
Modification; Waiver. This Agreement may only be amended, modified
or supplemented by an agreement in writing signed by each party
hereto. No waiver by any party of any of the provisions hereof
shall be effective unless explicitly set forth in writing and
signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in
exercising, any right, remedy, power or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or
privilege.

 

Section 8.10 Governing Law; Submission
to Jurisdiction; Waiver of Jury Trial. 

 

(a) This
Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without giving effect to any
choice or conflict of law provision or rule (whether of the State
of New York or any other jurisdiction).

 

(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED
IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS
OF THE STATE OF NEW YORK IN EACH CASE LOCATED IN THE CITY OF NEW
YORK AND COUNTY OF NEW YORK, AND EACH PARTY IRREVOCABLY SUBMITS TO
THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION
OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER
DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN SHALL BE
EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER
PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY
SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE
AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

 

(c) EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO
THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO
REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES
THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION
10.10(c).

 

Section 8.11 Counterparts.
This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all
of which together shall be deemed to be one and the same agreement.
A signed copy of this Agreement delivered by facsimile, e-mail or
other means of electronic transmission shall be deemed to have the
same legal effect as delivery of an original signed copy of this
Agreement.

 

 

[SIGNATURE PAGE
FOLLOWS]

 

 

15

 

 

            

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

 

 

 

CEL-SCI CORPORATION

 

By: /s/ Geert
Kersten

Name: Geert R. Kersten

Title: Chief Executive Officer

 

ERGOMED plc

By:  
/s/ Stephen Stamp

Name: Stephen Stamp

Title: Chief Financial Officer

 

 

 

 

16

 

 

ANNEX A

 

 

 

See
Attached.

 

 

 

17

 

 

 

 

 

 

18

 

 

DISCLOSURE SCHEDULES

 

Section 3.03 Approval of the issuance
of the Shares by the NYSE American.

 

 

EXHIBITS

 

 

 

None.

 

 

 

 

19

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