Document:

exhi4-3.htm

    Exhibit
4.3

     

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO 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 REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

     

     

    Warrant
No. ______

     

     

    COMMON
STOCK PURCHASE WARRANT

     

    To
Purchase ______ Shares of Common Stock of

     

     

    HEMOBIOTECH,
INC.

     

    THIS
COMMON STOCK PURCHASE WARRANT (this “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 of issuance of this
Warrant (the “Initial Exercise
Date”) and on or prior to the five-year anniversary of the Effective Date
(as defined below) (the “Termination Date”) but not
thereafter, to subscribe for and purchase from HemoBioTech, Inc., a Delaware
corporation (the “Company”), up to ______ shares
(the “Warrant Shares”)
of Common Stock, par value $0.001 per share, of the Company (the “Common Stock”). The purchase
price of one share of Common Stock (the “Exercise Price”) under this
Warrant shall be $____1 subject to adjustment thereunder.

     

    In
addition to the terms defined elsewhere in this Warrant the following
capitalized terms shall have the following meanings:

     

    “Business Day” means any day
other than a Saturday, Sunday or legal holiday in the State of
Texas.

     

    “Effective Date” means the date
on which the SEC declares effective a Registration Statement registering for
resale the Warrant Shares of the Holder.

     

    “Person” means an individual or
corporation, partnership, trust, incorporated or

     

    unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or any other entity of any
kind.

     

    1 150% of
per-Unit purchase price.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

     

     “Registration Statement” means
a registration statement filed by the Company with the Securities and Exchange
Commission (“SEC”) for a
public offering and sale of securities of the Company (other than a registration
statement on Form S-8 or Form S-4, or their successors, or any other form for a
limited purpose, or any registration statement covering only securities proposed
to be issued in exchange for securities or assets of another
corporation).

     

    “Subscription Agreement” means
that certain Subscription Agreement entered into between the original Holder of
this Warrant and HemoBioTech, Inc., which provided for, among other things, the
original purchase of this Warrant from HemoBioTech, Inc.

     

    “Trading Day” means (i) a day
on which the Common Stock is traded or quoted on a Trading Market, or (ii) if
the Common Stock is not traded or quoted on a Trading Market, a day on which the
Common Stock is quoted in the over-the-counter market as reported by the
National Quotation Bureau Incorporated (or any similar organization or agency
succeeding to its functions of reporting price); provided, that in the event
that the Common Stock is not traded or quoted as set forth in (i), and (ii)
hereof, that Trading Day shall mean a Business Day.

     

    

    “Trading Market” means the
following markets or exchanges on which the

     

    Common
Stock is listed or quoted for trading on the date in question: the NASDAQ
Capital Market, the American Stock Exchange, the New York Stock Exchange, the
NASDAQ Global Market or the OTC Bulletin Board.

     

     1.           Title to Warrant.
Prior to the Termination Date and subject to compliance with applicable laws and
Section 7 of
this Warrant, this Warrant and all rights here under are transferable, in whole
or in part, at the office or agency of the Company by the Holder in person or by
duly authorized attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto properly endorsed. The transferee shall sign an
investment letter in form and substance reasonably satisfactory to the
Company.

    

    2.           Authorization of
Shares. 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 such purchase rights in accordance with the terms and conditions of
this Warrant, including, without limitation, payment of the Exercise Price, be
duly authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

    

    3.           Exercise
of Warrant.

    

    (a) Exercise of the purchase rights
represented by this Warrant may be made 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, at the office of 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 such Holder appearing on the books of the Company); provided,
however, the Holder shall also have surrendered this Warrant to the Company and
the Company shall have received payment of the aggregate Exercise Price of the
Warrant Shares thereby purchased by wire transfer or cashier’s check drawn on a
United States bank. Certificates for shares purchased hereunder shall be
delivered to the Holder promptly following the latest to occur of delivery to
the Company of the Notice of

    Exercise
Form, surrender of this Warrant and payment of the aggregate Exercise Price as
set forth above. This Warrant shall be deemed to have been exercised and the
Warrant Shares (to which the exercise relates) 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 of the latest to occur of (i) delivery to the Company of the Notice
of Exercise Form, (ii) surrender of this Warrant and (iii) payment of the
aggregate Exercise Price as set forth above and all taxes required to be paid by
the Holder, if any, pursuant to Section 5 (“Exercise Date”).

     

    (b)           If
this Warrant shall have been exercised in part, the Company shall, 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.

    

    (c)           Subject
to the provisions of this Section 3, if there
is (i) an effective Registration Statement registering the resale of the Warrant
Shares by the Holder, and (ii) the weighted average of the closing market share
price of the Common Stock during a period of twenty (20) consecutive Trading
Days (the “Measurement
Period,” which period shall not have commenced until after such
Registration Statement shall have been declared effective by the SEC) equals or
exceeds $___2 (the “Threshold
Price”) (subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common
Stock that occur after the date of the Subscription Agreement), then the Company
may, within fifteen (15) Trading Days of such period or event, call for
cancellation of all or any portion of this Warrant for which a Notice of
Exercise has not yet been delivered (such right, a “Call”). To
exercise

    this
right, the Company must deliver to the Holder an irrevocable written notice (a
“Call Notice”),
indicating therein the unexercised portion of this Warrant to which such notice
applies. Deposit of such Call Notice with a recognized courier service, a
recognized overnight delivery service or with the U.S. Postal Service in
accordance with Section 17(d) within the above fifteen (15) Trading Day period
shall be considered a timely Call. 

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    If the
conditions set forth above for such Call are satisfied, from the period from the
date of the Call Notice through and including the Call Date (as defined below),
then any portion of this Warrant subject to such Call Notice for which a Notice
of Exercise and applicable aggregate Exercise Price shall not have been received
from and after the date of the Call Notice will be cancelled at 6:30 p.m.
(Eastern Time) on the thirtieth (30th)
calendar day after the date the Call Notice is sent to the Holder (such date,
the “Call Date”). Any
unexercised portion of this Warrant to which the Call Notice does not pertain
will be unaffected by such Call Notice. In furtherance thereof, the Company
covenants and agrees that it will honor all Notices of Exercise with respect to
Warrant

     

    2 185% of
the per-Unit purchase price.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Shares
subject to a Call Notice that are tendered, with the applicable aggregate
Exercise Price, from the time of delivery of the Call Notice through 6:30 p.m.
(Eastern Time) on the Call Date. The parties agree that any Notice of Exercise
delivered following a Call Notice shall first reduce to zero the number of
Warrant Shares subject to such Call Notice

    prior to
reducing the remaining Warrant Shares available for purchase under this Warrant.
For example, if (x) this Warrant then permits the Holder to acquire 100 Warrant
Shares, (y) a Call Notice pertains to 75 Warrant Shares, and (z) prior to 6:30
p.m. (Eastern Time) on the Call Date the Holder tenders a Notice of Exercise in
respect of 50 Warrant Shares, then (1) on the Call Date the right under this
Warrant to acquire 25 Warrant Shares will be automatically cancelled, (2) the
Company, in the time and manner required under this Warrant, will have issued
and delivered to the Holder 50 Warrant Shares in respect of the exercise
following receipt of the Call Notice, and (3) the Holder may, until the
Termination Date, exercise this Warrant for 25 Warrant Shares (subject to
adjustment as herein provided and subject to subsequent Call Notices). Subject
again to the provisions of this Section 3(c), the
Company may deliver subsequent Call Notices for any portion of this Warrant for
which the Holder shall not have delivered a Notice of Exercise. The Company’s
right to Call the Warrant shall be exercised ratably among all holders of
warrants issued pursuant to Subscription Agreements entered into as part of the
same financing.

    

     

    (d)           If
as of one (1) year following the Initial Exercise Date, there is
not

     

    a
Registration Statement permitting the resale of all of the Warrant Shares
issuable under this Warrant at the time a Notice of Exercise Form is delivered
to the Company (either  due to the inability of the Company to either
have the SEC declare such Registration Statement effective on or prior to such
date or to maintain the effectiveness of such Registration Statement for the
duration of the period prescribed in the Registration Statement), the Holder may
initiate a cashless exercise (a “Cashless Exercise”), as
hereinafter provided. The Holder may effect a Cashless Exercise by surrendering
this Warrant to the Company and noting on the Notice of Exercise Form that the
Holder wishes to effect a Cashless Exercise, upon which the Company shall issue
to the Holder

     

    
      	
               
      

            	
              the
      number of Warrant Shares determined as
follows:

            

    

    
      	
               
      

            	
              X =
      Y x (A-B)/A

            

    

    
      	
               
      

            	
              where:

            

    

    
      	
               
      

            	
              X =
      the number of Warrant Shares to be issued to the
  Holder;

            

    

    Y = the number of Warrant Shares with
respect to which this Warrant is

     

    being exercised;

     

    A = the Market Price (as defined in
Section 2.3 below) as of the Exercise

     

    Date; and

     

    B = the Exercise Price.

     

    For purposes of Rule 144 under the
Securities Act, it is intended and acknowledged that the Warrant Shares issued
in a Cashless Exercise transaction shall be deemed to have been acquired by the
Holder, and the holding period for the Warrant Shares required by Rule 144 shall
be deemed to have been commenced, on the date this

     

    Warrant
was originally issued by the Company.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    4.           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.

     

    5.           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.

     

    6.           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.

     

     

    7.           Transfer,
Division and Combination.

     

    
      	
              (a)

            	
              Subject
      to compliance with any applicable securities laws and the conditions set
      forth in Sections 1 and 7(e) hereof and in the Subscription Agreement,
      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, 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.

            

    

    
      	
              (b)

            	
              This
      Warrant may be divided or combined with other Warrants (if such other
      Warrants are upon the same terms, other than number of Warrant Shares, as
      this Warrant) 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 7(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.

            

    

    

    
      	
              (c)

            	
              The
      Company shall prepare, issue and deliver at its own expense (other than
      transfer taxes) the new Warrant or Warrants under this Section
      7.

            

    

    
      	
              (d)

            	
              The
      Company agrees to maintain, at its aforesaid office, books for the
      registration and the registration of transfer of the
    Warrants.

            

    

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    
      	
              (e)

            	
              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 and under
      applicable state securities or blue sky laws, the Company may require, as
      a condition of allowing such transfer (i) that the Holder or transferee of
      this Warrant, as the case may be, furnish to the Company a written opinion
      of counsel reasonably acceptable to the Company (which opinion shall be in
      form, substance and scope customary for opinions of counsel in comparable
      transactions) to the effect that such transfer may be made without
      registration under the Securities Act and under applicable state
      securities or blue sky laws, (ii) that the holder or transferee execute
      and deliver to the Company an investment letter in form and substance
      acceptable to the Company and (iii) that the transferee be an “accredited
      investor” as defined in Rule 501 promulgated under the Securities Act or a
      qualified institutional buyer as defined in Rule 144A(a) under the
      Securities Act.

            

    

    

    
      	
              8.

            	
              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. Upon the exercise of this Warrant,
      the Warrant Shares so purchased shall be, and be deemed to be, issued to
      such Holder as the record owner of such shares as of the close of business
      on the Exercise Date with respect to such
  exercise.

            

    

     

    9.           Loss, Theft, Destruction or
Mutilation of Warrant. The Company

     

    covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant, and in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it,
and upon surrender and cancellation of such Warrant, if mutilated, the Company
will make and deliver a new Warrant of like tenor and dated as of such
cancellation, in lieu of such Warrant.

     

     

    10.           Business Days. 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.

     

     

    11.           Adjustments of Exercise
Price and Number of Warrant Shares; Stock Splits, etc. The number and
kind of securities purchasable upon the exercise of this Warrant and the
Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. 

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    Upon each
such adjustment of the kind and number of Warrant Shares or other securities of
the Company which are purchasable hereunder, the Holder shall thereafter be
entitled to purchase the number of Warrant Shares or other securities resulting
from such adjustment at an Exercise Price per Warrant Share or other security
obtained by multiplying the Exercise Price in effect immediately prior
to  such adjustment by the number of Warrant Shares purchasable
pursuant hereto immediately prior to such adjustment and dividing by the number
of Warrant Shares or other securities of the Company that are purchasable
pursuant hereto immediately after such adjustment. An adjustment made pursuant
to this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event. For example,
if the Company declared a 1- for-4 reverse stock split and 400 Warrant Shares
were purchasable hereunder, then immediately after such 1-for-4 reverse stock
split the Warrant Shares purchasable hereunder would become 100 and the Exercise
Price would become $____3 per share. Such Exercise Price is obtained by
multiplying the current $____ Exercise Price by 400 Warrant Shares purchasable
under this example and dividing the product by 100 Warrant Shares purchasable
after the 1-for-4 reverse stock split.

     

    

    12.           Reorganization,
Reclassification, Merger, Consolidation or Disposition of Assets. In case
the Company shall reorganize its capital, reclassify its capital stock,
consolidate or merge with or into another corporation (where the Company is not
the surviving corporation or where there is a change in or distribution with
respect to the Common Stock of the Company), or sell, transfer or otherwise
dispose all or substantially all of its property, assets or business to another
corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the
successor or acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (including warrants or other
subscription or purchase rights) in addition to or in lieu of common stock of
the successor or acquiring corporation (“Other Property”), are to be received by
or distributed to the holders of Common Stock of the Company, then the Holder
shall have the right thereafter to receive, upon exercise of this Warrant, the
number of shares of common stock of the successor or acquiring corporation or of
the Company, if it is the surviving corporation, and Other Property receivable
upon or as a result of such reorganization, reclassification, 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. In case of any such reorganization, reclassification, merger,
consolidation or disposition of assets (“Extraordinary Transaction”), the
successor or acquiring corporation (if other than the Company) shall expressly
assume the due and punctual observance and performance of each and every
covenant and condition of this Warrant to be performed and observed by the
Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined in good faith by
resolution of the Board of Directors of the Company) in order to provide for
adjustments of Warrant Shares for which this Warrant is exercisable which shall
be as nearly equivalent as practicable to the adjustments provided for in this
Section 12. As soon as commercially practicable following the Extraordinary
Transaction, the successor or acquiring corporation (if other than the Company),
shall deliver to Holder a new warrant in replacement of this Warrant consistent
with the provisions referenced in the immediately preceding sentence against
receipt by such successor or acquiring corporation of the original of this
Warrant. For purposes of this Section 12, “common stock of the successor or
acquiring corporation” shall 3 Exercise Price multiplied by 4. include stock of
such corporation of any class which is not preferred as to dividends or assets
over any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 12 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    13.           Voluntary Adjustment by the
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.

     

     

    14.           Notice of Adjustment.
Whenever the number of Warrant Shares or number or kind of securities or other
property purchasable upon the exercise of this Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall give notice thereof to the
Holder, which notice shall state the number of Warrant Shares (and other
securities or property) purchasable upon the exercise of this Warrant and the
Exercise Price of such Warrant Shares (and other securities or property) after
such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was
made.

     

     

    15.           Notice
of Corporate Action. If at any time:

     

     

    (a)           the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of stock
of any class or any other securities or property, or to receive any other right,
or

     

     

    (b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with (other than a consolidation or merger in which the
Company is the surviving corporation), or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation, or

     

     

    (c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

     

     

    then, in
any one or more of such cases, the Company shall give to Holder (i) at least
fifteen (15) days’ prior written notice of the date on which a record date shall
be selected for such dividend, distribution or right or for determining rights
to vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least
fifteen (15) days’ prior written notice of the date when the same shall take
place. 

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

     

     

    16.           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 “Required Minimum”). If, on any
date, the number of authorized but unissued (and otherwise unreserved) shares of
Common Stock is less than the Required Minimum on such date, then the Board of
Directors of the Company shall use commercially reasonable efforts to amend the
Company’s certificate or articles of incorporation to increase the number of
authorized but unissued shares of Common Stock to at least the number of shares
of Common Stock that would result from the full exercise of the Warrant Shares
at such time, as soon as possible and in any event not later than the 75th day
after such date. 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.

     

     

    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. 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.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    17.           Miscellaneous.

     

    
      	
              (a)

            	
              Governing
      Law. This Warrant shall be governed by and construed in accordance with
      the internal laws of the State of Delaware without regard to the conflicts
      of law principles thereof. The parties hereto hereby irrevocably agree
      that any suit or proceeding arising directly and/or indirectly pursuant to
      or under this Warrant, shall be brought solely in a federal or state court
      located in the State of Delaware. By its execution hereof, the parties
      hereby covenant and irrevocably submit to the in personam jurisdiction
      of the federal and state courts located in the State of Delaware and agree
      that any process in any such action may be served upon any of them
      personally, or by certified mail or registered mail upon them or their
      agent, return receipt requested, with the same full force and effect as if
      personally served upon them in the State of Delaware. The parties hereto
      waive any claim that any such jurisdiction is not a convenient forum for
      any such suit or proceeding and any defense or lack of in personam jurisdiction
      with respect thereto.

            

    

    

    
      	
              (b)

            	
              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.

            

    

    

    
      	
              (c)

            	
              Nonwaiver and
      Attorneys’ Fees. 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 any
action, suit, arbitration or other proceeding for the enforcement of this
Warrant is brought with respect to or because of an alleged dispute, breach,
default or misrepresentation in connection with any of the provisions hereof,
the successful or prevailing party shall be entitled to recover reasonable
attorneys’ fees and other costs incurred in that proceeding, in addition to any
other relief to which it or he may be entitled.

     

    
      	
              (d)

            	
              Notices. All
      notices that are required or may be given pursuant to this Warrant must be
      in writing and delivered personally, by a recognized courier service, by a
      recognized overnight delivery service, or by registered or certified mail,
      postage prepaid, to the parties at the following addresses (or to the
      attention of such other Person or such other address as any party may
      provide to the other parties by notice in accordance with this
      section):

            

    

    

     

    If to the Holder:

     

    [Address and Telephone]

     

    If to the Company:

     

    
      	
               
      

            	
              5001
      Spring Valley Rd.

            

    

    
      	
               
      

            	
              Suite
      1040 - West

            

    

    
      	
               
      

            	
              Dallas,
      Texas 75244

            

    

    
      	
               
      

            	
              Attention:
      Dr. Arthur P. Bollon

            

    

    
      	
               
      

            	
              Telephone:
      (972) 455-8950

            

    

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    With a copy to:

     

    
      	
               
      

            	
              Greenberg
      Traurig, LLP

            

    

    
      	
               
      

            	
              Met
      Life Building

            

    

    
      	
               
      

            	
              200
      Park Avenue

            

    

    
      	
               
      

            	
              New
      York, New York 10166

            

    

    
      	
               
      

            	
              Attention:
      Robert H. Cohen, Esq.

            

    

    
      	
               
      

            	
              Telephone:
      (212) 801-9200

            

    

    

    

    Any such
notice or other communication will be deemed to have been given
and  received (whether actually received or not) on the day it is
personally delivered or delivered by courier or overnight delivery service or,
if mailed, when actually received.

    

    
      	
              (e)

            	
              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 the defense in any action for specific performance that a
      remedy at law would be adequate.

            

    

    

    
      	
              (f)

            	
              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.

            

    

    

    
      	
              (g)

            	
              Amendment. This
      Warrant may be modified or amended only with the written consent of the
      Company and the Holder. Waiver of any provision of this Warrant shall be
      in writing.

            

    

    

    
      	
              (h)

            	
              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.

            

    

    

    
      	
              (i)

            	
              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.

            

    

    

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Warrant to be executed by its officer thereunto duly
authorized.

     

    

     

    Dated:
___________, 2007

     

     

                                  HEMOBIOTECH, INC.

     

                                  By:__________________________________

     

                                     Dr. Arthur P.
Bollon, Ph.D., Chief Executive Officer

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    NOTICE
OF EXERCISE

     

    To:                      HemoBioTech,
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 lawful money of the United
  States.

            

    

    

    
      	
               
      

            	
              (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

            

    

    

         ____________________

    

    
      	
               
      

            	
              ____________________

            

    

    

    
      	
               
      

            	
              ____________________

            

    

    

    

    

    
      	
               
      

            	
               (4)
      Accredited Investor. The undersigned is an “accredited investor” as
      defined in Regulation D under the Securities Act of 1933, as
      amended.

            

    

    

    
      	
               
      

            	
                                                                [PURCHASER]

            

    

    
      	
               
      

            	
                                                                By:
      ______________________________

            

    

                              Name:

     

                              Title:

     

                              Dated:
________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    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, 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.exhibit10-1.htm

    Exhibit 10.1

     

     

    
      

       

      EXCHANGE
AGREEMENT

       

       

      BY
AND BETWEEN

       

       

      MERRILL
LYNCH & CO., INC

       

       

      AND

       

       

      BLACKROCK,
INC.

       

       

      

       

       

      Dated
as of December 26, 2008.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      EXCHANGE
AGREEMENT

       

      THIS EXCHANGE AGREEMENT (this
"Agreement")
is made and entered into as of December 26, 2008 by and among Merrill Lynch
& Co., Inc., a Delaware corporation ("Merrill
Lynch") and BlackRock, Inc., a Delaware corporation ("BlackRock").

       

      WHEREAS,
BlackRock and Merrill Lynch are parties to an Amended and Restated Stockholder
Agreement, dated as of July 16, 2008 (as so amended and restated, the "Merrill Lynch
Stockholder Agreement");

       

      WHEREAS,
on September 15, 2008, Merrill Lynch entered into a merger agreement with Bank
of America Corporation ("Bank of
America"), pursuant to which, effective as of the closing of the
transactions contemplated thereby, a subsidiary of Bank of
America  will merge with and into Merrill Lynch (the "Merrill Lynch
Merger");

       

      WHEREAS,
the Merrill Lynch Merger shall constitute a Change of Control of Merrill Lynch
under the terms of the Merrill Lynch Stockholder Agreement;

       

      WHEREAS,
in connection with the Merrill Lynch Merger and the Merger Change of Control,
BlackRock and Merrill Lynch propose to enter into a series of transactions
whereby Merrill Lynch will exchange (i) 49,865,000 shares of BlackRock Common
Stock (as defined herein) for a like number of shares of Series B Preferred
Stock (as defined herein) and (ii) 12,604,918 shares of Series A Preferred Stock
(as defined herein) for a like number of shares of Series B Preferred Stock (the
"Merrill
Lynch Exchanges"); and

       

      WHEREAS,
concurrently with the Merrill Lynch Exchanges, the PNC Financial Services Group,
Inc. ("PNC") will
exchange (i) 17,872,000 shares of BlackRock Common Stock for a like number of
shares of Series B Preferred Stock and (ii) up to 2,940,866 shares of Common
Stock for a like number of shares of Series C Preferred Stock (as defined
herein) (the "PNC
Exchanges" and
together with the Merrill Lynch Exchanges, the "Exchange
Transactions");

       

      NOW,
THEREFORE, in consideration of the foregoing, of the mutual promises herein set
forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is hereby agreed as
follows:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
I

       

      EXCHANGE

       

      Section 1.1  
Exchange
of
Merrill
Lynch Common Shares.  Under the terms and subject to conditions hereof and in reliance upon
the representations, warranties and agreements contained herein, at the
Closing (as defined
below), Merrill Lynch shall exchange or cause to be exchanged (a) 49,865,000 shares (the "Merrill
Lynch Common Shares") of common stock, par value $0.01 per share, of BlackRock (the "Common
Stock"), owned by Merrill Lynch and its subsidiaries, for a like number of shares (the "Common Exchange
Shares") of series B non-voting convertible participating preferred
stock, par value
$0.01 per share
("Series
B Preferred
Stock"), of BlackRock, and (b) 12,604,918 shares (the
"Merrill
Lynch Series A Shares") of
series A convertible participating preferred stock, par value $0.01 per
share, of BlackRock (the "Series
A Preferred Stock") for a like number of shares of Series B
Preferred Stock (together with the Common Exchange Shares, the "Exchange
Shares"), in each case as appropriately adjusted
for any stock split, combination, reorganization, recapitalization,
reclassification, stock dividend, stock distribution or similar event
declared or effected prior to the Closing.

       

      Section 1.2  
Closing.  The closing (the
"Closing") of the exchange of the Merrill Lynch Common Shares for the Exchange Shares shall be held at the offices of
Skadden, Arps, Slate,
Meagher & Flom LLP,
Four Times Square, New
York, New York, subject to
the satisfaction or waiver of the conditions set forth in Articles V and VI
herein, on the later of (a) December 31, 2008; or (b) the second business day following the
date on which all
of the necessary regulatory approvals relating to the Exchange
Transactions have
been received from
jurisdictions other than
the United States (the
"Foreign
Approvals"), or
at such other time, date or
place as Merrill Lynch
and BlackRock may agree in
writing.  The
date on which the Closing occurs is hereinafter referred to as the "Closing
Date."

       

      Section 1.3  
Deliveries.

       

      (a)   At the Closing, Merrill Lynch shall deliver or cause to be delivered to BlackRock the following (collectively, the
"Merrill
Lynch Closing
Deliveries"):

       

      (i)    
one or more certificates registered in Merrill Lynch's name (or, as applicable, the person in whose
name any certificate delivered is registered) representing the Merrill Lynch Common Shares and the Merrill Lynch Series A
Shares;

       

      (ii)   
one or more duly executed stock powers evidencing the transfer of the
Merrill Lynch Common Shares
and the Merrill Lynch
Series A Shares from
Merrill Lynch or such
subsidiaries to
BlackRock and in such form satisfactory to
BlackRock as shall be effective to vest in
BlackRock good and valid title to the Merrill Lynch Common Shares and the Merrill Lynch Series A
Shares, free and clear of
any Lien (as defined below);

       

      (iii)   
the Second Amended and Restated
Stockholder Agreement among BlackRock, Merrill Lynch and the parties named
therein in
the

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      form attached as Exhibit A hereto (the "Amended
Merrill Lynch Stockholder Agreement") duly executed by Merrill
Lynch and Merrill Lynch Group, Inc.;

       

      (iv)  with respect to each registered holder of Merrill Lynch Common Shares or
Merrill Lynch Series A Shares represented by the certificates delivered pursuant
to Section 1.3(a)(i), a certificate executed by such registered holder stating that such registered holder is not a "foreign person" within the
meaning of Section 1445 of the Internal Revenue Code of 1986, as
amended, which certificate
shall set forth all information required by, and otherwise be executed in
accordance with, Treasury Regulation Section 1.1445-2(b)(2).

       

      (b)   At the Closing, BlackRock shall deliver to Merrill Lynch the following (collectively, the
"BlackRock Closing
Deliveries"):

       

      (i)    
one or more certificates registered in Merrill Lynch's name (or the name(s) of one or more
subsidiaries of Merrill Lynch that it shall so designate in writing)
representing the
Exchange Shares;

       

      (ii)   
the Amended Merrill Lynch Stockholder
Agreement duly executed by
BlackRock;
and

       

      (iii)   
the Certificate of Designations, Powers,
Preferences and Rights of Series B Convertible Participating Preferred Stock of
BlackRock, Inc., in the form attached as Exhibit B hereto (the "Series
B Certificate of Designations") duly executed by BlackRock and
certified by the Secretary of State of the State of
Delaware.

       

      ARTICLE
II

       

      REPRESENTATIONS AND
WARRANTIES OF
MERRILL LYNCH

       

      Merrill
Lynch represents and warrants to BlackRock, as follows:

       

      Section 2.1  
Title to
Merrill
Lynch Common Shares.  As of the Closing, Merrill Lynch will own, directly or indirectly, and deliver the Merrill Lynch Common Shares and the Merrill Lynch Series A
Shares free and clear of
any and all option, call, contract, commitment, mortgage, pledge, security
interest, encumbrance,
lien, tax, claim or charge of any kind or right
of others of whatever nature (collectively, a "Lien") of any kind.

       

      Section 2.2  
Authority
Relative to this Agreement and the
Amended Merrill Lynch Stockholder
Agreement.  Merrill Lynch has the requisite
corporate power and
authority to execute and deliver this Agreement and the Amended Merrill Lynch
Stockholder Agreement and to consummate the transactions contemplated hereby and
thereby.  The execution and delivery of this Agreement and the Amended
Merrill Lynch Stockholder Agreement by Merrill Lynch,
and

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      the consummation by Merrill Lynch of the
transactions contemplated hereby and thereby have been duly authorized by
Merrill Lynch's board of directors, and no other corporate or stockholder
proceedings on the part of Merrill Lynch are necessary to
authorize this Agreement, or the Amended Merrill Lynch Stockholder Agreement, or
for Merrill Lynch to consummate the transactions contemplated hereby or
thereby.  This Agreement and the Amended Merrill Lynch Stockholder
Agreement have been duly and validly
executed and delivered by Merrill Lynch and, assuming the due authorization,
execution and delivery thereof by BlackRock, constitute the valid and binding
obligations of Merrill Lynch, enforceable against it in accordance with their respective terms, except as
may be limited by bankruptcy, insolvency or other equitable
remedies.

       

      Section 2.3  
Governmental
Approvals.  Other than the Foreign Approvals,
no material consent, approval, authorization or
order of, or registration, qualification or filing with, any court, regulatory
authority, governmental body or any other third party is required to be obtained
or made by Merrill Lynch for the execution, delivery or performance by Merrill
Lynch of this Agreement
or the Amended Merrill
Lynch Stockholder Agreement
or the consummation by Merrill Lynch of the transactions contemplated
hereby or
thereby.

       

      Section 2.4  
Receipt of
Information.  Merrill Lynch has received all the information it
considers necessary or appropriate for deciding whether to acquire the
Exchange Shares.  Merrill Lynch has had an opportunity to ask questions
and receive answers from BlackRock regarding the terms and conditions of
the offering of the Exchange Shares and the business and financial
condition of BlackRock and to obtain additional information (to the extent BlackRock possessed such information or could
acquire it without unreasonable effort or expense) necessary to verify the
accuracy of any information furnished to it or to which it had
access.   Merrill Lynch has not received, and is not relying on, any representations or
warranties from BlackRock, other than as provided
herein.

       

      Section 2.5  
Restricted
Securities.  Merrill Lynch understands that the Exchange Shares may not be sold, transferred or
otherwise disposed of without registration under the Securities Act of 1933, as amended (the "Securities
Act") or an exemption therefrom, and that in
the absence of an effective registration statement covering the Exchange Shares or an available exemption from
registration under the Securities Act, the Exchange Shares must be held
indefinitely.  In particular, Merrill Lynch is aware that the Exchange Shares may not be sold pursuant to Rule 144
promulgated under the Securities Act unless all of the conditions of the
rule are
met.

       

      Section 2.6  
Legends.  It is understood that, in addition to the legend
required by the Amended Merrill Lynch Stockholder Agreement, the certificates evidencing the
Exchange Shares will bear the following legend: 

       

      "These
securities have not been registered under the Securities Act of 1933, as
amended.  They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect
to the securities under such Act or an opinion of counsel satisfactory to
BlackRock, Inc. that such registration is not required."

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE
III

       

      REPRESENTATIONS AND
WARRANTIES OF BLACKROCK

       

      Section 3.1  
Exchange
Shares.  The Exchange Shares and the shares of Common Stock issuable
upon conversion of the Exchange Shares have been duly and validly authorized,
and, when issued upon the terms hereof, will be fully paid, nonassessable and
free of statutory preemptive rights and contractual stockholder preemptive
rights, with no personal liability attaching to the ownership
thereof.

       

      Section 3.2  
Authority
Relative to this
Agreement
and the
Amended
Merrill Lynch
Stockholder
Agreement.  BlackRock has the requisite corporate power and
authority to execute and deliver this Agreement and the Amended Merrill Lynch Stockholder
Agreement and, as of the Closing, will have the
requisite corporate power and authority to consummate the transactions contemplated
hereby and
thereby.  The
execution and delivery of this Agreement and the Amended Merrill Lynch Stockholder
Agreement by BlackRock have been, and as of the Closing, the consummation by BlackRock of the transactions contemplated hereby and thereby will have been, duly authorized by BlackRock's board of directors (including a majority of BlackRock's
Independent Directors (as
defined in the Merrill
Lynch Stockholder Agreement), and no other corporate or stockholder
proceedings on the part of
BlackRock are necessary to authorize this
Agreement and the Amended Merrill Lynch Stockholder
Agreement or, as of the Closing, will be
necessary for BlackRock to consummate the transactions
contemplated hereby or
thereby.  This
Agreement and the Amended Merrill Lynch Stockholder
Agreement have been duly and validly executed and
delivered by BlackRock and, assuming the due authorization,
execution and delivery thereof by Merrill Lynch, constitute the valid and binding
obligations of BlackRock, enforceable against BlackRock in accordance with their terms, except as may be limited by
bankruptcy, insolvency or other equitable remedies.

       

      Section 3.3  
Governmental
Approvals. Other than the Foreign Approvals,
no material consent, approval, authorization or
order of, or registration,
qualification or filing with, any court, regulatory authority, governmental body
or any other third party is required to be obtained or made by BlackRock for the
execution, delivery or performance by BlackRock of this Agreement or the Amended Merrill Lynch Stockholder
Agreement or the consummation by BlackRock of the transactions contemplated
thereby, except those contemplated hereby or thereby.

       

      ARTICLE
IV

       

      ADDITIONAL
AGREEMENTS

       

      Section 4.1  
Compliance
with Merrill
Lynch Stockholder Agreement and Related Agreements.  (a) The parties intend that this Agreement
and the transactions
contemplated hereby be
consistent with the conditions and restrictions applicable to the parties and/or
their affiliates pursuant to the Merrill Lynch Stockholder
Agreement.  BlackRock and Merrill Lynch shall take all commercially reasonable
actions necessary, and deliver any necessary consent or
waiver, to (i) comply with the provisions of
the Merrill Lynch Stockholder

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      Agreement relating to the exchange of the Merrill Lynch Common Shares and the Merrill Lynch Series A
Shares for the Exchange Shares pursuant hereto and (ii) obtain the Foreign
Approvals.

       

      (b)   For purposes of the consummation of the
Exchange Transactions, and, in the case of both clauses (i) and (ii) of this Section
4.1(b), solely with respect, and to the extent necessary, to effect the
consummation of the Exchange Transactions, but not with respect to any other
transaction involving BlackRock Capital Stock (as defined in the
Merrill Lynch Stockholder Agreement), (i)
Merrill Lynch hereby consents to and waives any rights it may have under
Sections 2.3, 3.5, 4.2(b), 4.2(c)(vii), 4.4 and 4.7 of the Merrill Lynch
Stockholder Agreement, and (ii) Merrill Lynch agrees that the agreement to
make, or cause to be made, the Merrill
Lynch Exchanges constitutes an amendment of Section 3.5(b) of the Merrill Lynch
Stockholder Agreement.  Merrill Lynch further acknowledges and agrees
that none of the transactions contemplated by this agreement or any other Transaction Agreement constitute a
"Change of Control of BlackRock" under the Amended and Restated Global
Distribution Agreement, dated as of July 16, 2008, by and between BlackRock and
Merrill Lynch.

       

      (c)   For purposes of the consummation of the
Exchange Transactions, and,
in the case of both clauses (i) and (ii) of this Section 4.1(c), solely with
respect, and to the extent necessary, to effect the consummation of the Exchange
Transactions, but not with respect to any other transaction involving
BlackRock Capital Stock, (i)  BlackRock
hereby consents to and waives any rights it may have under Sections 3.5 and 4.7
of the Merrill Lynch Stockholder Agreement and (ii) BlackRock agrees that the
agreement to make, or cause to be made, the Merrill Lynch Exchanges constitutes an amendment of Section
3.5(b) of the Merrill Lynch Stockholder Agreement.

       

      Section 4.2  
Commercially
Reasonable Efforts.
 The parties shall each cooperate with
each other and use (and shall cause their respective subsidiaries to use) their
respective commercially
reasonable efforts to promptly take or cause to be taken all necessary actions,
and do or cause to be done all things, necessary, proper or advisable under this
Agreement or the Merrill
Lynch Stockholder
Agreement and applicable
laws to consummate and make
effective all the transactions contemplated by this Agreement as soon as
practicable.

       

      Section 4.3  
Public
Announcements.  Except as may be required
by applicable law, no party hereto shall make any public announcements or
otherwise communicate with any news media with respect to this Agreement or
any of the transactions contemplated hereby, without prior consultation with the
other parties as to the timing and contents of any such announcement or
communications; provided, however, that nothing contained herein shall prevent any party from promptly
making all filings with any governmental entity or disclosures with the stock
exchange, if any, on which such party's capital stock is listed, as may, in
its judgment, be required in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      ARTICLE
V

       

      CONDITIONS TO CLOSING OF
BLACKROCK

       

      The
obligation of BlackRock to acquire the Merrill Lynch Common Shares and the
Merrill Lynch Series A Shares from Merrill Lynch and to issue the Exchange
Shares to Merrill Lynch at the Closing is subject to the fulfillment to
BlackRock's satisfaction on or prior to the Closing Date of each of the
following conditions:

       

      Section 5.1  
Representations
and Warranties.  Each representation and
warranty made by
Merrill Lynch in Article II above shall be true and
correct on and as of the Closing Date as though made as of the Closing
Date.

       

      Section 5.2  
Performance.  All covenants, agreements
and conditions contained in this Agreement to be performed or complied with by
Merrill Lynch on or prior to the Closing Date shall
have been performed or complied with by Merrill Lynch, as applicable, in all
respects.

       

      Section 5.3  
Certificates
and Documents.  Merrill Lynch shall have delivered at or prior to the
Closing to BlackRock
or its designee the Merrill Lynch Closing Deliveries.

       

      Section 5.4  
Merrill
Lynch Merger.  The Merrill Lynch Merger
shall have occurred.

       

      Section 5.5  
PNC
Exchanges.  Simultaneously with the
Closing, PNC shall consummate the PNC Exchanges, whereby
PNC shall have exchanged 17,872,000 shares of Common Stock for a like number of shares of Series B Preferred Stock and 2,900,000 shares of Common Stock for a like number of shares of BlackRock's Series C non-voting convertible
participating preferred stock, par value $0.01 per share (the "Series
C Preferred
Stock"), with such terms substantially as set
forth in the Certificate of Designations, Powers,
Preferences and Rights of Series C Convertible Participating Preferred Stock of
BlackRock, Inc., in the form attached as Exhibit C hereto (the "Series
C
Certificate
of Designations"), pursuant to an exchange agreement
between PNC and BlackRock (the "PNC
Exchange Agreement"), substantially in the form of Exhibit D hereto.

       

      Section 5.6  
PNC
Stockholder Agreement.  At or prior to the Closing,
BlackRock and PNC shall have entered into the Amended and Restated
Stockholder Agreement substantially in the form of Exhibit E hereto.

       

      Section 5.7  
Foreign
Approvals. 
The Foreign Approvals shall have been received.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      ARTICLE
VI

       

      CONDITIONS TO CLOSING OF
MERRILL
LYNCH

       

      The
obligation of Merrill Lynch to acquire the Exchange Shares from BlackRock, and
to transfer the Merrill Lynch Common Shares and the Merrill Lynch Series A
Shares to BlackRock, at the Closing is subject to the fulfillment to Merrill
Lynch's satisfaction on or prior to the Closing Date of each of the following
conditions:

       

      Section 6.1  
Representations
and Warranties.  Each representation and
warranty made by BlackRock in Article III above shall be true and correct
on and as of the Closing
Date as though made as of the Closing Date.

       

      Section 6.2  
Performance.  All covenants,
agreements and conditions
contained in this Agreement to be performed or complied with by BlackRock on or prior to the Closing Date shall
have been performed or complied with by BlackRock in all respects.

       

      Section 6.3  
Certificates
and Documents.  BlackRock shall have delivered at or prior to the Closing to
Merrill Lynch the BlackRock Closing Deliveries.

       

      Section 6.4  
Merrill
Lynch Merger.  The Merrill Lynch Merger
shall have occurred.

       

      Section 6.5  
PNC
Exchanges.  Simultaneously with the Closing,
BlackRock and PNC shall have consummated the PNC Exchanges pursuant to the PNC Exchange Agreement,
with terms substantially as set forth in Exhibit E
hereto.

       

      Section 6.6  
PNC
Stockholder Agreement.  At or prior to the Closing,
BlackRock and PNC shall have entered into the Amended and Restated Stockholder
Agreement substantially in
the form of Exhibit E hereto.

       

      Section 6.7  
Foreign
Approvals. 
The Foreign Approvals shall have been received.

       

      ARTICLE
VII

       

      MISCELLANEOUS

       

      Section 7.1  
Termination.  This Agreement may be
terminated prior to the Closing as follows: (i) at any time on or prior to the Closing
Date, by mutual written
consent of Merrill
Lynch and BlackRock; (ii) at the election of Merrill Lynch or BlackRock by written notice to the other
party hereto after 5:00 p.m., New York time,
on March 31, 2009, if the Closing shall not have
occurred, unless such date
is extended by the mutual written consent of Merrill Lynch and BlackRock; provided, however, that the right to
terminate this Agreement pursuant to this clause (ii) shall not be available to
a party whose failure or whose affiliate's

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      failure to perform or observe in any material respect any of
its obligations under this Agreement in any manner shall have been the principal
cause of or resulted in the failure of the Closing to occur on or before such
date; or (iii) at the
election of Merrill Lynch or BlackRock by written notice to the other party
if the PNC Exchange Agreement is terminated prior to the Closing either because any Foreign Approval has not
been obtained prior to March 31, 2009 or any Foreign Approval has been
denied.

       

      Section 7.2  
Savings
Clause.  No
provision of this Agreement
shall be construed to require any party or its affiliates to take any action
that would violate any applicable law (whether statutory or common), rule or
regulation.

       

      Section 7.3  
Amendment
and Waiver.  Except as otherwise
provided herein, this Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties
hereto.  The failure of any party to enforce any of the provisions of
this Agreement shall in no way be construed as a waiver of such provisions and
shall not affect the right of such party
thereafter to enforce each and every provision of this Agreement in accordance
with its terms.

       

      Section 7.4  
Severability.  If any provision of this
Agreement shall be declared by any court of competent jurisdiction to be
illegal, void or
unenforceable, all other provisions of this Agreement shall not be affected and
shall remain in full force and effect.

       

      Section 7.5  
Entire
Agreement.  Except as otherwise
expressly set forth herein, this Agreement, together with the several agreements
and other documents and
instruments referred to herein or therein or annexed hereto, embody the complete
agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or
representations by or among the parties,
written or oral, that may have related to the subject matter hereof in any
way.  Without limiting the generality of the
foregoing, to the extent that any of the terms hereof are inconsistent with the
rights or obligations of
Merrill Lynch under any other agreement with BlackRock, the terms of this
Agreement shall govern.

       

      Section 7.6  
Successors
and Assigns.  Neither this Agreement nor
any of the rights or obligations of any party under this Agreement shall be
assigned, in whole or in
part by any party without the prior written consent of the other
parties.

       

      Section 7.7  
Counterparts.  This Agreement may be
executed in separate counterparts each of which shall be an original and all of
which taken together shall constitute one and the same agreement.

       

      Section 7.8  
Remedies.

       

      (a)   Each party hereto acknowledges that
monetary damages would not be an adequate remedy in the event that each and
every one of the covenants or agreements in this Agreement are not performed in
accordance with their terms, and it is therefore agreed that, in addition to and without
limiting any other remedy or right it may have, the non-breaching party will
have the right to an injunction, temporary restraining order or other equitable
relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically
each and

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      every one of the terms and provisions
hereof.  Each party hereto agrees not to oppose the granting of such
relief in the event a court determines that such a breach has occurred, and to
waive any requirement for the securing or posting of any bond
in connection with such remedy.

       

      (b)   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 or beginning of the exercise of any thereof
by any party shall not preclude the simultaneous or later exercise of any other
such right, power or remedy by such party.

       

      Section 7.9  
Notices.  All notices and other
communications hereunder shall be in writing and shall be deemed given if delivered personally,
telecopied (upon telephonic confirmation of receipt), on the first business day
following the date of dispatch if delivered by a recognized next day courier
service, or on the third business day following the date of mailing if delivered by registered or
certified mail, return receipt requested, postage prepaid.  All notices hereunder shall be delivered
as set forth below, or pursuant to such other instructions as may be designated
in writing by the party to receive such notice.

       

       

      If to
BlackRock:

       

      c/o
BlackRock, Inc.

      40 East
52nd
Street

      New York,
NY 10022

      Facsimile:  212-810-8760

      Attn:  
Laurence D. Fink

       

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

       

      Skadden,
Arps, Slate, Meagher & Flom LLP

      Four
Times Square

      New York,
NY 10036

      Facsimile:  212-735-2000

      Attention:  Richard
T. Prins, Esq.

       

      If to
Merrill Lynch:

       

      Merrill
Lynch & Co., Inc.

      Four
World Financial Center

      250 Vesey
Street

      New York,
NY  10080

      Facsimile:  212-670-4518

      Attention:  Richard
E. Alsop, Esq.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

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

       

      Wachtell,
Lipton, Rosen & Katz

      51 West
52nd
Street

      New York,
NY 10019

      Facsimile:  212-403-2000

      Attention:   Nicholas
G. Demmo, Esq.

       

      Section 7.10  
Governing
Law; Consent to Jurisdiction. 

       

      (a)   This Agreement shall be governed by and
construed in accordance
with the laws of the State of Delaware without giving effect to the principles
of conflicts of law.  Each of the parties hereto hereby
irrevocably and unconditionally consents to submit to the exclusive jurisdiction
in the Court of Chancery of
the State of Delaware or any court of the United States located in the State of
Delaware, for any action, proceeding or investigation in any court or before any
governmental authority ("Litigation") arising out of or relating to this
Agreement and the transactions contemplated
hereby.  Each of the parties hereto hereby
irrevocably and unconditionally waives, and agrees not to assert, by way of
motion, as a defense, counterclaim or otherwise, in any such Litigation, the
defense of sovereign immunity, any claim that it is not personally subject
to the jurisdiction of the aforesaid courts for any reason other than the
failure to serve process in accordance with this Section 7.10, that it or its property is exempt or
immune from jurisdiction of any such court or from any legal process commenced in
such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment or otherwise),
and to the fullest extent permitted by applicable law, that the Litigation in any such court is
brought in an inconvenient forum, that the venue of such Litigation is improper,
or that this Agreement, or the subject matter hereof, may not be enforced in or
by such courts and further irrevocably waives, to the fullest extent permitted by applicable
law, the benefit of any defense that would hinder, fetter or delay the levy,
execution or collection of any amount to which the party is entitled pursuant to
the final judgment of any court having jurisdiction. Each of the parties irrevocably and
unconditionally waives, to the fullest extent permitted by applicable law, any
and all rights to trial by jury in connection with any Litigation arising out of
or relating to this Agreement or the transactions contemplated hereby.

       

      (b)   Each of the parties expressly
acknowledges that the foregoing waiver is intended to be irrevocable under the
laws of the State of Delaware and of the United States of America; provided that consent by Merrill Lynch and
BlackRock to jurisdiction and service contained in this Section
7.10 is solely for the purpose referred to
in this Section 7.10 and shall not be deemed to be a general
submission to said courts or in the State of Delaware other than for such
purpose.

       

      Section 7.11  
Interpretation.  The table of
contents and headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.  Whenever the words "include", "includes" or "including" are used in this Agreement, they shall
be deemed to be followed by
the words "without limitation".

       

       

      
        
          
          

        

        
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      [Signature
Pages Follow]

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Exchange Agreement to be
duly executed and delivered as of the date first above written.

       

      
        
          	 
      	 
      	
                  MERRILL
      LYNCH & CO., INC.

                	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	 
      /s/ Gregory J. Fleming	 
      
	 
      	 
      	 
      	
                  Name:
      Gregory J. Fleming

                	 
      
	 
      	 
      	 
      	
                  Title:
      President

                	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  BLACKROCK,
      INC.

                	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/
      Daniel R. Waltcher

                	 
      
	 
      	 
      	 
      	
                  Name:

                	
                  Daniel
      R. Waltcher

                	 
      
	 
      	 
      	 
      	
                  Title:

                	
                  Managing
      Director and

                  Deputy
      General Counsel

                	 
      
	 
      	 
      	 
      	 
      	 
      

        

      

       

       

       

       

       

      13

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