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Exhibit 4.3

 

 

SERIES [1][2] COMMON STOCK PURCHASE WARRANT

 

 TENAX THERAPEUTICS, INC.

 

 

Warrant Shares:
_______

Initial Exercise
Date: _______, 2018

 

CUSIP:

 

ISIN:

 

 

THIS
SERIES [1] [2] 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 date
hereof (the “Initial
Exercise Date”) and on or prior to 5:00 p.m. (New York
City time) on _____1 2 (the
“Termination
Date”) but not thereafter, to subscribe for and
purchase from Tenax Therapeutics, 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). This Warrant shall initially be issued and maintained
in the form of a security held in book-entry form and the
Depository Trust Company or its nominee (“DTC”) shall initially be
the sole registered holder of this Warrant, subject to a
Holder’s right to elect to receive a Warrant in certificated
form pursuant to the terms of the Warrant Agency Agreement, in
which case this sentence shall not apply.

 

Section 1. Definitions. In addition to the
terms defined elsewhere in this Warrant, the following terms have
the meanings indicated in this Section 1:

 

“Affiliate” means any
Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed
under Rule 405 under the Securities Act.

 

“Bid Price” 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 bid price of the Common Stock for the time in
question (or the nearest preceding date) on the Trading Market on
which the Common Stock is then listed or quoted as reported by
Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York
City time) to 4:02 p.m. (New York City time)), (b)  if 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 Group, 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 Holders of a majority in interest of
the Warrants then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the
Company.

 

1 Series 1 Warrant:
Insert the date that is the 2 year anniversary of the Initial
Exercise Date; provided, however, that, if such date is not a
Trading Day, insert the immediately following Trading
Day.

2 Series 2 Warrant:
Insert the date that is the 5 year anniversary of the Initial
Exercise Date; provided, however, that, if such date is not a
Trading Day, insert the immediately following Trading
Day.

 

1

 

 

“Board of Directors” means
the board of directors of the Company.

 

“Business Day” means any
day except any Saturday, any Sunday, any day which is a federal
legal holiday in the United States or any day on which banking
institutions in the State of New York are authorized or required by
law or other governmental action to close.

 

“Commission” means the
United States Securities and Exchange Commission.

 

“Common Stock” means the
common stock of the Company, par value $0.0001 per share, and any
other class of securities into which such securities may hereafter
be reclassified or changed.

 

“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would
entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right,
option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

 “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 other entity of any kind.

 

“Registration Statement”
means the Company’s registration statement on Form S-1 (File
No. 333-228212).

 

 “Securities
Act” means the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

 

“Subsidiary” means any
subsidiary of the Company and shall, where applicable, also include
any direct or indirect subsidiary of the Company formed or acquired
after the date hereof.

 

“Trading Day” means a day
on which the principal Trading Market is open for
trading.

 

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

 

 

 

2

 

 

“Transfer Agent” means
Issuer Direct Corporation, with
offices located at 500 Perimeter Park Drive, Suite D, Morrisville,
North Carolina 27560, and any successor transfer agent of the
Company.

 

“VWAP” means, for any
date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on a
Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted
as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)),
(b)  if 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 Group, 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 holders of a
majority in interest of the Warrants then outstanding and
reasonably acceptable to the Company, the fees and expenses of
which shall be paid by the Company.

 

“Warrant Agency Agreement”
means that certain warrant agency agreement, dated on or about the
Initial Exercise Date, between the Company and the Warrant
Agent.

 

“Warrant Agent” means the
Transfer Agent and any successor warrant agent of the
Company.

 

“Warrants” means this
Warrant and other Common Stock purchase warrants issued by the
Company pursuant to the Registration Statement.

 

Section 2. Exercise.

 

a) Exercise
of Warrant. Exercise of the purchase rights represented by
this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the
Termination Date by delivery to the Company of a duly executed
facsimile copy or PDF copy submitted by e-mail (or e-mail
attachment) of the Notice of Exercise in the form annexed hereto
(the “Notice of
Exercise”). Within the earlier of (i) two (2) Trading
Days and (ii) the number of Trading Days comprising the Standard
Settlement Period (as defined in Section 2(d)(i) herein) 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 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 three (3) Trading Days of the date on which 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.

 

 

 

3

 

 

Notwithstanding the
foregoing in this Section 2(a), a holder whose interest in this
Warrant is a beneficial interest in certificate(s) representing
this Warrant held in book-entry form through DTC (or another
established clearing corporation performing similar functions),
shall effect exercises made pursuant to this Section 2(a) by
delivering to DTC (or such other clearing corporation, as
applicable) the appropriate instruction form for exercise,
complying with the procedures to effect exercise that are required
by DTC (or such other clearing corporation, as applicable), subject
to a Holder’s right to elect to receive a Warrant in
certificated form pursuant to the terms of the Warrant Agency
Agreement, in which case this sentence shall not
apply.

 

b) Exercise Price. The exercise
price per share of Common Stock under this Warrant shall be $1.93,
subject to adjustment hereunder (the “Exercise
Price”).

 

c) Cashless Exercise. If 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 only 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) = as
applicable: (i) the VWAP on the Trading Day immediately preceding
the date of the applicable Notice of Exercise if such Notice of
Exercise is (1) both executed and delivered pursuant to Section
2(a) hereof on a day that is not a Trading Day or (2) both executed
and delivered pursuant to Section 2(a) hereof on a Trading Day
prior to the opening of “regular trading hours” (as
defined in Rule 600(b)(64) of Regulation NMS promulgated under the
federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately
preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the Common Stock on the principal Trading Market as
reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of
Exercise is executed during “regular trading hours” on
a Trading Day and is delivered within two (2) hours thereafter
(including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 2(a)
hereof or (iii) the VWAP on the date of the applicable Notice of
Exercise if the date of such Notice of Exercise is a Trading Day
and such Notice of Exercise is both executed and delivered pursuant
to Section 2(a) hereof after the close of “regular trading
hours” on such Trading Day;

 

(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.

 

 

4

 

 

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. The Company agrees
not to take any position contrary to this Section 2(c), subject to
applicable law.

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this
Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c). Other than cash payments pursuant to
Section 2(d)(i) and 2(d)(iv) herein and the right of a Holder to
receive Warrant Shares upon a cashless exercise pursuant to this
Section 2(c) herein, under no circumstances shall the Company be
obligated to provide the Holder with a net cash settlement
payment.

 

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 the 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 the earliest
of (i) two (2) Trading Days after the delivery to the Company of
the Notice of Exercise, (ii) one (1) Trading Day after delivery of
the aggregate Exercise Price to the Company and (iii) the number of
Trading Days comprising the Standard Settlement Period after the
delivery to the Company of the Notice of Exercise, and, in the case
of each of (i) and (iii), subject to the Company’s receipt of
the aggregate Exercise Price (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise, the
Holder shall be deemed for all corporate purposes to have become
the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of
delivery of the Warrant Shares, provided that payment of the
aggregate Exercise Price (other than in the case of a cashless
exercise) is received within the earlier of (i) two (2) Trading
Days and (ii) the number of Trading Days comprising the Standard
Settlement Period following delivery of the Notice of Exercise. If
the Company fails for any reason to deliver to the Holder the
Warrant Shares subject to a properly completed Notice of Exercise
by the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for
each $1,000 of Warrant Shares subject to such exercise (based on
the VWAP of the Common Stock on the date of the applicable Notice
of Exercise), $10 per Trading Day (increasing to $20 per Trading
Day on the fifth Trading Day after such liquidated damages begin to
accrue) for each Trading Day after such Warrant Share Delivery Date
until such Warrant Shares are delivered or Holder rescinds such
exercise. The Company agrees to maintain a transfer agent that is a
participant in the FAST program so long as this Warrant remains
outstanding and exercisable. As used herein, “Standard Settlement
Period” means the standard settlement period,
expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in
effect on the date of delivery of the Notice of
Exercise.

 

 

 

5

 

 

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, and the Company shall
return all consideration paid by the Holder for such shares upon
such rescission. Notwithstanding anything herein to the contrary,
the Company shall not be required to make any cash payments to the
Holder in lieu of issuance of the Warrant Shares.

 

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

 

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

 

vi. 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 that
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.

 

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

 

 

 

6

 

 

e) Holder’s Exercise
Limitations. The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the
extent that after giving effect to such issuance after exercise as
set forth on the applicable Notice of Exercise, the Holder
(together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the
Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below).  For
purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates and
Attribution Parties shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which
such determination is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (i) exercise of
the remaining, nonexercised portion of this Warrant beneficially
owned by the Holder or any of its Affiliates or Attribution Parties
and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without
limitation, any other Common Stock Equivalents) subject to a
limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its
Affiliates or Attribution Parties.  Except as set forth in the
preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in
compliance with Section 13(d) of the Exchange Act and the Holder is
solely responsible for any schedules required to be filed in
accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable shall be in the
sole discretion of the Holder, and the submission of a Notice of
Exercise shall be deemed to be the Holder’s determination of
whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates and
Attribution Parties) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, each Holder
will be deemed to represent to the Company each time it delivers a
Notice of Exercise that such Notice of Exercise has not violated
the restrictions set forth in this paragraph, and the Company shall
have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status
as contemplated above shall be determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 2(e), in
determining the number of outstanding shares of Common Stock, a
Holder may rely on the number of outstanding shares of Common Stock
as reflected in (A) the Company’s most recent periodic or
annual report filed with the Commission, as the case may be, (B) a
more recent public announcement by the Company or (C) a more recent
written notice by the Company or the Transfer Agent setting forth
the number of shares of Common Stock outstanding.  Upon the
written or oral request of a Holder, the Company shall within two
(2) Trading Days confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or
its Affiliates or Attribution Parties since the date as of which
such number of outstanding shares of Common Stock was reported. The
“Beneficial
Ownership Limitation” shall be 4.99% (or, upon
election by a Holder prior to the issuance of any Warrants, 9.99%)
of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to
the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the
Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the
61st day
after such notice is delivered to the Company. The provisions of
this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section
2(e) to correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.

 

 

 

7

 

 

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

 

c) Pro Rata Distributions. During
such time as this Warrant is outstanding, if the Company shall
declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of shares of Common
Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or
other similar transaction) (a "Distribution"), at any time
after the issuance of this Warrant, then, in each such case, the
Holder shall be entitled to participate in such Distribution to the
same extent that the Holder would have participated therein if the
Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of
which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such
Distribution (provided, however, that, to the extent
that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in
such Distribution to such extent (or in the beneficial ownership of
any shares of Common Stock as a result of such Distribution to such
extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation). To the extent that this Warrant
has not been partially or completely exercised at the time of such
Distribution, such portion of the Distribution shall be held in
abeyance for the benefit of the Holder until the Holder has
exercised this Warrant.

 

 

8

 

 

d) Fundamental Transaction. If, at
any time while this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another
Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a
series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock, (iv)
the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or
recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property,
or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or
other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person or group of Persons whereby such
other Person or group acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business
combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the 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 any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall
be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such
Fundamental Transaction. Notwithstanding anything to the contrary,
in the event of a Fundamental Transaction, other than one in which
a Successor Entity (as defined below) that is a publicly traded
corporation whose stock is quoted or listed on a Trading Market
assumes this Warrant such that the Warrant shall be exercisable for
the publicly traded common stock of such Successor Entity, the
Company or any Successor Entity (as defined below) shall, at the
Holder’s option, exercisable at any time concurrently with,
or within 30 days after, the consummation of the Fundamental
Transaction (or, if later, the date of the public announcement of
the applicable Fundamental Transaction), purchase this Warrant from
the Holder by paying to the Holder an amount of cash equal to the
Black Scholes Value of the remaining unexercised portion of this
Warrant on the date of the consummation of such Fundamental
Transaction, provided, however, if the Fundamental
Transaction is not within the Company's control, including not
approved by the Company's Board of Directors, the Holder shall only
be entitled to receive from the Company or any Successor Entity, as
of the date of consummation of such Fundamental Transaction, the
same type or form of consideration (and in the same proportion), at
the Black Scholes Value (as defined below) of the unexercised
portion of this Warrant, that is being offered and paid to the
holders of Common Stock of the Company in connection with the
Fundamental Transaction, whether that consideration be in the form
of cash, stock or any combination thereof, or whether the holders
of Common Stock are given the choice to receive from among
alternative forms of consideration in connection with the
Fundamental Transaction. “Black Scholes Value”
means the value of this Warrant based on the Black-Scholes Option
Pricing Model obtained from the “OV” function on
Bloomberg, L.P. (“Bloomberg”) determined as
of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period
equal to the time between the date of the public announcement of
the applicable Fundamental Transaction and the Termination Date,
(B) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of
the Trading Day immediately following the public announcement of
the applicable Fundamental Transaction, (C) the underlying price
per share used in such calculation shall be the greater of (i) the
sum of the price per share being offered in cash, if any, plus the
value of any non-cash consideration, if any, being offered in such
Fundamental Transaction and (ii) the greater of (x) the last VWAP
immediately prior to the public announcement of such Fundamental
Transaction and (y) the last VWAP immediately prior to the
consummation of such Fundamental Transaction and (D) a remaining
option time equal to the time between the date of the public
announcement of the applicable Fundamental Transaction and the
Termination Date. Any cash payment of the Black Scholes Value will
be made by wire transfer of immediately available funds within five
Business Days of the Holder’s election (or, if later, on the
effective date of the Fundamental Transaction). The Company shall
cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this
Warrant in accordance with the provisions of this Section 3(d)
pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and
shall, at the option of the Holder, deliver to the Holder in
exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and
substance to this Warrant which is exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but
taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of
such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and
after the date of such Fundamental Transaction, the provisions of
this Warrant referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the
Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

 

9

 

 

e) Calculations. All calculations
under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of
this Section 3, the number of 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.

 

f) Notice to Holder.

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly deliver to 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 or email address as it shall appear upon the Warrant
Register of the Company, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which
the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be
entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to 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. To the extent that any notice provided in this Warrant
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. 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.

 

 

10

 

 

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 three (3) Trading Days of the date on which the
Holder delivers an assignment form to the Company assigning this
Warrant in 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. If this Warrant
is not held in global form through DTC (or any successor
depositary), 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.

 

c) Warrant Register. The Warrant
Agent shall register this Warrant, upon records to be maintained by
the Warrant Agent for that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time. The Company
and the Warrant Agent may deem and treat the registered Holder of
this Warrant, or, if the Warrant is held in book-entry form, the
beneficial owner 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), except as expressly set forth in Section 3.

 

 

11

 

 

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

 

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 issuing 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).

 

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.

 

 

12

 

 

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

 

e) Governing Law. All questions
concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by
and construed and enforced in accordance with the internal laws of
the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Warrant (whether brought
against a party hereto or their respective affiliates, directors,
officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit,
action or proceeding is improper or is an inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this
Warrant and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve
process in any other manner permitted by law. If either party shall
commence an action, suit or proceeding to enforce any provisions of
this Warrant, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for their
reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of
such action, suit or proceeding.

 

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

 

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

 

 

 

13

 

 

h) Notices. Any and all notices or
other communications or deliveries to be provided by the Holders
hereunder including, without limitation, any Notice of Exercise,
shall be in writing and delivered personally, by facsimile or
e-mail, or sent by a nationally recognized overnight courier
service, addressed to the Company, at ONE Copley Parkway, Suite
490, Morrisville, North Carolina 27560, Attention: Michael B. Jebsen, facsimile
number: (919) 855-2133, email address: m.jebsen@tenaxthera.com, or
such other facsimile number, email address or address as the
Company may specify for such purposes by notice to the Holders. Any
and all notices or other communications or deliveries to be
provided by the Company hereunder shall be in writing and delivered
personally, by facsimile or e-mail, or sent by a nationally
recognized overnight courier service addressed to each Holder at
the facsimile number, e-mail address or address of such Holder
appearing on the books of the Company. Any notice or other
communication or deliveries hereunder shall be deemed given and
effective on the earliest of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile
number or via e-mail at the e-mail address set forth in this
Section prior to 5:30 p.m. (New York City time) on any date, (ii)
the next Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number
or via e-mail at the e-mail address set forth in this Section on a
day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (iv) upon actual receipt
by the party to whom such notice is required to be given. To the
extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Company or any
subsidiaries, the Company shall simultaneously file such notice
with the Commission pursuant to a Current Report on Form
8-K.

 

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.

 

 

 

14

 

 

l) Amendment. This Warrant may be
modified or amended or the provisions hereof waived with the
written consent of the Company, on the one hand, and the Holder or the beneficial owner of this
Warrant, on the other hand.

 

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.

 

o) Warrant Agency Agreement. If
this Warrant is held in global form through DTC (or any successor
depositary), this Warrant is issued subject to the Warrant Agency
Agreement. To the extent any provision of this Warrant conflicts
with the express provisions of the Warrant Agency Agreement, the
provisions of this Warrant shall govern and be
controlling.

 

 

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

 

(Signature Page Follows)

 

 

15

 

 

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.

 

 

 

	

TENAX THERAPEUTICS, INC.

 

 

	

By:__________________________________________

     Name:

     Title:

 

 

 

 

16

 

 

NOTICE OF EXERCISE

 

TO:            

TENAX THERAPEUTICS,
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:
________________________________________________________________________________________

 

 

 

17

 

 

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:

	
 

	

 

 

Phone Number:

Email Address:

 

	

(Please
Print)

______________________________________

______________________________________

 

	

Dated:
_______________ __, ______

 

	
 

	

Holder’s
Signature:                                                                 

 

	
 

	

Holder’s
Address:                                                                 

 

	
 

 

 

 

18Blueprint

  Exhibit
4.4

 

 

Tenax
Therapeutics, Inc.

 

and

 

Direct
Transfer LLC, as

Warrant
Agent

 

 

 

Warrant
Agency Agreement

 

Dated
as of December 11, 2018

 

 

 

 

 

 

 

 

 

 

 

WARRANT AGENCY AGREEMENT

 

WARRANT
AGENCY AGREEMENT, dated as of December 11, 2018
(“Agreement”),
between Tenax Therapeutics, Inc., a Delaware corporation (the
“Company”), and Direct
Transfer LLC, a Delaware limited liability company (the
“Warrant
Agent”).

 

W I T N
E S S E T H

 

WHEREAS, pursuant
to a registered offering by the Company of shares of Series A
convertible preferred stock (the “Preferred Stock”) that
are convertible into shares of common stock, par value
$0.0001
per share (the “Common Stock”), and
Warrants (as defined below), pursuant to an effective registration
statement on Form S-1 (File No. 333-228212) (the
“Registration
Statement”), the Company wishes to issue Warrants in
book entry form entitling the respective holders of the Warrants
(the “Holders”, which term
shall include a Holder’s transferees, successors and assigns
and “Holder” shall include, if the Warrants are held in
“street name”, a Participant (as defined below) or a
designee appointed by such Participant) to purchase an aggregate of
up to 5,181,346 shares of Common Stock underlying the Series 1
Warrants (as defined below) and up to 5,181,346 shares of Common
Stock underlying the Series 2 Warrants (as defined below) upon the
terms and subject to the conditions hereinafter set forth (the
“Offering”);

 

WHEREAS, the shares
of Preferred Stock and Warrants to be issued in connection with the
Offering shall be immediately separable and will be issued
separately, but will be purchased together in the Offering;
and

 

WHEREAS, the
Company wishes the Warrant Agent to act on behalf of the Company,
and the Warrant Agent is willing so to act, in connection with the
issuance, registration, transfer, exchange, exercise and
replacement of the Warrants and, in the Warrant Agent’s
capacity as the Company’s transfer agent, the delivery of the
Warrant Shares (as defined below).

 

NOW,
THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as
follows:

 

Section
1. Certain
Definitions. For purposes of this Agreement, the following
terms have the meanings indicated:

 

(a)
“Business
Day” means any day except any Saturday, any Sunday,
any day which is a federal legal holiday in the United States or
any day on which the Nasdaq Stock Market is authorized or required
by law or other governmental action to close.

 

(b)
“Close of
Business” on any given date means 5:00 p.m., New York
City time, on such date; provided, however, that if such date is
not a Business Day it means 5:00 p.m., New York City time, on the
next succeeding Business Day.

 

(c)
“Person” means an
individual, corporation, association, partnership, limited
liability company, joint venture, trust, unincorporated
organization, government or political subdivision thereof or
governmental agency or other entity.

 

(d)
“Series 1
Warrants” means Series 1 Common Stock purchase
warrants of the Company with a term of exercise of two (2) years
following the Initial Exercise Date.

 

(e)
“Series 2
Warrants” means Series 2 Common Stock purchase
warrants of the Company with a term of exercise of five (5) years
following the Initial Exercise Date.

 

(f)
“Series 1 Warrant
Certificate” means a certificate in substantially the
form attached as Exhibit
1 hereto, representing such number of Warrant Shares as is
indicated therein, provided that any reference to the delivery of a
Series 1 Warrant Certificate in this Agreement shall include
delivery of notice from the Depositary or a Participant (each as
defined below) of the transfer or exercise of Series 1 Warrant in
the form of a Series 1 Global Warrant (as defined
below).

 

(g)
“Series 2 Warrant
Certificate” means a certificate in substantially the
form attached as Exhibit
1 hereto, representing such number of Warrant Shares as is
indicated therein, provided that any reference to the delivery of a
Series 2 Warrant Certificate in this Agreement shall include
delivery of notice from the Depositary or a Participant (each as
defined below) of the transfer or exercise of Series 2 Warrant in
the form of a Series 2 Global Warrant (as defined
below)

 

(h)
“Warrant
Certificates” means, collectively, the Series 1
Warrant Certificate and the Series 2 Warrant Certificate and, each,
a “Warrant
Certificate”.

 

 

(i)
“Warrant
Shares” means the shares of Common Stock underlying
the Warrants and issuable upon exercise of the
Warrants.

 

(j)
“Warrants” means,
collectively, the Series 1 Warrants and the Series 2 Warrants and,
each, a “Warrant”.

 

All
other capitalized terms used but not otherwise defined herein shall
have the meaning ascribed to such terms in the Warrant
Certificates.

 

Section
2. Appointment of Warrant
Agent. The Company hereby appoints the Warrant Agent to act
as agent for the Company in accordance with the express terms or
conditions hereof (and no implied terms and conditions), and the
Warrant Agent hereby accepts such appointment. The Company may from
time to time appoint such Co-Warrant Agents as it may, in its sole
discretion, deem necessary or desirable. The Warrant Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or
omissions of any such co-Warrant Agent. In the event the Company
appoints one or more co-Warrant Agents, the respective duties of
the Warrant Agent and any co-Warrant Agent shall be as the Company
shall reasonably determine, provided that such duties and
determination are consistent with the terms and provisions of this
Agreement.

 

Section
3. Global
Warrants.

 

(a) The
Series 1 Warrants and the Series 2 Warrants, respectively, shall be
issuable in book entry form (the “Series 1 Global Warrant”
and the “Series 2
Global Warrant”, respectively, and, collectively, the
“Global
Warrants” and, each, a “Global Warrant”). All of
the Series 1 Warrants and the Series 2 Warrants, respectively,
shall initially be represented by one or more Series 1 Global
Warrants and Series 2 Global Warrants, respectively, deposited with
the Warrant Agent and registered in the name of Cede & Co., a
nominee of The Depository Trust Company (the “Depositary”), or as
otherwise directed by the Depositary. Ownership of beneficial
interests in the Series 1 Warrants and the Series 2 Warrants,
respectively, shall be shown on, and the transfer of such ownership
shall be effected through, records maintained by (i) the Depositary
or its nominee for each Global Warrant or (ii) institutions that
have accounts with the Depositary (such institution, with respect
to a Warrant in its account, a “Participant”).

 

(b) If
the Depositary subsequently ceases to make its book-entry
settlement system available for the Warrants, the Company may
instruct the Warrant Agent regarding other arrangements for
book-entry settlement. In the event that the Warrants are not
eligible for, or it is no longer necessary to have the Warrants
available in, book-entry form, the Warrant Agent shall provide
written instructions to the Depositary to deliver to the Warrant
Agent for cancellation each Global Warrant, and the Company shall
instruct the Warrant Agent in writing to deliver to each Holder a
Warrant Certificate.

 

(c) A
Holder has the right to elect at any time or from time to time a
Warrant Exchange (as defined below) pursuant to a Warrant
Certificate Request Notice (as defined below). Upon written notice
by a Holder to the Warrant Agent for the exchange of some or all of
such Holder’s Global Warrants for a Series 1 Warrant
Certificate or a Series 2 Warrant Certificate, as applicable,
evidencing the same number of Warrants, which request shall be in
the form attached hereto as Annex A (a “Warrant Certificate Request
Notice” and the date of delivery of such Warrant
Certificate Request Notice by the Holder, the “Warrant Certificate Request Notice
Date” and the deemed surrender upon delivery by the
Holder of a number of Global Warrants for the same number of
Warrants evidenced by a Warrant Certificate, a “Warrant Exchange”), the
Warrant Agent shall promptly effect the Warrant Exchange and shall
promptly issue and deliver, at the expense of the Company, to the
Holder a Series 1 Warrant Certificate or a Series 2 Warrant
Certificate, as applicable, for such number of Warrants in the name
set forth in the Warrant Certificate Request Notice. Such Series 1
Warrant Certificate or a Series 2 Warrant Certificate, as
applicable, shall be dated the original issue date of the Warrants
and shall be executed by manual signature by an authorized
signatory of the Company. In connection with a Warrant Exchange,
the Company agrees to deliver, or to direct the Warrant Agent to
deliver, the Series 1 Warrant Certificate or a Series 2 Warrant
Certificate, as applicable, to the Holder within three (3) Business
Days of the Warrant Certificate Request Notice pursuant to the
delivery instructions in the Warrant Certificate Request Notice
(“Warrant
Certificate Delivery Date”). Notwithstanding anything
herein to the contrary, the Company shall act as warrant agent with
respect to any physical Series 1 Warrant Certificate or Series 2
Warrant Certificate issued pursuant to this section. If the Company
fails for any reason to deliver to the Holder the Series 1 Warrant
Certificate or the Series 2 Warrant Certificate subject to the
Warrant Certificate Request Notice by the Warrant Certificate
Delivery Date, the Company shall pay to the Holder, in cash, as
liquidated damages and not as a penalty, for each $1,000 of Warrant
Shares evidenced by such Series 1 Warrant Certificate or Series 2
Warrant Certificate (based on the VWAP (as defined in the Warrants)
of the Common Stock on the Warrant Certificate Request Notice
Date), $10 per Business Day for each Business Day after such
Warrant Certificate Delivery Date until such Series 1 Warrant
Certificate or Series 2 Warrant Certificate, as applicable, is
delivered or, prior to delivery of such Series 1 Warrant
Certificate or Series 2 Warrant Certificate, the Holder rescinds
such Warrant Exchange. In no event shall the Warrant Agent be
liable for the Company’s failure to deliver the Series 1
Warrant Certificate or the Series 2 Warrant Certificate by the
Warrant Certificate Delivery Date. The Company covenants and agrees
that, upon the date of delivery of the Warrant Certificate Request
Notice, the Holder shall be deemed to be the holder of the Series 1
Warrant Certificate or Series 2 Warrant Certificate, as applicable,
and, notwithstanding anything to the contrary set forth herein, the
Series 1 Warrant Certificate or Series 2 Warrant Certificate shall
be deemed for all purposes to contain all of the terms and
conditions of the Series 1 Warrants or Series 2 Warrants, as
applicable, evidenced by such Series 1 Warrant Certificate or
Series 2 Warrant Certificate, as applicable, and the terms of this
Agreement, other than Sections 3(c) and 9 herein, shall not apply
to the Warrants evidenced by the Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable.

 

 

 

 

Section
4. Form of Warrant
Certificates. The Warrant Certificates, together with the
form of election to purchase Common Stock (“Exercise Notice”) and the
form of assignment to be printed on the reverse thereof, shall be
in the form of Exhibit
1 hereto.

 

Section
5. Countersignature and
Registration. The Warrant Certificates shall be executed on
behalf of the Company by its Chief Executive Officer, Chief
Financial Officer or Vice President, either manually or by
facsimile signature, and have affixed thereto the Company’s
seal or a facsimile thereof which shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually
or by facsimile signature. The Warrant Certificates shall be
countersigned by the Warrant Agent by either manually or by
facsimile signature and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have
signed any of the Warrant Certificates shall cease to be such
officer of the Company before countersignature by the Warrant Agent
and issuance and delivery by the Company, such Warrant
Certificates, nevertheless, may be countersigned by the Warrant
Agent, issued and delivered with the same force and effect as
though the person who signed such Warrant Certificate had not
ceased to be such officer of the Company; and any Warrant
Certificate may be signed on behalf of the Company by any person
who, at the actual date of the execution of such Warrant
Certificate, shall be a proper officer of the Company to sign such
Warrant Certificate, although at the date of the execution of this
Agreement any such person was not such an officer.

 

The
Warrant Agent will keep or cause to be kept, at its office
designated for such purposes, books for registration and transfer
of the Warrant Certificates issued hereunder. Such books shall show
the names and addresses of the respective Holders of the Warrant
Certificates, the number of warrants evidenced on the face of each
of such Warrant Certificate and the date of each of such Warrant
Certificate. The Warrant Agent will create a special account for
the issuance of Warrant Certificates.

 

Section
6. Transfer, Split Up,
Combination and Exchange of Warrant Certificates; Mutilated,
Destroyed, Lost or Stolen Warrant Certificates. With respect
to the Series 1 Global Warrant and the Series 2 Global Warrant,
respectively, subject to the provisions of the Series 1 Warrant
Certificate and the Series 2 Warrant Certificate, respectively, and
the last sentence of this first paragraph of Section 6 and subject
to applicable law, rules or regulations, or any “stop
transfer” instructions the Company may give to the Warrant
Agent, at any time after the closing date of the Offering, and at
or prior to the Close of Business on the Termination Date (as such
term is defined in the Warrant Certificate), any Warrant
Certificate or Warrant Certificates or Global Warrant or Global
Warrants may be transferred, split up, combined or exchanged for
another Warrant Certificate or Warrant Certificates or Global
Warrant or Global Warrants, entitling the Holder to purchase a like
number of shares of Common Stock as the Warrant Certificate or
Warrant Certificates or Global Warrant or Global Warrants
surrendered then entitled such Holder to purchase. Any Holder
desiring to transfer, split up, combine or exchange any Warrant
Certificate or Global Warrant shall make such request in writing
delivered to the Warrant Agent, and shall surrender the Warrant
Certificate or Warrant Certificates, together with the required
form of assignment and certificate duly executed and properly
completed and such other
documentation as the Warrant Agent may reasonably request, to be
transferred, split up, combined or exchanged at the office of the
Warrant Agent designated for such purpose, provided that no such
surrender is applicable to the Holder of a Global Warrant. Any
requested transfer of Warrants, whether in book-entry form or
certificate form, shall be accompanied by evidence of authority of
the party making such request that may be reasonably
required by the Warrant Agent. Thereupon the Warrant Agent shall,
subject to the last sentence of this first paragraph of Section 6,
countersign and deliver to the Person entitled thereto a Warrant
Certificate or Warrant Certificates, as the case may be, as so
requested. The Company may require payment from the Holder of a sum
sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or
exchange of Warrant Certificates. The Warrant Agent shall not have any
duty or obligation to take any action under any section of this
Agreement that requires the payment of taxes and/or charges unless
and until it is satisfied that all such payments have been
made.

 

Upon
receipt by the Warrant Agent of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of a Warrant
Certificate, which evidence shall include an affidavit of loss, or
in the case of mutilated certificates, the certificate or portion
thereof remaining, and, in case of loss, theft or destruction, of
indemnity or security reasonably acceptable to the Company and the
Warrant Agent, and satisfaction of any other reasonable
requirements established by Section 8-405 of the Uniform Commercial
Code as in effect in the State of Delaware, and reimbursement to
the Company and the Warrant Agent of all reasonable expenses
incidental thereto, and upon surrender to the Warrant Agent and
cancellation of the Warrant Certificate if mutilated, the Company
will make and deliver a new Warrant Certificate of like tenor to
the Warrant Agent for delivery to the Holder in lieu of the Warrant
Certificate so lost, stolen, destroyed or mutilated.

 

 

 

 

Section
7. Exercise of Warrants;
Exercise Price; Termination Date.

 

(a) The
Series 1 Warrants and the Series 2 Warrants shall be exercisable
commencing on the Initial Exercise Date. The Series 1 Warrants and
the Series 2 Warrants shall cease to be exercisable and shall
terminate and become void, and all rights thereunder and under this
Agreement shall cease, at or prior to the Close of Business on the
Termination Date (as such term is defined in the Series 1 Warrant
Certificate and the Series 2 Warrant Certificate, respectively).
Subject to the foregoing and to Section 7(b) below, the Holder of a
Series 1 Warrant or a Series 2 Warrant, as applicable, may exercise
the Series 1 Warrant and the Series 2 Warrant, as applicable, in
whole or in part upon surrender of the Series 1 Warrant Certificate
or the Series 2 Warrant Certificate, as applicable, if required,
with the properly completed and duly executed Exercise
Notice and payment of the
Exercise Price (unless exercised via a cashless exercise), which
may be made, at the option of the Holder, by wire transfer or by
certified or official bank check in United States dollars, to the
Warrant Agent at the office of the Warrant Agent designated for
such purposes. In the case of the Holder of a Global Warrant, the
Holder shall deliver the duly executed Exercise Notice and the
payment of the Exercise Price as described herein. Notwithstanding
any other provision in this Agreement, a holder whose interest in a
Global Warrant is a beneficial interest in a Global Warrant held in
book-entry form through the Depositary (or another established
clearing corporation performing similar functions), shall effect
exercises by delivering to the Depositary (or such other clearing
corporation, as applicable) the appropriate instruction form for
exercise, complying with the procedures to effect exercise that are
required by the Depositary (or such other clearing corporation, as
applicable). The Company acknowledges that the bank accounts
maintained by the Warrant Agent in connection with the services
provided under this Agreement will be in its name and that the
Warrant Agent may receive investment earnings in connection with
the investment at Warrant Agent risk and for its benefit of funds
held in those accounts from time to time. Neither the Company nor
the Holders will receive interest on any deposits or Exercise
Price. No ink-original Exercise Notice shall be required, nor shall
any medallion guarantee (or other type of guarantee or
notarization) of any Exercise Notice be required.

 

(b)
Upon receipt of an Exercise Notice for a cashless exercise pursuant
to Section 2(c) of the Warrant Certificates (each, a
“Cashless Exercise”), the Warrant Agent shall deliver a
copy of the Exercise Notice to the Company and request from the
Company, and the Company shall promptly calculate and transmit to
the Warrant Agent in writing, the number of Warrant Shares issuable
in connection with such Cashless Exercise. The Warrant Agent shall
have no obligation under this Agreement to calculate, the number of
Warrant Shares issuable in connection with a Cashless Exercise nor
shall the Warrant agent have any duty or obligation to investigate
or confirm whether the Company’s determination of the number
of Warrant Shares issuable upon such exercise, pursuant to this
Section 7, is accurate or correct.

 

(c)
Upon the Warrant Agent’s receipt of a Series 1 Warrant
Certificate or a Series 2 Warrant Certificate, as applicable, at or
prior to the Close of Business on the Termination Date set forth in
such Series 1 Warrant Certificate or Series 2 Warrant Certificate,
as applicable, with the executed Exercise Notice and payment of the
Exercise Price for the shares to be purchased (other than in the
case of a Cashless Exercise) and an amount equal to any applicable
tax, or governmental charge referred to in Section 6 by wire
transfer, or by certified check or bank draft payable to the order
of the Company (or, in the case of the Holder of a Global Warrant,
the delivery of the executed Exercise Notice and the payment of the
Exercise Price (other than in the case of a Cashless Exercise) and
any other applicable amounts as set forth herein), the Warrant
Agent shall cause the Warrant Shares underlying such Series 1
Warrant Certificate or Series 2 Warrant Certificate, as applicable,
or Series 1 Global Warrant or Series 2 Global Warrant, as
applicable, to be delivered to or upon the order of the Holder of
such Series 1 Warrant Certificate or Series 2 Warrant Certificate,
as applicable, or Series 1 Global Warrant or Series 2 Global
Warrant, as applicable, registered in such name or names as may be
designated by such Holder, no later than the Warrant Share Delivery
Date (as such term is defined in the Series 1 Warrant Certificate
or Series 2 Warrant Certificate, as applicable). If the Company is
then a participant in the DWAC system of the Depositary and either
(A) there is an effective registration statement permitting the
issuance of the Warrant Shares to or resale of the Warrant Shares
by Holder or (B) the Warrant is being exercised via Cashless
Exercise, then the certificates for Warrant Shares shall be
transmitted by the Warrant Agent to the Holder by crediting the
account of the Holder’s broker with the Depositary through
its DWAC system. For the avoidance of doubt, if the Company becomes
obligated to pay any amounts to any Holders pursuant to Section
2(d)(i) or 2(d)(iv) of the Series 1 Warrant Certificate or Series 2
Warrant Certificate, as applicable, such obligation shall be solely
that of the Company and not that of the Warrant Agent.
Notwithstanding anything else to the contrary in this Agreement,
except in the case of a Cashless Exercise, if any Holder fails to
duly deliver payment to the Warrant Agent of an amount equal to the
aggregate Exercise Price of the Warrant Shares to be purchased upon
exercise of such Holder’s Warrant as set forth in Section
7(a) hereof by the Warrant Share Delivery Date, the Warrant Agent
will not obligated to deliver such Warrant Shares (via DWAC or
otherwise) until following receipt of such payment, and the
applicable Warrant Share Delivery Date shall be deemed extended by
one day for each day (or part thereof) until such payment is
delivered to the Warrant Agent.

 

 

 

(d) The
Warrant Agent shall deposit all funds received by it in payment of
the Exercise Price for all Warrants in the account of the Company
maintained with the Warrant Agent for such purpose (or to such
other account as directed by the Company in writing) and shall
advise the Company via email at the end of each day on which
exercise notices are received or funds for the exercise of any
Warrant are received of the amount so deposited to its
account.

 

(e) In
case the Holder of any Warrant Certificate shall exercise fewer
than all Warrants evidenced thereby and surrenders such Warrant
Certificate in connection with such partial exercise, a new Warrant
Certificate evidencing the number of Warrants equivalent to the
number of Warrants remaining unexercised may be issued by the
Warrant Agent to the Holder of such Warrant Certificate or to his
duly authorized assigns in accordance with Section 2(d)(ii) of the
Warrant Certificate, subject to the provisions of Section 6
hereof.

 

Section
8. Cancellation and
Destruction of Warrant Certificates. All Warrant
Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the
Company or to any of its agents, be delivered to the Warrant Agent
for cancellation or in canceled form, or, if surrendered to the
Warrant Agent, shall be canceled by it, and no Warrant Certificates
shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver
to the Warrant Agent for cancellation and retirement, and the
Warrant Agent shall so cancel and retire, any other Warrant
Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof. The Warrant Agent shall deliver all
canceled Warrant Certificates to the Company, or shall, at the
written request of the Company, destroy such canceled Warrant
Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company, subject to any applicable law,
rule or regulation requiring the Warrant Agent to retain such
canceled certificates.

 

Section
9. Certain
Representations; Reservation and Availability of Shares of Common
Stock or Cash.

 

(a)
This Agreement has been duly authorized, executed and delivered by
the Company and, assuming due authorization, execution and delivery
hereof by the Warrant Agent, constitutes a valid and legally
binding obligation of the Company enforceable against the Company
in accordance with its terms, and the Warrants have been duly
authorized, executed and issued by the Company and, assuming due
execution thereof by the Warrant Agent pursuant hereto and payment
therefor by the Holders as provided in the Registration Statement,
constitute valid and legally binding obligations of the Company
enforceable against the Company in accordance with their terms and
entitled to the benefits hereof; in each case except as
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally or by general equitable
principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

(b) As
of the date hereof, the authorized capital stock of the Company
consists of (i) 400,000,000 shares of Common Stock, of which
1,465,496 shares of Common Stock are issued and outstanding, and
10,362,692 shares of Common Stock are reserved for issuance upon
exercise of the Warrants, and (ii) 10,000,000 shares of preferred
stock, of which 5,181,346 shares are issued and outstanding
designated as Series A Convertible Preferred Stock, and 5,181,346
shares of Common Stock are reserved for issuance upon conversion of
the Preferred Stock. Except as disclosed in the Registration
Statement, there are no other outstanding obligations, warrants,
options or other rights to subscribe for or purchase from the
Company any class of capital stock of the Company.

 

(c) The
Company covenants and agrees that it will cause to be reserved and
kept available out of its authorized and unissued shares of Common
Stock or its authorized and issued shares of Common Stock held in
its treasury, free from preemptive rights, the number of shares of
Common Stock that will be sufficient to permit the exercise in full
of all outstanding Warrants.

 

(d) The
Warrant Agent will create a special account for the issuance of
Common Stock upon the exercise of Warrants.

 

(e) The
Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges
which may be payable in respect of the original issuance or
delivery of the Warrant Certificates or certificates evidencing
Common Stock upon exercise of the Warrants. The Company shall not,
however, be required to pay any tax or governmental charge which
may be payable in respect of any transfer involved in the transfer
or delivery of Warrant Certificates or the issuance or delivery of
certificates for Common Stock in a name other than that of the
Holder of the Warrant Certificate evidencing Warrants surrendered
for exercise or to issue or deliver any certificate for shares of
Common Stock upon the exercise of any Warrants until any such tax
or governmental charge shall have been paid (any such tax or
governmental charge being payable by the Holder of such Warrant
Certificate at the time of surrender) or until it has been
established to the Company’s and the Warrant Agent’s
reasonable satisfaction that no such tax or governmental charge is
due.

 

 

 

 

Section
10. Common Stock Record
Date. Each Person in whose name any certificate for shares
of Common Stock is issued (or to whose broker’s account is
credited shares of Common Stock through the DWAC system) upon the
exercise of Warrants shall for all purposes be deemed to have
become the holder of record for the Common Stock represented
thereby on, and such certificate shall be dated, the date on which
submission of the Exercise Notice was made, provided that the
Warrant Certificate evidencing such Warrant was duly surrendered
(but only if required herein) and payment of the Exercise Price
(and any applicable transfer taxes) was received on or prior to the
Warrant Share Delivery Date; provided, however, that, if the date of
submission of the Exercise Notice is a date upon which the Common
Stock transfer books of the Company are closed, such Person shall
be deemed to have become the record holder of such shares on, and
such certificate shall be dated, the next succeeding day on which
the Common Stock transfer books of the Company are
open.

 

Section
11. Adjustment of Exercise
Price, Number of Shares of Common Stock or Number of the Company
Warrants. The Exercise Price, the number of shares covered
by each Warrant and the number of Warrants outstanding are subject
to adjustment from time to time as provided in Section 3 of the
Series 1 Warrant Certificate or the Series 2 Warrant Certificate,
as applicable. In the event that at any time, as a result of an
adjustment made pursuant to Section 3 of the Series 1 Warrant
Certificate or the Series 2 Warrant Certificate, as applicable, the
Holder of any Warrant thereafter exercised shall become entitled to
receive any shares of capital stock of the Company other than
shares of Common Stock, thereafter the number of such other shares
so receivable upon exercise of any Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the
shares contained in Section 3 of the Warrant Certificate, and the
provisions of Sections 7, 9 and 13 of this Agreement with respect
to the shares of Common Stock shall apply on like terms to any such
other shares. All Warrants originally issued by the Company
subsequent to any adjustment made to the Exercise Price pursuant to
the Series 1 Warrant Certificate or the Series 2 Warrant
Certificate, as applicable, shall evidence the right to purchase,
at the adjusted Exercise Price, the number of shares of Common
Stock purchasable from time to time hereunder upon exercise of the
Warrants, all subject to further adjustment as provided
herein.

 

Section
12. Certification of
Adjusted Exercise Price or Number of Shares of Common Stock.
Whenever the Exercise Price or the number of shares of Common Stock
issuable upon the exercise of each Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable, is adjusted as
provided in Section 11 or 13, the Company shall (a) promptly
prepare a certificate setting forth the Exercise Price of each
Series 1 Warrant Certificate or the Series 2 Warrant Certificate,
as applicable, as so adjusted, and a brief, reasonably detailed
statement of the facts accounting for such adjustment, (b) promptly
file with the Warrant Agent and with each transfer agent for the
Common Stock a copy of such certificate and (c) instruct the
Warrant Agent, at the Company’s expense, to send a brief
summary thereof to each Holder of a Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable.

 

Section
13. Fractional Shares of
Common Stock.

 

(a) The
Company shall not issue fractions of Warrants or distribute Warrant
Certificates which evidence fractional Warrants. Whenever any
fractional Warrant would otherwise be required to be issued or
distributed, the actual issuance or distribution shall reflect a
rounding of such fraction to the nearest whole Warrant (rounded
down).

 

(b) The
Company shall not issue fractions of shares of Common Stock upon
exercise of Warrants or distribute stock certificates which
evidence fractional shares of Common Stock. Whenever any fraction
of a share of Common Stock would otherwise be required to be issued
or distributed, the actual issuance or distribution in respect
thereof shall be made in accordance with Section 2(d)(v) of the
Warrant Certificate.

 

Section
14. Conditions of the
Warrant Agent’s Obligations. The Warrant Agent accepts
its obligations herein set forth upon the terms and conditions
hereof, including the following to all of which the Company agrees
and to all of which the rights hereunder of the Holders from time
to time of the Warrant shall be subject:

 

(a) 

Compensation and
Indemnification. The Company agrees promptly to pay the Warrant
Agent the compensation detailed on Exhibit 2 hereto for all
services rendered by the Warrant Agent and to reimburse the Warrant
Agent for reasonable out-of-pocket expenses (including reasonable
counsel fees) incurred without gross negligence, bad faith or
willful misconduct by the Warrant Agent in connection with the
services rendered hereunder by the Warrant Agent. The Company also
agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without gross
negligence, bad faith or willful misconduct on the part of the
Warrant Agent, arising out of or in connection with its acting as
Warrant Agent hereunder, including the reasonable costs and
expenses of defending against any claim of such
liability.

 

(b) 

Agent for the
Company. In acting under this Warrant Agreement and in connection
with the Warrant Certificates, the Warrant Agent is acting solely
as agent of the Company and does not assume any obligations or
relationship of agency or trust for or with any of the Holders of
Warrant Certificates or beneficial owners of Warrants.

 

 

 

 

(c) 

Counsel. The
Warrant Agent may consult with counsel satisfactory to it, which
may include counsel for the Company, and the written advice of such
counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in
good faith and in accordance with the advice of such
counsel.

 

(d) 

Documents. The
Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or omitted by it in reliance upon
any Warrant Certificate, notice, direction, consent, certificate,
affidavit, statement or other paper or document reasonably believed
by it to be genuine and to have been presented or signed by the
proper parties.

 

(e) 

Certain
Transactions. The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it
were not the Warrant Agent hereunder, and, to the extent permitted
by applicable law, it or they may engage or be interested in any
financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of
Holders of Warrant Securities or other obligations of the Company
as freely as if it were not the Warrant Agent hereunder. Nothing in
this Warrant Agreement shall be deemed to prevent the Warrant Agent
from acting as trustee under any indenture to which the Company is
a party.

 

(f) 

No Liability for
Interest. Unless otherwise agreed with the Company, the Warrant
Agent shall have no liability for interest on any monies at any
time received by it pursuant to any of the provisions of this
Agreement or of the Warrant Certificates.

 

(g) 

No Liability for
Invalidity. The Warrant Agent shall have no liability with respect
to any invalidity of this Agreement or any of the Warrant
Certificates (except as to the Warrant Agent's countersignature
thereon).

 

(h) 

No Responsibility
for Representations. The Warrant Agent shall not be responsible for
any of the recitals or representations herein or in the Warrant
Certificates (except as to the Warrant Agent's countersignature
thereon), all of which are made solely by the Company.

 

(i) 

No Implied
Obligations. The Warrant Agent shall be obligated to perform only
such duties as are herein and in the Warrants specifically set
forth and no implied duties or obligations shall be read into this
Agreement or the Warrants against the Warrant Agent. The Warrant
Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability,
the payment of which within a reasonable time is not, in its
reasonable opinion, assured to it. The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the
Company of any of the Warrants authenticated by the Warrant Agent
and delivered by it to the Company pursuant to this Agreement or
for the application by the Company of the proceeds of the Warrants.
The Warrant Agent shall have no duty or responsibility in case of
any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrants or in the case of
the receipt of any written demand from a Holder of a Warrant
Certificate with respect to such default, including, without
limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings
at law.

 

Section
15. Purchase or
Consolidation or Change of Name of Warrant Agent. Any Person
into which the Warrant Agent or any successor Warrant Agent may be
merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Warrant
Agent or any successor Warrant Agent shall be party, or any Person
succeeding to the stock transfer or other shareholder services
business of the Warrant Agent or any successor Warrant Agent, shall
be the successor to the Warrant Agent under this Agreement without
the execution or filing of any paper or any further act on the part
of any of the parties hereto, provided that such Person would be
eligible for appointment as a successor Warrant Agent under the
provisions of Section 17. In case at the time such successor
Warrant Agent shall succeed to the agency created by this Agreement
any of the Warrant Certificates shall have been countersigned but
not delivered, any such successor Warrant Agent may adopt the
countersignature of the predecessor Warrant Agent and deliver such
Warrant Certificates so countersigned; and in case at that time any
of the Warrant Certificates shall not have been countersigned, any
successor Warrant Agent may countersign such Warrant Certificates
either in the name of the predecessor Warrant Agent or in the name
of the successor Warrant Agent; and in all such cases such Warrant
Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

In case
at any time the name of the Warrant Agent shall be changed and at
such time any of the Warrant Certificates shall have been
countersigned but not delivered, the Warrant Agent may adopt the
countersignature under its prior name and deliver Warrant
Certificates so countersigned; and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant
Agent may countersign such Warrant Certificates either in its prior
name or in its changed name; and in all such cases such Warrant
Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

 

 

 

Section
16. Duties of Warrant
Agent. The Warrant Agent undertakes the duties and
obligations imposed by this Agreement upon the following express
terms and conditions (and no implied terms and conditions), by all
of which the Company, by its acceptance hereof, shall be bound and
shall not assume any obligations or relationship of agency or trust
with any of the Holders of the Warrants or any other
Person:

 

(a) The
Warrant Agent may consult with legal counsel selected by it (who
may be legal counsel for the Company), and the opinion and advice
of such counsel shall be full and complete authorization and
protection to the Warrant Agent as to any action taken or omitted
by it in good faith and in accordance with such opinion or
advice.

 

(b)
Whenever in the performance of its duties under this Agreement the
Warrant Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or
suffering any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a
certificate signed by the Chief Executive Officer, Chief Financial
Officer or Vice President of the Company; and such certificate
shall be full authorization and protection to the Warrant Agent and
the Warrant Agent shall incur no liability for or in respect of any
action taken, suffered or omitted to be taken in good faith by it
under the provisions of this Agreement in reliance upon such
certificate. The Warrant Agent shall have no duty to act without
such a certificate as set forth in this Section 16(b).

 

(c)
Subject to the limitation set forth in Section 14, the Warrant
Agent shall be liable hereunder only for its own gross negligence,
bad faith or willful misconduct, of for a breach by it of this
Agreement (each as determined in a final, non-appealable judgment
of a court of competent jurisdiction).

 

(d) The
Warrant Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in
the Warrant Certificates (including in the case of any notation in
book entry form to reflect ownership), except its countersignature
thereof, by the Company or be required to verify the same, but all
such statements and recitals are and shall be deemed to have been
made by the Company only.

 

(e) The
Warrant Agent shall not have any liability or be under any
responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by
the Warrant Agent) or in respect of the validity or execution of
any Warrant Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant
Certificate; nor shall it be responsible for the adjustment of the
Exercise Price or the making of any change in the number of shares
of Common Stock required under the provisions of Section 11 or 13
or responsible for the manner, method or amount of any such change
or adjustment or the ascertaining of the existence of facts that
would require any such adjustment or change (except with respect to
the exercise of Warrants evidenced by Warrant Certificates after
actual notice of any adjustment of the Exercise Price); nor shall
it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any shares of
Common Stock to be issued pursuant to this Agreement or any Warrant
Certificate or as to whether any shares of Common Stock will, when
issued, be duly authorized, validly issued, fully paid and
nonassessable.

 

(f)
Each party hereto agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and
assurances as may reasonably be required by the other party hereto
for the carrying out or performing by any party of the provisions
of this Agreement.

 

(g) The
Warrant Agent is hereby authorized to accept instructions with
respect to the performance of its duties hereunder from the Chief
Executive Officer, Chief Financial Officer or Vice President of the
Company, and to apply to such officers for advice or instructions
in connection with its duties, and it shall not be liable and shall
be indemnified and held harmless for any action taken or suffered
to be taken by it in good faith in accordance with instructions of
any such officer, provided Warrant Agent carries out such
instructions without gross negligence, bad faith or willful
misconduct.

 

(h) The
Warrant Agent and any shareholder, director, officer or employee of
the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or become pecuniarily interested in
any transaction in which the Company may be interested, or contract
with or lend money to the Company or otherwise act as fully and
freely as though it were not Warrant Agent under this Agreement.
Nothing herein shall preclude the Warrant Agent from acting in any
other capacity for the Company or for any other
Person.

 

 

 

 

(i) The
Warrant Agent may execute and exercise any of the rights or powers
hereby vested in it or perform any duty hereunder either itself or
by or through its attorney or agents, and the Warrant Agent shall
not be answerable or accountable for any act, default, neglect or
misconduct of any such attorney or agents or for any loss to the
Company resulting from any such act, default, neglect or
misconduct, absent gross negligence or bad faith in the selection
and continued employment thereof (which gross negligence and bad
faith must be determined by a final, non-appealable judgment of a
court of competent jurisdiction).

 

This
Section 16 shall survive the expiration of the Warrants, the
termination of this Agreement and the resignation, replacement or
removal of the Warrant Agent. The costs and expenses incurred in
enforcing this right of indemnification shall be paid by the
Company.

 

Section
17. Change of Warrant
Agent. The Warrant Agent may resign and be discharged from
its duties under this Agreement upon 30 days’ notice in
writing sent to the Company and, in the event that the Warrant
Agent or one of its affiliates is not also the transfer agent for
the Company, to each transfer agent of the Common Stock. In the
event the transfer agency relationship in effect between the
Company and the Warrant Agent terminates, the Warrant Agent will be
deemed to have resigned automatically and be discharged from its
duties under this Agreement as of the effective date of such
termination, and the Company shall be responsible for sending any
required notice thereunder. The Company may remove the Warrant
Agent or any successor Warrant Agent upon 30 days’ notice in
writing, sent to the Warrant Agent or successor Warrant Agent, as
the case may be, and to each transfer agent of the Common Stock,
and to the Holders of the Warrant Certificates. If the Warrant
Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the
Warrant Agent. If the Company shall fail to make such appointment
within a period of 30 days after such removal or after it has been
notified in writing of such resignation or incapacity by the
resigning or incapacitated Warrant Agent or by the Holder of a
Warrant Certificate (who shall, with such notice, submit his
Warrant Certificate for inspection by the Company), then the Holder
of any Warrant Certificate may apply to any court of competent
jurisdiction for the appointment of a new Warrant Agent, provided
that, for purposes of this Agreement, the Company shall be deemed
to be the Warrant Agent until a new warrant agent is appointed. Any
successor Warrant Agent, whether appointed by the Company or by
such a court, shall be a Person, other than a natural person,
organized and doing business under the laws of the United States or
of a state thereof, in good standing, which is authorized under
such laws to exercise stock transfer powers and is subject to
supervision or examination by federal or state authority and which
has at the time of its appointment as Warrant Agent a combined
capital and surplus of at least $50,000,000. After appointment, the
successor Warrant Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally
named as Warrant Agent without further act or deed; but the
predecessor Warrant Agent shall deliver and transfer to the
successor Warrant Agent any property at the time held by it
hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose but such predecessor Warrant Agent
shall not be required to make any additional expenditure (without
prompt reimbursement by the Company) or assume any additional
liability in connection with the foregoing. Not later than the
effective date of any such appointment, the Company shall file
notice thereof in writing with the predecessor Warrant Agent and
each transfer agent of the Common Stock, and mail a notice thereof
in writing to the Holders of the Warrant Certificates. However,
failure to give any notice provided for in this Section 17, or any
defect therein, shall not affect the legality or validity of the
resignation or removal of the Warrant Agent or the appointment of
the successor Warrant Agent, as the case may be.

 

Section
18. Issuance of New
Warrant Certificates. Notwithstanding any of the provisions
of this Agreement or of the Warrants to the contrary, the Company
may, at its option, issue new Warrant Certificates evidencing
Warrants in such form as may be approved by its Board of Directors
to reflect any adjustment or change in the Exercise Price per share
and the number or kind or class of shares of stock or other
securities or property purchasable under the several Warrant
Certificates made in accordance with the provisions of this
Agreement.

 

Section
19. Notices.
Notices or demands authorized by this Agreement to be given or made
(i) by the Warrant Agent or by the Holder of any Warrant
Certificate to or on the Company, (ii) by the Company or by the
Holder of any Warrant Certificate to or on the Warrant Agent or
(iii) by the Company or the Warrant Agent to the Holder of any
Warrant Certificate, shall be deemed given when in writing (a) on
the date delivered, if delivered personally, (b) on the first
Business Day following the deposit thereof with Federal Express or
another recognized overnight courier, if sent by Federal Express or
another recognized overnight courier, (c) on the fourth Business
Day following the mailing thereof with postage prepaid, if mailed
by registered or certified mail (return receipt requested), and (d)
the date of transmission, if such notice or communication is
delivered via facsimile or e-mail attachment at or prior to 5:30
p.m. (New York City time) on a Business Day and (e) the next
Business Day after the date of transmission, if such notice or
communication is delivered via facsimile or e-mail attachment on a
day that is not a Business Day or later than 5:30 p.m. (New York
City time) on any Business Day, in each case to the parties at the
following addresses (or at such other address for a party as shall
be specified by like notice):

 

 

 

 

(a) 

If to the Company,
to:

 

Tenax
Therapeutics, Inc.

ONE
Copley Parkway, Suite 490

Morrisville, NC
27560

Attention: Michael
B. Jebsen

Facsimile: (919)
855-2133

E-mail:
m.jebsen@tenaxthera.com

 

(b) 

If to the Warrant
Agent, to:

 

Direct
Transfer LLC

500
Perimeter Park Drive, Suite D

Morrisville, NC
27560

Attention: Eddie
Tobler

Facsimile:
646-225-7274

E-mail:
transfer@issuerdirect.com

 

For any
notice delivered by email to be deemed given or made, such notice
must be followed by notice sent by overnight courier service to be
delivered on the next Business Day following such email, unless the
recipient of such email has acknowledged via return email receipt
of such email.

 

(c) If
to the Holder of any Warrant Certificate, to the address of such
Holder as shown on the registry books of the Company. Any notice
required to be delivered by the Company to the Holder of any
Warrant may be given by the Warrant Agent on behalf of the Company.
Notwithstanding any other provision of this Agreement, where this
Agreement provides for notice of any event to a Holder of any
Warrant, such notice shall be sufficiently given if given to the
Depositary (or its designee) pursuant to the procedures of the
Depositary or its designee.

 

Section
20. Supplements and
Amendments.

 

(a) The
Company and the Warrant Agent may from time to time supplement or
amend this Agreement without the approval of any Holders of Global
Warrants in order to (i) add to the covenants and agreements of the
Company for the benefit of the Holders of the Global Warrants, (ii)
to surrender any rights or power reserved to or conferred upon the
Company in this Agreement, (iii) to cure any ambiguity, (iv) to correct or
supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, or (v) to make any
other provisions with regard to matters or questions arising
hereunder which the Company and the Warrant Agent may deem
necessary or desirable, provided that such addition,
correction or surrender shall not adversely affect the interests of
the Holders of the Global Warrants or Warrant Certificates in any
material respect.

 

(b) In
addition to the foregoing, with the consent of Holders of Warrants
entitled, upon exercise thereof, to receive not less than a
majority of the shares of Common Stock issuable thereunder, the
Company and the Warrant Agent may modify this Agreement for the
purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or modifying in
any manner the rights of the Holders of the Global Warrants;
provided,
however, that no
modification of the terms (including but not limited to the
adjustments described in Section 11) upon which the Warrants are
exercisable or reducing the percentage required for consent to
modification of this Agreement may be made without the consent of
the Holder of each outstanding warrant certificate affected
thereby; provided
further,
however, that no
amendment hereunder shall affect any terms of any Warrant
Certificate issued in a Warrant Exchange. As a condition precedent
to the Warrant Agent’s execution of any amendment, the
Company shall deliver to the Warrant Agent a certificate from a
duly authorized officer of the Company that states that the
proposed amendment complies with the terms of this Section
20. No supplement or
amendment to this Agreement shall be effective unless duly executed
by the Warrant Agent.

 

Section
21. Successors. All
covenants and provisions of this Agreement by or for the benefit of
the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns
hereunder.

 

Section
22. Benefits of this
Agreement. Nothing in this Agreement shall be construed to
give any Person other than the Company, the Holders of Warrant
Certificates and the Warrant Agent any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be
for the sole and exclusive benefit of the Company, the Warrant
Agent and the Holders of the Warrant Certificates.

 

 

 

 

Section
23. Governing Law;
Jurisdiction. This Agreement and each Warrant Certificate
issued hereunder shall be governed by, and construed in accordance
with, the laws of the State of New York without giving effect to
the conflicts of law principles thereof. Each party to this Agreement hereby
agrees that any action, proceeding or claim against it arising out
of or relating in any way to this Agreement shall be brought and
enforced in the courts of the State of New York or the United
States District Court for the Southern District of New York, and
irrevocably submits to such jurisdiction, which jurisdiction shall
be exclusive. Each party to this Agreement hereby waives any
objection to such exclusive jurisdiction and that such courts
represent an inconvenience forum.

 

Section
24. Counterparts.
This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but
one and the same instrument. A signature to this Agreement
transmitted electronically shall have the same authority, effect
and enforceability as an original signature.

 

Section
25. Captions. The
captions of the sections of this Agreement have been inserted for
convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

 

Section
26. Information.
The Company agrees to promptly provide to the Holders of the
Warrants any information it provides to the holders of the Common
Stock, except to the extent any such information is publicly
available on the EDGAR system (or any successor thereof) of the
Securities and Exchange Commission.

 

Section
27. Severability.
Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement 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 Agreement; provided, however, that if
such prohibited and invalid provision shall adversely affect the
rights, immunities, liabilities, duties or obligations of the
Warrant Agent, the Warrant Agent shall be entitled to resign
immediately upon written notice to the Company.

 

Section
28. Force Majeure.
Notwithstanding anything to the contrary contained herein, the
Warrant Agent will not be liable for any delays or failures in
performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts,
shortage of supply, breakdowns or malfunctions, interruptions or
malfunction of computer facilities, or loss of data due to power
failures or mechanical difficulties with information storage or
retrieval systems, labor difficulties, war, or civil unrest, it
being understood that the Warrant Agent shall use reasonable best
efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the
circumstances.

 

Section
29. Entire
Agreement. The parties hereto acknowledge that there are no
agreements or understandings, written or oral, between them with
respect to matters contemplated hereunder other than as set forth
herein and the Warrant Certificates, that this Agreement and the
Warrant Certificates contain the entire agreement between them with
respect to the subject matter hereof and thereof.

 

 

 

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

 

 

	

 

	
TENAX
THERAPEUTICS, INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ Michael B.
Jebsen

	

 

	

 

	

 

	
Name: Michael B.
Jebsen

	

 

	

 

	

 

	

Title:
President and Chief
Financial Officer

	

 

 

 

	

 

	
DIRECT
TRANSFER LLC

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ Eddie
Tobler

	

 

	

 

	

 

	
Name: Eddie
Tobler

	

 

	

 

	

 

	

Title:
VP Stock Transfer

	

 

 

 

 

 

 

Annex A: Form of Warrant Certificate Request Notice

 

WARRANT
CERTIFICATE REQUEST NOTICE

 

To:
Direct Transfer LLC as Warrant Agent for Tenax Therapeutics, Inc.
(the “Company”)

 

The
undersigned Holder of [Series 1] [Series 2] Common Stock Purchase
Warrants (“Warrants”) in the form of [Series 1] [Series
2] Global Warrants issued by the Company hereby elects to receive a
Warrant Certificate evidencing the Warrants held by the Holder as
specified below:

 

1. 

Name of Holder of
[Series 1] [Series 2] Warrants in form of Global Warrants:
___________________________

 

2. 

Name of Holder in
[Series 1] [Series 2] Warrant Certificate (if different from name
of Holder of [Series 1] [Series 2] Warrants in form of Global
Warrants): ________________________________

 

3. 

Number of [Series
1] [Series 2] Warrants in name of Holder in form of Global
Warrants: ___________________

 

4. 

Number of [Series
1] [Series 2] Warrants for which [Series 1] [Series 2] Warrant
Certificate shall be issued: __________________

 

5. 

Number of [Series
1] [Series 2] Warrants in name of Holder in form of Global Warrants
after issuance of [Series 1] [Series 2] Warrant Certificate, if
any: ___________

 

6. 

[Series 1] [Series
2] Warrant Certificate shall be delivered to the following
address:

 

______________________________

 

______________________________

 

______________________________

 

______________________________

 

The
undersigned hereby acknowledges and agrees that, in connection with
this Warrant Exchange and the issuance of the Warrant Certificate,
the Holder is deemed to have surrendered the number of Warrants in
form of Global Warrants in the name of the Holder equal to the
number of Warrants evidenced by the Warrant
Certificate.

 

[SIGNATURE OF
HOLDER]

 

Name of
Investing Entity:
____________________________________________________

 

Signature of Authorized Signatory of Investing
Entity: ______________________________

 

Name of
Authorized Signatory:
________________________________________________

 

Title
of Authorized Signatory:
_________________________________________________

 

Date:
_______________________________________________________________

 

 

 

 

Exhibit 1: Form of Series [1]/[2] Warrant Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 2: Schedule of Fees

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