Document:

ALLIANCE DISTRIBUTORS HOLDING INC.

                                                                         [date]

To:

Number of shares subject to Option(s): _________
Nature of Option(s): Nonstatutory
Option Price: ___________
Date of Grant: __________
Expiration Date: _________
Quarterly Vesting Percentage: _________
Certain Limitations:

                  If the Optionee's employment with or rendering of other
                  services to the Company shall terminate other than by reason
                  of death, such Option(s) shall thereafter be exercisable only
                  to the extent, if any, that the Option(s) was(were)
                  exercisable immediately prior to the date of such termination.
                  Such exercise must occur within 30 days after termination of
                  employment, provided that if termination is on account of
                  permanent disability or retirement after age 65 or as
                  otherwise defined by the Company in its primary retirement
                  program, such exercise shall be valid if made within one year
                  after such termination.

                  If the Optionee should die while in the employ of the Company
                  or while retained by the Company, the Option(s) shall be
                  exercisable only by the estate of the Optionee or by a person
                  who acquired the right to exercise such Option(s) by bequest
                  or inheritance or otherwise by reason of the death of the
                  Optionee. The Option(s) shall be exercisable only within the
                  twelve-month period next succeeding the death of the Optionee
                  and only to the extent, if any, that the Option(s) was(were)
                  exercisable immediately prior to the date of death.

                  In no event may Optionee at any exercise any unvested portion
                  of this option.

                  OPTIONEE ACKNOWLEDGES THAT AN ESSENTIAL PURPOSE OF THE GRANT
                  OF THIS OPTION IS TO ENSURE THE UTMOST FIDELITY OF THE
                  OPTIONEE TO THE COMPANY'S INTERESTS AND THE DILIGENT
                  PERFORMANCE BY OPTIONEE OF ALL OF OPTIONEE'S UNDERSTANDINGS
                  AND COMMITMENTS TO THE COMPANY, WHETHER OR NOT LEGALLY
                  ENFORCEABLE. ACCORDINGLY, OPTIONEE MAY NOT EXERCISE THIS
                  OPTION DURING OR AFTER TERMINATION OF EMPLOYMENT IF EITHER (1)
                  THE COMPANY --IN ITS SOLE INCONTESTABLE DISCRETION -- BELIEVES
                  THAT OPTIONEE HAS AT ANY TIME BREACHED ANY COVENANT OR
                  OBLIGATION TO THE COMPANY OR UNDERSTANDING WITH THE COMPANY
                  ,WHETHER OR NOT SUCH COVENANT OR OBLIGATION OR UNDERSTANDING
                  IS LEGALLY ENFORCEABLE, OR (2) THE COMPANY - IN ITS SOLE
                  INCONTESTABLE DISCRETION -- BELIEVES THAT OPTIONEE HAS AT ANY
                  TIME CONDUCTED HIMSELF OR HERSELF IN A MANNER WHICH ADVERSELY
                  AFFECTS OR COULD ADVERSELY AFFECT THE COMPANY.

                  Optionee will not sell any shares so long as Optionee has
                  material information with respect to the Company which has not
                  been publicly disclosed.

                  THE FOREGOING RESTRICTIONS APPLY WHETHER OR NOT THE SHARES
                  SUBJECT TO THIS OPTION ARE OTHERWISE VESTED. The Company may
                  by notice impose additional restrictions on sales of shares.
                  These restrictions are in addition to all vesting and other

<PAGE>

                  restrictions which are set forth herein. The Company is not
                  obligated to impose the same or similar restrictions on all
                  holders of options or warrants. These restrictions can be
                  waived only by a written agreement which is signed by the
                  Company's Chief Executive Officer and which expressly refers
                  to these restrictions; without limiting the generality of the
                  foregoing, these restrictions cannot be waived or changed by
                  oral or written statements by Optionee's superiors other than
                  the Company's Chief Executive Officer in the manner aforesaid.

Dear Optionee:

         I am pleased to advise you that the Company has granted you a stock
option pursuant to the Company's 2004 Stock Plan (the "Plan"). A copy of the
plan is attached as Exhibit A.

         Please sign one copy of this letter and return it to the Company to
signify your agreement.

         1. Stock Option. Your option is to purchase the number of shares of our
common stock set forth above (the "Option Shares") at the Option Price set forth
above. Your option will expire at the close of business on the Expiration Date
set forth above, subject to earlier termination as set forth in the Plan.

         The reference above opposite "Nature of Option" indicates whether your
option is an Incentive Stock Option or a Nonstatutory Option.

         2. Additional Items. Your Option and the Option Shares received upon
the exercise are also subject to the following provisions:

                  (a) Exercisability.
                  The exercise of your Option is limited by the Certain
Limitations set forth above as well as by additional restrictions which may be
set forth in the Plan.

                  (b) Procedure for Exercise. You may exercise all or any
portion of your option, to the extent it is valid and outstanding, at any time
and from time to time prior to its termination, by delivering to the Company (i)
written notice containing the information and representations appearing on the
form attached as Exhibit B, and (ii) payment of the Option Price; except that
not less than ten shares may be purchased at any one time unless the total
number purchased is the total number that may be purchased under the option.

                  (c) Securities Laws Restrictions. You represent that when you
exercise your option you will be purchasing Option Shares for your own account
and not on behalf of others. You understand and acknowledge that federal and
state securities laws govern and restrict your right to offer, sell or otherwise
dispose of any Option Shares unless otherwise covered by a Form S-8 or unless
your offer, sale or other disposition thereof is otherwise registered under the
Securities Act of 1933, as amended, (the "1933 Act") and state securities laws
or, in the opinion of the Company's counsel, such offer, sales or other
disposition is exempt from registration thereunder. You agree that you will not
offer, sell or otherwise dispose of any Option Shares in any manner which would:
(i) require the Company to file any registration statement (or similar filing
under state laws) with the Securities and Exchange Commission or to amend or
supplement any such filing or (ii) violate or cause the Company to violate the
1933 Act, the rules and regulations promulgated thereunder or any other state or
federal law. You further understand that the certificates for any Option Shares
you purchase will bear such legends as the Company deems necessary or desirable
in connection with the 1933 Act or other rules, regulations or laws. If you are
a director, officer or principal shareholder, Section 16(b) of the Securities
Exchange Act of 1934 further restricts your ability to sell or otherwise dispose
of Option Shares.

         3. Non-Transferability of Option. Your option is personal to you and is
non-transferable by you other than by will or the laws of descent and
distribution or as otherwise permitted by the Plan. During your lifetime only
you can exercise your option except as otherwise permitted by the Plan. Upon
your death, the person or persons to whom your rights pass by will or laws of
descent and distribution will have the right to exercise your option.

<PAGE>

         4.       Withholding Taxes.

                  (a) The Company shall have the right to withhold from your
salary or other compensation any withholding taxes payable as a result of your
receipt of Option Shares. The Company shall also have the right to require that
you pay to it all such withholding taxes in cash as a condition precedent to the
exercise of this Option.

                  (b) If this is an Incentive Stock Option and you dispose of
shares purchased as a result of exercise within two years of the date hereof,
the Company shall have the right to withhold from your salary or other
compensation any withholding of taxes payable as a result of such disposition.
The Company shall also have the right to require that you pay to it all such
withholding taxes in cash as a condition precedent to the exercise of this
Option.

                  (c) In the case of a disposition described in (b), you must
give the Company written notice of such disposition within 30 days following the
disposition, which notice shall include such information as the Company may
reasonably request to effectuate the provisions hereof.

         5. Conformity with Plan. Your option is intended to conform in all
respects with, and is subject to all applicable provisions of, the Plan, which
is incorporated herein by reference. Any inconsistencies between this letter and
the Plan shall be resolved in accordance with the terms of the Plan. By
executing and returning the enclosed copy of this letter, you acknowledge your
receipt of the Plan and agree to be bound by all the terms of the Plan. All
definitions stated in the Plan apply to this letter. YOU SHOULD READ THE PLAN
CAREFULLY.

         6. Employment and Successors. Nothing herein confers any right or
obligation on you to continue in the employ of the Company or any subsidiary or
shall affect in any way your right or the right of the Company or any
subsidiary, as the case may be, to terminate your employment at any time. The
agreements contained in this letter shall be binding upon the inure to the
benefit of the successor of the Company.

         7. Entire Agreement. This agreement constitutes the entire
understanding between you and the Company, and supersedes all other agreements,
whether written or oral, with respect to the stock option referred to in this
letter.

         Please sign the extra copy of this letter in the space below and return
it to the Company to confirm your understanding and acceptance of the agreements
contained in this letter.

                                              Very truly yours,

                                              ALLIANCE HOLDING DISTRIBUTORS INC.

                                              By____________________________

                                              Title:________________________
CONFIRMED:

--------------------------Unassociated Document

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES.

 

 

ADVAXIS, INC.

 

WARRANT

 

 

	Warrant No. HA-1 	 	 	
Date of Original Issuance: January 12, 2004 

 

 

Advaxis, Inc., a Colorado corporation (the “Company”), hereby certifies that, for value received, Harvest Advaxis, LLC or his, her, or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of Three Million Eight Hundred Thousand Seven Hundred Fifty Three (3,832,753) shares of common stock, par value $0.001 (the 
“Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price equal to $0.40 per share (as adjusted from time to time as provided in Section 9, the “Exercise Price”), at any
 time and from time to time from and after the date hereof and
through and including January 12, 2009 (the “Expiration Date”), and subject to the following terms and conditions:

 

1.  Definitions.This warrant (the “Warrant”) is one of a series of similar warrants issued pursuant to the Securities Purchase Agreement, among Advaxis, Inc. (the predecessor in interest to the Company) and Harvest Advaxis, LLC, dated January 12, 2004 (the “Securities 
Purchase Agreement”). All such warrants are collectively referred to herein as the “Warrants”. Capitalized terms used and not otherwise defined herein have the meanings as defined in the Securities Purchase Agreement.

 

2.  Registration of Warrant; Transfers. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual notice to the contrary. The Holders are entitled to the benefits of the Securities Purchase Agreement, which provides, among other things, for certain registration rights and certain restrictions on the transfer of the Warrants and the Warrant Shares, and each Holder, by acceptance of a Warrant, accepts the restrictions and other provisions of the Securities Purchase Agreement. 

	 
	 	 	 
	

	 

 

3.  Registration of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”
), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant. 

 

4.  Exercise and Duration of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the date hereof to and including the Expiration Date; provided, that if (i) the average of the Closing Prices for any consecutive 30 Trading Days period is at least $1.00, (ii) the average daily trading volume of the Common Stock during such 30-Trading Day period is at least 100,000 shares, and (iii) a Registration Statement covering the resale of the Warrant Shares is at such time effective (the first date upon which the conditions set forth in (i), (ii) and (iii) are
satisfied, being referred to as the “Early Expiration Triggering Event”), then the Warrant shall be canceled and shall be of no further force and effect (to the extent not previously exercised) as of the 45th day following the Early Expiration Triggering Event; provided, that, and only if, the Company gives written notice to the Holder of same within five days following the Early Expiration Triggering Event it being understood that such notice and 45-day period is intended to give the Holder a reasonable opportunity to exercise this Warrant prior to such cancellation. As used herein, the term 
“Closing 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 New York Stock Exchange, the American Stock Exchange, the NASDAQ National Market, the NASDAQ Small Cap Market or the OTC Bulletin Board or any successor to any of the foregoing, the closing price per share of the Common Stock for such date (or the nearest preceding date) on the primary market or exchange on which the Common Stock is
 then listed or quoted;
(B) if prices for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the most recent closing bid price per share of the Common Stock so reported; or (C) 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 Investors and the Company. 

 

The Company may not call or redeem all or any portion of this Warrant without the prior written consent of the Holder.

	 
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5.  Delivery of Warrant Shares.

 

(a)  Upon delivery to the Company of an exercise notice in the form attached hereto (the “Exercise Notice”) at the Company’s address for notice set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder, the Company shall promptly (but in no event later than three Trading Days after the Date of Exercise (as defined herein) issue and deliver to the Holder, a certificate for the Warrant Shares issuable upon such exercise,
which, unless otherwise required by the Securities Purchase Agreement, shall be free of restrictive legends. The Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities and Exchange Commission, use its best efforts to deliver Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions, if available, provided, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through the Depository Trust Corporation. A “Date of Exercise” means the date on which the Holder shall have delivered to
Company: the Exercise Notice, appropriately completed and duly signed, and payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b)  To effect exercises hereunder, the Holder shall be required to physically surrender this Warrant. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares. This Warrant is exercisable, either in its entirety or, from time to time, for a portion of the number of Warrant Shares. Upon surrender of this Warrant following one or more partial exercises, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

 

(c)  The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the
Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

6.  Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the
Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

	 
	 	-3- 	 
	

	 

 

7.  Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

8.  Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that
all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, shall be duly and validly authorized, issued and fully paid and nonassessable.

 

9.  Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9.

 

(a)  Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the
denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this Section 9(a) occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

	 
	 	-4- 	 
	

	 

 

(b)  Fundamental Transactions. If, at any time while this Warrant is outstanding, (1) the Company effects any merger or consolidation of the Company with or into another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). 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. At the Holder’s option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form of this Warrant and consistent with the foregoing provisions and
evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 9(b) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

(c)  In case the Company shall issue shares of Common Stock or rights, options, warrants or other securities to subscribe for or purchase Common Stock, or securities convertible or exercisable into or exchangeable for Common Stock (“Common Stock Equivalents”) (excluding shares, rights, options, warrants, or convertible or exchangeable securities, issued or issuable (i) in any of the transactions with respect to which an adjustment of the Exercise Price is provided pursuant to Sections 9(a) or 9(b) above, (ii) upon
exercise of the Warrants, (iii) pursuant to stock option plans, stock bonus plans, stock incentive plans, programs or agreements providing for the grant of shares, options for shares or stock appreciation rights to employees (including officers), directors, consultants, advisors, agents, lessors, lenders, customers, vendors and suppliers, or (iv) in connection with transactions which are not for the principal purpose of raising money (ie, strategic alliance, corporate partnering, licensing of technology, mergers, acquisition of assets)), at a price per share lower than the Base Price (as hereinafter defined) per share of Common Stock in effect immediately prior to such issuance, then the Exercise Price shall be reduced on the date of such issuance to a price (calculated to the nearest cent) determined by multiplying the Exercise Price in effect immediately prior to such issuance by a fraction, (1) the numerator of which shall be an amount equal to the sum of (A) the number of shares of Common Stock
outstanding immediately prior to such issuance plus (B) the quotient obtained by dividing the consideration received by the Company upon such issuance by the Base Price, and (2) the denominator of which shall be the total number of 

	 
	 	-5- 	 
	

	 

 

shares of Common Stock outstanding immediately after such issuance. For the purposes of such adjustments, the maximum number of shares which the holders of any such Common Stock Equivalents, shall be entitled to subscribe for or purchase or convert or exchange such securities into shall be deemed to be issued and outstanding as of the date of such issuance (whether or not such Common Stock Equivalent is then exercisable, convertible or exchangeable), and the consideration received by the Company therefor shall be deemed to be the consideration received by the Company for such Common Stock Equivalents, plus the minimum aggregate consideration or premiums stated in such Common Stock Equivalents, to be paid for the shares covered thereby. No further adjustment of the Exercise Price shall be made as a result of the actual issuance of shares of
Common Stock on exercise of such Common Stock Equivalents. On the expiration or the termination of such Common Stock Equivalents, or the termination of such right to convert or exchange, the Exercise Price shall forthwith be readjusted (but only with respect to that portion of the Warrants which has not yet been exercised) to such Exercise Price as would have obtained had the adjustments made upon the issuance of such Common Stock Equivalents, been made upon the basis of the delivery of only the number of shares of Common Stock actually delivered upon the exercise of such Common Stock Equivalents; and on any change of the number of shares of Common Stock deliverable upon the exercise of any such Common Stock Equivalents, or any change in the consideration to be received by the Company upon such exercise, conversion, or exchange, including, but not limited to, a change resulting from the anti-dilution provisions thereof, the Exercise Price, as then in effect, shall forthwith be readjusted (but only
with respect to that portion of the Warrants which has not yet been exercised or converted after such change) to such Exercise Price as would have been obtained had an adjustment been made upon the issuance of such Common Stock Equivalents not exercised prior to such change, or securities not converted or exchanged prior to such change, on the basis of such change. In case the Company shall issue shares of Common Stock or any such Common Stock Equivalents, for a consideration consisting, in whole or in part, of property other than cash or its equivalent, then the “price per share” and the “consideration received by the Company” for purposes of the first sentence of this Section 9(c) shall be as determined in good faith by the Board of Directors of the Company. Shares of Common Stock owned by or held for the account of the Company or any majority-owned subsidiary shall not be deemed outstanding for the purpose of any such computation. For the purposes of this Agreement
“Base Price” shall mean $0.287 (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like).

 

(d)  Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to holders of Common Stock (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by Section 9(a)), (iii) rights or warrants to subscribe for or purchase any security (other than Common Stock Equivalents which are covered by Section 9(c)), or (iv) any other asset (in each case, “Distributed Property
”), then in each such case the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution shall be adjusted (effective on such record date) to equal the product of such Exercise Price times a fraction of which the denominator shall be the average of the Closing Prices for the five Trading Days immediately prior to (but not including) such record date and of which the numerator shall be such average less the then fair market value of the Distributed Property distributed in respect of one outstanding share of Common Stock, as determined by the Company's independent certified public accountants that regularly examine the financial statements of the Company (an “Appraiser
”). In such event, the
Holder, after receipt of the determination by the Appraiser, shall have the right to select an additional appraiser (which shall be a nationally recognized accounting firm), in which case such fair market value shall be deemed to equal the average of the values determined by each of the Appraiser and such appraiser. As an alternative to the foregoing adjustment to the Exercise Price, at the request of the Holder delivered before the 90th day after such record date, the Company will deliver to such 

	 
	 	-6- 	 
	

	 

 

Holder, within five Trading Days after such request (or, if later, on the effective date of such distribution), the Distributed Property that such Holder would have been entitled to receive in respect of the Warrant Shares for which this Warrant could have been exercised immediately prior to such record date. If a Holder has elected to receive Distributed Property and such Distributed Property is not delivered to a Holder pursuant to the preceding sentence, then upon expiration of or any exercise of the Warrant that occurs after such record date, such Holder shall remain entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), such Distributed Property. This Section 9(d) is only applicable if the Holder exercises the Warrant concurrently with the distribution to the Holder of the
Distributed Property.

 

(e)  Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Sections 9(a), 9(c) or 9(d), the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(f)  Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(g)  Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a
copy of each such certificate to the Holder and to the Company’s Transfer Agent.

 

(h)  Notices of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes a repurchase of Common Stock or the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the
Holder a notice describing the material terms and conditions of such transaction, at least 10 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

	 
	 	-7- 	 
	

	 

 

(i)  Successive Adjustments and Changes. The provisions of Section 9 shall similarly apply to successive dividends, subdivisions, combinations, and distributions, to successive consolidations, mergers, sales, leases, or conveyances, and to successive reclassifications, changes of shares of Common Stock and issuances of Common Stock, warrants, options or other rights to subscribe for or purchase Common Stock, or securities convertible into Common Stock. If applicable, appropriate adjustment, as determined in good faith by the Company’s Board of Directors, shall be made in the application of the provisions herein
set forth with respect to the rights and interests of the Holder so that the provisions of Section 9 shall thereafter be applicable, as nearly as possible, in relation to any shares or other property thereafter deliverable upon exercise of this Warrant.

 

10.  Payment of Exercise Price. The Holder must pay the Exercise Price by delivery of immediately available funds.

 

11.  Limitations on Exercise. 

 

(a)  Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder's for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999% (the "5% Maximum
Percentage") of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. The Company shall, instead of issuing shares of Common Stock in excess of the limitation referred to in this Section 11(a), suspend its obligation to issue shares in excess of the foregoing limitation until such time, if any, as such shares of Common Stock may be issued in compliance with such limitation. Additionally, by  written notice to the Company, the Holder may waive the
provisions of this Section 11(a) or increase or decrease the 5% Maximum Percentage to any other percentage specified in such notice; provided, that (i) any such waiver or increase or decrease will not be effective until the 61st day after such notice is delivered to the Company, and (ii) any such waiver or increase or decrease will apply only to the Holder and not to any other holder of Warrants.

	 
	 	-8- 	 
	

	 

 

(b)  Notwithstanding anything to the contrary contained herein and regardless of whether the restrictions contained in Section 11(a) are waived as provided therein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder's for purposes of Section 13(d) of the Exchange Act, does not exceed 9.999% (the "
10% Maximum Percentage") of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. The Company shall, instead of issuing shares of Common Stock in excess of the limitation referred to in this Section 11(b), suspend its obligation to issue shares in excess of the foregoing limitation until such time, if any, as such shares of Common Stock may be issued in compliance with such limitation. The provisions of this Section 11(b) may not be waived. 

 

(c)   This Section 11 shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9(b) this Warrant or the amount of Distributed Property to which the Holder may become entitled pursuant to Section 9(d) of this Warrant. In addition, this provision shall not in any way limit any other adjustment to be made pursuant to Section 9 hereof. 

 

12.  No Fractional Shares. If any fraction of a Warrant Share would, except for the provisions of this Section, be issuable upon exercise of this Warrant, the number of Warrant Shares to be issued will be rounded up to the nearest whole share.

 

13.  Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via confirmed facsimile at the facsimile number specified in this Section prior to 4:00 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via confirmed facsimile at the facsimile number specified in this Section on a day that is not a
Trading Day or later than 4:00 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be: (i) if to the Company, to Advaxis, Inc., 212 Carnegie Center, Suite 206, Princeton, New Jersey 08540, Attention: Chief Executive Officer, or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in accordance with this Section.

	 
	 	-9- 	 
	

	 

 

14.  Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 10 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent
shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

 

15.  Miscellaneous.

 

(a)  Subject to the restrictions on transfer set forth on the first page hereof, this Warrant may be assigned by the Holder upon delivery to the Company of a properly completed notice of assignment, substantially in the form attached hereto. This Warrant may not be assigned by the Company except to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be
amended only in writing signed by the Company and the Holder and their successors and assigns.

 

(b)  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 this Warrant and the transactions herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective
Affiliates, employees or agents) may be commenced non-exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the New York Courts 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 Proceeding, any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such 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 manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY. IF EITHER PARTY SHALL COMMENCE A PROCEEDING TO ENFORCE ANY PROVISIONS OF THIS WARRANT, THEN THE PREVAILING PARTY IN SUCH PROCEEDING SHALL BE REIMBURSED BY THE OTHER PARTY FOR ITS ATTORNEY’S FEES AND OTHER COSTS AND EXPENSES INCURRED WITH THE INVESTIGATION, PREPARATION AND PROSECUTION OF SUCH
PROCEEDING.

 

(c)  The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

	 
	 	-10- 	 
	

	 

 

(d)  In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(e)    The Company will not, by amendment of its governing documents 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 action as may be necessary or appropriate in order to protect the rights of the Holder against impairment. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of any Warrant Shares above the amount
payable therefor on such exercise, (ii) will take all such action as may be reasonably necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares on the exercise of this Warrant, and (iii) will not close its stockholder books or records in any manner which interferes with the timely exercise of this Warrant.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

 

SIGNATURE PAGE FOLLOWS]

 

	
	 	-11- 	 
	

	 

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

 

 

	 	 	ADVAXIS, INC. 	 
	 	 	 	 
	 	 	By:                                     	 
	 	 	Name: J. Todd Derbin 	 
	 	 	Title: Chief Executive Officer 	 

 

	
 

	 	-12- 	 
	

	 

ADVAXIS, INC. -- EXERCISE NOTICE

 

Exercise Notice for Warrant No: ________

 

The undersigned hereby irrevocably elects to purchase ________________ shares of Common Stock of Advaxis, Inc. (the “Company”), pursuant to the above captioned Warrant and in connection therewith shall pay the sum of $____________ to the Company in accordance with the terms of the Warrant. Pursuant to this exercise, the Company shall deliver to the holder _______________ Warrant Shares in accordance with the terms of the Warrant.

 

The undersigned requests that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of: 

 

____________________________________

____________________________________

_____________________________________

(Print Name, Address and Social Security 

or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares covered by the within Warrant, that a new Warrant for the balance of the Warrant Shares covered by within Warrant be registered in the name of, and delivered to, the undersigned at the address stated below.

	 	 	Dated:                                        	 
	 	 	By:                                            	 
	 	 	     Print Name	 
	 	 	                                                 	 
	 	 	Signature 	 
	 	 	 	 
	Address: 	 	 	 
	 	 	 	 
	                                              	 	 	 
	                                              	 	 	 
	                                              	 	 	 

    

	  
	 	 	 
	

	 

 ADVAXIS, INC.

 

 

 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer of Warrant]

 

Warrant No: ____________

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned Warrant to purchase ____________ shares of Common Stock of Advaxis, Inc. to which such Warrant relates and appoints ________________ attorney to transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated: _______________, ____

 

 

_______________________________________

                                                                                          (Signature must conform in all respects to name of

                                                                                          holder as specified on the face of the Warrant)

 

 

_______________________________________

                                                                                          Address of Transferee

 

 

_______________________________________

 

_______________________________________

 

In the presence of:

 

 

__________________________

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