Document:

exv4w6

Form of Subscription Agreement

SUBSCRIPTION AGREEMENT

(For Institutional Investors only)

June __, 2008

Gentlemen:

     The undersigned (the “Investor”) hereby confirms its agreement with you as follows:

     1. This Subscription Agreement (this “Agreement”) is made as of the date set forth below
between Polymedix, Inc., a Delaware corporation (the “Company”), and the Investor.

     2. The Company has authorized the sale and issuance to certain investors of up to an aggregate
of ___million units (the “Units”), each consisting of (i) one share (each a “Share” and
collectively, the “Shares”) of its common stock, par value $0.001 per share (the “Common Stock”),
and (ii) Series A warrants (“Warrant,” collectively, the “Warrants”) to purchase one share of
Common Stock (and the fractional amount being the “Warrant Ratio”), subject to adjustment by the
Company’s Board of Directors, or a committee thereof, for a purchase price of $  per Unit (the
“Purchase Price”). The Warrants will be issued in
certificate form pursuant to the Series A Warrant Agreement (the
“Warrant Agreement”) between the Company and The
American Stock Transfer & Trust Company, LLC
(“AST”) and will be subject to the terms and
conditions of such certificate and the Warrant Agreement. The Shares issuable upon exercise of the Warrants are referred to herein as
“Warrant Shares” and, together with the Units, the Shares and the Warrants, are collectively
referred to herein as the “Securities.”

     3. The offering and sale of the Units (the “Offering”) is being made pursuant to (1) an
effective Registration Statement on Form S-1 (Registration No. 333-151084) (filed by the Company
with the Securities and Exchange Commission (the “Commission”)) (the “Registration Statement”), (2)
if applicable, certain “free writing prospectuses”(as that term is defined in Rule 405 under the
Securities Act of 1933, as amended), that have or will be filed with the Commission and delivered
to the Investor on or prior to the date hereof, (3) a preliminary prospectus dated May 21, 2008
(the “Preliminary Prospectus”), and (4) a final prospectus (together with the Preliminary
Prospectus, the “Prospectus”) containing certain supplemental information regarding the Units and
terms of the Offering that will be filed with the Commission and delivered to the Investor (or made
available to the Investor by the filing by the Company of an electronic version thereof with the
Commission) along with the Company’s counterpart to this Agreement.

     4. The Company and the Investor agree that the Investor will purchase from the Company and the
Company will issue and sell to the Investor the Units set forth below for the aggregate purchase
price set forth below. The Units shall be purchased pursuant to the Terms and Conditions for
Purchase of Units attached hereto as Annex I and incorporated herein by this reference as if fully
set forth herein. The Investor acknowledges that the Offering is not being underwritten by the
co-placement agents (the “Placement Agents”) named in the Prospectus Supplement and that there is
no minimum offering amount.

     5. The manner of settlement of the Shares included in the Units purchased by the Investor
shall be determined by such Investor as follows:

 

 

Delivery by electronic book-entry at The Depository Trust Company (“DTC”), registered in the
Investor’s name and address as set forth below, and released by The American Stock Transfer
& Trust Company, the Company’s transfer agent (the “Transfer Agent”) (attention:
                     (___) ___-___), to the Investor at the Closing (as defined in Section 3.1 of
Annex A hereto). NO LATER THAN TWO (2) BUSINESS DAYS AFTER THE EXECUTION OF THIS AGREEMENT
BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

	 	(I)	 	DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH
THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”)
INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE SHARES, AND
	 
	 	(II)	 	REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE
PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING ESCROW ACCOUNT:
	 
	 	 	 	[AST&T bank wire info here.]

IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER
ACCOUNT BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC IN A TIMELY
MANNER. IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES NOT
MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE UNITS MAY NOT BE DELIVERED AT
CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING ALTOGETHER.

     6. The Warrant shall be delivered in accordance with the terms set forth in Annex I
hereto.

     7. The Investor represents that, except as set forth below, (a) it has had no position, office
or other material relationship within the past three years with the Company or persons known to it
to be affiliates of the Company, (b) it is not a NASD member or an Associated Person (as such term
is defined under the NASD Membership and Registration Rules Section 1011) as of the Closing, and
(c) neither the Investor nor any group of Investors (as identified in a public filing made with the
Commission) of which the Investor is a part in connection with the Offering of the Units, acquired,
or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible into
or exercisable for Common Stock) or the voting power of the Company on a post-transaction basis.
Exceptions: (If no exceptions, write “none.” If left blank, response will be deemed to be
“none.”)                          .

     8. The Investor represents that it has received or can obtain on the SEC’s Edgar filing system
the Prospectus, which is part of the Company’s Registration Statement, the Preliminary Prospectus,
the documents incorporated by reference therein, and any free writing

2

 

prospectus (collectively, the “Disclosure Package”), prior to or in connection with the
receipt of this Agreement along with the Company’s counterpart to this Agreement.

     9. No offer by the Investor to buy Units will be accepted and no part of the Purchase Price
will be delivered to the Company until the Company has accepted such offer by countersigning a copy
of this Agreement, and any such offer may be withdrawn or revoked, without obligation or commitment
of any kind, at any time prior to the Company (or a Placement Agent on behalf of the Company)
sending (in writing, facsimile or by electronic mail) notice of its acceptance of such offer. An
indication of interest will involve no obligation or commitment of any kind until this Agreement is
accepted and countersigned by or on behalf of the Company.

     Number of Units:

     Purchase Price Per Unit: $

     Aggregate Purchase Price: $

3

 

PYMX Signature Page

     Please confirm that the foregoing correctly sets forth the agreement between us by signing in
the space provided below for that purpose.

	 	 	 	 	 	 	 
	 	 	Dated as of: _____ __, 2008	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	INVESTOR	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

Agreed and Accepted this ___day of                     , 2008:

POLYMEDIX, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

4

 

ANNEX I

TERMS AND CONDITIONS FOR PURCHASE OF UNITS

     1. Authorization and Sale of the Units; Defined Terms.

          1.1 Subject to the terms and conditions of this Agreement, the Company has authorized the sale
of the Units.

          1.2 Capitalized terms used herein but not otherwise defined have the meanings ascribed to them
in the Agreement.

     2. Agreement to Sell and Purchase the Units; Placement Agent.

          2.1 At the Closing (as defined in Section 3.1), the Company will sell to the Investor, and the
Investor will purchase from the Company, upon the terms and conditions set forth herein, the number
of Units set forth on the last page of the Agreement to which these Terms and Conditions for
Purchase of Units are attached as Annex I (the “Signature Page”) for the aggregate purchase price
therefor set forth on the Signature Page.

          2.2 The Company proposes to enter into substantially this same form of Subscription Agreement
with certain other investors (the “Other Investors”) and expects to complete sales of Units to
them. The Investor and the Other Investors are hereinafter sometimes collectively referred to as
the “Investors,” and this Agreement and the Subscription Agreements executed by the Other Investors
are hereinafter sometimes collectively referred to as the “Agreements.”

          2.3 Investor acknowledges that the Company intends to pay Carter Securities, LLC and Fordham
Financial Management, Inc. (the “Co-Placement Agents”) a fee (the “Placement Fee”) in respect of
the sale of Units to the Investor.

          2.4
The Company has entered into an Amended and Restated Co-Placement
Agency Agreement, dated June 27, 2008 (the
“Placement Agreement”), with the Placement Agents that contains certain representations,
warranties, covenants, and agreements of the Company that may be relied upon by the Investor, which
shall be a third party beneficiary thereof. A copy of the Placement Agreement is publicly
available as Exhibit 10.21 to the Registration Statement.

          2.5 Delivery of Shares Upon Exercise of Warrants; Buy-In. Upon exercise of the Warrants, Warrant
Shares purchased under a Warrant shall be transmitted by the Transfer Agent to the holder thereof
(a “Holder”) by crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposits and Withdrawal at Custodian (DWAC) system if the Company is a
participant in such system, and otherwise by physical delivery to the address specified by the
Holder in the Notice of Exercise (as defined in the Warrant Agreement) within three business days
from the delivery to the Transfer Agent of the Notice of Exercise, surrender of the Warrant
Certificate and payment of the aggregate exercise price thereof. If by the close of the seventh
Trading Day after delivery of a Notice of Exercise, the Transfer Agent fails to deliver to the
Holder a certificate representing the required number of Warrant Shares in the manner required
above (or make such Warrant Shares available to such Holder’s Broker), and such failure to deliver
the Warrant Shares is caused by the Company’s failure to use commercially reasonable efforts to
comply with the covenants in Section 5 of the Warrant Agreement, and if after such seventh
Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open
market transaction or otherwise) 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, within seven Trading Days after the Holder’s request and in the
Holder’s sole discretion, either (1) pay in cash to the Holder an amount equal to the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate
through the Transfer Agent (and to issue such Warrant Shares) shall terminate or (ii) promptly
honor its obligation to deliver to the Holder a certificate or certificates representing such
Warrant Shares and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In
Price over the product of (a) such number of Warrant Shares, times (b) the closing bid price on the
date of the event giving rise to the Company’s obligation to deliver such certificate.

          2.6 Holder Restrictions on Exercise of Warrants. A Holder shall not have the right to exercise any
portion of the Warrants, pursuant to Section 2 of the Warrant Agreement or otherwise, to
the extent that after giving effect to such issuance after exercise, such Holder (together with
such Holder’s affiliates), as set forth on the applicable Notice of Exercise, would beneficially
own in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after
giving effect to such issuance. For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by such Holder and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of its Warrants with respect to which the
determination of such sentence is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (a) exercise of the remaining, non-exercised portion of the
Warrants beneficially owned by such Holder or any of its affiliates and (b) exercise or conversion
of the unexercised or non-converted portion of any other securities of the Company (including,
without limitation, any other shares of Common Stock or Warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein beneficially owned by such
Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of
this Section 2.6, beneficial ownership shall be calculated in accordance with Section 13(d)
of the Exchange Act, it being acknowledged
by a Holder that the Company is not representing to such Holder that such calculation is in
compliance with Section 13(d) of the Exchange Act and such Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2.6 applies, the determination of whether the Warrant is
exercisable (in relation to other securities owned by such Holder) and of which a portion of the
Warrant is exercisable shall be in the sole discretion of a Holder, and the submission of a Notice
of Exercise shall be deemed to be each Holder’s determination of whether the Warrant is exercisable
(in relation to other securities owned by such Holder) and of which portion of the Warrant is
exercisable, in each case subject to such aggregate percentage limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination. For purposes of this
Section 2.6, in determining the number of outstanding shares of Common Stock, a Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most
recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the
Company or (z) any other notice by the Company or the Company’s Transfer Agent setting forth the
number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the
Company shall within two Trading Days confirm orally and in writing to such Holder the number of
shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of securities of the
Company, including the Warrant, by such Holder or its affiliates since the date as of which such
number of outstanding shares of Common Stock was reported. The provisions of this Section
2.6 may be waived by such Holder, at the election of such Holder, upon not less than 61 days’
prior notice to the Company to allow the Holder to become the beneficial owner of not more than
9.99% of the Common Stock outstanding, and the provisions of this Section 2.6 shall
continue to apply until such 61st day (or such later date, as determined by such Holder, as may be
specified in such notice of waiver).

     3. Closings and Delivery of the Units and Funds.

          3.1 Closing. The completion of the purchase and sale of the Units (the “Closings”) shall
occur at one or more places and times (the “Closing Dates”) to be specified by the Company and the
Placement Agent, and of which the Investors will be notified in advance by the Placement Agents, in
accordance with Rule 15c6-1 promulgated under the Exchange Act. At each Closing, (a) the Company shall cause the Transfer Agent to deliver to the
Investor the number of Shares set forth on the Signature Page registered in the name of the
Investor or, if so indicated on the Investor Questionnaire attached hereto as Schedule A, in the
name of a nominee designated by the

 

 

Investor and as contemplated by procedures set forth in the Agreement and the Placement
Agreement, (b) the Company shall cause to be delivered to the
Investor a Warrant in certificate form through AST, as the
Company’s transfer agent, to purchase a
number of whole Warrant Shares determined by multiplying the number of Shares set forth on the
signature page by the Warrant Ratio and rounding down to the nearest whole number and (c) the
aggregate purchase price for the Units being purchased by the Investor will be delivered by
AST, as Escrow Agent, on behalf of the Investor to the
Company.

          3.2 (a) Conditions to the Company’s Obligations. The Company’s obligation to issue and sell
the Units to the Investor shall be subject to: (i) the receipt by the Company of the purchase price
for the Units being purchased hereunder as set forth on the Signature Page and (ii) the accuracy of
the representations and warranties made by the Investor and the fulfillment of those undertakings
of the Investor to be fulfilled prior to the Closing Date.

               (b) Conditions to the Investor’s Obligations. The Investor’s obligation to purchase the Units
will be subject to the accuracy of the representations and warranties made by the Company contained
in the Placement Agreement and the fulfillment of those undertakings of the Company to be fulfilled
prior to the Closing Date those contained in the Placement Agreement and the Subscription
Agreement, and to the condition that the Placement Agents shall not have determined that the
conditions to the closing in the Placement Agreement have not been satisfied. The Investor’s
obligations are expressly not conditioned on the purchase by any or all of the Other Investors of
the Units that they have agreed to purchase from the Company or the issuance of any minimum amount
of Units by the Company.

          3.3 Delivery of Funds. No later than two (2) business days after the execution of this
Agreement by the Investor and the Company, the Investor shall remit by wire transfer the amount
of funds equal to the aggregate purchase price for the Units being purchased by the Investor to the
following account designated by the Escrow Agent:

     [AST wire instructions here]

          3.4 Delivery of Shares by Electronic Book-Entry at The Depository Trust Company. No later
than two (2) business days after the execution of this Agreement by the Investor and the
Company, the Investor shall direct the broker-dealer at which the account or accounts to be
credited with the Shares being purchased by such Investor are maintained, which broker/dealer shall
be a DTC participant, to set up a Deposit/Withdrawal at Custodian
(“DWAC”) instructing AST, as the Company’s transfer agent, to credit such account or accounts
with the Shares by means of an electronic book-entry delivery. Such DWAC shall indicate the
settlement date for the deposit of the Shares, which date shall be provided to the Investor by the
Placement Agents. Simultaneously with the delivery to the Company by the Investor of the funds
pursuant to Section 3.3 above, the Company shall direct its transfer agent to credit the Investor’s
account or accounts with the Shares pursuant to the information contained in the DWAC.

 

 

     4. Representations, Warranties and Covenants of the Investor.

          4.1 The Investor represents and warrants to, and covenants with, the Company that (a) the
Investor has answered all questions on the Signature Page and the Investor Questionnaire for use in
preparation of the Prospectus Supplement and the answers thereto are true and correct as of the
date hereof and will be true and correct as of the Closing Date and (b) the Investor, in connection
with its decision to purchase the number of Units set forth on the Signature Page, is relying only
upon the Disclosure Package and the representations and warranties of the Company contained herein
and the Co-Placement Agency Agreement.

          4.2 The Investor acknowledges, represents and agrees that no action has been or will be taken
in any jurisdiction outside the United States by the Company or either Placement Agent that would
permit an offering of the Units, or possession or distribution of offering materials in connection
with the issue of the Units in any jurisdiction outside the United States where action for that
purpose is required. Each Investor outside the United States will comply with all applicable laws
and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Units
or has in its possession or distributes any offering material, in all cases at its own expense.
The Placement Agents are not authorized to make and have not made any representation or use of any
information in connection with the issue, placement, purchase and sale of the Units, except as set
forth or incorporated by reference in the Disclosure Package.

          4.3 The Investor further represents and warrants to, and covenants with, the Company that (a)
the Investor has full right, power, authority and capacity to enter into this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and (b) this Agreement constitutes a valid
and binding obligation of the Investor enforceable against the Investor in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and except as the
indemnification agreements of the Investors herein may be legally unenforceable.

          4.4 The Investor understands that nothing in this Agreement, the Prospectus or any other
materials presented to the Investor in connection with the purchase and sale of the Units
constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of Units.

          4.5 Each Investor represents, warrants and agrees that, since the earlier to occur of (i) the
date on which a Placement Agent first contacted such Investor about the Offering and (ii) the date
of this Agreement, it has not engaged in any transactions in the securities of the Company
(including, without limitation, any Short Sales involving the Company’s securities). Each Investor
covenants that it will not engage in any transactions in the securities of the Company (including
Short Sales) prior to the time that the transactions contemplated by this Agreement have been
consummated and are publicly disclosed. Each Investor agrees that it will not use any of the Units
acquired pursuant to this Agreement to cover any short position in the

 

 

Common Stock if doing so would be in violation of applicable securities laws. For purposes
hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all
types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short
sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and
similar arrangements (including on a total return basis), and sales and other transactions through
non-US broker dealers or foreign regulated brokers.

     5. Survival of Representations, Warranties and Agreements; Third Party Beneficiary.
Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent,
all covenants, agreements, representations and warranties made by the Company and the Investor
herein will survive the execution of this Agreement, the delivery to the Investor of the Units
being purchased and the payment therefor. The Placement Agents shall each be a third party
beneficiary with respect to representations, warranties and agreements of the Investor in Section 4
hereof.

     6. Notices. All notices, requests, consents and other communications hereunder will be in
writing, will be mailed (a) if within the domestic United States by first-class registered or
certified airmail, or nationally recognized overnight express courier, postage prepaid, or by
facsimile or (b) if delivered from outside the United States, by International Federal Express or
facsimile, and will be deemed given (i) if delivered by first-class registered or certified mail
domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight
carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two
business days after so mailed and (iv) if delivered by facsimile, upon electric confirmation of
receipt and will be delivered and addressed as follows:

               (a) if to the Company, to:

Polymedix, Inc.

170 N. Radnor-Chester Road

Suite 300

Radnor, Pennsylvania 19087

Facsimile: (484) 598-2333

Attention: Edward F. Smith, Chief Financial Officer

with copies to:

Pepper Hamilton, LLP

400 Berwyn Park

899 Cassatt Avenue

Berwyn, Pennsylvania 19312

Attention: Jeffrey P. Libson

Facsimile: (610) 640-7835

               (b) if to the Investor, at its address on the Signature Page hereto, or at such other address
or addresses as may have been furnished to the Company in writing.

 

 

     7. Changes. This Agreement may not be modified or amended except pursuant to an instrument in
writing signed by the Company and the Investor.

     8. Headings. The headings of the various sections of this Agreement have been inserted for
convenience of reference only and will not be deemed to be part of this Agreement.

     9. Severability. In case any provision contained in this Agreement should be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions contained herein will not in any way be affected or impaired thereby.

     10. Governing Law. This Agreement will be governed by, and construed in accordance with, the
internal laws of the State of New York, without giving effect to the principles of conflicts of law
that would require the application of the laws of any other jurisdiction.

     11. Counterparts. This Agreement may be executed in two or more counterparts, each of which
will constitute an original, but all of which, when taken together, will constitute but one
instrument, and will become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that
the Company shall deliver its counterpart to the Investor along with the Prospectus and the
Prospectus Supplement (or the filing by the Company of an electronic version thereof with the
Commission).

     12. Confirmation of Sale. The Investor acknowledges and agrees that such Investor’s receipt
of the Company’s counterpart to this Agreement, together with the Prospectus and the Prospectus
Supplement (or the filing by the Company of an electronic version thereof with the Commission),
shall constitute written confirmation of the Company’s sale of Units to such Investor.

     13. Termination. In the event that the Company decides to terminate Offering prior to
Closing, this Agreement shall terminate without any further action on the part of the parties
hereto and any monies remitted to the Escrow Agent will be promptly refunded by the Escrow Agent,
without interest, to the Investor.

 

 

SCHEDULE A TO ANNEX I

POLYMEDIX, INC.

INVESTOR QUESTIONNAIRE

     Pursuant to Section 3 of Annex I to the Agreement, please provide us with the following
information:

	 	1.	 	The exact name that your Shares and Warrants are to be registered in. You may
use a nominee name if appropriate:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	2.	 	The relationship between the Investor and the registered holder listed in
response to item 1 above:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	3.	 	The mailing address of the registered holder listed in response to item 1
above:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	4.	 	The Social Security Number or Tax Identification Number of the registered
holder listed in the response to item 1 above:
	 
	 	 	 	 

	 
	 	5.	 	Name of DTC Participant (broker-dealer at which the account or accounts to be
credited with the Shares are maintained); please include the name and telephone number
of the contract person at the broker-dealer:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

Schedule A to Annex I- Page 1

 

 

	 	6.	 	DTC Participant Number:
	 
	 	 	 	 

	 
	 	7.	 	Name of Account at DTC Participant being credited with the Shares:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	8.	 	Account Number at DTC Participant being credited with the Shares:
	 
	 	 	 	 

Schedule A to Annex I- Page 2exv4w7

WARRANT AGREEMENT

     THIS AGREEMENT, is dated as of this ___day of                      2008, by and between the PolyMedix,
Inc., a Delaware corporation (the “Company”) and American Stock Transfer & Trust Company, LLC (the
“Transfer Agent”).

     WHEREAS, the Company shall issue, in connection with its offering (the “Offering”) of units
pursuant to a registration statement on Form S-1, as amended (Commission No. 333-151084) filed with
the U.S. Securities and Exchange Commission, Series A Warrants (each a “Warrant” and collectively,
the “Warrants”) to purchase one share of Common Stock, par value $0.001 per share of the Company
(“Common Stock”) for every share of Common Stock purchased in the Offering. Such units shall
separate upon a closing of the Offering into up to an aggregate of [                    ] shares of Common
Stock and up to an aggregate of [                    ] Warrants.

     WHEREAS, the Company desires to appoint the Transfer Agent to act on its behalf in connection
with the (i) issuance, transfer and exchange of the certificates representing the Warrants (the
“Warrant Certificates”), (ii) the exercise of the Warrants by the holders thereof (together with
any registered successors or assigns, the “Holders”) and (iii) the adjustment of the Warrants in
certain events as contained herein;

     1. CERTAIN DEFINITIONS. As used herein, the following terms shall have the following
respective meanings:

          (a) “Exercise Period” shall mean the period commencing with the date hereof and ending on
                    , 2013, unless sooner terminated as provided below.

          (b) “Exercise Price” shall mean $                     per share, subject to adjustment pursuant to Section
8 below.

          (c) “Exercise Shares” shall mean the shares of Common Stock issuable upon exercise of this
Warrant.

          (d) “Trading Day” shall mean (i) any day on which the Common Stock is listed or quoted on its
primary trading market, (ii) if the Common Stock is not then listed or quoted and traded on any
eligible market (meaning any of the New York Stock Exchange, American Stock Exchange (“AMEX”) or
The NASDAQ Global Market), then a day on which trading occurs on the OTC Bulletin Board (or any
successor thereto), or (iii) if trading does not occur on the OTC Bulletin Board (or any successor
thereto), any business day.

     2. APPOINTMENT OF TRANSFER AGENT. The Company hereby appoints the Transfer Agent as
its agent to issue the Warrant Certificates, as set forth herein at the usual and customary rates
under the agreements between the Company and the Transfer Agent, subject to resignation or
replacement as provided herein. The Transfer Agent agrees to accept such appointment, subject to
the terms and conditions as set forth herein and to issue, transfer and exchange the Warrant
Certificates pursuant to the terms as provided for herein and to issue the certificates
representing the appropriate number of shares of Common Stock (or other consideration) upon
exercise of the Warrants. The Company agrees to issue and honor the

 

 

Warrants on the terms and conditions as herein set forth and to issue its Common Stock (or
other securities) upon notice from the Transfer Agent of the proper exercise of any Warrant. The
Transfer Agent is hereby empowered but not obligated to enforce any rights of the Holders for the
benefit of any Holders, subject to the terms and conditions contained herein.

     3. ISSUANCE OF WARRANT CERTIFICATES.

          (a) Form of Warrant Certificate. All Warrants shall be issued substantially in the
form of the Warrant Certificate annexed hereto as Exhibit A. The terms of any such
Certificate are incorporated herein by reference.

          (b) Execution of Warrants. No Warrants shall have been duly and validly issued until
a Holder has received a Warrant Certificate executed by the Chairman or President of the Company
and the Secretary or Treasurer of the Company and such Warrant Certificate is countersigned by an
authorized officer of the Transfer Agent. Any Warrant Certificates may be executed by the officers
of the Company by means of a facsimile signature. The Transfer Agent shall maintain the register
of all Holders.

          (c) Maximum Number of Warrants. The Company hereby authorizes the Transfer Agent to
issue up to an aggregate of [                    ] Warrants pursuant to the Company’s written
instruction and the terms hereof subject to adjustment as hereafter provided in Section 8 hereof.

          (d) Initial Holders. The Company shall deliver to the Transfer Agent a list of the
names of the persons who shall be the initial Holders of the Warrants and the number of Warrants to
which each such person is entitled. The Transfer Agent is hereby authorized by the Company to
promptly issue Warrant Certificates for up to [                    ] Warrants upon receipt of the
written request of the Company, which shall include the list referred to in the preceding sentence.
The Company shall deliver to the Transfer Agent, along with this Warrant Agreement, a sufficient
number of duly executed Warrant Certificates. The Warrant Certificates shall be completed and
countersigned by the Transfer Agent and promptly mailed or delivered to the Holders pursuant to the
terms hereof. When requested by the Transfer Agent, from time to time hereafter, the Company will
execute additional Warrant Certificates in blank for the Transfer Agent to issue hereunder.

     4. EXERCISE OF WARRANT. The rights represented by a Warrant may, subject to Section 8
below, be exercised in whole or in part at any time during the Exercise Period, by delivery of the
following to the Transfer Agent at its address set forth on the signature page hereto (or at such
other address as it may designate by notice in writing to the Holder):

          (a) The Warrant Certificate and an executed Notice of Exercise in the form attached hereto;
and

          (b) Payment of the Exercise Price either in cash or by check (subject to the limitations in
Section 4.2 below.

     Certificates for Exercise Shares purchased under a Warrant shall be transmitted by the
Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with the

 

 

Depository Trust Company through its Deposits and Withdrawal at Custodian (DWAC) system if the
Company is a participant in such system, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise within a commercially reasonable amount of time from the delivery to
the Transfer Agent of the Notice of Exercise, surrender of this Warrant and payment of the
aggregate Exercise Price as set forth above. A Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Transfer Agent. The Exercise Shares shall be deemed
to have been issued, and Holder or any other person so designated to be named therein shall be
deemed to have become a holder of record of such shares for all purposes, as of the date such
Warrant has been exercised by payment to the Company through the Transfer Agent of the Exercise
Price.

     The person in whose name any Exercise Shares are to be issued upon exercise of this Warrant
shall be deemed to have become the holder of record of such shares on the date on which the Warrant
was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of
such certificate or certificates, except that, if the date of such surrender and payment is a date
when the stock transfer books of the Company are closed, such person shall be deemed to have become
the holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open.

     To the extent permitted by law, the Company’s obligations to issue and deliver Exercise 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 entity 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 or entity of any obligation to the Company or the Transfer
Agent or any violation or alleged violation of law by the Holder or any other person or entity, and
irrespective of any other circumstance which might otherwise limit such obligation of the Company
to the Holder in connection with the issuance of Exercise Shares. Nothing herein shall limit a
Holder’s right to pursue any other remedies available to it

 

 

under a Warrant Certificate, 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 a Warrant as required
pursuant to the terms hereof.

          4.2 ISSUANCE OF NEW WARRANTS. Upon any partial exercise of a Warrant, the Transfer
Agent, at the Company’s expense, will forthwith and, in any event within a commercially reasonable amount of time, issue
and deliver to the Holder a new warrant or warrants of like tenor, registered in the name of the
Holder, exercisable, in the aggregate, for the balance of the number of shares of Common Stock
remaining available for purchase under such Warrant.

     5. COVENANTS AS TO EXERCISE SHARES. The Company covenants and agrees that all
Exercise Shares that may be issued upon the exercise of the rights represented by a Warrant will,
upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all
taxes, liens and charges with respect to the issuance thereof. The Company further covenants and
agrees that the Company will at all times during the Exercise Period, have authorized and reserved,
free from preemptive rights, a sufficient number of shares of Common Stock to provide for the
exercise of the rights represented by a Warrant. If at any time during the Exercise Period the
number of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise
of a Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Common Stock to such number of shares
as shall be sufficient for such purposes.

     6. CASHLESS EXERCISE. If at any time there is no effective Registration Statement
registering, or no current prospectus available for, the resale of the Exercise Shares by the
Holder, then a Warrant may also be exercised at such time by means of a “cashless exercise” in
which upon delivery of the Notice of Exercise and Warrant Certificate, the Transfer Agent will
within three business days notify the Company. The Company will deliver to the Transfer Agent
instructions for share delivery (using the calculation below) and the Holder shall be entitled to
receive within ten business days of delivery of the Notice of Exercise and Warrant Certificate to
the Transfer Agent a restricted certificate for the number of Exercise Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

	 	 	 	 	 	 	 
	 

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

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

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

“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 for trading as reported by
Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m.

 

 

(New York City time); (b)  if the OTC Bulletin Board is not a trading market, the volume weighted
average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board; (c) if the Common Stock is not then quoted for trading on the OTC Bulletin Board and if
prices for the Common Stock are then reported in the “Pink Sheets” published by Pink Sheets, LLC
(or a similar organization or agency succeeding to its functions of reporting prices), the most
recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair
market value of a share of Common Stock as determined by an independent appraiser selected in good
faith by the purchasers of a majority in interest of the shares of Common Stock issued in the
Offering then outstanding and reasonably acceptable to the Company, the fees and expenses of which
shall be paid by the Company.

     7. NO IMPAIRMENT. Except and to the extent as waived or consented to by each holder
of Warrants, the Company will not, by amendment of 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 to be observed or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Agreement and a Warrant Certificate and in
the taking of all such action as may be necessary or appropriate in order to protect the exercise
rights of the Holder against impairment.

     8. ADJUSTMENT OF EXERCISE PRICE AND SHARES.

          (a) In the event of changes in the outstanding Common Stock of the Company by reason of stock
dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, consolidation, acquisition of the Company (whether
through merger or acquisition of substantially all the assets or stock of the Company), or the
like, the number, class and type of shares available under a Warrant in the aggregate and the
Exercise Price shall be correspondingly adjusted to give the Holder of a Warrant, on exercise for
the same aggregate Exercise Price, the total number, class, and type of shares or other property as
the Holder would have owned had a Warrant been exercised prior to the event and had the Holder
continued to hold such shares until the event requiring adjustment. The form of Warrant Certificate
need not be changed because of any adjustment in the number of Exercise Shares subject to a
Warrant.

          (b) If at any time or from time to time the holders of Common Stock of the Company (or any
shares of stock or other securities at the time receivable upon the exercise of a Warrant) shall
have received or become entitled to receive, without payment therefor,

               (i) Common Stock or any shares of stock or other securities which are at any time
directly or indirectly convertible into or exchangeable for Common Stock, or any rights or
options to subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution (other than a dividend or distribution covered in Section
6(a)  above);

               (ii) any cash paid or payable otherwise than as a cash dividend; or

 

 

               (iii) Common Stock or additional stock or other securities or property (including cash)
by way of spinoff, split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock pursuant to Section 6(a) above),

then and in each such case, the Holder a Warrant will, upon the exercise of such Warrant, be
entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and
without payment of any additional consideration therefor, the amount of stock and other securities
and property, as applicable, (including cash in the cases referred to in clauses (ii) and
(iii) above) which such Holder would hold on the date of such exercise had such Holder been the
holder of record of such Common Stock as of the date on which holders of Common Stock received or
became entitled to receive such shares or all other additional stock and other securities and
property.

          (c) Upon the occurrence of each adjustment pursuant to this Section 8, the Company at
its expense will promptly compute such adjustment in accordance with the terms of this Agreement
and a Warrant Certificate and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Exercise Shares or other
securities issuable upon exercise of a Warrant (as applicable), describing the transactions giving
rise to such adjustments and showing in detail the facts upon which such adjustment is based. The
Company will promptly deliver a copy of each such certificate to the Holder and to the Transfer
Agent.

          (d) Irrespective of any adjustment pursuant to this Section 8, the Warrant Certificates may
continue to express the same price and number and kind of shares as are stated in the Warrant
Certificates as initially issued.

     9. FRACTIONAL SHARES. No fractional shares shall be issued upon the exercise of a
Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including
fractions) issuable upon exercise of a Warrant may be aggregated for purposes of determining
whether the exercise would result in the issuance of any fractional share. If, after aggregation,
the exercise would result in the issuance of a fractional share, the Company shall through the
Transfer Agent, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to
such fraction a sum in cash equal to the product resulting from multiplying the then current Fair
Market Value of an Exercise Share by such fraction. “Fair Market Value” of one share of Common
Stock shall mean (i) the average of the closing sales prices for the shares of Common Stock on AMEX
or other trading market where such security is listed or traded as reported by Bloomberg Financial
Markets (or a comparable reporting service of national reputation selected by the Company and
reasonably acceptable to the Holder if Bloomberg Financial Markets is not then reporting sales
prices of such security) (collectively, “Bloomberg”) for the ten (10) consecutive trading days
immediately preceding such date, or (ii) if AMEX is not the principal trading market for the shares
of Common Stock, the average of the reported sales prices reported by Bloomberg on the principal
trading market for the Common Stock during the same period, or, if there is no sales price for such
period, the last sales price reported by Bloomberg for such period, or (iii) if neither of the
foregoing applies, the last sales price of such security in the over-the-counter market on the pink
sheets or bulletin board for such security as reported by Bloomberg, or if no sales price is so
reported for such security, the last

 

 

bid price of such security as reported by Bloomberg or (iv) if Fair Market Value cannot be
calculated by the Company and provided to the Transfer Agent as of such date on any of the
foregoing bases, the Fair Market Value shall be as determined by the Board of Directors of the
Company in the exercise of its good faith judgment.

     10. FUNDAMENTAL TRANSACTIONS. If, at any time while a Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another entity, in which
the shareholders of the Company as of immediately prior to the transaction own less than a majority
of the outstanding stock of the surviving entity, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (iii) any tender offer
or exchange offer (whether by the Company or another person or entity) is completed pursuant to
which holders of Common Stock are permitted to tender or exchange their shares for other
securities, cash or property, or (iv) 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 (other than as a result of a subdivision or
combination of shares of Common Stock covered by Section 6 above) (each, a “Fundamental
Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of a
Warrant, the same amount and kind of securities, cash or property, as applicable, 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 Exercise Shares then
issuable upon exercise in full of such Warrant (the “Alternate Consideration”). Following any
transaction contemplated by this Section 10, the term Exercise Shares shall be deemed to
refer to the shares for which such Warrant is thereafter exercisable in accordance with the
provisions hereof. In addition, if holders of Common Stock are given a choice as to the securities,
cash (which shall be treated in accordance with the preceding paragraph) or property to be received
in a Fundamental Transaction (including a right to elect to receive any particular one or
combination of more than one of the foregoing), then the Holder shall be given the same choice of
consideration upon any exercise of a Warrant following such Fundamental Transaction, which choice
of consideration can be made at the time of exercise at any time prior to the expiration of the
Exercise Period.

          (a) AGREEMENT OF HOLDERS. Every Holder of a Warrant, by his acceptance thereof,
consents and agrees with the Company, the Transfer Agent and every other Holder of a Warrant that
the Company and the Transfer Agent may deem and treat the person in whose name the Warrant
Certificate is registered as the Holder and as the absolute, true and lawful owner of the Warrants
represented thereby for all purposes, and neither the Company nor the Transfer Agent shall be
affected by any notice or knowledge to the contrary.

     11. DUTIES OF TRANSFER AGENT.

          (a) No Representation by Transfer Agent. The Transfer Agent acts hereunder as agent
and in a ministerial capacity for the Company, and its duties shall be determined solely by the
provisions hereof. The Transfer Agent shall not, by issuing and delivering Warrant Certificates or
by any other act hereunder be deemed to make any representations as to the validity, value or
authorization of the Warrant Certificates or the Warrants represented thereby or of any securities
or other property delivered upon exercise of any Warrant or whether any stock issued upon exercise
of any Warrant is fully paid and nonassessable.

 

 

          (b) No Duty to Make Exercise Price Adjustment; Limits on Liability. The Transfer
Agent shall not at any time be under any duty or responsibility to any Holder of Warrant
Certificates to make or cause to be made any adjustment of the Exercise Price provided in this
Agreement, or to determine whether any fact exists which may require any such adjustments, or with
respect to the nature or extent of any such adjustment, when made, or with respect to the method
employed in making the same. It shall not (a) be liable for any recital or statement of facts
contained herein or for any action taken, suffered or omitted by it in reliance on any Warrant
Certificate or other document or instrument believed by it in good faith to be genuine and to have
been signed or presented by the proper party or parties, (b) be responsible for any failure on the
part of the Company to comply with any of its covenants and obligations contained in this Agreement
or in any Warrant Certificate, or (c) be liable for any act or omission in connection with this
Agreement except for its own gross negligence or willful misconduct.

          (c) Consultation with Counsel. The Transfer Agent may at any time consult with
counsel satisfactory to it (who may be counsel for the Company) and shall incur no liability or
responsibility for any action taken, suffered or omitted by it in good faith in accordance with the
opinion or advice of such counsel.

          (d) Evidence by Instrument. Any notice, statement, instruction, request, direction,
order or demand of the Company shall be sufficiently evidenced by an instrument signed by the
Chairman, President, Chief Financial Officer, its Secretary, or Assistant Secretary, (unless other
evidence in respect thereof is herein specifically prescribed). The Transfer Agent shall not be
liable for any action taken, suffered or omitted by it in accordance with such notice, statement,
instruction, request, direction, order or demand believed by it to be genuine.

          (e) Compensation for Transfer Agent Services. The Company agrees to pay the Transfer
Agent reasonable compensation for its services hereunder and to reimburse it for its reasonable
expenses hereunder and further agrees to indemnify the Transfer Agent and save it harmless against
any and all losses, expenses and liabilities, including judgments, reasonable costs and counsel
fees, for anything done or omitted by the Transfer Agent in the execution of its duties and powers
hereunder except losses, expenses and liabilities arising as a result of the Transfer Agent’s gross
negligence or willful misconduct.

          (f) Resignation of Transfer Agent. The Transfer Agent may resign its duties and be
discharged from all further duties and liabilities hereunder (except liabilities arising as a
result of the Transfer Agent’s own gross negligence or willful misconduct), after giving 30 days’
prior written notice to the Company. At least 15 days prior to the date such resignation is to
become effective, the Transfer Agent shall cause a copy of such notice of resignation to be mailed
to the Holder of each Warrant Certificate at the Company’s expense. Upon such resignation, or any
inability of the Transfer Agent to act as such hereunder, the Company shall appoint a new Transfer
Agent in writing. The Company shall have complete discretion in the naming of a new Transfer
Agent, who may be an affiliate, subsidiary or department of the Company, or any person used by the
Company as transfer agent for the Common Stock. If the Company shall fail to make such appointment
within a period of 15 days after it has been notified in writing of such resignation by the
resigning Transfer Agent, then the Holder of any Warrant Certificate may apply to any court of
competent jurisdiction for the appointment of a new Transfer Agent.

 

 

          (g) Removal of Transfer Agent. The Company may, upon notice to the Holders, remove
and replace the Transfer Agent for any reason.

          (h) Appointment and Duties of New Transfer Agent. After acceptance in writing of an
appointment by a new transfer agent is received by the Company, such new transfer agent shall be
vested with the same powers, rights, duties and responsibilities as if it had been originally named
herein as the Transfer Agent, without any further assurance, conveyance, act or deed. Any former
Transfer Agent hereby agrees to cooperate with and deliver all records and Warrant Certificates to
the new transfer agent at the direction of the new transfer agent and the Company.

          (i) Notification of New Transfer Agent. Not later than the effective date of an
appointment of a new transfer agent by the Company, the Company shall file notice with the
resigning or terminated Transfer Agent and shall forthwith cause a copy of such notice to be mailed
to each Holder.

          (j) Successor to Transfer Agent. Any corporation into which the Transfer Agent or any
new transfer agent may be converted or merged or any corporation resulting from any consolidation
to which the Transfer Agent or any new transfer agent shall be a party or any corporation
succeeding to the trust business of the Transfer Agent shall be a successor transfer agent under
this Agreement without any further act. Any such successor transfer agent shall promptly cause
notice of its succession as transfer agent to be mailed to the Company and to each Holder.

          (k) Acting in Other Capacity. Nothing herein shall preclude the Transfer Agent from
acting in any other capacity for the Company.

     12. NO STOCKHOLDER RIGHTS. Other than as provided in Section 5 or otherwise
herein, this Warrant in and of itself shall not entitle the Holder to any voting rights or other
rights as a stockholder of the Company.

     13. TRANSFER OF WARRANT. Subject to compliance with any applicable laws, this
Agreement and any Warrant Certificate issued hereunder and all rights hereunder are transferable,
by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form
of assignment attached hereto to any transferee designated by the Holder.

     14. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. Upon receipt by the Transfer Agent
of evidence satisfactory to it of the loss, theft, destruction or mutilation of a Warrant
Certificate, and (a) in the case of such loss, theft or destruction, of reasonably satisfactory
indemnification and bonding, or (b) if mutilated, upon surrender and cancellation of such Warrant
Certificate, the Transfer Agent shall execute and deliver a new Warrant Certificate of like tenor.
Any such new Warrant Certificate executed and delivered shall constitute an additional contractual
obligation on the part of the Company, whether or not the Warrant Certificate so lost, stolen,
destroyed or mutilated shall be at any time enforceable by anyone.

     15. NOTICES, ETC. All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified,
(b) when sent by confirmed telex, electronic transmission or facsimile if sent during normal

 

 

business hours of the recipient, if not, then on the next business day, (c) five days after
having been sent by registered or certified mail, return receipt requested, postage prepaid, or
(d) one day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the Company or
the Transfer Agent at the address listed on the signature page hereto and to the Holder at the
applicable address set forth on the books of the Transfer Agent or at such other address as the
Company or the Holder may designate by ten (10) days advance written notice to the other parties
hereto.

     16. GOVERNING LAW. This Agreement Warrant shall be governed by, and construed in
accordance with, the laws of the State of New York. Each of the parties to this Agreement hereby
submits to the non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or relating to this
Agreement or the transactions contemplated thereby. Each of the parties to this Agreement
irrevocably and unconditionally waives any objection to the laying of venue of any suit or
proceeding arising out of or relating to this Agreement in Federal and state courts in the Borough
of Manhattan in The City of New York and irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such suit or proceeding in any such court has been
brought in an inconvenient forum.

     17. AMENDMENT OR WAIVER. Any term of this Agreement or any Warrant Certificate may be amended
or waived (either generally or in a particular instance and either retroactively or prospectively)
with the written consent of the Company, the Transfer Agent and the holders of Warrants
representing at least two-thirds of the number of shares of Common Stock then subject to
outstanding Warrants, except that the amendment or waiver of any provision of Sections 6 or 10
shall require the written consent of the Company, the Transfer Agent and the holders of Warrants
representing at least 90% of the number of shares of Common Stock then subject to outstanding
Warrants. Notwithstanding the foregoing, (a) this Agreement and any Warrant Certificate may be
amended and the observance of any term hereunder may be waived without the written consent of the
Holder only in a manner which applies to all Warrants in the same fashion and (b) the number of
Exercise Shares subject to a Warrant and the Exercise Price of a Warrant may not be amended, and
the right to exercise this Warrant may not be waived, without the written consent of the Holder.
The Company and the Transfer Agent shall give prompt written notice to the Holder of any amendment
hereof or waiver hereunder that was effected without the Holder’s written consent. No waivers of
any term, condition or provision of this Agreement or any Warrant Certificate, in any one or more
instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term,
condition or provision.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the Company and the Transfer Agent have executed this Agreement by their
duly authorized officers as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	PolyMedix, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Nicholas Landekic
	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	[Corporate Seal]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	170 N. Radnor-Chester Road, Suite 300
	 	 	Radnor, PA 19087
	 	 	Fax:
	 	 	Email:
	 
	 	 	 	 	 	 
	 	 	American Stock Transfer & Trust Company, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	[Corporate Seal]
	 	 	 	 	 	 
	 	 	[ADDRESS]
	 	 	Fax:
	 	 	Email:

 

 

EXHIBIT A

WARRANT CERTIFICATE

                                         Warrants

POLYMEDIX, INC.

WARRANTS TO PURCHASE COMMON STOCK

VOID FOR ANY PURPOSE AFTER 5:00 PM , EASTERN TIME, ON                     , 2013

	 	 	 	 	 	 
	 	This Certificate certifies that, for value received, 	 	 

 

or registered assigns, is the registered holder of the number of warrants (the “Warrants”) set
forth above. Each Warrant entitles the registered holder thereof to purchase from PolyMedix, Inc.,
a Delaware corporation with its principal office at 170 N. Radnor-Chester Road, Suite 300, Radnor,
Pennsylvania 19087 (the “Company”), on and after the issuance date one (1) fully paid and
nonassessable share of the common stock, $0.001 par value per share, of the Company (the “Common
Stock”), at exercise price of $           per share (the “Exercise Price”) upon surrender of this
Warrant Certificate, with the form of election to purchase set forth on the reverse hereof properly
completed and duly executed and payment of the Exercise Price at the principal office of the
Transfer Agent, or its successors as Transfer Agent, as provided in the Warrant Agreement (the
“Warrant Agreement”), dated ___, 2008 by and between the Company and American Stock Transfer
& Trust Company, LLC (the “Transfer Agent”), a copy of which may be obtained from the Company, by a
written request from the registered holder hereof or which may be inspected by any registered
holder or his or her agent at the principal office of the Company. Payment of the Exercise Price
may be made at the option of the registered holder in wire transfer, cash, by certified or official
bank check payable to the order of the Company.

     The Exercise Price and the number of shares of Common Stock purchasable upon exercise of the
Warrants set forth above are based on the Common Stock of the Company outstanding as of the
issuance date of this Warrant Certificate and are subject to adjustment as provided in Section 8 of
the Warrant Agreement.

     Upon surrender of this Warrant Certificate and payment of the Exercise Price, the Company
shall issue and cause to be delivered to the registered holder of this Warrant Certificate a
certificate for the number of shares of Common Stock issuable for the Warrants then being exercised
as provided in the Warrant Agreement.

     No Warrant may be exercised after 5:00 P.M., Eastern Time, on ___, 2013 (the “Expiration
Date”). If such date is not a Trading Day as defined in the Warrant Agreement, the Expiration Date
shall mean 5:00 P.M., Eastern Time, the next following Trading Day. To the extent not exercised
and delivered to the Transfer Agent by the Expiration Date, the Warrants shall be null and void.

     The Company shall use commercially reasonable efforts to keep a registration statement (a
“Registration Statement”) with respect to the issuance and sale of the Exercise Shares to the
Holder, or such Holder’s valid assignee, in effect during the Exercise Period or such shorter
period that will terminate when a Warrant has been exercised, and during such time period shall use
commercially reasonable efforts to obtain the prompt withdrawal of any stop order suspending the
effectiveness of any such Registration Statement. At any time during which the Exercise Shares are
included in a then-effective Registration Statement, the Company may suspend the ability of the
Holder to exercise a Warrant in any manner contemplated by this Agreement and a Warrant
Certificate, for a reasonable period or periods (a “Black-out Period”), in the event that (i)(a) an
event occurs and is continuing as a result of which the Registration Statement including the
Exercise Shares, any related prospectus or any document incorporated therein by reference as then
amended or supplement would, in the Company’s good faith judgment, contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, and (b) the

 

 

Company determined in its good faith judgment that the disclosure of such event at such time
would be to the detriment of the business, operations or prospects of the Company or the disclosure
otherwise relates to a business transaction, operations or other material event which has not yet
been publicly disclosed, or (ii) the Registration Statement is no longer effective and the holder
is not permitted to sell Exercise Shares pursuant to any other registration statement or an
exemption to the registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”); provided, however, that in the event that a Black-out Period occurs subsequent
to the one year anniversary of a Warrant’s date of issuance, such Warrant shall be exercised
subject to the terms and conditions of Section 6 of the Warrant Agreement. Notwithstanding the
foregoing provisions of this paragraph, (i) if a Holder is not able to exercise a Warrant because
the Company has implemented a Black-out Period, then the Exercise Period shall be extended for the
number of calendar days covered by such Black-out Period and (ii) the Company will use commercially
reasonable efforts to ensure that the aggregate number of days covered by Black-out Periods shall
not last for more than twenty (20) consecutive days or exceed sixty (60) in a particular calendar
year; provided, however, that the holder may not receive any penalties, cash payments or any other
liquidated damages for failure to deliver registered Exercise Shares so long as the Company has
used commercially reasonable efforts to deliver the Holder the Exercise Shares as contemplated in
Section 4 of the Warrant Agreement or otherwise complies with the covenants in this paragraph, and
(c) if the Black-out Period is required because the Registration Statement is no longer effective
and the Holder is not permitted to sell Exercise Shares pursuant to any other registration
statement or an exemption to the registration requirements of the Securities Act of 1933, then the
Exercise Period shall be extended until such Holder may sell such Exercise Shares.

     The further provisions of this Warrant Certificate set forth on the reverse hereof and the
further provisions of the Warrant Agreement shall for all purposes have the same effect as if set
forth fully at this place.

     This Warrant Certificate is not valid unless countersigned by the Transfer Agent.

     IN WITNESS WHEREOF, PolyMedix, Inc. has caused this Warrant Certificate to be duly executed
under its corporate seal.

     Countersigned:

     American Stock Transfer & Trust Company, LLC as Transfer Agent

	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 

Authorized Signature
	 	 
	 	 	 	 	 	 	 
	 	 	Dated:	 	 	 	 

(SEAL)

	 	 	 	 	 	 	 
	 	 	PolyMedix, Inc.	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 

President
	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 

Secretary
	 	 

 

 

PolyMedix, Inc.

     This Warrant Certificate and each Warrant represented hereby are issued pursuant to and are
subject in all respects to the terms and conditions set forth in the Warrant Agreement, which is
incorporated herein by reference. Please refer to the Warrant Agreement for a description of the
rights, limitations of rights, obligations, duties and immunities hereunder of the Transfer Agent,
the Company and the registered holders of the Warrants. In the event the registered holders do not
comply with the terms of the Warrant Agreement, the Warrants shall immediately become null and
void.

     The Warrant Agreement provides that upon the occurrence of certain events, the Exercise Price
set forth on the face hereof may, under certain conditions, be adjusted. If the Exercise Price is
adjusted, the Warrant Agreement provides that the Exercise Price in effect immediately prior to
such event shall be adjusted so that the registered holder of each Warrant may receive the number
of shares of Common Stock of the Company to which it would have been entitled upon such action if
such registered holder had so exercised the Warrant immediately prior to the event. No fractional
shares of Common Stock will be issued upon exercise of the Warrant. If any fraction of a share of
Common Stock would be issuable upon the exercise of the Warrants (or any specified portion
thereof), the Company shall pay an amount in cash as provided in the Warrant Agreement.

     Upon surrender of this Warrant Certificate and similar Warrant Certificates at the principal
office of the Transfer Agent, by the registered holder hereof in person or by an attorney duly
authorized in writing, such Warrant Certificates may be transferred or exchanged in the manner and
subject to the limitations provided in the Warrant Agreement, for another Warrant Certificate or
Warrant Certificates of like tenor, evidencing in the aggregate the number of Warrants evidenced by
the Warrant Certificates so surrendered and registered in the name or names as requested by the
then registered owner thereof or by an attorney duly authorized in writing. In the case of the
exercise of less than all the Warrants represented hereby, the registered holder shall be entitled
to receive upon surrender of this Warrant Certificate another Warrant Certificate or Warrant
Certificates for the balance of the Warrants evidenced by this Warrant Certificate as provided in
the Warrant Agreement.

     Prior to the exercise of any Warrant represented hereby, the registered holder shall not be
entitled to any rights of a stockholder of the Company, including, without limitation, the right to
vote or to receive dividends or other distributions, and shall not be entitled to receive any
notice of any proceedings of the Company, except as provided in the Warrant Agreement.

     Receipt of this Warrant Certificate by the registered holder shall constitute acceptance of
and agreement to all of the terms and conditions contained in the Warrant Agreement.

     The Company and the Transfer Agent shall treat the registered holder as the absolute owner
hereof and of each Warrant represented hereby for all purposes and shall not be affected by any
notice to the contrary.

     This Warrant Certificate shall be governed by and construed in accordance with the laws of the
State of New York. The registered holder hereby submits to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated thereby.
The registered holder irrevocably and unconditionally waives any objection to the laying of venue
of any suit or proceeding arising out of or relating to this Warrant in Federal and state courts in
the Borough of Manhattan in The City of New York and irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such suit or proceeding in any such court
has been brought in an inconvenient forum

 

 

NOTICE OF EXERCISE

Dated:                                         , 20___

     The undersigned hereby irrevocably elects to exercise the within Warrant to the extent of
purchasing ___ shares of Common Stock and hereby makes payment of $                     in
satisfaction of the Exercise Price thereof.

	 	 	 	 	 
	 	 	INSTRUCTIONS FOR REGISTRATION OF STOCK	 
	 	 	 
	 	 	 

(please type or print in block letters)
	 	 
	 
	 	 	 	 
	Address
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Tax Identification Number
	 	 	 	 
	 
	 	 	 	 

 

 

ASSIGNMENT FORM

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

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

	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(Please Print)	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(Please Print)	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:
	 	                                                            , 20___	 	 	 	 
	 
	 	 	 	 	 	 
	Holder’s Signature:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Holder’s Address:
	 	 	 	 	 	 
	 	 	 	 	 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant Certificate representing the Warrant, without alteration or enlargement or any
change whatever. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

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