Document:

Exhibit 10.67

 

THE SECURITIES REPRESENTED HEREBY
HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS.  ADDITIONALLY, THE
TRANSFER OF THESE SECURITIES IS SUBJECT TO CERTAIN CONDITIONS SPECIFIED IN THIS
AGREEMENT DATED AS OF [TODAY’S
DATE] BETWEEN VGX PHARMACEUTICALS, INC. (THE “COMPANY”) AND THE
SIGNATORY THERETO.  NO TRANSFER OF THESE
SECURITIES SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN
FULFILLED.  COPIES OF SUCH AGREEMENT MAY BE
OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
CERTIFICATE TO THE SECRETARY OF THE COMPANY. 
NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS: (1) A
REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
ACT AND ANY APPLICABLE STATE SECURITIES LAWS; OR (2) THE COMPANY RECEIVES
AN OPINION OF COUNSEL, WHICH OPINION IS SATISFACTORY TO THE COMPANY, THAT
REGISTRATION UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

 

WARRANT
TO PURCHASE COMMON STOCK

 

OF

 

VGX
PHARMACEUTICALS, INC.

 

No. VGXW-[NUMBER]                                                                                                      [TODAY’S DATE]

 

Void After [EXPIRATION DATE]

 

VGX
PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), hereby certifies
that, FOR VALUE RECEIVED, [GRANTEE] (the “Holder”),
or any registered assign of the Holder, is entitled to purchase from the
Company, subject to the provisions of this Warrant, and from time to time
within the Exercise Period (as such term is defined below), in whole or in
part, up to that number of fully paid, validly issued and nonassessable shares
of common stock, par value $0.0001 per share (“Common Stock”), of the Company,
as is equal to the [NUMMBER
OF SHARES] (###,###)
shares.  The actual number of shares of
Common Stock to be issued to the Holder upon the exercise of this Warrant and
the price to be paid for each share of Common Stock may be adjusted from time
to time as hereinafter set forth.  The
shares of Common Stock deliverable upon such exercise, and as adjusted from
time to time, are hereinafter referred to as “Warrant Shares.”  The exercise price at which this Warrant may
be exercised shall be [GRANT
PRICE] ($ #.##)
price per share.

 

 

1.             EXERCISE
OF WARRANT.

 

(a)           This
Warrant may only be exercised, in whole or in part, at any time or from time to
time on or after the closing of the Equity Financing and until 5:00 p.m.
(Eastern Standard Time) on [EXPIRATION DATE] (the “Exercise Period”); provided, however,
that if such day is a day on which banking institutions in the State of New
York are authorized by law to close, then on the next succeeding day which
shall not be such a day.  This Warrant
may be exercised by presentation and surrender hereof to the Company at its
principal office, or at the office of its stock transfer agent, if any, with
the Purchase Form attached hereto as Exhibit A,
duly executed and accompanied by payment of the purchase price which shall
equal the product of the Exercise Price and the number of Warrant Shares
specified on such Purchase Form (the “Purchase Price”).  The Holder shall pay the Purchase Price for
the exercised Warrant Shares by: (i) delivering a certified check, bank
draft or wire transfer of immediately available funds to the order of the
Company; or (ii) a Cashless Exercise (as such term is defined below)
whereby a certain number of Warrant Shares, to be determined in the manner set
forth in Subsection 1(b) hereto, are retained by the Company as payment of
the Purchase Price.  As soon as
practicable after such exercise of the Warrant, but not later than seven days
from the date of such exercise, the Company shall issue and deliver to the
Holder a certificate or certificates for the Warrant Shares issuable upon such
exercise, registered in the name of the Holder or his designee.  If this Warrant should be exercised in part
only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder thereof
to purchase the balance of the Warrant Shares purchasable thereunder.  Upon receipt by the Company of this Warrant
at its principal office, or by the stock transfer agent of the Company at its
office, if any, in proper form for exercise, the Holder shall be deemed to be
the holder of record of the shares of Common Stock issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such shares of Common Stock shall not
then be physically delivered to the Holder.

 

(b)           At
any time during the Exercise Period, the Holder may, at his option, convert
this Warrant, in whole or in part, into the number of Warrant Shares determined
in accordance with this Subsection 1(b) (a “Cashless Exercise”), by
surrendering this Warrant at the principal office of the Company, or at the
office of its stock transfer agent, if any, accompanied by a notice stating
such Holder’s intent to effect such Cashless Exercise, the number of Warrant
Shares to be exchanged and the date on which the Holder requests that such
Cashless Exercise occur (the “Notice of Cashless Exchange”).  The Cashless Exercise shall take place on the
date specified in the Notice of Cashless Exchange or, if later, the date the
Notice of Cashless Exchange is received by the Company (the “Exchange Date”).  Certificates for the shares of Common Stock
issuable upon such Cashless Exercise and, if applicable, a new warrant of like
tenor evidencing the balance of the shares of Common Stock remaining subject to
this Warrant, shall be issued as of the Exchange Date and delivered to the
Holder within seven days following the Exchange Date.  In the event of a Cashless Exercise, the
Holder shall receive that number of Warrant Shares (rounded to the next highest
integer) equal to (i) the number of Warrant Shares specified by the Holder
in his Notice of Cashless Exchange (the “Total Number”) less (ii) the
number of Warrant Shares (the “Remaining Warrant Shares”) equal to the quotient
obtained by dividing (A) the product of the Total Number and the existing
Exercise Price by (B) the Fair Market Value.  The 

 

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Remaining Warrant Shares shall be retained by the Company
as payment in full by the Holder of the Purchase Price.  “Fair Market Value” shall mean: (1) if
the Common Stock is listed on a National Securities Exchange or admitted to
unlisted trading privileges on such exchange or listed for trading on the Nasdaq
National Market, the average of the last reported sale prices of the Common
Stock on such exchange or system for the 20 business days ending on the last
business day prior to the date for which the determination is being made; (2) if
the Common Stock is not so listed or admitted to unlisted trading privileges,
the average of the means of the last reported bid and asked prices reported by
the National Quotation Bureau, Inc., for the 20 business days ending on
the last business day prior to the date for which the determination is being
made; or (3) if the Common Stock is not so listed or admitted to unlisted
trading privileges and bid and asked prices are not so reported, an amount, not
less than book value thereof as at the end of the most recent fiscal year of
the Company ending prior to the Exchange Date, determined in such reasonable
manner as may be prescribed by the Board of Directors of the Company.

 

2.             RESERVATION
OF SHARES.  The Company shall at all
times reserve for issuance and/or delivery upon exercise of this Warrant such
number of shares of its Common Stock as shall be required for issuance and
delivery upon exercise of this Warrant.

 

3.             FRACTIONAL
SHARES.  No fractional shares or
script representing fractional shares shall be issued upon the exercise of this
Warrant.  With respect to any fraction of
a share of Common Stock called for upon any exercise hereof, the Company shall
pay to the Holder an amount in cash equal to such fraction multiplied by the Fair
Market Value of a share of Common Stock.

 

4.             EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.

 

(a)           This
Warrant is exchangeable, without expense, at the option of the Holder, upon
presentation and surrender hereof to the Company, or at the office of its stock
transfer agent, if any, for other warrants of different denominations entitling
the holder thereof to purchase in the aggregate the same number of shares of
Common Stock purchasable hereunder. 
Subject to the restrictions set forth in Subsection 4(b) below, and
provided the conditions specified in the legend set forth at the front of this
Warrant shall have been satisfied, upon surrender of this Warrant to the
Company at its principal office, or at the office of its stock transfer agent,
if any, with the Assignment Form attached hereto as Exhibit B,
duly executed and funds sufficient to pay any transfer tax, the Company shall,
without charge, execute and deliver a new Warrant in the name of the assignee
named in such Assignment Form and this Warrant shall promptly be
canceled.  This Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company, or at the office of its stock
transfer agent, if any, together with a written notice specifying the names and
denominations in which new Warrants are to be issued and signed by the Holder
hereof.  The term “Warrant” as used
herein includes any Warrants into which this Warrant may be divided or
exchanged.  Upon receipt by the Company
of evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) of
reasonably satisfactory indemnification, and upon surrender and cancellation of
this Warrant, if mutilated, the Company will execute and deliver a new Warrant
of like tenor and date.  Any such new
Warrant executed and delivered shall constitute an additional contractual
obligation on the part 

 

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of the Company, whether or not this Warrant so lost,
stolen, destroyed or mutilated shall be at any time enforceable by anyone.

 

(b)           This
Warrant and the shares of Common Stock issuable upon exercise hereof have not
been registered under the Securities Act of 1933, as amended, or state
securities laws by reason of an exemption therefrom.  The shares of Common Stock issuable upon
exercise of this Warrant are not transferable except as provided in this
Agreement.  Upon the written consent of
the Company, and subject to applicable laws and the restriction on transfer set
forth on this Warrant, this Warrant 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 Holder.  The transferee shall sign an
investment letter in form and substance satisfactory to the Company.  Shares of Common Stock issuable upon exercise
of this Warrant will bear an appropriate legend to this effect.  The restrictions contained herein shall be
binding on any transferee of the Common Stock issuable upon exercise of this
Warrant and the Company may require any such transferee to execute an
instrument agreeing in writing to be bound by these restrictions as a condition
to transfer.

 

5.             RIGHTS
OF THE HOLDER.  The Holder shall not
be entitled to vote or receive dividends or be deemed the holder of Common
Stock or any other securities of the Company that may at any time be issuable
on the exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, or change of
stock to no par value, consolidation, merger, conveyance or otherwise) or to
receive notice of meetings, or to receive dividends or subscription rights or
otherwise until the Warrant shall have been exercised as provided herein.  The rights of the Holder are limited to those
expressed in this Warrant and are not enforceable against the Company except to
the extent set forth herein.

 

6.             ADJUSTMENT
PROVISIONS.  The Exercise Price in
effect at any time and the number and kind of securities purchasable upon the
exercise of the Warrant shall be subject to adjustment from time to time upon
the happening of certain events as follows:

 

(a)           In
case the Company shall (i) declare a dividend or make a distribution on
its outstanding shares of Common Stock in shares of Common Stock, (ii) subdivide
or reclassify its outstanding shares of Common Stock into a greater number of
shares or (iii) combine or reclassify its outstanding shares of Common
Stock into a smaller number of shares, the Exercise Price in effect at the time
of the record date for such dividend or distribution or of the effective date
of such subdivision, combination or reclassification shall be adjusted so that
the Exercise Price equals the price determined by multiplying the Exercise
Price by a fraction, the denominator of which shall be the number of shares of
Common Stock outstanding after giving effect to such action, and the numerator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such action.  Such adjustment
shall be made successively whenever any event listed above shall occur.

 

4

 

(b)           Whenever
the Exercise Price payable upon exercise of each Warrant is adjusted pursuant
to Subsection 6(a) above, the number of Shares purchasable upon exercise
of this Warrant shall simultaneously be adjusted by multiplying the number of
Shares initially issuable upon exercise of this Warrant by the Exercise Price
in effect on the date hereof and dividing the product so obtained by the
Exercise Price, as adjusted.

 

(c)           No
adjustment in the Exercise Price shall be required unless such adjustment would
require an increase or decrease of at least 5% in such price; provided,
however, that any adjustments which by reason of this Subsection 6(c) are
not required to be made shall be carried forward and taken into account in any
subsequent adjustment required to be made hereunder.  All calculations under this Section 6
shall be made to the nearest cent or to the nearest one-hundredth of a share,
as the case may be.  Anything in this Section 6
to the contrary notwithstanding, the Company shall be entitled, but shall not
be required, to make such changes in the Exercise Price, in addition to those
required by this Section 6, as it shall determine, in its sole discretion,
to be advisable in order that any dividend or distribution in shares of Common
Stock, or any subdivision, reclassification or combination of Common Stock,
hereafter made by the Company shall not result in any Federal Income tax
liability to the holders of Common Stock or securities convertible into Common
Stock (including Warrants).

 

(d)           Whenever
the Exercise Price is adjusted, as herein provided, the Company shall promptly
but no later than 10 days after any request for such an adjustment by the
Holder, cause a notice setting forth the adjusted Exercise Price and adjusted
number of Shares issuable upon exercise of each Warrant, and, if requested,
information describing the transactions giving rise to such adjustments, to be
mailed to the Holders at their last addresses appearing in the Warrant
Register, and shall cause a certified copy thereof to be mailed to its transfer
agent, if any.  The Company may retain a
firm of independent certified public accountants selected by the Board of
Directors (who may be the regular accountants employed by the Company) to make
any computation required by this Section 6, and a certificate signed by
such firm shall be conclusive evidence of the correctness of such adjustment.

 

(e)           In
the event that at any time, as a result of an adjustment made pursuant to
Subsection 6(a) above, the Holder of this Warrant thereafter shall become
entitled to receive any shares of the Company, other than Common Stock,
thereafter the number of such other shares so receivable upon exercise of this
Warrant shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Common Stock contained in Subsection 6(a) through Subsection 6(d),
inclusive above.

 

7.             OFFICER’S
CERTIFICATE.  Whenever the Exercise
Price shall be adjusted as required by the provisions of the foregoing Section,
the Company shall forthwith file in the custody of its Secretary or an
Assistant Secretary at its principal office and with its stock transfer agent,
if any, an officer’s certificate showing the adjusted Exercise Price determined
as herein provided, setting forth in reasonable detail the facts requiring such
adjustment, including a statement of the number of additional shares of Common
Stock, if any, and such other facts as shall be necessary to show the reason
for and the manner of computing such adjustment.  Each such officer’s certificate shall be made
available at all reasonable times for inspection by the holder or any holder of
a Warrant executed and delivered pursuant to Section 1 and the Company
shall, 

 

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forthwith after each such adjustment, mail a copy by
certified mail of such certificate to the Holder or any such holder.

 

8.             NOTICES
TO WARRANT HOLDERS.  So long as this
Warrant shall be outstanding, (a) if the Company shall pay any dividend or
make any distribution upon the Common Stock or (b) if the Company shall
offer to the holders of Common Stock for subscription or purchase by them any
share of any class or any other rights or (c) if any capital
reorganization of the Company, reclassification of the capital stock of the
Company, consolidation or merger of the Company with or into another
corporation, sale, lease or transfer of all or substantially all of the
property and assets of the Company to another corporation, or voluntary or
involuntary dissolution, liquidation or winding up of the Company shall be
effected, then in any such case, the Company shall cause to be mailed by
certified mail to the Holder, at least 15 days prior to the date specified in (i) or
(ii) below, as the case may be, a notice containing a brief description of
the proposed action and stating the date on which (i) a record is to be
taken for the purpose of such dividend, distribution or rights, or (ii) such
reclassification, reorganization, consolidation, merger, conveyance, lease,
dissolution, liquidation or winding up is to take place and the date, if any is
to be fixed, as of which the holders of Common Stock or other securities shall
receive cash or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

 

9.             RECLASSIFICATION,
REORGANIZATION OR MERGER.  In case of
any reclassification, capital reorganization or other change of outstanding
shares of Common Stock of the Company, or in case of any consolidation or
merger of the Company with or into another corporation (other than a merger
with a subsidiary in which merger the Company is the continuing corporation and
which does not result in any reclassification, capital reorganization or other
change of outstanding shares of Common Stock of the class issuable upon
exercise of this Warrant) or in case of any sale, lease or conveyance to
another corporation of the property of the Company as an entirety, the Company
shall, as a condition precedent to such transaction, cause effective provisions
to be made so that the Holder shall have the right thereafter by exercising
this Warrant at any time prior to the expiration of the Warrant, to purchase
the kind and amount of shares of stock and other securities and property
receivable upon such reclassification, capital reorganization and other change,
consolidation, merger, sale or conveyance by a holder of the number of shares
of Common Stock which might have been purchased upon exercise of this Warrant
immediately prior to such reclassification, change, consolidation, merger, sale
or conveyance.  Any such provision shall
include provision for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Warrant.  The foregoing provisions of this Section 9
shall similarly apply to successive reclassifications, capital reorganizations
and changes of shares of Common Stock and to successive consolidations,
mergers, sales or conveyances.  In the
event that in connection with any such capital reorganization or
reclassification, consolidation, merger, sale or conveyance, additional shares
of Common Stock shall be issued in exchange, conversion, substitution or
payment, in whole or in part, for a security of the Company other than Common
Stock, any such issue shall be treated as an issue of Common Stock covered by
the provisions of Subsection 6(a) hereof

 

[Signature
page follows.]

 

6

 

IN WITNESS WHEREOF, the Company has duly caused this Warrant to be
signed and attested by its duly authorized officers and as of the date as set
forth below.

 

	
   

  	
  VGX PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J. Joseph Kim, Ph.D.

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  

 

	
  ISSUED:

  	
  [TODAY’S DATE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Corporate Seal]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  
					

 

 

EXHIBIT A

 

PURCHASE
FORM

 

                           ,
200[   ]

 

o      The undersigned hereby irrevocably elects
to exercise its rights pursuant to this Warrant to the extent of purchasing                  
shares of Common Stock of VGX Pharmaceuticals, Inc., and hereby makes
payment of $                           ,
in cash or in satisfaction of indebtedness, in payment of the exercise price
thereof.

 

o      The undersigned hereby irrevocably elects
to exercise its rights pursuant to this Warrant to the extent of purchasing           
shares of Common Stock and hereby authorizes you to deliver such shares of
Common Stock for sale to                       ,
and to retain from the proceeds of such sale $                         ,
in cash, in payment of the exercise price thereof and to remit to the
undersigned the balance of such proceeds.

 

 

________________________________

 

 

INSTRUCTIONS
FOR REGISTRATION OF STOCK

 

Name:________________________________________________________________________

  (Please typewrite or print in block letters)

 

Address:______________________________________________________________________

 

Signature:_____________________________________________________________________

 

Telephone
Number:_____________________________________________________________

 

Facsimile
Number:______________________________________________________________

 

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

 

FOR
VALUE RECEIVED,                                                                  
hereby sells, assigns and transfers unto:

 

Name:     ______________________________________________________________

  (Please typewrite or print in block letters)

 

Address:_____________________________________________________________

 

the
right to purchase Common Stock of VGX Pharmaceuticals, Inc. (the “Company”),
represented by this Warrant to the extent of               
shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint                                 
as Attorney, to transfer the same on the books of the Company with full power
of substitution in the premises.

 

Date:
                          ,
200[    ]

 

Signature:
______________________________EXHIBIT
10.68

 

VGX PHARMACEUTICALS, INC.

 

WARRANT PURCHASE AGREEMENT

 

THESE
SECURITIES OF VGX PHARMACEUTICALS, INC. (THE “COMPANY”) ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM.  THE BUYER SHOULD BE
AWARE THAT HE MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

AN
INVESTMENT IN THESE SECURITIES IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF
RISK.  THE BUYER MUST BE ABLE TO BEAR THE
ECONOMIC RISK OF HIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME AND BE ABLE TO
SUSTAIN A LOSS OF HIS ENTIRE INVESTMENT. 
THE BUYER WILL BE REQUIRED TO MAKE REPRESENTATIONS WITH RESPECT TO HIS
NET WORTH OR INCOME AND HIS AUTHORITY TO MAKE SUCH INVESTMENT AND TO REPRESENT,
AMONG OTHER THINGS, HE IS FAMILIAR WITH AND UNDERSTANDS THE TERMS OF THIS
OFFERING.

 

IN
MAKING AN INVESTMENT DECISION, THE BUYER MUST RELY ON HIS OWN EXAMINATION OF
THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND THE RISKS
INVOLVED.  THESE SECURITIES HAVE NOT BEEN
RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY.  FURTHERMORE, THE FOREGOING
AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS
DOCUMENT.  ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.

 

THE
BUYER IS NOT TO CONSTRUE THE CONTENTS OF THIS AGREEMENT OR ANY PRIOR OR
SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS OFFICERS, EMPLOYEES OR
AGENTS AS INVESTMENT, LEGAL OR TAX ADVICE. 
THE BUYER SHOULD CONSULT HIS OWN COUNSEL, ACCOUNTANT AND OTHER PROFESSIONAL
ADVISORS AS TO INVESTMENT, LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING THE
BUYER’S PROPOSED INVESTMENT.

 

THE COMPANY EXTENDS TO THE BUYER THE OPPORTUNITY, PRIOR TO THE
CONSUMMATION OF THE SALE OF THESE SECURITIES, TO ASK QUESTIONS OF, AND RECEIVE
ANSWERS FROM, REPRESENTATIVES OF THE COMPANY CONCERNING THESE SECURITIES AND
THE TERMS OF THIS OFFERING, AND TO OBTAIN ANY ADDITIONAL INFORMATION HE MAY CONSIDER
NECESSARY IN MAKING AN INFORMED INVESTMENT DECISION OR IN ORDER TO VERIFY THE
ACCURACY OF THE INFORMATION CONTAINED HEREIN, TO THE EXTENT THAT THE COMPANY
POSSESSES SUCH INFORMATION OR CAN ACQUIRE SUCH INFORMATION WITHOUT UNREASONABLE
EFFORT OR EXPENSE AND CAN MAKE SUCH INFORMATION AVAILABLE WITHOUT DIVULGING
INFORMATION DEEMED BY THE COMPANY, IN ITS ABSOLUTE DISCRETION, TO BE PROPRIETARY
AND CONFIDENTIAL.

 

 

THIS
WARRANT PUCHASE AGREEMENT (the “Purchase Agreement”), dated
this [ENTER TODAY’S DATE],
is by and between [NAME OF BUYER], an
individual (the “Buyer”), and VGX
Pharmaceuticals, Inc., a Delaware corporation (the “Company”).

 

WHEREAS, the Buyer wishes to purchase from the Company
and the Company wishes to sell to the Buyer, upon the terms and subject to the
conditions of this Purchase Agreement, a warrant to purchase common stock of
the Company, and in connection with which the Company shall issue a warrant to
the Buyer to purchase [###,###]
shares of the Company’s common stock, par value $0.0001 per share (“Common
Stock”), having a purchase price of $[#.##]
per share in accordance with the terms, and subject to the conditions,

 

NOW THEREFORE, in consideration of the premises and
the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

1.             Sale
and Issuance of Note and Warrant 
Upon the terms and subject to the conditions of this Purchase Agreement,
the Buyer agrees to purchase from the Company, and the Company agrees to sell
and issue to the Buyer, a warrant to purchase common stock, in the form
attached hereto as Exhibit A
(the “Warrant”), to the Buyer to purchase, subject to the terms and conditions
of the Warrant, in whole or in part, up to that number of fully paid, validly
issued and nonassessable shares of Common Stock.

 

2.             Representations
and Warranties of the Company.  By
executing this Purchase Agreement, the Company makes the following
representations, declarations, warranties and covenants to the Buyer, with the
intent and understanding that the Buyer will rely thereon:

 

2.1           Organization
of the Company; Authorization.

 

2.1.1        Good
Standing.  The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and
authority to own and lease its property, to carry on its business as presently
conducted and as proposed to be conducted (as previously disclosed to the
Buyer) and to execute and deliver, and to perform all of its obligations under,
this Purchase Agreement, and Warrant (collectively, the “Company Documents”).

 

2.1.2        Enforceability.  The execution and delivery by the Company of
the Company Documents and the consummation of the transactions contemplated
thereby have been duly authorized by all requisite corporate action on the part
of the Company, and this Purchase Agreement has been duly executed and
delivered by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms, in each
case subject to bankruptcy, insolvency or similar laws relating to creditors
rights and general equitable principles.

 

 

3.             Representations
and Warranties of the Buyer.  By
executing this Purchase Agreement, the Buyer makes the following
representations, declarations, warranties and covenants to the Company, with
the intent and understanding that the Company will rely thereon:

 

3.1           
Investment Representations.  The
Buyer has knowledge and experience in financial and business matters sufficient
to enable him to evaluate the merits and risks of an investment in the
Company.  The Buyer has assets sufficient
to enable him to bear the economic risk of the Buyer’s investment in the
Warrant and is an “accredited investor,” as defined in Rule 501 under the
Securities Act of 1933, as amended (the “Securities Act”).  The Buyer is acquiring the Warrant for his
own account, and not with a present view to, or for sale in connection with,
any distribution thereof.  The Buyer
understands that the Warrant and the Company’s securities issuable upon
conversion of the Warrant have not been registered under the Securities Act by
reason of their issuance in a transaction exempt from the registration
requirements of the Securities Act pursuant to the exemption provided in Section 4(2) thereof,
that the Warrant and the Company’s securities issuable upon conversion of the
Warrant thereof have not been registered under applicable state securities laws
by reason of their issuance in a transaction exempt from such registration
requirements, and that the Warrant and the Company’s securities issuable upon
conversion of the Warrant thereof may not be sold or otherwise disposed of
unless registered under the Securities Act and applicable state securities laws
(the Company being under no obligation to register such Warrant or securities
issuable on conversion of the Warrant thereof) or exempted from
registration.  The Buyer further
acknowledges that the Warrant and the Company’s securities issuable upon
conversion of the Warrant are subject to the restrictions on transfers set
forth in the Company Documents, and that each transferee of the Warrant or the
Company’s securities issuable upon conversion of the Warrant as a condition to
such transfer may be required to agree in writing to be bound by such
restrictions.

 

3.2           Buyer’s
Acknowledgment as to Information.

 

3.2.1        The
Buyer or representatives of the Buyer have received from the Company such
information (including exhibits to this Purchase Agreement and of such
documents referred to herein and therein as he or they have requested) with
respect to the Company as the Buyer has deemed necessary and relevant in
connection with the transactions contemplated by the Company Documents, and the
Buyer has had the opportunity, directly or through such representatives, to ask
questions of and receive answers from persons acting on behalf of the Company
necessary to verify the information so obtained.

 

4.             Legend.  Each certificate evidencing the Warrant and
the Company’s securities issuable upon conversion of the Warrant, and each
certificate evidencing the Warrant and the Company’s securities issuable upon
conversion of the Warrant held by subsequent transferees of any such
certificate, shall be stamped or otherwise imprinted with a legend in
substantially the following form:

 

THE SECURITIES
REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY APPLICABLE STATE SECURITIES LAWS. 
ADDITIONALLY, THE TRANSFER OF 

 

3

 

THESE SECURITIES IS
SUBJECT TO CERTAIN CONDITIONS SPECIFIED IN THE WARRANT PURCHASE AGREEMENT DATED
AS OF  [ENTER TODAY’S
DATE], BETWEEN VGX PHARMACEUTICALS, INC. (THE “COMPANY”) AND
THE SIGNATORY THERETO.  NO TRANSFER OF
SUCH SECURITIES SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN
FULFILLED.  COPIES OF SUCH AGREEMENT MAY BE
OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
CERTIFICATE TO THE SECRETARY OF THE COMPANY. 
NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS: (1) A
REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
ACT AND ANY APPLICABLE STATE SECURITIES LAWS; OR (2) THE COMPANY RECEIVES
AN OPINION OF COUNSEL, WHICH OPINION IS SATISFACTORY TO THE COMPANY, THAT
REGISTRATION UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

 

5.             Miscellaneous.

 

5.1           Legal
Fees and Expenses.  Each party hereto
agrees to pay its own legal fees and expenses incurred in connection with the
transactions contemplated hereunder.

 

5.2           No
Waiver.  The failure of a party to
insist upon strict adherence to any term of this Purchase Agreement on any
occasion shall not be considered a waiver or deprive that party of the right
thereafter to insist upon strict adherence to that term or any other term of
this Purchase Agreement.  Any waiver of
any term of this Purchase Agreement must be in writing.

 

5.3           Entire
Agreement; Amendment.  This Purchase
Agreement and all Exhibits, Schedules and attachments hereto, along with the
other Company Documents, set forth the entire agreement of the parties with
respect to the subject matter hereof and supersede all prior agreements
relating thereto, written or oral.  This
Purchase Agreement may be amended or modified only by a written instrument
executed by the Company and the Buyer.

 

5.4           Parties
in Interest; Limitation on Assignment. 
This Purchase Agreement shall inure to the benefit of and be binding
upon the parties and their respective permitted successors and assigns; provided,
however, that this Purchase Agreement shall not be assigned or
assignable by either party without the prior written consent of the other
party.

 

5.5           Counterparts.  This Purchase Agreement may be executed in
any number of counterparts, each of which shall be considered an original, but
all of which together shall constitute one and the same instrument.

 

5.6           Governing
Law.  This Purchase Agreement shall
be governed by, construed, interpreted and enforced in accordance with the laws
of the Commonwealth of Pennsylvania as 

 

4

 

applied to contracts entered into and performed
entirely within the Commonwealth of Pennsylvania among Pennsylvania residents
without regard to conflicts of laws principles.

 

5.7           Notices.  All notices, consents and other
communications under this Purchase Agreement shall be in writing and shall be
deemed to have been duly given when (a) delivered by hand, (b) sent
by telex or telecopier (with receipt confirmed), provided that a copy is mailed
by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by Express Mail, Federal Express or other express delivery
service (receipt requested), in each case to the appropriate addresses, telex
numbers and telecopier numbers set forth below (or to such other addresses,
telex numbers and telecopier numbers as a party may designate as to itself by
notice to the other party):

 

5.7.1        If
to the Company:

 

VGX
Pharmaceuticals, Inc.

450 Sentry Parkway
E

Blue Bell, PA,
19422

Telecopier No. (267)440-4200

Attention:  Corporate Secretary

 

5.7.2        If
to the Buyer:

 

5.8           Severability.  In the event that any court having
jurisdiction shall determine that any provision contained in this Purchase
Agreement shall be unreasonable or unenforceable in any respect, then such
covenant or other provision shall be deemed limited to the extent that such
court deems it reasonable and enforceable, and as so limited shall remain in
full force and effect.  In the event that
such court shall deem any such covenant or other provision wholly
unenforceable, the remaining covenants and other provisions of this Purchase
Agreement shall nevertheless remain in full force and effect.

 

5.9           Headings
and Captions.  The headings and
captions used herein to identify sections and subsections are for convenience
only and shall not be used for interpretation of any provisions herein.

 

5.10         Specific
Performance.  In addition to and not
in limitation of any other legal or equitable remedies which it may have, the
Company may enforce its rights hereunder by an action for specific performance.

 

5.11         Indemnity.  The representations, warranties and
agreements made by the Buyer herein shall survive the execution of this
Purchase Agreement.  The Buyer hereby
agrees to indemnify and hold harmless the Company from and against any and all
loss, liability, claim, damage and expense (including, without limitation,
attorneys’ fees and disbursements) suffered or incurred as a result of a
misrepresentation or breach of any warranty or agreement made by the Buyer in
this Purchase Agreement.

 

5

 

[Signature Page Follows]

 

6

 

IN
WITNESS WHEREOF, each of the parties has caused this Purchase
Agreement to be executed on its behalf with the intent to be legally bound as
of the day and year first above written.

 

	
   

  	
  VGX PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J. Joseph Kim, Ph.D.

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  BUYER:

  

 

 

	
   

  	
   

  
	
   

  	
  NAME OF
  BUYER

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

EXHIBIT A

 

FORM OF WARRANT

 

(see attached)

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