Document:

Exhibit
10.2

     

    NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OR CONVERSION OF
THESE SECURITIES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT AS PROVIDED BY ARTICLE
IV OF THAT CERTAIN SECURITIES PURCHASE AGREEMENT, DATED AS OF MARCH [__], 2009,
BY AND AMONG SUNESIS PHARMACEUTICALS, INC. AND THE PURCHASERS IDENTIFIED ON THE
SIGNATURE PAGES THERETO.

     

    
      
        
          	
                  WARRANT
      NO. CSW-___

                	
                  NUMBER
      OF SHARES: ____________

                
	
                  DATE
      OF ISSUANCE: [___________], 2009

                	
                  (subject
      to adjustment)

                
	
                  VOID
      AFTER [___________], 200__

                	 
      

        

      

    

    

     

    WARRANT
TO PURCHASE SHARES OF COMMON STOCK

     

    Sunesis
Pharmaceuticals, Inc.

     

    This
Certifies That, for value received, [____], or its
permitted registered assigns (the “Holder”),
is entitled to subscribe for and purchase at the Exercise Price (defined below)
from Sunesis Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
up to [____] shares of the common stock of the Company, par value $0.0001 per
share (the “Common
Stock”).  This warrant is one of a series of warrants issued by
the Company as of the date hereof (individually, a “Warrant,” and collectively, the
“Warrants”)
pursuant to that certain Securities Purchase Agreement between the Company and
each of the Purchasers that is a party thereto, dated as of March 31, 2009 (the
“Purchase
Agreement”).

     

    1.           Definitions.  Capitalized
terms used herein but not otherwise defined herein shall have their respective
meanings as set forth in the Purchase Agreement.  As used herein, the
following terms shall have the following respective meanings:

     

    (A)           “Eligible
Market” means any of The NASDAQ Global Market, The NASDAQ Global Select
Market or The NASDAQ Capital Market.

     

    (B)           “Exercise
Period” shall mean the period ending seven (7) years from the date
hereof, unless sooner terminated as provided below.

     

    (C)           “Exercise
Price” shall mean $0.22 per share, subject to adjustment pursuant to
Section 4
below.

     

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

     

    (E)           “Fundamental
Transaction” means (i) any consolidation or merger of the Company with or
into any other corporation or other entity or person, or any other corporate
reorganization, in which the stockholders of the Company immediately prior to
such consolidation, merger or reorganization own less than 50% of the voting
power of the surviving entity immediately after such consolidation, merger or
reorganization, or the Common Stock is converted into or exchanged for
securities, cash or other property (ii) any transaction or series of related
transactions to which the Company is a party in which in excess of 50% of the
Company’s voting power is transferred other than the sale of equity securities
issued pursuant to the Purchase Agreement or (iii) any sale, exclusive license
or exclusive partnering (in either case, on a worldwide or regional basis) of a
majority or more of the assets of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (F)           “Parent
Entity” of a Person means an entity that, directly or indirectly,
controls the applicable Person and whose common stock or equivalent equity
security is quoted or listed on an Eligible Market, or, if there is more than
one such Person or Parent Entity, the Person or Parent Entity with the largest
public market capitalization as of the date of consummation of the Fundamental
Transaction.

     

    (G)           “Person”
means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization, any other
entity and a government or any department or agency thereof.

     

    (H)           “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent
Entity) formed by, resulting from or surviving any Fundamental Transaction or
the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

     

    (I)           “Trading
Day” shall mean (a) any day on which the Common Stock is listed or quoted
and traded on its primary Trading Market, (b) if the Common Stock is not then
listed or quoted and traded on any Eligible Market, then a day on which trading
occurs on the OTC Bulletin Board (or any successor thereto), or (c) if trading
does not occur on the OTC Bulletin Board (or any successor thereto), any
Business Day.

     

    (J)           “Trading
Market” shall mean the OTC Bulletin Board or any Eligible Market or any
other national securities exchange, market or trading or quotation facility on
which the Common Stock is then listed or quoted.

     

    2.           Exercise of
Warrant.

     

    2.1           Exercise.  The
rights represented by this Warrant may be exercised in whole or in part at any
time during the Exercise Period, by delivery of the following to the Company 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)           An
executed Notice of Exercise in the form attached hereto;

     

    (B)           Payment
of the Exercise Price either (i) in cash or by check or (ii) pursuant to Section 2.2 below;
and

     

    (C)           This
Warrant.

     

    Execution
and delivery of the Notice of Exercise shall have the same effect as
cancellation of the original Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Exercise Shares, if
any.

     

    Certificates
for shares purchased hereunder shall be transmitted by the transfer agent of the
Company to the Holder by crediting the account of the Holder’s prime broker with
the Depository Trust Company through its Deposit Withdrawal Agent Commission
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
three business days from the delivery to the Company of the Notice of Exercise,
surrender of this Warrant and payment of the aggregate Exercise Price as set
forth above.  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.

     

    
      
         

      

      
        2.

        
          

        

      

      
         

      

    

     

    The
person in whose name any certificate or certificates for 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 this 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.

     

    Subject
to the final sentence of this paragraph, Section 2.3 below and 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 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.  The Holder shall, subject to the
following proviso, have the right to pursue any remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver Exercise Shares upon exercise of this Warrant as
required pursuant to the terms hereof; provided, however, that notwithstanding
anything to the contrary in this Warrant or in the Purchase Agreement, if the
Company is unable to deliver Exercise Shares upon exercise of this Warrant as
required pursuant to the terms hereof because the exercise of this Warrant is
prior to the Stockholder Approval Date (as defined in Section 2.3 below) and
such exercise would result in a violation of the Warrant Exercise Cap, the
Company shall have no obligation to pay to the Holder any cash or other
consideration or otherwise “net cash settle” this Warrant.

     

    Except
for cash in lieu of fractional shares as provided in Section 5, this Warrant may
not be settled by the Company for cash to the Holder in lieu of Common
Stock.

     

    2.2           Net Exercise.  If
during the Exercise Period the fair market value of one share of the Common
Stock is greater than the Exercise Price (at the date of calculation as set
forth below), in lieu of exercising this Warrant by payment of cash or by check,
the Holder may, at its election, effect a “net exercise” of this Warrant, in
which event, if so effected, the Holder shall receive Exercise Shares equal to
the value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company,
together with the properly endorsed Notice of Exercise, in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

     

    X = Y (A-B)

    A

     

    
      
        	Where	X
      =	the
      number of Exercise Shares to be issued to the Holder
	 	 	 
	
                 
      

              	
                Y
      =

              	
                the
      number of Exercise Shares with respect to which this Warrant is being
      exercised

              

      

    

     

    
      	
               
      

            	
              A
      =

            	
              the
      Fair Market Value (as defined below) of one share of the Company’s Common
      Stock (at the date of such
calculation)

            

    

     

    
      	
               
      

            	
              B
      =

            	
              Exercise
      Price (as adjusted to the date of such
  calculation)

            

    

     

    
      
         

      

      
        3.

        
          

        

      

      
         

      

    

     

    For
purposes of this Warrant, the “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 The NASDAQ Global Market
or other Eligible Market where the Common Stock 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 prior to the Exercise
Date, or (ii) if an Eligible Market 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 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.

     

    2.3           Limitations On Exercises Subject to
Stockholder Approval.  In the event that any exercise pursuant
to this Section 2 prior
to the date of the Stockholder Approval (as defined below) would result in a
Holder becoming the
beneficial owner, directly or indirectly, of more than 19.99% of the aggregate
ordinary voting power represented by issued and outstanding Capital Stock
(the “Warrant Exercise
Cap”), notwithstanding anything to the contrary in this Warrant or in the
Purchase Agreement, the Company shall have no obligation to issue and deliver
Exercise Shares in accordance with the terms hereof unless and until the
approval of the requisite holders of the issued and outstanding voting capital
stock of the Company shall have been attained as contemplated by the Purchase
Agreement (the

     

    Stockholder
Approval”).

     

    2.4           Issuance Of New
Warrants.  Upon any partial exercise of this Warrant, the
Company, at its expense, will forthwith and, in any event within five (5)
business days, 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 this Warrant.

     

    2.5           Payment Of Taxes And
Expenses.  The Company shall pay any recording, filing, stamp
or similar tax which may be payable in respect of any transfer involved in the
issuance of, and the preparation and delivery of certificates (if applicable)
representing, (i) any Exercise Shares purchased upon exercise of this Warrant
and/or (ii) new or replacement warrants in the Holder’s name or the name of any
transferee of all or any portion of this Warrant; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance, delivery or registration of any
certificates for Exercise Shares or Warrants in a name other than that of the
Holder.  The Holder shall be responsible for all other tax liability
that may arise as a result of holding or transferring this Warrant or receiving
Exercise Shares upon exercise hereof.

     

    3.           Covenants
of the Company.

     

    3.1           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 this
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 this
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 this Warrant, the Company will use its commercially reasonable
efforts to take such corporate action in compliance with applicable law 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.

     

    
      
         

      

      
        4.

        
          

        

      

      
         

      

    

     

    3.2           Notices of Record Date and Certain
Other Events.  In the event of any taking by the Company of a
record of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend or other
distribution, the Company shall mail to the Holder, at least twenty (20) days
prior to the date on which any such record is to be taken for the purpose of
such dividend or distribution, a notice specifying such date.  In the
event of any voluntary dissolution, liquidation or winding up of the Company,
the Company shall mail to the Holder, at least twenty (20) days prior to the
date of the occurrence of any such event, a notice specifying such
date.  In the event the Company authorizes or approves, enters into
any agreement contemplating, or solicits stockholder approval for any
Fundamental Transaction, the Company shall mail to the Holder, at least twenty
(20) days prior to the date of the closing of such event, a notice specifying
such date.  Notwithstanding the foregoing, the failure to deliver such
notice or any defect therein shall not affect the validity of the corporate
action required to be described in such notice.

     

    4.           Adjustment
of Exercise Price and Shares.

     

    The
Exercise Price and number of Exercise Shares issuable upon exercise of this
Warrant are subject to adjustment from time to time as set forth in this Section 4.

     

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

     

    (B)           If
the Company, at any time while this Warrant is outstanding, distributes to
holders of Common Stock (i) evidences of its indebtedness, (ii) any security
(other than a distribution of Common Stock covered by the preceding paragraph),
(iii) rights or warrants to subscribe for or purchase any security, or (iv) any
other asset (in each case, “Distributed
Property”), then in each such case the Holder shall be entitled upon
exercise of this Warrant for the purchase of any or all of the Exercise Shares,
to receive the amount of Distributed Property which would have been payable to
the Holder had such Holder been the holder of such Exercise Shares on the record
date for the determination of stockholders entitled to such Distributed
Property.  The Company will at all times set aside in escrow and keep
available for distribution to such holder upon exercise of this Warrant a
portion of the Distributed Property to satisfy the distribution to which such
Holder is entitled pursuant to the preceding sentence.

     

    (C)           Upon
the occurrence of each adjustment pursuant to this Section 4, the Company at its
expense will, at the written request of the Holder, promptly compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Exercise Shares or other
securities issuable upon exercise of this Warrant (as applicable), describing
the transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based.  Upon written request, the
Company will promptly deliver a copy of each such certificate to the Holder and
to the Company’s transfer agent.

     

    
      
         

      

      
        5.

        
          

        

      

      
         

      

    

     

    5.           Fractional
Shares.  No fractional shares shall be issued upon the exercise
of this Warrant as a consequence of any adjustment pursuant
hereto.  All Exercise Shares (including fractions) issuable upon
exercise of this 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 (a) the Company shall, 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 and (b) the number of
Exercise Shares to be issued will be rounded down to the nearest whole
share.

     

    6.           Fundamental
Transactions.  The Company shall not enter into or be party to
a Fundamental Transaction unless the Successor Entity assumes this Warrant in
accordance with the provisions of this Section 6.  Upon the
occurrence of any Fundamental Transaction, the Successor Entity shall succeed
to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall
refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this
Warrant with the same effect as if such Successor Entity had been named as the
Company herein. Prior to the consummation of any Fundamental Transaction
pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate
Event”), the Company shall make appropriate provision to ensure that the
Holder will thereafter have the right to receive upon an exercise of this
Warrant at any time after the consummation of the Fundamental Transaction but
prior to the Expiration Date, in lieu of the Exercise Shares (or other
securities, cash, assets or other property) purchasable upon the exercise of the
Warrant prior to such Fundamental Transaction, such shares of stock, securities,
cash, assets or any other property whatsoever (including warrants or other
purchase or subscription rights) which the Holder would have been entitled to
receive upon the happening of such Fundamental Transaction had the Warrant been
exercised immediately prior to such Fundamental Transaction, provided, however
that in the event of a Corporate Event in which (x) the Common Stock is
converted into or exchanged for anything other than solely equity securities,
and (y) the common stock of the Successor Entity is publicly traded, then,
as part of such Corporate Event, (i) the Holder will thereafter have the
right to receive upon an exercise of this Warrant such number of shares of
common stock of the Successor Entity as is determined by multiplying
(A) the number of shares of Common Stock subject to this Warrant
immediately prior to such Corporate Event by (B) a fraction, the numerator
of which is the Fair Market Value per share of Common Stock as of immediately
prior to the effectiveness of such Corporate Event, and the denominator of which
is the fair market value per share of common stock of the Successor Entity, as
determined in good faith by the Board of Directors of the Company (using the
same principles set forth in the definition of Fair Market Value to the extent
applicable), and (ii) the exercise price per share of common stock of the
acquiring or surviving company shall be the Exercise Price divided by the
fraction referred to in clause (B) above, and in any such case, appropriate
adjustment (as determined in good faith by the Board of Directors of the
Company) shall be made in the application of the provisions set forth herein
with respect to the rights and interests thereafter of the Holder, to the end
that the provisions set forth in this Section 6 shall thereafter be applicable,
as nearly as reasonably may be, in relation to any securities, cash or other
property thereafter deliverable upon the exercise of this Warrant. Provision
made pursuant to the preceding sentence shall be in a form and substance
reasonably satisfactory to the Holder.  The provisions of this Section 6 shall apply
similarly and equally to successive Fundamental Transactions and Corporate
Events and shall be applied without regard to any limitations on the exercise of
this Warrant.

     

    
      
         

      

      
        6.

        
          

        

      

      
         

      

    

     

    7.           No
Stockholder Rights.  Other than as provided
in Section 3.2 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.

     

    8.           Transfer of
Warrant.  Subject to applicable laws and any restrictions on
transfer set forth in the Purchase Agreement,
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 reasonably satisfactory to the Company and its counsel.  Any
purported transfer of all or any portion of this Warrant in violation of the
provisions of this Warrant shall be null and void.

     

    9.           Lost,
Stolen, Mutilated or Destroyed Warrant.  If this Warrant is
lost, stolen, mutilated or destroyed, the Company may, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of
a mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or
destroyed.  Any such new Warrant shall constitute an original
contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

     

    10.           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 facsimile to the facsimile
number specified in writing by the recipient if sent during normal business
hours of the recipient on a Trading Day, if not, then on the next Trading Day,
(c) the next Trading 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 at the
address listed on the signature page hereto and to Holder at the applicable
address set forth on the applicable signature page to the Purchase Agreement or
at such other address as the Company or Holder may designate by ten (10) days
advance written notice to the other parties hereto.

     

    11.           Acceptance.  Receipt
of this Warrant by the Holder shall constitute acceptance of and agreement to
all of the terms and conditions contained herein.

     

    12.           Governing
Law.  This Warrant and all rights, obligations and liabilities
hereunder shall be governed by, and construed in accordance with, the internal
laws of the State of California, without giving effect to the principles of
conflicts of law that would require the application of the laws of any other
jurisdiction.

     

    13.           Amendment
or Waiver.  Any term of this Warrant may be amended or waived
(either generally or in a particular instance and either retroactively or
prospectively) with the written consent of the Company and the Purchaser or
Purchasers holding or having the right to acquire, at the time of such
amendment, at least a majority-in-interest of the total Unit Shares then held by
any Purchaser.  No waivers of any term, condition or provision of this
Warrant, 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.  The Holder acknowledges that the Purchaser or Purchasers
holding or having the right to acquire, at the time of such amendment, at least
a majority-in-interest of the total Unit Shares then held by any Purchaser have
the power to bind all of the Holders.

     

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

     

    
      
         

      

      
        7.

        
          

        

      

      
         

      

    

     

    In Witness
Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of [___________], 2009.

     

    
      
        
          
            
              
                
                  	 	SUNESIS
      PHARMACEUTICALS, INC.	 
	 	 	 	 
	
                           

                        	
                          By:
      

                        	 	 
	 	 	Name:  Daniel
      N. Swisher, Jr.	 
	 	 	      
                          Title:  President
      and Chief Executive Officer

                        	 
	 	 	 	 
	 	Address:  
      	395
      Oyster Point Boulevard	 
	 	 	Suite
      400	 
	 	 	South
      San Francisco, CA 94080	 

                

              

            

          

        

      

    

     

    
      
         

      

      
        8.

        
          

        

      

      
         

      

    

     

    NOTICE
OF EXERCISE

     

    TO:           SUNESIS
PHARMACEUTICALS, INC.

     

    (1)           The
undersigned hereby elects to purchase [____] shares of the common stock, par
value $0.0001 per share (the “Common
Stock”), of SUNESIS PHARMACEUTICALS, INC. (the “Company”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if
any.

     

    [_] The
undersigned hereby elects to purchase [____] shares of Common Stock of the
Company pursuant to the terms of the net exercise provisions set forth in Section 2.2 of the attached
Warrant, and shall tender payment of all applicable transfer taxes, if
any.

     

    (2)           Please
issue the certificate for shares of Common Stock in the name of:

     

    
       

      
        
          

        

      

    

    Print or
type name

     

     

    
      
        

      
 Social
Security or other Identifying Number

     

     

    
      
        

      
 Street
Address

     

     

    
      
        

      
City
State Zip Code

     

    (3)           If
such number of shares shall not be all the shares purchasable upon the exercise
of the Warrants evidenced by this Warrant, a new warrant certificate for the
balance of such Warrants remaining unexercised shall be registered in the name
of and delivered to:

     

    Please
insert social security or other identifying number: _____________

    

     

    
      
        

      
 (Please
print name and address)

     

     

    
      
        

      
 Dated:

     

    (Date)

     

    
      
        
          
            
              
                
                  	 	_______________________________________
	 	
                          (Signature)

                        
	 	 
	 	_______________________________________
	 	
                          (Print
      name)

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    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, 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.Exhibit 10.16

            Financing Agreement

                      This Financing Agreement is made and entered into by and between Summit Financial Resources, L.P., 2455 East Parley’s Way, Suite 200, Salt Lake City, Utah 84109, Attention: Senior Portfolio Manager, and Artisanal Cheese, LLC, a New York limited liability company, 500 West 37th Street, New York City, New York 10018, Attention: CEO.

                      For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

                      1.          Definitions. Terms defined in the singular shall have the same meaning when used in the plural and vice versa. Terms defined in the UCC shall have the meanings set forth in the UCC, except as otherwise defined herein. As used herein, the term:

                      “Acceptable Account” means an Account of Client conforming to the representations, warranties, and requirements of Section 14, Acceptable Accounts.

                      “Accounts” shall have the meaning set forth in the definition of Collateral.

                      “Account Debtor” means any person or entity obligated for payment of an Account.

                      “Account Debtor Dispute” means any delay or failure of an Account Debtor to timely pay an Account or any portion of an Account for any reason which is not solely a Credit Problem, including, without limitation, any dispute with or claim against Client (whether or not relating to the goods sold or services performed giving rise to the
            Account), whether or not valid, setoff, deduction, or any other alleged defense or counterclaim. An Account subject to both a Credit Problem and an Account Debtor Dispute shall be treated as subject only to an Account Debtor Dispute. An Account subject to both an Insolvency Event and an Account Debtor Dispute shall be treated as subject only to an Account Debtor Dispute.

                      “Account Due Date” means ninety (90) days from the date of the invoice evidencing the Account.

                      “Advance” means an advance of any portion of the Purchase Price to or on behalf of Client.

                      “Advance Rate” means Eighty-Five Percent (85%), or such other Percent as may be determined from time to time by Summit in its sole discretion.

                      “Agreement” means this Financing Agreement, together with any amendments, addenda, and modifications.

                      “Authorized Overadvance” means an Overadvance authorized in writing by Summit.

                      “Banking Business Day” means any day not a Saturday, Sunday, legal holiday in the State of Utah, or day on which national banks in the State of Utah are authorized to close.

                      “Chargeback Account” means an outstanding Purchased Account which is past the Account Due Date or is determined to no longer be an Acceptable Account.

                      “Client” means Artisanal Cheese, LLC, a limited liability company organized and existing under the laws of the State of New York, its successors and assigns.

                      “Client Affiliate” means American Home Food Products, Inc., a corporation organized and existing under the laws of the State of New York, its successors and assigns.

            	
                         

                    	
                         

                    
	
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                      “Client Affiliate Past Due Taxes” means the past due taxes owing as of the date of this Agreement by Client Affiliate to the Internal Revenue Service in the approximate amount of six hundred twenty thousand dollars ($620,000.00).

                      “Collateral” means the following personal property of Client, wherever located, now owned or existing or hereafter acquired or created, all additions and accessions thereto, all replacements, insurance or condemnation proceeds, all documents covering any of the Collateral, all leases of any of the Collateral, all rents, revenues, issues,
            profits and proceeds arising from the sale, lease, license, encumbrance, collection, or any other temporary or permanent disposition of any of the Collateral or any interest therein, all amendments, modifications, renewals, extensions, and replacements thereof, and all products and proceeds thereof: (a) all inventory (the “Inventory”); (b) all accounts (the “Accounts”); (c) all equipment, goods and motor vehicles (collectively, the “Equipment”);
            (d) all general intangibles, excluding any and all patents, trademarks and copyrights (registered or unregistered), trade secrets, domain names and addresses, and intellectual property licenses; (e) any and all promissory notes and instruments payable to or owing to Client or held by Client; any and all leases under which Client is the lessor; any and all chattel paper in favor of, owing to, or held by Client, including, without limitation, any and all conditional sale contracts or
            other sales agreements, whether Client is the original party or the assignee; and any and all security agreements, collateral and titles to motor vehicles which secure any of the foregoing obligations; (f) all deposit accounts, including without limitation, all interest, dividends or distributions accrued or to accrue thereon, whether or not due; (g) all investment property, including all interest, dividends or distributions accrued or to accrue thereon, whether or not due; (h) all
            documents; (i) all letter-of-credit rights; (j) all supporting obligations; and (k) all balances, deposits, debts or any other amounts or obligations of Summit owing to Client, including, without limitation, any Reserve, whether or not due.

                      “Collateral Management Fee” means Three One Hundredths of One Percent (0.03%) of the face amount of each Purchased Account for each period of One (1) day or portion thereof, that the Purchased Account remains outstanding until payment in full is applied to the Purchased Account, due and payable in arrears. 

                      “Collected Payments” means collections and payments received by Summit on Accounts of Client, less all interest, Fees and Charges, amounts due and payable to Summit by Client, deductions and setoffs. Credits for Collected Payments shall be provisional and subject to final payment and collection of the deposited item. For purposes of
            calculating interest owing, Collected Payments delivered to a bank or other agent on behalf of Summit shall be deemed received three (3) Banking Business Days after the date of receipt of advice by Summit from the bank or agent that the Collected Payments have been credited to the account of Summit. 

                      “Credit Problem” means any delay or failure of an Account Debtor to timely pay an Account or any portion of an Account due solely to financial or cash flow problems of the Account Debtor.

                      “Daily Funds Rate” means the prime rate as announced in the Wall Street Journal plus Two Percent (2%) divided by 360. The initial prime rate shall be the prime rate in effect on the date of this Agreement. The Daily Funds Rate may be adjusted from time to time as of the date of any change in the prime rate.

                      “Default Rate” means the Daily Funds Rate plus Five Percent (5.0%) per annum.

                      “Equipment” shall have the meaning set forth in the definition of Collateral.

                      “Event of Default” shall have the meaning set forth in Section 26, Default and Remedies.

                      “Fees and Charges” means the Origination Fee, the Renewal Fees, the Collateral Management Fees, the Supplemental Fee, and the Other Charges.

                      “Financing Period” means an initial period of one (1) year commencing on the date of this Agreement and thereafter successive periods of one (1) year each commencing upon completion of each prior Financing Period.

                      “Insolvency Event” means the filing of a voluntary or involuntary petition in bankruptcy under Title 11 of the United States Code or an assignment for the benefit of creditors, within ninety (90) days of the invoice date.

            	
                         

                    	
                         

                    
	
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                      “Inventory” shall have the meaning set forth in the definition of Collateral.

                      “Maximum Credit Line” means seven hundred fifty thousand Dollars ($750,000) or such other amount as may be determined from time to time by Summit in its sole discretion.

                      “Monthly Minimum” means Two-Tenths Percent (0.2%) of the Maximum Credit Line. 

                      “Origination Fee” means Five-Tenths Percent (0.5%) of the Maximum Credit Line. The Origination Fee shall be due and payable upon execution of this Agreement. In the event the Maximum Credit Line is increased during the first year of this Agreement, an additional Origination Fee shall be charged on the amount of the increase, prorated from the
            date of the increase to the anniversary date of this Agreement. Any additional Origination Fee shall be due and payable on the effective date of the increase in the Maximum Credit Line. In the event of a decrease in the Maximum Credit Line, no refund or credit shall be given for any Origination Fee which has been paid.

                      “Other Charges” means the following fees and charges: 

                                a.          Any Payment Conversion Fees.

                                b.          All other charges and fees which may be charged by Summit pursuant to this Agreement, other than the Origination Fee, Renewal Fees, Collateral Management Fee, and Supplemental Fee.

                      “Outstanding Advances” means Advances for which Summit has not received Collected Payments in full and includes Advances against Chargeback Accounts for which Collected Payments in full have not been received and the full re-purchase price has not been paid.

                      “Overadvance” means (a) the amount by which the Outstanding Advances exceed the Maximum Credit Line, or (b) the amount by which the Outstanding Advances exceed Purchased Accounts which are not Chargeback Accounts multiplied by the Advance Rate.

                      “Payment Conversion Fee” means Ten Percent (10%) of any payment received by Client on a Purchased Account which is not tendered to Summit as required in this Agreement.

                      “Purchase Price” of an Account means the face amount of the Account less all interest and Fees and Charges.

                      “Purchased Account” means an Account that has been purchased by Summit pursuant to Section 2, Purchase of Accounts.

                      “Qualified Bank Financing” means financing provided directly by a full service commercial bank whose deposits are insured by the Federal Deposit Insurance Corporation in the form of a revolving line of credit for which the primary collateral is Client’s Accounts. Financing provided by a subsidiary, affiliate or division of such a bank
            does not qualify as Qualified Bank Financing.

                      “Renewal Fee” means Five-Tenths Percent (0.5%) of the Maximum Credit Line. The Renewal Fee shall be due and payable upon each anniversary of the Agreement. In the event the Maximum Credit Line is increased after the first year of this Agreement, an additional Renewal Fee shall be charged on the amount of the increase, prorated from the date
            of increase to the next anniversary date of this Agreement. Any additional Renewal Fee shall be due and payable on the effective date of the increase in the Maximum Credit Line. In the event of a decrease in the Maximum Credit Line, no refund or credit shall be given for any Renewal Fee which has been paid.

                      “Reserve” means such amount as may be determined from time to time by Summit in its sole discretion.

                      “Settlement Date” means dates set by Summit, which dates shall be at least weekly.

            	
                         

                    	
                         

                    
	
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                      “Summit” means Summit Financial Resources, L.P., a Hawaii limited partnership, its successors and assigns.

                      “Supplemental Fee” means the amount by which the Monthly Minimum exceeds amount of interest on Advances and Collateral Management Fees each calendar month, prorated for the first and last months of this Agreement.

                      “UCC” means the Uniform Commercial Code, as adopted now or in the future in the State of Utah.

                      2.          Purchase of Account.

                      Client shall request purchase of Accounts by submitting to Summit a Schedule of Accounts and Bill of Sale, copies of the invoices listed on the Schedule of Accounts and Bill of Sale, supporting documentation for such invoices as requested by Summit, and such other documentation as required by Summit. Summit shall notify Client which Accounts are
            purchased by providing reports to Client.

                      Unless otherwise agreed in writing by Summit, upon purchase by Summit of any Account, Client shall thereafter offer all Accounts owing by that Account Debtor for purchase by Summit. Summit may also require that all Accounts owing by that Account Debtor which Summit declines to purchase nonetheless be subject to Section 13 Collection Procedures and
            be paid to Summit.

                      Summit may purchase from Client such Acceptable Accounts as Summit elects. All purchases shall be subject to the terms and conditions of this Agreement. THE OBLIGATION OF SUMMIT TO PURCHASE ACCOUNTS FROM CLIENT IS DISCRETIONARY AND SUMMIT SHALL HAVE NO OBLIGATION TO PURCHASE ANY ACCOUNT FROM CLIENT, NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
            AGREEMENT. Summit may decline to purchase any Account submitted by Client for any reason or for no reason, without notice, regardless of any course of conduct or past purchases of Accounts by Summit. Each purchase by Summit shall be a true purchase with transfer of all legal and equitable title and shall not be deemed to be a loan agreement or secured transaction. Client shall thereafter have no right, title or interest in or to Purchased Accounts. Client shall make appropriate
            entries on its books and records disclosing the sale of Purchased Accounts to Summit. In the event Summit determines that it will no longer purchase any Acceptable Accounts from Client, and provided no Event of Default has occurred, Summit will give Client thirty (30) days written notice prior to ceasing purchase of all Acceptable Accounts.

                      Summit shall be the sole and exclusive purchaser of Client’s Accounts. Client will not sell, factor or otherwise finance its Accounts and shall not grant any other security interest in its Accounts or Inventory. 

                      3.           Purchase Price of Accounts. 

                      The Purchase Price shall be payable as follows: (i) an amount equal to the face amount of the Account multiplied by the Advance Rate shall be payable upon purchase of the Account by Summit; and (ii) the balance of the Purchase Price shall be payable after receipt of Collected Payments in full for the Purchased Account, such balance to be paid on the next
            Settlement Date; provided, however, that notwithstanding anything to the contrary in this Agreement, Summit shall not be obligated to make any Advance if, after making the Advance, the amount of all Outstanding Advances will exceed the Maximum Credit Line.

                      Payment shall be made in accordance with any written instructions of Client which are agreed to by Summit. Absent other instructions, payment shall be made by mailing a check to Client.

                      4.           Interest, Fees and Charges.

                      Interest shall accrue on Outstanding Advances, both before and after judgment, from the date of disbursement until receipt of Collected Payments, at the Daily Funds Rate. Upon occurrence of an Event of Default, interest on Outstanding Advances shall thereafter accrue, both before and after judgment, at the Default Rate until receipt of Collected
            Payments.

            	
                         

                    	
                         

                    
	
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                      In addition, Client shall pay Summit the Fees and Charges. The Collateral Management Fees are for monitoring of the Collateral, collection of the Accounts, and administration of this Agreement. The Collateral Management Fees are not intended to be and shall not be construed to be interest.

                      Interest and Fees and Charges may be deducted from Advances or from Collected Payments.

                      5.          Recourse Purchases.

                      Unless specifically designated otherwise in writing by Summit, all Accounts shall be purchased with recourse and shall become a Chargeback Account if not paid in full by the Account Due Date.

                      6.          Re-Purchase Obligation and Chargeback Accounts.

                      If (i) a Purchased Account is not paid in full by the Account Due Date, or (ii) if at any time Summit determines that the Purchased Account is no longer an Acceptable Account, the Purchased Account shall thereupon automatically be a Chargeback Account without any action by Summit.

                      Client shall immediately re-purchase all Chargeback Accounts by paying Summit the amount of the outstanding Advance against the Chargeback Account, plus accrued interest, and Collateral Management Fees thereon.

                      Interest shall accrue on Chargeback Accounts at the Default Rate until the re-purchase amount is paid in full.

                      7.          Overadvance.

                      Authorized Overadvances shall be due upon demand by Summit. Authorized Overadvances shall accrue interest at the Daily Funds Rate plus Three Percent (3.00%) per annum.

                      If at any time an Overadvance exists which is not an Authorized Overadvance, Client shall immediately make payment to Summit of an amount equal to the Overadvance. If such payment is not immediately made, interest shall accrue on the Overadvance at the Default Rate regardless of whether Summit waives the Event of Default caused by such
            non-payment.

                      8.          Conditions Precedent to Advances.

                      Summit shall not purchase any Account or otherwise make any Advance under this Agreement until all of the following conditions set forth below have been satisfied. All of the documents referred to below must be in a form and substance acceptable to Summit.

                                   a.          This Agreement and all other documents contemplated to be executed and delivered to Summit prior to funding have been fully executed and delivered to Summit.

                                   b.          All documents contemplated by this Agreement which require filing or recording have been properly filed and recorded so that all of the liens and security interests granted to Summit in connection with this Agreement
            will be properly created and perfected and will have a priority acceptable to Summit.

                                   c.          Client has delivered satisfactory evidence to Summit, in Summit’s sole discretion, that all amounts owing by Client to JPMorgan Chase Bank, NA, have been paid in full and that all liens, encumbrances, and
            security interests granted by Client to JPMorgan Chase Bank, NA, concerning the Collateral have been terminated or otherwise released, including, without limitation, that certain UCC Financing Statement filed with the New York Secretary of State on July 17, 2006, File No. 200607175708197.

                                   d.          Client has delivered satisfactory evidence to Summit, in Summit’s sole discretion, that all tax liens filed against Client or Client Affiliate have been terminated or otherwise released, including,
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            limitation, (i) that certain state tax lien filed against Client by New York State on September 16, 2006, File No. 002457758-01; (ii) that certain federal tax lien filed against Client Affiliate by the Internal Revenue Service on April 2, 2007, File No. 200704020253356; and (iii) that certain federal tax lien filed against Client Affiliate by the Internal Revenue Service on July 2, 2008, file No. 20080702046697. 

                      9.           Reserve. 

                      Summit may fund the Reserve by withholding amounts owing to Client for Advances or deducting amounts from Collected Payments. 

                      Upon non-renewal of the Financing Period, termination of the right of Client to submit Accounts to Summit as provided in Section 19, Renewal of Financing Period and Termination of Financing, and payment of all amounts owing to Summit by Client, any balance of the Reserve shall be paid to Client, provided that if Summit has reasonable grounds to believe that any collections or other
            payments received by Summit may be dishonored, voided, or preferential, or claims may be made against Summit for which Client would be liable, Summit may continue to hold the Reserve so long as such matters are outstanding and unresolved. 

                      Summit shall be free to use the Reserve as working capital or as Summit otherwise determines. Summit shall have no obligation to segregate, not commingle, or otherwise account for the use of the Reserve. Client shall not be entitled to any interest on the Reserve. The Reserve shall be a debt owed to Client by Summit, payable in accordance with the terms and conditions of this Agreement.
            

                      10.           Application of Payments and Collections. 

                      Summit may apply payments and recoveries first to Fees and Charges, second to outstanding and accrued interest, and third to Outstanding Advances. 

                      11.           Setoff and Deduction by Summit. 

                      As to all amounts owing to Summit by Client, Summit may (i) deduct such amount from Collected Payments received on Accounts, (ii) setoff and deduct such amount against Advances or any amount owing by Summit to Client, (iii) demand payment from Client whereupon Client shall promptly pay such amount to Summit, or (iv) exercise any combination of the alternatives set forth in this Section or
            available under this Agreement, at law, or in equity. 

                      12.           Excess Interest. 

                      It is the intent of the parties to comply with any usury law applicable to this Agreement and to all amounts owing pursuant to this Agreement and it is understood and agreed that in no event and upon no contingency shall Client or any guarantor be required to pay interest in excess of the rate allowed by any laws of any state which are determined to be applicable and governing. The
            intention of the parties being to conform strictly to any applicable usury laws, this Agreement shall be held to be subject to reduction to the amount allowed under any applicable and governing usury laws as now or hereafter construed by the courts having jurisdiction. In the event Summit receives any interest under this Agreement in excess of any highest permissible rate under any applicable and governing law, such excess interest (including simple interest thereon at the highest
            permissible rate which is applicable and governing) shall be promptly applied to the amounts owing by Client hereunder and then to Outstanding Advances. To the extent such excess interest is greater than such amounts, Summit shall promptly remit such overage to Client. 

                      13.           Reports and Audits. 

                      Upon request, which request may be made as frequently as determined by Summit, Client will promptly submit to Summit a current Account Debtor list, which shall include the name, address, contact person name, phone number and fax number for each active Account Debtor and such other records and reports concerning its Accounts, Inventory, the Collateral, and operations as may be requested by
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                      Client shall, at any reasonable time and from time to time, permit Summit or any representative of Summit to conduct field audits, examine, audit, and make copies of and extracts from the records and books of, and visit and inspect the Collateral, properties and assets of, Client, and to discuss the affairs, finances, and Accounts of Client with any of Client’s officers, directors,
            and partners and with Client’s independent accountants. 

                      14.           Collection Procedures. 

                                       a.          Unless directed otherwise in writing by Summit, Client shall promptly mail an invoice to each Account Debtor on each Purchased Account, which invoice shall be stamped or printed with a notice, in a form acceptable to Summit,
            stating that the Account is payable to Summit and providing payment instructions. Except as agreed otherwise in writing by Summit, Summit shall have the exclusive right to collect and to receive all payments on all Purchased Accounts. Client shall not otherwise bill for, submit any invoice, or otherwise attempt to collect any Purchased Account, except as authorized in writing by Summit. Summit is authorized to notify Account Debtors of the assignment and purchase of Client’s
            Accounts and to direct Account Debtors to make all payments on Purchased Accounts directly to Summit. 

                                       b.          Client authorizes Summit to contact Account Debtors concerning verification and payment of Accounts and to settle or compromise any Account, in the sole discretion of Summit subject only to acting in good faith. Client hereby
            waives and releases any and all claims relating to or arising out of any act or omission by Summit in the verification and collection of the Accounts, excluding those based on gross negligence or intentional misconduct. 

                                       c.          All collections of Purchased Accounts shall be handled by Summit. Collection of Accounts in a commercially reasonable manner does not require, and Summit is not obligated, to commence any legal action, including the sending of an
            attorney’s demand letter, to collect any Account. Client acknowledges and agrees that Summit is not a collection agency and will not provide debt collection services for Client’s Accounts. If any Purchased Account is not timely paid, Summit may, but is not obligated to, engage a collection agency, attorney or other service provider to collect Purchased Accounts. All commissions, fees and charges of any such collection agency, attorney or other service provider shall be
            paid by Client. CLIENT HEREBY WAIVES AND RELEASES ANY AND ALL CLAIMS RELATING TO OR ARISING OUT OF ANY ACT OR OMISSION BY SUMMIT IN THE COLLECTION OF PURCHASED ACCOUNTS, GROSS NEGLIGENCE AND INTENTIONAL MISCONDUCT EXCEPTED. 

                                       d.          Client shall promptly and completely respond to all requests from Summit for any information or records requested to assist in collection of Accounts. If Client fails to respond to any request within fifteen (15) days, Summit may
            deem the Account to no longer be an Acceptable Account. 

                                       e.          Upon inquiry from an Account Debtor or upon request of Summit, Client shall notify the Account Debtor to make payment directly to Summit. 

                                       f.          Any payments received by Client on Purchased Accounts shall be held in trust by Client for Summit. In the event an Account Debtor makes payment to Client on any Purchased Account, Client shall immediately notify Summit of the
            payment and deliver the payment to Summit. If payment is made in cash, such payment shall be immediately delivered to Summit. If payment is made by check or similar instrument, such instrument shall be immediately delivered to Summit in the form received without negotiation. If payment is made by electronic funds transfer, Client shall immediately forward such payment to Summit by electronic funds transfer. 

                                       If any payment received by Client on any Account is deposited or negotiated by Client, or if Client fails to tender the payment to Summit within Five (5) Banking Business Days of receipt by Client, Client shall promptly pay Summit the Payment Conversion Fee. 

                                       Client acknowledges and agrees that it has no right, title or interest whatsoever in the funds constituting payment of Purchased Accounts, that said funds are the sole and exclusive property of Summit, and that any use of or interference with said funds by Client will result in civil and
            criminal liability. 

            	
                         

                    	
                         

                    
	
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                                       g.          Client shall immediately notify Summit of any dispute concerning any Purchased Account and of any bankruptcy filing, lien, garnishment or other legal action concerning any Purchased Account or Account Debtor. 

                                       h.          Summit may, but has no duty to, and Client hereby authorizes Summit to, execute and file, on behalf of Client or in Summit’s name, mechanic’s liens and all other notices and documents to create, perfect, preserve,
            foreclose and/or release any lien for work performed or materials provided to improve real property. Except as otherwise instructed by Summit, Client is authorized to file any such mechanic’s liens and other notices and documents in Client’s discretion. 

                      15.             Acceptable Accounts. 

                      An Acceptable Account must meet all of the following requirements and conditions unless waived in writing by Summit. 

                                       a.          Client has sole and unconditional good title to the Account and the Account and any goods sold to create the Account are free from any other security interest, assignment, lien or other encumbrance of any type. 

                                       b.          The Account is a bona fide obligation of the Account Debtor for the amount identified on the records of Client and there have been no payments, deductions, credits, payment terms, or other modifications or reductions in the
            amount owing on such Account except as reported to Summit in writing prior to making an Advance based on the Account. 

                                       c.          The Account must be submitted to Summit within Sixty (60) days of the date the goods are sold or the services performed giving rise to the Account are completed. 

                                       d.          There are no defenses or setoffs to payment of the Account which can be asserted by way of defense or counterclaim against Client or Summit. 

                                       e.          The Account will be timely paid in full by the Account Debtor. 

                                       f.          There have been no extensions, modifications, or other agreements relating to payment of such Account except as reported to Summit in writing prior to making an Advance. 

                                       g.          Any services performed or goods sold which give rise to the Account have been completed and delivered and have been rendered or sold in compliance with all applicable laws, ordinances, rules and regulations and were performed or
            sold in the ordinary course of Client’s business. 

                                       h.         The Account Debtor is located or authorized to do business within the United States or the Account has been insured under a policy of credit insurance from an insurer and upon terms acceptable to Summit. 

                                       i.         No proceeding has been commenced or petition filed under any bankruptcy or insolvency law by or against the Account Debtor; no receiver, trustee or custodian has been appointed for any part of the property of the Account Debtor; and no
            property of the Account Debtor has been assigned for the benefit of creditors. 

                                       j.         Neither the Account, nor any invoice, credit application, bill, billing memorandum, correspondence, or any other document relating to an Account, contracts for or charges interest or any other charge in excess of the maximum
            non-usurious rate allowed pursuant to applicable law. 

                                       k.         The Account is not past the Account Due Date. 

            	
                         

                    	
                         

                    
	
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                                       l.        If the total of the outstanding Purchased Accounts owing by any single Account Debtor equals sixty Percent (60%) or more of the total outstanding Purchased Accounts owing by all Account Debtors, the portion of the Purchased Accounts owing by
            that single Account Debtor in excess of this limit shall not be Acceptable Accounts. 

                                       m.        If twenty-five Percent (25%) or more of the outstanding Accounts owing by an Account Debtor are past the Account Due Date, none of the Accounts owing by that Account Debtor shall be Acceptable Accounts. 

                      16.            Grant of Security Interest. 

                      Client hereby grants Summit a security interest in the Collateral. Client and Summit acknowledge their mutual intent that all security interests contemplated herein are given as a contemporaneous exchange for new value to Client, regardless of when Advances to Client are actually made or when the Collateral is acquired. 

                      The Collateral shall secure all of Client’s present and future debts, obligations, and liabilities of whatever nature to Summit, including, without limitation, (a) all obligations of Client under this Agreement, and (b) transactions in which the documents evidencing the indebtedness refer to this grant of security interest as providing security therefore. 

                      Client’s obligations under this Agreement may also be secured by other collateral as may be evidenced by other documentation apart from this Agreement. 

                      17.            Representations, Warranties and Covenants of Client. 

                      Client represents, warrants and covenants that: 

                                       a.        Client is a limited liability company organized and existing in good standing under the laws of the State of New York. 

                                       b.        The complete and exact name of Client is Artisanal Cheese, LLC. The complete and exact name of the Client Affiliate is American Home Food Products, Inc. During the five years preceding the date of this Agreement: (a) Client has not been
            known by or used any legal, fictitious or trade name; (b) Client has not changed its name in any respect; (c) Client has not been the surviving entity of a merger or consolidation; and (d) Client has not acquired all or substantially all of the assets of any person or entity. Exception: Artisanal Premium Cheese, American Home Food Products, Inc. 

                                       c.        The execution, delivery and performance by Client of this Agreement have been duly authorized by all necessary action on the part of Client, and are not inconsistent with any organizational documents of Client, do not and will not contravene
            any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument to which Client is a party or by which it is bound, and upon execution and delivery hereof, this Agreement will constitute a legal, valid and binding agreement and obligation of Client, enforceable in accordance with its terms. 

                                       d.        All financial statements of Client, and of any guarantor of Client’s obligations under this Agreement, fully and fairly present the financial condition of Client and any guarantor as of the date thereof and the results of operations
            for the period or periods covered thereby. Since the date of such financial statements there has been no material adverse change in the financial condition of Client or any guarantor. Client agrees to submit financial statements for Client to Summit and Client shall cause any guarantor to submit financial statements for such guarantor to Summit as may be requested by Summit, all such financial statements to fully and fairly present the financial condition of Client or such
            guarantor, as the case may be, and to be in a form and from a firm acceptable to Summit. 

                                       e.        Client shall conduct its business in a lawful manner and in compliance with all applicable federal, state, and local laws, ordinances, rules, regulations, and orders and shall pay when due all lawfully imposed 

            	
                         

                    	
                         

                    
	
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            taxes upon its property, business and income. No later than the fifth day of each month, Client shall certify in writing to Summit, in a form acceptable to Summit, that all federal, state, and other taxes and assessments owing during the prior month have been paid in full. Such certification shall be accompanied by proof of payment in a form acceptable to Summit.

                                       f.         This Agreement, the financial statements referred to herein, and all other statements furnished by Client to Summit in connection herewith contain no untrue statement of a material fact and omit no material fact necessary to make the
            statements contained therein or herein not misleading. Client represents and warrants that it has not failed to disclose in writing to Summit any fact that materially and adversely affects, or is reasonably likely to materially and adversely affect, Client’s business, operations, properties, prospects, profits, condition (financial or otherwise), or ability to perform this Agreement.

                                       g.         No change of control of Borrower or any guarantor shall occur except with prior written consent of Summit.

                      Change of control means (1) in the case of a corporation, any sale, assignment, or other transfer of more than Twenty-Five Percent (25%) of the stock of such corporation or the persons who are the directors of such corporation as of the date of this Agreement fail to constitute a majority of the Board of Directors of such corporation, or the president or any other executive officer of such
            corporation resigns, is terminated, or otherwise ceases to function in such position; (2) in the case of a general or limited partnership, any sale, assignment, or other transfer of more than Twenty-Five Percent (25%) of the general partnership interests of such partnership, any of the persons or entities who are a general partner of such partnership as of the date of this Agreement ceases to be a general partner of such partnership, the occurrence of any change of control in any
            general partner in such partnership, or any general manager or person holding a similar position in such partnership resigns, is terminated, or otherwise ceases to function in such position; or (3) in the case of a limited liability company, any of the persons or entities who are members of such limited liability company as of the date of this Agreement ceases to be a member of such limited liability company, any managing member or manager of such limited liability company resigns,
            is terminated, or otherwise ceases to function in such position, or the occurrence of any change of control in any such member, managing member or manager of such limited liability company.

                      18.            Representations, Warranties and Covenants Concerning Collateral.

                      Client represents, warrants, and covenants concerning the Collateral as follows:

                                       a.        All Purchased Accounts are Acceptable Accounts.

                                       b.         Client is the sole owner of the Collateral.

                                       c.        The Inventory and Accounts are not subject to, and will be kept free and clear of, any security interest, lien, assignment, or other encumbrance of any nature whatsoever except for current taxes and assessments which are not delinquent, the
            security interests created by this Agreement, and assignments and security interests created and disclosed in writing to Summit prior to execution of this Agreement.

                                       d.        Summit is authorized to file UCC Financing Statements concerning the Collateral. Client agrees to execute any notices of assignment and other documents reasonably requested by Summit for perfection or enforcement of the rights and interests
            of Summit, and to give good faith, diligent cooperation to Summit, and to perform such other acts reasonably requested by Summit for perfection and enforcement of the rights and interests of Summit. Summit is authorized to file, record, or otherwise utilize such documents as it deems necessary to perfect and/or enforce any security interest or lien granted hereunder.

                                       e.        The place of business of Client, or, if Client has more than one place of business, the location of its chief executive office, is located in the state of New York. During the five years preceding the date of this Agreement, this location
            has not been located outside of New York. This location will not be moved from New York without at least Thirty (30) days prior written notice to Summit.

            	
                         

                    	
                         

                    
	
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                                     f.          The Collateral and all records of Client pertaining to the Collateral are located in New York. During the five years preceding the date of this Agreement, the Collateral and all records of Client
            pertaining to the Collateral have not been located outside New York. 

                                     g.          Client shall keep the Equipment, if any, in good repair and be responsible for any loss or damage to the Equipment. Client shall pay when due all taxes, license fees and other charges on the Equipment.
            Client shall not sell, misuse, conceal, or in any way dispose of the Equipment or permit it to be used unlawfully or for hire or contrary to the provisions of any insurance coverage. Risk of loss of the Equipment shall be on Client at all times unless Summit takes possession of the Equipment. Loss of or damage to the Equipment or any part thereof shall not release Client from any of the obligations secured by the Equipment. 

                                     h.          Client agrees to insure the Equipment and Inventory, at Client’s expense, against loss, damage, theft, and such other risks as Summit may request to the full insurable value thereof with insurance
            companies and policies satisfactory to Summit. Summit shall be named as an additional insured and loss payee under such policies. All such policies shall provide for a minimum ten days written cancellation notice to Summit. Upon request, policies or certificates attesting to such coverage shall be delivered to Summit. Insurance proceeds may be applied by Summit toward payment of any obligation secured by this Agreement, whether or not due, in such order of application as Summit may
            elect. 

                                     i.          So long as no Event of Default has occurred, Client shall have the right to sell or otherwise dispose of the Inventory in the ordinary course of business. No other disposition of the Inventory may be made
            without the prior written consent of Summit. 

                      19.          Assignment of Rights Concerning Collateral.

                      Client hereby assigns to Summit all of its interest in and rights to any Inventory which may be returned by Account Debtors, all rights as an unpaid vendor or lienor, all rights of stoppage in transit, repletion and reclamation relating thereto, all rights in and to all security therefor and guarantees thereof, all rights against third parties with
            respect thereto, and all rights under the UCC and any other law, statute, regulation or agreement. 

                      20.          Renewal of Financing Period and Termination of Financing. 

                      Each Financing Period shall automatically renew for an additional Financing Period unless Client or Summit provides written notice of non-renewal at least Sixty (60) days prior to the end of the current Financing Period. 

                      If Client elects to terminate a Financing Period at any time during the first six (6) months after initial funding, Client agrees to pay Summit Twenty-Five Thousand Dollars ($25,000). If Client elects to terminate a Financing Period at any time after the initial six (6) months from initial funding, except to replace this financing with Qualified Bank
            Financing as provided herein, or if an Event of Default terminates the financing of Client’s Accounts, Client Shall pay Summit the greater of Two Percent (2.00%) of the Maximum Credit Limit or the Supplemental Fee for the remainder for the remainder of the Financing Period. The Supplemental Fee shall be due and payable in full upon such termination. 

                      Client must provide at least Sixty (60) days written notice to Summit of intent to replace this financing with Qualified Bank Financing, which notice shall itemize the material financial terms of the Qualified Bank Financing. Within Thirty (30) days of receipt of such notice, Summit may provide written notice to Client that Summit will match the material
            financial terms of the Qualified Bank Financing whereupon Summit and Client shall amend this Agreement to match the material financial terms of the Qualified Bank Financing and this Agreement shall remain in force. 

                      Upon such non-renewal or termination, all other terms and provisions of this Agreement, including, without limitation, the security interests granted in favor of Summit, shall remain in full force and effect until all amounts owing to Summit hereunder have been finally paid in full, except that Client shall be excused from the covenants 

            	
                         

                    	
                         

                    
	
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            herein providing that Summit shall be the sole and exclusive purchaser and source of financing for Client’s Accounts. 

                      Upon expiration of the final Financing Period or any other termination, at the election of Summit, all outstanding Purchased Accounts will immediately be Chargeback Accounts and all amounts owing to Summit by Client pursuant to this Agreement shall, without notice of such election, accelerate and become immediately due and payable in full. 

                      21.          Right to Perform for Client. 

                      Summit may, in its sole discretion, elect to discharge any security interest, lien or other encumbrance upon any Accounts, elect to pay any subcontractor, vendor, materialman, laborer, or other person to whom Client is obligated, whether or not any mechanic’s lien or other encumbrance has been asserted, and elect to pay any insurance charges
            payable by Client or provide insurance as required herein if Client fails to do so. Any such payments and all expenses incurred in connection therewith shall be immediately due and payable by Client. Summit shall have no obligation to discharge any such security interest, lien or other encumbrance or pay such insurance charges or provide such insurance. 

                      22.          Power of Attorney to Endorse Checks. 

                      Client does hereby make, constitute and appoint Summit, and its designees, as its true and lawful attorneys-in-fact, with full power of substitution, with full power to endorse the name of Client upon any checks or other forms of payment on Accounts and to effect the deposit and collection thereof. This power of attorney is irrevocable and coupled with
            an interest. Such power may be exercised at any time. Client does hereby make, constitute, and appoint Summit, and its designees, as Client’s true and lawful attorneys in fact, with full power of substitution, such power to be exercised only upon the occurrence of an Event of Default, to: (a) receive, open, and dispose of all mail addressed to Client; (b) cause mail relating to Accounts of Client to be delivered to a designated address of Summit where Summit may open all such
            mail and remove therefrom any payment of such Accounts; and (c) Summit may do any and all other things necessary or proper to carry out the intent of this Agreement and to perfect and protect the rights of Summit created under this Agreement. This power of attorney is irrevocable and coupled with an interest. Exercise of any of the foregoing powers shall be in the sole discretion of Summit without any duty to do so. 

                      23.          Disclosure of Information. 

                      Client hereby consents to Summit disclosing to any financial institution or investor providing financing for Summit or participating in this financing, any and all information, knowledge, reports and records, including, without limitation, financial statements, concerning Client or any guarantor. 

                      24.          Interest on Unpaid Amounts. 

                      In the event Client fails to pay any amount owing to Summit when due, Client agrees to pay interest on such amount from the due date until paid, both before and after judgment, at the Default Rate. 

                      25.          No Third Party Beneficiary. 

                      This Agreement is made for the sole and exclusive benefit of Summit and Client and is not intended to benefit any third party. No such third party may claim any right or benefit or seek to enforce any term or provision of this Agreement. 

                      26.          Indemnification. 

                      CLIENT AGREES TO INDEMNIFY SUMMIT FOR ANY AND ALL CLAIMS WHICH MAY BE ASSERTED AND FOR LIABILITIES AND DAMAGES WHICH MAY BE AWARDED AGAINST SUMMIT, AND FOR ALL REASONABLE ATTORNEYS FEES, LEGAL EXPENSES AND OTHER EXPENSES 

            	
                         

                    	
                         

                    
	
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            INCURRED IN DEFENDING SUCH CLAIMS, ARISING FROM OR RELATING IN ANY MANNER TO THE PURCHASE, FINANCING AND/OR COLLECTION OF ACCOUNTS PURSUANT TO THE TERMS OF THIS AGREEMENT, EXCLUDING CLAIMS BASED ON THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUMMIT. SUMMIT SHALL HAVE SOLE AND COMPLETE CONTROL OF THE DEFENSE OF ANY SUCH CLAIMS, AND IS HEREBY GIVEN AUTHORITY TO SETTLE OR OTHERWISE COMPROMISE ANY SUCH CLAIMS AS
            SUMMIT, IN GOOD FAITH, DETERMINES SHALL BE IN ITS BEST INTERESTS. 

                      27.          Default and Remedies. 

                      Time is of the essence of this Agreement. The occurrence of any of the following events shall constitute a default under this Agreement and be termed an “Event of Default”: 

                                     a.          Failure by Client to pay any amount to Summit when due. 

                                     b.          Client fails in the payment or performance of any obligation, covenant, agreement, or liability created by this Agreement. 

                                     c.          Any representation, warranty, or financial statement made by or on behalf of Client, or any guarantor, proves to have been materially false or materially misleading when made or furnished. 

                                     d.          Any default or event which, with the giving of notice or the passage of time or both, would constitute a default, occurs on any indebtedness of Client or any guarantor. 

                                     e.          Client or any guarantor becomes dissolved or terminated or dies. 

                                     f.          A receiver, trustee, or custodian is appointed for any part of Client’s or any guarantor’s property, or any part of Client’s or any guarantor’s property is assigned for the benefit
            of creditors. 

                                     g.          Any proceeding is commenced or petition filed under any bankruptcy or insolvency law by or against Client or any guarantor. 

                                     h.          Any judgment is entered against Client or any guarantor which may materially affect Client’s or any guarantor’s financial condition. 

                                     i.          Client or any guarantor becomes insolvent or unable to pay its debts as they mature. 

                                     j.          The Purchased Accounts become, for any reason whatsoever, substantially delinquent or uncollectible. 

                                     k.          Client fails, within ninety (90) days from the date of this Agreement, to provide satisfactory evidence to Summit, in Summit’s sole discretion, that the Client Affiliate Past Due Taxes have been
            paid in full or otherwise subordinated to Summit in a manner acceptable in Summit’s sole discretion. 

                                     l.          Any tax liens are filed against Client Affiliate after the date of this Agreement. 

                                     m.          Client Affiliate fails to timely pay all federal, state, and other taxes and assessments arising after the date of this Agreement as the same become due. 

                      Waiver of any Event of Default shall not constitute a waiver of any subsequent Event of Default. 

                      Upon the occurrence of any Event of Default and at any time thereafter, at the election of Summit and without notice of such election, Summit may immediately terminate the right of Client to request Advances, treat all outstanding Purchased Accounts as Chargeback Accounts, and all obligations of Client to Summit shall accelerate and become immediately
            due and payable in full and Summit shall have all rights and remedies created by or arising 

            	
                         

                    	
                         

                    
	
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            from this Agreement and the following rights and remedies, in addition to all other rights and remedies existing at law, in equity, or by statute: 

                                     a.          Summit shall have all the rights and remedies available under the UCC. 

                                     b.          Summit shall have the right to enter upon any premises where the Collateral or records pertaining thereto may be and take possession of the Collateral and records relating thereto. 

                                     c.          Upon request of Summit, Client shall, at the expense of Client, assemble the Collateral and records relating thereto at a place designated by Summit and tender the Collateral and records to Summit.
            

                                     d.          Without notice to Client, Summit may obtain the appointment of a receiver of the business, property and assets of Client and Client hereby consents to the appointment of Summit or such person as Summit
            may designate as such receiver. 

                                     e.          Summit may sell, lease or otherwise dispose of any or all of the Collateral in a manner that is commercially reasonable for property of similar quality and characteristics and, after deducting the
            reasonable costs and out-of-pocket expenses incurred by Summit, including, without limitation, (i) reasonable attorneys fees and legal expenses, (ii) transportation and storage costs, (iii) costs of advertising sale of the Collateral, (iv) sale commissions, (v) sales tax, (vi) costs for improving or repairing the Collateral, and (vii) costs for preservation and protection of the Collateral, and apply the remainder against, or to hold as a reserve against, the obligations secured by
            this Agreement. Client hereby grants Summit an irrevocable license to use any and all trademarks and copyrights of Client in connection with Summit’s disposition of the Collateral. 

                      Client and any guarantors shall be liable for all deficiencies owing on any obligations secured by the Collateral after liquidation of the Collateral. 

                      Upon occurrence of an Event of Default, the interest rate on obligations of Client owing to Summit shall be increased to the Default Rate. After the occurrence of an Event of Default, Summit shall retain the exclusive right to collect outstanding Chargeback Accounts, regardless of whether the Chargeback Account has been repurchased by Client, until all
            obligations owing to Summit by Client have been paid in full. 

                      The rights and remedies herein conferred are cumulative and not exclusive of any other rights or remedies and shall be in addition to every other right, power and remedy herein specifically granted or existing at law, in equity, or by statute which Summit might otherwise have and may be exercised from time to time and as often and in such order as may be
            deemed expedient by Summit. No delay or omission by Summit in the exercise of any such right, power or remedy or in the pursuance of any remedy shall impair any such right, power or remedy or be construed to be a waiver of any Event of Default or to be an acquiescence therein. 

                      28.          Payment of Expenses and Attorneys Fees. 

                      Client shall pay all reasonable expenses of Summit relating to the negotiation, documentation, and administration of this Agreement, including, without limitation, title insurance, recording fees, filing fees, fees of collection services, reasonable attorneys fees and legal expenses, returned check fees, photocopies, postage, audit and field examination
            fees and costs, inspection fees, wire transfer fees, and overnight delivery expenses, whether incurred in making Advances, in future amendments or modifications to this Agreement, or in ongoing administration of this financing. 

                      Upon occurrence of an Event of Default, Client agrees to pay all costs and expenses, including reasonable attorney fees and legal expenses, incurred by Summit in enforcing or exercising any remedies under this Agreement or any other rights and remedies. 

                      Client agrees to pay all expenses, including reasonable attorney fees and legal expenses, incurred by Summit in any bankruptcy proceedings of any type involving Client, any guarantor, this Agreement, the Purchased 

            	
                         

                    	
                         

                    
	
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            Accounts, or the Collateral, including, without limitation, expenses incurred in modifying or lifting the automatic stay, determining adequate protection, use of cash collateral or relating to any plan of reorganization. 

                      29.          Bankruptcy Considerations. 

                      Client covenants that it will notify Summit of any voluntary or involuntary bankruptcy petition under the United States Bankruptcy Code filed by or against Client or any guarantor, or any assignment for the benefit of creditors by Client or any guarantor, within Twenty-Four (24) hours of any such filing or assignment. Failure to notify Summit of any such
            bankruptcy filing or assignment within Twenty-Four (24) hours shall constitute an Event of Default. 

                      Client acknowledges that this Agreement is a contract to extend debt financing or financial accommodations to or for the benefit of Client within the meaning of 11 U.S.C. §365(c)(2) and, as such, may not be assumed or assigned. Summit shall be under no obligation to provide any financing under this Agreement from and after the filing of any
            voluntary or involuntary petition against Client. 

                      30.          Limitation of Consequential Damages. 

                      Summit and its general and limited partners, the partners, members, officers and directors thereof, and the employees, representatives, agents, and attorneys of Summit, shall not be liable to Client or any guarantor for consequential damages arising from or relating to any breach of contract, tort, or other wrong in connection with the negotiation,
            documentation, administration of this Agreement or collection of the Accounts. 

                      31.          Force Majeure.

                      In the event Summit is unable to carryout its obligations under this Agreement due to reasons beyond its reasonable control, it is agreed that the obligations of Summit hereunder shall be suspended during the continuance of such inability, Summit shall not be liable for damages, and Client shall not be entitled to any refund of amounts paid, provided
            that such cause shall be remedied as far as reasonably possible with all reasonable dispatch. 

                      32.          Cure Period. 

                      In the event that any acts of God, acts of civil war or military authority, embargos, epidemics, war, terrorist attacks, riots, insurrections, fires, explosions, nuclear accidents, floods, strikes, power blackouts, or other similar events beyond the reasonable control of Client cause delay in Client’s timely re-purchase of Chargeback Accounts,
            Client shall be entitled to a cure period on Chargeback Accounts arising after any such event, which cure period shall be for the lesser of (i) a reasonable period of time for Client to re-purchase Chargeback Accounts after the cessation of any such event, or (ii) for a period of thirty (30) days commencing on the date of any such event. 

                      33.          Revival Clause. 

                      If the incurring of any debt by Client or the payment of any money or transfer of property to Summit by or on behalf of Client or any guarantor (including collection of any Account) should for any reason subsequently be determined to be “voidable” or “avoidable” in whole or in part within the meaning of any state or federal law
            (collectively “voidable transfers”), including, without limitation, fraudulent conveyances or preferential transfers under the United States Bankruptcy Code or any other federal or state law, and Summit is required to repay or restore any voidable transfers or the amount or any portion thereof, or upon the advice of counsel for Summit is advised to do so, then, as to any such amount or property repaid or restored, including all reasonable costs, expenses, and attorneys
            fees of Summit related thereto, the liability of Client and any guarantor shall automatically be revived, reinstated and restored and shall exist as though the voidable transfers had never been made. 

            	
                         

                    	
                         

                    
	
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                      34.          Joint and Several Liability. 

                      Client and any guarantors shall each be jointly and severally liable for all obligations and liabilities arising under this Agreement and the other agreements, documents, obligations, and transactions contemplated by this Agreement. 

                      35.          Severability of Invalid Provisions, Headings, Interpretations of Agreement. 

                      Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
            such provision in any other jurisdiction. 

                      All references in this Agreement to the singular shall be deemed to include the plural when the context so requires, and visa versa. References in the collective or conjunctive shall also include the disjunctive unless the context otherwise clearly requires a different interpretation. 

                      36.          Notices. 

                      All notices which are expressly required to be in writing may be mailed, postage prepaid, addressed to the address stated at the beginning of this Agreement, or to such other address which is provided in accordance with this Section. Any notice so mailed shall be deemed given Three (3) days after mailing. Any notice otherwise delivered shall be deemed
            given when received by the addressee. Any notice which is not expressly required to be given in writing may be given orally. 

                      37.          Survival of Representations, Warranties and Covenants. 

                      All agreements, representations, warranties and covenants made herein by Client shall survive the execution and delivery of this Agreement and any bankruptcy proceedings involving Client and shall continue in effect so long as any obligation to Summit contemplated by this Agreement is outstanding and unpaid, notwithstanding any termination of this
            Agreement. 

                      38.          Jury Waiver, Exclusive Jurisdiction of Utah Courts. 

                      CLIENT HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR IN TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT. 

                      Client acknowledges that by execution and delivery of this Agreement, Client has transacted business in the State of Utah and Client hereby voluntarily submits to, consents to, and waives any defense to the jurisdiction of courts located in the State of Utah as to all matters relating to or arising from this Agreement. 

                      EXCEPT AS EXPRESSLY AGREED IN WRITING BY SUMMIT, THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF UTAH SHALL HAVE SOLE AND EXCLUSIVE JURISDICTION OF ANY AND ALL CLAIMS, DISPUTES, AND CONTROVERSIES ARISING UNDER OR RELATING TO THIS AGREEMENT. NO LAWSUIT, PROCEEDING, ALTERNATIVE DISPUTE RESOLUTION, OR ANY OTHER ACTION RELATING TO OR ARISING UNDER THIS
            AGREEMENT MAY BE COMMENCED OR PROSECUTED IN ANY OTHER FORUM, EXCEPT AS EXPRESSLY AGREED IN WRITING BY SUMMIT. 

                      39.          Assignability. 

                      This Agreement is not assignable or transferable by Client and any such purported assignment or transfer is void. This Agreement shall be binding upon the successors of Client. Client acknowledges and agrees that Summit may assign all or any portion of this Agreement, including, without limitation, assignment of the rights, benefits and 

            	
                         

                    	
                         

                    
	
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            remedies of Summit hereunder without any assignment of the duties, obligations or liabilities of Summit hereunder, and may sell participations in this financing. 

                      40.          Integrated Agreement, Amendment, Headings, Governing Law. 

                      This Agreement replaces and supersedes any prior agreement between Client and Summit. This Agreement and the documents identified or contemplated herein constitute the entire agreement between Summit and Client as to the subject matter hereof and may not be altered or amended except by written agreement signed by Summit and Client. No provision hereof
            may be waived by Summit except upon written waiver executed by Summit. This Agreement shall be governed by and construed in accordance with the laws of the State of Utah and this Agreement shall be deemed to have been executed by the parties in the State of Utah. This Agreement shall not be deemed to have been entered into until accepted by Summit at its chief executive office in Salt Lake City, Utah and shall be performed by Summit and the financing administered by Summit in Salt
            Lake City, Utah. 

                      Dated: February 19, 2009. 

            	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Summit Financial Resources, L.P.

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        /s/ Gordon P. LaHaye

                    
	
                         

                    	
                         

                    	 
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Name:

                    	
                        Gordon P. LaHaye

                    
	
                         

                    	
                         

                    	 
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Its:

                    	
                        President

                    
	
                         

                    	
                         

                    	 
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        Artisanal Cheese, LLC, a New York limited liability company

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        /s/ Daniel W. Dowe

                    
	
                         

                    	
                         

                    	 
	
                         

                    	
                         

                    	
                           Daniel W. Dowe

                    
	
                         

                    	
                         

                    	
                           President & Chief Executive Officer

                    

            

            	
                         

                    	
                         

                    
	
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