Document:

Exhibit 10.2

NAME OF SUBSCRIBER:                                                                                             

CALLISTO
PHARMACEUTICALS, INC.

AMENDMENT AGREEMENT

This AMENDMENT (the “Amendment”)
to the SECURITIES PURCHASE AGREEMENT (the “Agreement”) originally dated as of
February 3, 2006 by and between                       .
(the “Investor”) and Callisto Pharmaceuticals, Inc. (the “Company”) and Warrant
WA-      of even date (the “Old Warrant”) is dated as
of September 8, 2006. Capitalized terms not defined herein have the meanings
assigned to them in the Agreement and Old Warrant as the case may be.

WITNESSETH:

WHEREAS, on February 3, 2006, Investor and
the Company entered into the Agreement pursuant to which the Investor purchased
shares of the Company’s Common Stock, $.0001 par value, and the Old Warrant
(the “Prior Offering”);

WHEREAS, the Company has offered and the
Investor has accepted, shares of Common Stock and five-year non-callable
warrants, exercisable for $1.00 per share (the “New Warrants” and together with
the shares of Common Stock, the “New Securities”), modify the Old Warrants in
exchange for a lock-up agreement and the amendments to the Agreement set forth
herein.

WHEREAS, the parties now desire to (i)
replace Section 5.2 of the Agreement in its entirety with a piggy-back
registration rights provision and (ii) waive any and all payments accrued to
date and payable to the Investor pursuant to Section 5.2(b) of the Agreement;

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

SECTION 1.

1.1           Issuance.  In consideration of the Investor executing
the Lock-Up Agreement annexed hereto as Exhibit A and the agreements of the
Investor herein, the Company will issue to the Investor the amount of Common
Stock, par value $.0001 (calculated at the rate of 20% of the number of shares
of Common Stock issued to the Investor in the Prior Offering) and New Warrants
(calculated at the rate of 47% of the number of shares issued to investor in
the Prior Offering) in the form annexed hereto as Exhibit B, indicated on page
8 hereof, on the terms and conditions described herein.

SECTION 2.

2.1           Amended Registration Provisions. 
Section 5.2 of the Agreement is hereby deleted in its entirety and
replaced with the following provision:

 

“5.2         Piggy-Back
Registration

If at any time prior to
the earlier of (i) the date on which all of the Registrable Securities have
been sold and (ii) the date on which the Registrable Securities may be
immediately sold to the public without registration or restriction (including,
without limitation, as to volume by each holder thereof) under the 1933 Act,
the Company shall determine to file with the Commission a Registration
Statement relating to an offering for its own account or the account of others
under the 1933 Act of any of its equity securities (other than on Form S-4 or
Form S-8 or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other bona  fide,
employee benefit plans), the Company shall send to each Investor who is
entitled to registration rights under this Section 5.2 written notice of such
determination and, if within fifteen (15) days after the effective date of such
notice, such Investor shall so request in writing, the Company shall include in
such Registration Statement all or any part of the Registrable Securities such
Investor requests to be registered, except that if, in connection with any
underwritten public offering for the account of the Company the managing
underwriter(s) thereof shall impose a limitation on the number of shares of
Common Stock which may be included in the Registration Statement because, in
such underwriter(s)’ judgment, marketing or other factors dictate such
limitation is necessary to facilitate public distribution, then the Company
shall be obligated to include in such Registration Statement only such limited
portion of the Registrable Securities with respect to which such Investor has
requested inclusion hereunder as the underwriter shall permit. Any exclusion of
Registrable Securities shall be made pro rata among the Investors seeking to
include Registrable Securities in proportion to the number of Registrable
Securities sought to be included by such Investors; provided, however,
that the Company shall not exclude any Registrable Securities unless the
Company has first excluded all outstanding securities, the holders of which are
not entitled to inclusion of such securities in such Registration Statement or
are not entitled to pro rata inclusion with the Registrable Securities; and provided,
further, however, that, after giving effect to the immediately
preceding proviso, any exclusion of Registrable Securities shall be made pro
rata with holders of other securities having the right to include such
securities in the Registration Statement other than holders of securities
entitled to inclusion of their securities in such Registration Statement by
reason of demand registration rights.  If
an offering in connection with which an Investor is entitled to registration
under this Section 5.2 is an underwritten offering, then each Investor whose
Registrable Securities are included in such Registration Statement shall,
unless otherwise agreed by the Company, offer and sell such Registrable

 2
 

 

Securities in an
underwritten offering using the same underwriter or underwriters and, subject
to the provisions of this Agreement, on the same terms and conditions as other
shares of Common Stock included in such underwritten offering.”

2.2           No Liquidated
Damages.  Section 5.6(a) of the
Agreement is hereby amended by deleting the clause “subject to the payment of
any liquidated damages which may accrue pursuant to Section 5.2(b)(iv),” in the
first sentence of Section 5.6(a).

2.3         Waiver.  The Investor hereby waives any and all
payments accrued to date and payable pursuant to Section 5.2(b) of the
Agreement as well as any right to damages for failure to register the
Registrable Securities pursuant to the Agreement.

SECTION 3.

3.1           The
first paragraph of the Old Warrant is hereby amended by replacing “February 3,
2006” with “February 3, 2011.”

3.2           Section
1 of the Old Warrant is hereby amended by deleting “VWAP” from the list of
definitions.

3.3           Section
4(b) of the Old Warrant is hereby deleted in its entirety.

SECTION 4.

4.1           Investor
Representations and Warranties.  The
Investor hereby acknowledges, represents and warrants to, and agrees with, the
Company and its affiliates as follows:

(a)           The
Investor is acquiring the New Securities for his own account as principal, not
as a nominee or agent, for investment purposes only, and not with a view to, or
for, resale, distribution or fractionalization thereof in whole or in part and
no other person has a direct or indirect beneficial interest in such New
Securities or any of the components of the New Securities.  Further, the Investor does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the New Securities for which the Investor is subscribing or
any of the components of the New Securities.

(b)           The
Investor has full power and authority to enter into this Agreement, the
execution and delivery of this Agreement has been duly authorized, if
applicable, and this Agreement constitutes a valid and legally binding
obligation of the Investor.

(c)           The
Investor acknowledges his understanding that the offering and sale of the New
Securities is intended to be exempt from registration under the Securities Act
of 1933, as amended (the “Securities Act”) by virtue of Section 4(2) of the
Securities Act.  In furtherance thereof,
the Investor represents and warrants to and agrees with the Company and its
affiliates as follows:

 3
 

 

(i)            The
Investor realizes that the basis for the exemption may not be present if, notwithstanding
such representations, the Investor has in mind merely acquiring New Securities
for a fixed or determinable period in the future, or for a market rise, or for
sale if the market does not rise.  The
Investor does not have any such intention.

(ii)           The
Investor has the financial ability to bear the economic risk of his investment,
has adequate means for providing for his current needs and personal
contingencies and has no need for liquidity with respect to his investment in
the Company; and

(iii)          The
Investor has such knowledge and experience in financial and business matters as
to be capable of evaluating the merits and risks of the prospective investment
in the New Securities.  If other than an
individual, the Investor also represents it has not been organized for the
purpose of acquiring the New Securities.

(d)           The
Investor:

(i)            Has
been furnished with any and all documents which may have been made available
upon request for a reasonable period of time prior to the date hereof;

(ii)           Has
been provided an opportunity for a reasonable period of time prior to the date
hereof to obtain additional information concerning the offering of the New
Securities, the Company and all other information to the extent the Company
possesses such information or can acquire it without unreasonable effort or
expense;

(iii)          Has
been given the opportunity for a reasonable period of time prior to the date
hereof to ask questions of, and receive answers from, the Company or its
representatives concerning the terms and conditions of the offering of the New
Securities and other matters pertaining to this investment, and have been given
the opportunity for a reasonable period of time prior to the date hereof to
obtain such additional information necessary to verify the accuracy of the
information provided in order for him to evaluate the merits and risks of
purchase of the New Securities to the extent the Company possesses such
information or can acquire it without unreasonable effort or expense;

(iv)          Has
not been furnished with any oral representation or oral information in
connection with the offering of the New Securities which is not contained
herein; and

(v)           Has
determined that the New Securities are a suitable investment for the Investor
and that at this time the Investor could bear a complete loss of such
investment.

 4
 

 

(e)           The
Investor is not relying on the Company, or its affiliates with respect to
economic considerations involved in this investment

(f)            The
Investor represents, warrants and agrees that he will not sell or otherwise
transfer the New Securities without registration under the Securities Act or an
exemption therefrom and fully understands and agrees that he must bear the
economic risk of his purchase because, among other reasons, the New Securities
have not been registered under the Securities Act or under the securities laws
of any state and, therefore, cannot be resold, pledged, assigned or otherwise
disposed of unless they are subsequently registered under the Securities Act
and under the applicable securities laws of such states or an exemption from
such registration is available.  In
particular, the Investor is aware that the New Securities are “restricted
securities,” as such term is defined in Rule 144 promulgated under the
Securities Act (“Rule 144”), and they may not be sold pursuant to Rule 144
unless all of the conditions of Rule 144 are met.  The Investor also understands that, except as
otherwise provided herein and in the certificates for the New Securities, the
Company is under no obligation to register the New Securities on his behalf or
to assist him in complying with any exemption from registration under the
Securities Act or applicable state securities laws.  The Investor further understands that sales
or transfers of the New Securities are further restricted by state securities
laws and the provisions of this Agreement.

(g)           No
representations or warranties have been made to the Investor by the Company, or
any officer, employee, agent, affiliate or subsidiary of the Company, other
than the representations of the Company contained herein, and in subscribing
for New Securities the Investor is not relying upon any representations other
than those contained herein.

(h)           Any
information which the Investor has heretofore furnished to the Company with
respect to his financial position and business experience is correct and
complete as of the date of this Agreement and if there should be any material
change in such information he will immediately furnish such revised or
corrected information to the Company.

(i)            The
Investor understands and agrees that the certificates for the New Securities
shall bear the following legend until (i) such securities shall have been
registered under the Securities Act and effectively been disposed of in
accordance with a registration statement that has been declared effective; or
(ii) in the opinion of counsel for the Company such securities may be sold
without registration under the Securities Act as well as any applicable “Blue
Sky” or state securities laws:

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED,
HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME EFFECTIVE AND IS CURRENT
WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT BUT ONLY UPON A HOLDER HEREOF FIRST
HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE CORPORATION, OR OTHER COUNSEL

 5
 

 

REASONABLY
ACCEPTABLE TO THE CORPORATION, THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH
ALL APPLICABLE PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY APPLICABLE “BLUE
SKY” OR SIMILAR SECURITIES LAW.”

(j)            The
Investor understands that an investment in the New Securities is a speculative
investment which involves a high degree of risk and the potential loss of his
entire investment.

(k)           The
Investor’s overall commitment to investments which are not readily marketable
is not disproportionate to the Investor’s net worth, and an investment in the
New Securities will not cause such overall commitment to become excessive.

(l)            The
foregoing representations, warranties and agreements shall survive the Closing.

SECTION 5.

5.1           Effect on Prior Agreements.  Except
as amended hereby, the terms and provisions of the Agreement and Old Warrant
shall remain in full force and effect, and the Agreement and Old Warrant is in
all respects ratified and confirmed. On and after the date of this Amendment,
each reference in the Agreement or Old Warrant, as the case may be, to the “Agree­ment”,
“hereinaf­ter”, “herein”, “herein­after”, “hereunder”, “hereof”, or words of
like import shall mean and be a reference to the Agreement or Old Warrant, as
the case may be, as amended by this Amendment.

SECTION 6.

6.1           Indemnity.  The Investor agrees to indemnify and hold
harmless the Company, its officers and directors, employees and its affiliates
and each other person, if any, who controls any thereof, against any loss,
liability, claim, damage and expense whatsoever (including, but not limited to,
any and all expenses whatsoever reasonably incurred in investigating, preparing
or defending against any litigation commenced or threatened or any claim
whatsoever) arising out of or based upon any false representation or warranty
or breach or failure by the Investor to comply with any covenant or agreement
made by the Investor herein or in any other document furnished by the Investor
to any of the foregoing in connection with this transaction.

6.2           Modification.  Neither this Agreement nor any provisions
hereof shall be modified, discharged or terminated except by an instrument in
writing signed by the party against whom any waiver, change, discharge or
termination is sought.

6.3           Notices.  Any notice, demand or other communication
which any party hereto may be required, or may elect, to give to anyone
interested hereunder shall be sufficiently given if (a) deposited, postage
prepaid, in a United States mail letter box, registered or certified mail,
return receipt requested, addressed to such address as may be given herein, or
(b) delivered personally at such address.

 6
 

 

6.4           Counterparts.  This Agreement may be executed through the
use of separate signature pages or in any number of counterparts, and each of
such counterparts shall, for all purposes, constitute one agreement binding on
all parties, notwithstanding that all parties are not signatories to the same
counterpart.

6.5           Binding
Effect.  Except as otherwise provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties and their heirs, executors, administrators, successors, legal
representatives and assigns.  If the
Investor is more than one person, the obligation of the Investor shall be joint
and several and the agreements, representations, warranties and acknowledgments
herein contained shall be deemed to be made by and be binding upon each such
person and his heirs, executors, administrators and successors.

6.6           Entire
Agreement.  This Agreement and the
documents referenced herein contain the entire agreement of the parties and
there are no representations, covenants or other agreements except as stated or
referred to herein and therein.

6.7           Assignability.  This Agreement is not transferable or
assignable by the Investor.

6.8           Applicable
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
without giving effect to conflicts of law principles.

6.9           Pronouns.  The use herein of the masculine pronouns “him”
or “his” or similar terms shall be deemed to include the feminine and neuter
genders as well and the use herein of the singular pronoun shall be deemed to
include the plural as well.

[SIGNATURE PAGES FOLLOW]

 7
 

 

ALL
INVESTORS MUST COMPLETE THIS PAGE

IN WITNESS WHEREOF, the
Investor has executed this Agreement on the 8th day of September, 2006.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    Shares(1)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    Warrants(2)

  	
   

  

Manner in which Title is
to be held (Please Check One):

	
  1.

  	
  o

  	
  Individual

  	
  7.

  	
  o

  	
  Trust/Estate/Pension or Profit Sharing Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date Opened:
                                              

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  o

  	
  Joint Tenants with Right of Survivorship

  	
  8.

  	
  o

  	
  As a Custodian for
                                                            Under
  the Uniform Gift to Minors Act of the State of                                         

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  o

  	
  Community Property

  	
  9.

  	
  o

  	
  Married with Separate Property

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  o

  	
  Tenants in Common

  	
  10.

  	
  o

  	
  Keogh

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  o

  	
  Corporation/Partnership/Limited Liability Company

  	
  11.

  	
  o

  	
  Tenants by the Entirety

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  o

  	
  IRA

  	
   

  	
   

  	
   

  

 

IF MORE THAN ONE INVESTOR, EACH INVESTOR MUST
SIGN.

INDIVIDUAL INVESTORS MUST COMPLETE PAGE 9

INVESTORS
WHICH ARE ENTITIES MUST COMPLETE PAGE 10

(1) calculated at the rate of 20% of the shares acquired in the
Prior Offering

(2) calculated at the rate of 47% of the shares acquired in the
Prior Offering

 8
 

 

EXECUTION BY NATURAL PERSONS

	
  

  

Exact Name in
Which Title is to be Held

	
  

  	
   

  	
   

  
	
  Name (Please Print)

  	
   

  	
  Name of Additional
  Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Residence: Number and Street

  	
   

  	
  Address of
  Additional Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State and Zip Code

  	
   

  	
  City, State and
  Zip Code

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number

  	
   

  	
  Social Security
  Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
  (Signature of
  Additional Purchaser)

  

 

ACCEPTED this 8th day of September, 2006 on behalf of
the Company.

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 9
 

 

EXECUTION
BY INVESTOR WHICH IS AN ENTITY

(Corporation, Partnership, Trust, Etc.)

	
  

  

Name of Entity (Please
Print)

	
  Date of Incorporation or
  Organization:

  	
   

  
	
   

  	
   

  
	
  State of
  Principal Offices:

  	
   

  
	
   

  	
   

  
	
  Federal Taxpayer
  Identification Number:

  	
   

  
				

 

	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  (If Entity is a Corporation)

  	
   

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification Number

  
						

 

ACCEPTED this 8th day of September, 2006 on behalf of
the Company.

	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 10Exhibit 10.3

LOCK UP AGREEMENT

September 8, 2006

Callisto Pharmaceuticals,
Inc.

420 Lexington Avenue, Suite 1609

New York, NY 10170

Attention:  Gary S. Jacob

Ladies and Gentlemen:

Callisto Pharmaceuticals, Inc., a Delaware corporation
(the “Company”), offered (the “Offering”) shares (the “Shares”) of its common
stock, par value $0.0001 per share (the “Common Stock”) and warrants to
purchase Common Stock (the “Warrants”) to certain accredited investors in a
private offering, in exchange for, among other things, the agreements contained
in this letter.

In exchange for the Shares and Warrants, the
undersigned hereby agrees that the undersigned will not without the prior
written consent of the Company, during the period beginning on September 1,
2006 and ending on May 31, 2007, (1) offer, pledge, announce the intention to
sell, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, any shares of
Common Stock or any securities convertible into or exercisable or exchangeable
for Common Stock (including without limitation, Common Stock which may be
deemed to be beneficially owned by the undersigned in accordance with the rules
and regulations of the Securities and Exchange Commission and securities which
may be issued upon exercise of a stock option or warrant), acquired by
investor, directly or indirectly, from the Company in a private placement in
February or April 2006 and set forth on Schedule A hereto, or (2) enter into
any swap or other agreement that transfers, in whole or in part, any of the
economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery
of Common Stock or such other securities, in cash or otherwise.

Notwithstanding the foregoing, the restrictions set
forth in clause (1) and (2) above shall not apply to (a) transfers (i) as a bona fide gift or gifts, provided that the
donee or donees thereof agree to be bound in writing by the restrictions set
forth herein, (ii) to any trust for the direct or indirect benefit of the
undersigned or the immediate family of the undersigned, provided that the
trustee of the trust agrees to be bound in writing by the restrictions set
forth herein, and provided further that any such transfer shall not involve a
disposition for value, or (iii) effected pursuant to any exchange of “underwater”
options with the Company, (b) the acquisition or exercise of any stock option
issued pursuant to the Company’s existing stock option plan, including any
exercise effected by the delivery of Securities of the Company held by the
undersigned, or (c) the

 

establishment of any 10b5-1 selling plan provided the
initial sale date under such plan occurs after the end of the lock-up period
described above.  For purposes of this
Letter Agreement, “immediate family” shall mean any relationship by blood,
marriage or adoption, not more remote than first cousin.  None of the restrictions set forth in this
Letter Agreement shall apply to Common Stock acquired in open market
transactions.

In furtherance of the foregoing, the Company, and any
duly appointed transfer agent for the registration or transfer of the
securities described herein, are hereby authorized to decline to make any
transfer of securities if such transfer would constitute a violation or breach
of this Lock-up Agreement.

The undersigned hereby represents and warrants that
the undersigned has full power and authority to enter into this Lock-up
Agreement. All authority herein conferred or agreed to be conferred and any
obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.

This lock-up agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to the conflict of laws principles thereof.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of Person
  or Entity]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Accepted as of
  the date first set forth above, September 8, 2006:

  	
   

  
	
   

  	
   

  
	
  CALLISTO
  PHARMACEUTICALS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Gary S. Jacob

  
	
   

  	
  Title:   Chief Executive Officer

  
									

 

SCHEDULE
A

	
  Shares:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Warrants:

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