Document:

Unassociated Document

    

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    COMMON
STOCK PURCHASE WARRANT

    

    GENSPERA,
INC.

     

     

    Warrant
Shares:
_________                                                                                                        Initial Exercise
Date: _________, 2009

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, _________ (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise
Date”) and on or prior to the close of business on the _____ year
anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from GenSpera, Inc., a
Delaware corporation (the “Company”), up to
______ shares (the “Warrant Shares”) of
Common Stock.  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section
1.      Definitions.

     

    “Affiliate” means any
Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person, as such terms are
used in and construed under Rule 405 under the Securities Act.  With
respect to a Holder, any investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such Holder will be deemed
to be an Affiliate of such Holder.

     

    

     

    
      
         

      

      
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    “Board of Directors”
means the board of directors of the Company.

     

    “Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the
State of New York are authorized or required by law or other governmental action
to close.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Common Stock” means
the common stock of the Company, par value $0.01 per share, and any other class
of securities into which such securities may hereafter be reclassified or
changed into.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “Market Price” means:
(a) the closing bid price reported on the Company’s Trading Market on the
Trading Day immediately preceding any applicable measuring date, (b) if the
Company’s Common Shares are not then listed on a Trading Market, the price
offered by any acquirer in a Fundamental Transaction, or (b) in all other
cases, the fair market value of a share of Common Stock as determined by the
Company’s Board of Directors.

     

    “Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Trading Day” means a
day on which the New York Stock Exchange is open for trading.

     

    “Trading Market” means
the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the American Stock Exchange, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or
the New York Stock Exchange.

     

    “Transfer Agent” means
American Stock Transfer and Trust Company, the current transfer agent of the
Company with a mailing address of 59 Maiden Lane, New York, New York 10038 and a
facsimile number of (718) 921-8336, and any successor transfer agent of the
Company.

     

    “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
New York City time to 4:02 p.m. New York City time); (b)  if the OTC
Bulletin Board is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board; (c) if the Common Stock is not then listed or quoted on the OTC Bulletin
Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding to
its functions of reporting prices), the most recent bid price per share of the
Common Stock so reported; or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in
good faith by the Purchasers of a majority in interest of the Securities then
outstanding and reasonably acceptable to the Company, the fees and expenses of
which shall be paid by the Company.

     

    
      
         

      

      
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    Section
2.             Exercise.

     

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto; and, within 3 Business Days of the date
said Notice of Exercise is delivered to the Company, the Company shall have
received  payment of the aggregate Exercise Price of the shares
thereby purchased by wire transfer or cashier’s check drawn on a United States
bank.  Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until
the Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within 3 Business Days of the date
the final Notice of Exercise is delivered to the Company.  Partial
exercises of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount
equal to the applicable number of Warrant Shares purchased.  The
Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases.  The Company shall
deliver any objection to any Notice of Exercise Form within 1 Business Day of
receipt of such notice.  In the event of any dispute or discrepancy,
the records of the Company shall be controlling and determinative in the absence
of manifest error. The Holder
and any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares available for
purchase hereunder at any given time may be less than the amount stated on the
face hereof.

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $1.50, subject to adjustment
hereunder (the “Exercise
Price”).

     

    
      
         

      

      
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    c)           Cashless
Exercise.  This Warrant may also be exercised by means of a
“cashless exercise” in which the Holder shall be entitled to receive a
certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

     

    
      	
               
      

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

            

    

    

    
      	
               
      

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

            

    

    

    
      	
               
      

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

            

    

    

    d)           Mechanics of
Exercise.

     

    i.      Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is a participant in such system and either (A) there is an effective
Registration Statement permitting the resale of the Warrant Shares by the Holder
or (B) the shares are eligible for resale without volume or manner-of-sale
limitations pursuant to Rule 144, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise within 3 Trading Days
from the delivery to the Company of the Notice of Exercise Form, surrender of
this Warrant (if required) and payment of the aggregate Exercise Price as set
forth above (“Warrant
Share Delivery Date”).  This Warrant shall be deemed to have
been exercised on the date the Exercise Price is received by the
Company.  The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the Warrant has been exercised by payment to the Company of the Exercise Price
(or by cashless exercise, if permitted) and all taxes required to be paid by the
Holder, if any, pursuant to Section 2(d)(v) prior to the issuance of such
shares, have been paid.

     

    ii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    
      
         

      

      
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    iii.           Rescission
Rights.  If the Company fails to cause its the Transfer Agent
to transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the
Holder will have the right to rescind such exercise.

     

    iv.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

     

    v.      Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vi.           Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    Section
3.             Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(A) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (B) subdivides outstanding shares of Common Stock into a larger number
of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    
      
         

      

      
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    b)           Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

    c)           Voluntary Adjustment By
Company. The Company may at any time during the term of this Warrant
reduce the then current Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Company.

     

    d)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall within 45 calendar days, mail to the Holder
a notice setting forth the Exercise Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment..

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 5 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice.

     

    
      
         

      

      
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    Section
4.             Transfer of
Warrant.

     

    a)           Transferability.  This
Warrant is not transferable accept upon the express written permission of the
Company.  Upon receipt of such permission, and subject to compliance
with any applicable securities laws and the conditions set forth in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned, may be exercised by a new holder for the purchase of Warrant Shares
without having a new Warrant issued.

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    
      
         

      

      
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    d)           Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with
any transfer of this Warrant, the transfer of this Warrant shall not be
eligible for resale without volume or
manner-of-sale restrictions pursuant to Rule 144, the Company may require, as a condition of allowing
such transfer, that the Holder or transferee of this Warrant, as the case
may be, may be required by the Company to
provide an opinion of counsel with regard to such assignment or
transfer.

     

    Section
5.             Miscellaneous.

     

    a)           No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section 2(d)(i).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Governing Law and
Venue. All questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the State of Delaware, without
regard to the principles of conflicts of law thereof.  Each party
agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Warrant (whether brought
against a party hereto or its respective affiliates, directors, officers,
shareholders, employees or agents) shall be commenced exclusively in the courts
located in Los Angeles county, California.  Each party hereby
irrevocably submits to the exclusive jurisdiction of the state or federal courts
located in the County of Los Angeles, state of California for the adjudication
of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper or is an inconvenient venue for such
proceeding.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
other manner permitted by law.   If either party shall commence
an action or proceeding to enforce any provisions of this Warrant, then the
prevailing party in such action or proceeding shall be reimbursed by the other
party for its reasonable attorneys’ fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or
proceedings or questions concerning the construction, validity, enforcement and
interpretation of this Warrant.

     

    
      
         

      

      
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    e)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    f)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    g)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be:  (i) if to Holder, at its address of records
as contained in the Warrant Register, and (ii) if to Company, at its corporate
headquarters.

     

    h)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    i)           Remedies.  Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be
adequate.

     

    
      
         

      

      
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    j)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

     

    k)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

     

    l)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    m)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

    

    
      
        
        

      

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

     

    

    
      
        
          
            	 
      	
                    GENSPERA,
      INC.

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                     
        

                  
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      

    

    

    
      
         

      

      
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    NOTICE
OF EXERCISE

    

    TO:           GENSPERA,
INC.

    

    (1)           The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2)           Payment
shall take the form of (check applicable box):

     

    [  ]
in lawful money of the United States; or

     

    [ ] [if
permitted] the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in subsection 2(c), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection
2(c).

     

    (3)           Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)  Accredited
Investor.  The undersigned is an “accredited investor” as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
________________________________________________________________________________________

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    ALL
ASSIGNMENTS OF THIS WARRANT REQUIRE THE EXPRESS WRITTEN PERMISSION OF THE
COMPANY.  ANY ASSIGNMENT MADE WITHOUT SUCH PERMISSION SHALL BE NULL
AND VOID ON THE COMPANY’S WARRANT REGISTERY.

    

    

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    

    Holder’s
Signature:                                          _____________________________

    

    Holder’s
Address:                                           _____________________________

    

    _____________________________

    

    

    

    Signature
Guaranteed:  ___________________________________________

    

    

    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
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.EMPLOYMENT
AGREEMENT

     

    THIS
EMPLOYMENT AGREEMENT is entered into as of February 19, 2009 (the “Effective Date”) by and among
JASON BROWN (“Executive”), ORGANIC TO GO
FOOD CORPORATION, a Delaware corporation (“Corporation”), and ORGANIC TO
GO, INC., a Delaware corporation and a wholly-owned subsidiary of the
Corporation (“Subsidiary” and collectively
with Corporation, the “Company”).

     

    In
consideration of the mutual covenants in this Agreement and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.    Duties and Scope of
Employment.

     

    (a)    Position.  Corporation
and Subsidiary shall each employ Executive as its President and Chief Executive
Officer for the term of his employment under this Agreement (“Employment”).  Executive
shall report to the Boards of Directors (the “Board”) of Corporation and
Subsidiary.

     

    (b)    Obligations.  Executive
shall devote his full business efforts and time to the Company and shall not
render services to any other person or entity without the express prior approval
of the Board.  Executive represents and warrants to the Company that
he is under no contractual obligations or commitments inconsistent with his
obligations under this Agreement.

     

    2.    Cash and Incentive
Compensation.

     

    (a)    Salary.  The Company
shall pay Executive as compensation for his services a base salary at an annual
rate of $250,000, subject to annual increases by the Board.  Such
salary shall be payable in accordance with the Company’s standard payroll
procedures.  The annual compensation specified in this subsection (a)
is referred to in this Agreement as “Base
Compensation.”

     

    (b)    Incentive
Bonuses.  Executive shall be eligible for a cash bonus (the
“Incentive Bonus”) of
35% of his Base Compensation per year.  The Board may, in its
discretion, pay additional bonuses. 50% of the Incentive Bonus will be based on
achievement by Executive of performance goals (“Executive Performance Goals”),
and 50% of the Incentive Bonus will be based on achievement of performance goals
by the Company (“Company
Performance Goals”); provided that the Executive Performance Goals for
2009 shall be deemed to be fully met, and the Company shall pay Executive the
full bonus payable for achievement of the Executive Performance Goals for 2009,
when the Corporation de-registers its Common Stock under the Securities Exchange
Act of 1934 and terminates the quotation of its Common Stock on the OTC Bulletin
Board.  Except as specifically described in this paragraph, all goals
described in this paragraph shall be mutually agreed upon by Executive and the
Board within sixty (60) days after the Effective Date (with respect to 2009) and
by December 31, 2009 and December 31 of each year thereafter (with respect to
2010 and each succeeding year).

     

    (c)    Stock Options.

     

    (i)    New Stock
Options.  Promptly after the closing date under the Note
Purchase Agreement dated as of February 11, 2009 between Corporation and
W.Health L.P. (the “Note
Purchase Agreement”), Corporation shall issue to Executive options to
purchase Seven Million Nine Hundred Ninety Thousand Seven Hundred Fifty-Six
(7,990,756) shares of Corporation’s Common Stock pursuant to its stock option
plan (the “First Executive
Stock Options”), representing 4.5% of Corporation’s capitalization,
calculated on a fully-diluted basis, for $0.14 per share.  In
addition, in the event that either the $5,000,000.00 Secured Convertible
Promissory Note dated February 19, 2009 will be converted at a future date into
shares of the Corporation’s Common Stock (the “Conversion Stock”) or there
shall be an equity investment in the Company in an amount of at least $5 million
(in one transaction or a series of transactions) on or before March 17, 2010,
then, promptly after such conversion or such equity investment, the Corporation
shall issue to Executive additional options to purchase One Million Six Hundred
Eighty Two Thousand Eight Hundred Seventy-Two (1,682,872) shares of
Corporation’s Common Stock pursuant to its stock option plan (the “Second Executive Stock
Options”; and, together with the First Executive Stock Options, the
“New Stock Options”),
representing 4.5% of the Conversion Stock, and having an exercise price equal to
the fair market value of the Corporation’s Common Stock as of such
time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)    Vesting.  Twenty
percent (20%) of the New Stock Options shall be vested and exercisable upon the
issuance of the New Stock Options.  The balance of the New Stock
Options shall vest and become exercisable in equal annual installments over four
(4) years, commencing on the first anniversary of the Effective Date (in the
case of the First Executive Stock Options) and commencing on the first
anniversary of the issuance date (in the case of the Second Executive Stock
Options) (in all cases, subject to acceleration in accordance with the stock
option agreement described below).

     

    (iii)    Form of Stock Option
Agreement.  Except as described in this Section, the New Stock
Options shall be represented by a Notice of Stock Option Grant and Stock Option
Agreement in the same form as the Notice of Stock Option Grant and Stock Option
Agreement between the Corporation and Executive dated as of March 11,
2008.

     

    3.    Executive
Benefits.  During his employment, (i) Executive shall be
entitled to 15 working days of vacation for each 12 months of employment, to be
scheduled in advance; (ii) the Company shall pay the full cost of health, dental
and vision coverage for Executive and his family (excluding any copayments),
subject in each case to the generally applicable terms and conditions of the
plan in question and to the determinations of any person or committee
administering such plan (“Health Benefits”); and (iii)
the Company will purchase and pay the premiums for an insurance policy or
policies in an aggregate amount of not less than $4,000,000 insuring the life of
Executive, the beneficiaries of which shall be selected by
Executive.  Executive shall be paid for any unused
vacation.  Executive shall be paid a car allowance of $750 per
month.

     

    4.    Business
Expenses.  Executive shall be authorized to incur necessary and
reasonable travel, entertainment and other business expenses in connection with
his duties.   The Company shall reimburse Executive for all such
expenses upon presentation of appropriate supporting documentation.

     

    5.    Term of
Employment.

     

    (a)    Basic Rule.  The
Company shall employ Executive during the period commencing on the Effective
Date and ending on the third anniversary of the Effective Date (the “Expiration Date”), provided
that (i) Executive’s employment may be terminated at any time as described
below; and (ii) after the Expiration Date, this Agreement shall automatically
renew for successive one (1) year terms unless either party gives the other
written notice of its election not to renew this Agreement not less than ninety
(90) days before the Expiration Date or any anniversary of the Expiration
Date.

     

    (b)    Involuntary Termination, Resignation
or Death. The Company may terminate Executive with or without Cause (as
defined below).  Executive may resign at any time and for any reason
(or no reason) effective upon delivery of written notice of
termination.  Executive’s Employment shall terminate automatically in
the event of his death.

     

    (c)    Rights Upon
Termination.  Except as expressly provided in Section 6, upon
the termination of Executive’s Employment, he shall only be entitled to the
compensation, benefits and reimbursements described in Sections 2, 3 and 4 for
the period preceding the effective date of the termination.

     

    (d)    Termination of
Agreement.  This Agreement shall terminate when all obligations
of the parties hereunder have been satisfied.  The termination of this
Agreement shall not limit or otherwise affect any of Executive’s obligations
under Sections 7 and 8.

     

    6.    Benefits Upon Resignation for Good
Reason, Termination for Reasons Other than Cause, or Permanent
Disability.

     

    (a)    Eligibility for Termination
Benefits.  This Section 6 shall apply if, during the term of
this Agreement, the Company terminates Executive’s Employment because of
Executive’s Permanent Disability (as defined below), for any other reason other
than Cause (as defined below), or if Executive terminates his Employment for
Good Reason.

     

    (b)    Severance Payments and
Benefits.  If this Section 6 applies, then the Company shall
(i) continue to provide and pay for Health Benefits to Executive and his family
for the Continuation Period (as defined below), (ii) immediately upon such
termination, pay Executive a lump sum equal to his monthly compensation at the
then-applicable monthly Base Compensation rate multiplied by the number of
months in the Continuation Period, and (iii) except in the case of Executive’s
Permanent Disability, during the Continuation Period, provide Executive with
outplacement services and assistance customarily provided to former chief
executive officers of corporations whose shares are publicly traded, provided
that the cost of such outplacement services and assistance shall not exceed
$20,000.  The above described payments and actions shall be made or
taken in exchange for a general release of all claims Executive and his
successors may have against the Company in a form acceptable to the Company
which Executive shall execute and deliver before any payment is made or benefit
provided pursuant to this Section 6.

     

    
      
         

      

      
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    (c)    Definition of
“Cause.”  For all purposes under this Agreement, “Cause” shall
mean:

     

    (i)    An
unauthorized use or disclosure by Executive of the Company’s confidential
information or trade secrets, which use or disclosure causes material harm to
the Company;

     

    (ii)    Executive’s
conviction of, or plea of “guilty” or “no contest” to, a felony under the laws
of the United States or any state thereof; or

     

    (iii)    A
continued failure by Executive to perform assigned duties, comply with the
Company’s written policies or rules, or comply with any written agreement
between the Company and the Executive, which continues for more than thirty (30)
days after receiving written notification of such failure from the
Board.

     

    (d)    Definition of “Permanent
Disability.”  For all purposes under this Agreement, “Permanent Disability” shall
mean that Executive, when notice of termination is given, has failed to perform
his duties under this Agreement for not less than 120 days (whether or not
consecutive) in any 365-day period as a result of his incapacity due to physical
or mental illness or injury.

     

    (e)    Definition of “Good
Reason.”  For all purposes under this Agreement, “Good Reason” shall mean that
Executive voluntarily terminates his Employment after any of the following
occur:

     

    (i)    The
assignment to Executive of any duties or responsibilities which result in any
diminution or adverse change in Executive's position, status or circumstances of
employment;

     

    (ii)    Any
failure by the Company to continue in effect any benefit plan or arrangement,
including incentive plans or plans to receive securities of the Company, in
which Executive is participating, or the taking of any action by the Company
which would adversely affect Executive's participation in or reduce Executive's
benefits under such plans or arrangements;

     

    (iii)    a
relocation of Executive or the Company's principal executive offices to a
location more than 90 miles from the current location of the Company’s principal
executive offices;

     

    (iv)    any
breach by the Company of any provision of this Agreement; or

     

    (v)    any
failure by the Company to obtain the assumption of this agreement by any
successor or assign of the Company.

     

    (f)    Definition of “Continuation
Period.”  For all purposes under this Agreement “Continuation Period” shall
mean a period commencing on the date of the termination of Employment and ending
on the date which is twelve (12) months following the termination of
Employment.

     

    7.    Non-Competition and
Non-Sollicitation.

     

    (a)    Non-Competition.

     

    (i)    While
employed by the Company and for three (3) years after the termination of his
Employment for any reason, Executive shall not, directly or indirectly,
throughout the United States, (i) engage primarily in the business of selling
prepared food either through cafes or corporate catering operations (the “Business”); (ii) render any
services to any person or entity engaged in activities which compete with the
Business; or (iii) become interested in any entity which competes with the
Business in any capacity, including, without limitation, as an individual,
partner, shareholder, officer, director, member, principal, employee, agent,
trustee, consultant, creditor or financier.

     

    (ii)    Executive
shall not, directly or indirectly, assist or encourage any other person in
carrying out, directly or indirectly, any activity that would be prohibited by
the above provisions of this Section 7 if such activity were carried out by
Executive, either directly or indirectly, and in particular Executive shall not,
directly or indirectly, induce any employee of the Company to carry out,
directly or indirectly, any such activity.

     

    (iii)    Ownership
by Executive, as a passive investment, of less than 1% of the outstanding shares
of capital stock of any Company listed on a national securities exchange or
publicly traded in the over-the-counter market shall not constitute a breach of
this Section 7(a).

     

    (b)    Non-Solicitation.  While
employed by the Company and for the Non-Solicitation Period (as defined below),
Executive shall not, either directly or indirectly, on his own behalf or in the
service or on behalf of others (i) solicit or divert, or attempt to solicit or
divert (A) any person then employed by the Company or (B) any person then
serving as a sales representative of, or a consultant to the Company, or (ii)
solicit, divert or do business with, or attempt to solicit, divert or do
business with, any customer of or supplier to the Company.  For
purposes of this Agreement, the “Non-Solicitation Period” shall
mean the three (3) year period immediately after the termination of Executive’s
Employment by Executive or by the Company.

     

    8.    Nondisclosure.

     

    Executive
has previously entered into an Employee Proprietary Information and Inventions
Assignment Agreement with the Company (the “Proprietary Information
Agreement”), which is incorporated herein by reference.

     

    
      
         

      

      
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    9.    Successors.

     

    (a)    Company’s
Successors.  This Agreement shall be binding upon any successor
(whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets.  For all purposes under this
Agreement, the term “Company” shall include any successor to the Company’s
business and/or assets which becomes bound by this Agreement.

     

    (b)    Executive’s
Successors.  This Agreement and all rights of Executive
hereunder shall inure to the benefit of, and be enforceable by, Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

     

    10.    Miscellaneous
Provisions.

     

    (a)    Notice.  Notices and
all other communications contemplated by this Agreement shall be in writing and
shall be deemed to have been duly given when personally delivered or when mailed
by U.S. registered mail, return receipt requested and postage
prepaid.  In the case of Executive, mailed notices shall be addressed
to him at the home address that he most recently communicated to the Company in
writing.  In the case of the Company, mailed notices shall be
addressed to its corporate headquarters, and all notices shall be directed to
the attention of its Secretary.

     

    (b)    Modifications and
Waivers.  No provision of this Agreement shall be modified,
waived or discharged unless the modification, waiver or discharge is agreed to
in writing and signed by Executive and by an authorized officer of the Company
or other person designated by the Board.  No waiver by either party of
any breach of, or of compliance with, any condition or provision of this
Agreement by the other party shall be considered a waiver of any other condition
or provision or of the same condition or provision at another time.

     

    (c)    Whole
Agreement.  This Agreement supersedes any prior agreement
between Executive and the Company in its entirety.  No other
agreements, representations or understandings (whether oral or written and
whether express or implied) which are not expressly set forth in this Agreement
have been made or entered into by either party with respect to the subject
matter hereof.  This Agreement and the Proprietary Information
Agreement contain the entire understanding of the parties with respect to their
subject matter.

     

    (d)    Withholding
Taxes.  All payments made under this Agreement shall be subject
to reduction to reflect taxes and other charges required to be withheld by
law.

     

    (e)    Choice of Law.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Washington.

     

    (f)    Severability.  The
invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect.

     

    (g)    Arbitration.  Any
controversy or claim arising out of or relating to this Agreement, or the breach
thereof, shall be settled in Seattle, Washington, by arbitration in accordance
with the JAMS Employment Arbitration Rules and Procedures.  The
decision of the arbitrator shall be final and binding on the parties, and
judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitrator shall be empowered to
enter an equitable decree mandating specific enforcement of the terms of this
Agreement.  The Company and Executive shall share equally all fees and
expenses of the arbitrator; provided, however, that arbitrator shall award to
the prevailing party all fees and expenses of the arbitrator and all of the
legal fees and out-of-pocket expenses.

     

    (h)    No Assignment.  This
Agreement and all rights and obligations of Executive hereunder are personal to
Executive and may not be transferred or assigned by Executive at any
time.  The Company may assign its rights under this Agreement to any
entity that assumes the Company’s obligations hereunder in connection with any
sale or transfer of all or a substantial portion of the Company’s assets to such
entity.

     

    (i)    Counterparts.  This
Agreement may be executed in two or more counterparts each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    (j)    Joint and Several
Obligation.  All obligations of Company under this Agreement
shall be the joint and several obligations of Corporation and
Subsidiary.

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of
the Company by its duly authorized officer, as of the day and year first above
written.

     

    
      
        	
                ORGANIC
      TO GO FOOD CORPORATION

                a
      Delaware corporation

                 

              	 
      
	
                By:___________________________________

              	
                ________________________________

              
	 
      	
                JASON
      BROWN

                “Executive”

              
	
                ORGANIC
      TO GO, INC.

                a
      Delaware corporation

                 

              	 
      
	
                By:___________________________________

              	 
      

      

    

     

    
      
         

      

      
        5

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