Document:

Exhibit 10.2

Continental Advisors SA

38, Rue
de la Faiencerie

L-1510
Luxembourg

Continental
Advisors SA (Hereafter “CA”) is pleased to serve on a non-exclusive basis as a
sales agent consultant for Callisto Pharmaceuticals, Inc. and its affiliates
(Hereafter “The Company”).  The Company
has advised us that it would like to secure a US$2.000.000 financing in a
private placement through the Company’s issuance of  Preferred Equity (The “Securities”), in
accordance with the terms and conditions set forth below.  This agreement will be in effect as of 15
September 2006 for one hundred eighty (180) days or completion of the
US$2.000.000 round, whichever comes first.

1.               The Company hereby
appoints CA as a placement  agent in
connection with the sales of the Securities and authorizes CA to arrange a
Private Placement of the Securities (“The Offering”).  CA hereby agrees to reasonable efforts to
introduce you to persons or entities who may be interested in purchasing the
Securities to be made directly by the Company to purchasers pursuant to
agreements entered into by the purchasers and the Company (The “Private
Placement Memorandum”).

2.               As compensation for
CA’s services hereunder, the Company will promptly pay to CA fees as follows:

a)              Sign-On Fee:  $5.000 sign-on fee, payable immediately after
sign-on. This fee will cover our assistance with preparing the presentation
material and travel time allocated to the roadshow, normally up to 5 working
days. The Company agrees to pay an additional $10,000 performance fee with the
successful closing of a financing. The Company agrees to pay its roadshow
expenses including airfare, hotels and meals during travel and luncheons.

b)             Consultancy Fee:  8% of the aggregate gross proceeds of the
Securities sold to investors introduced to the Company through CA’s efforts, if
the total financing is under US$1,000,000. 
9% of the aggregate gross proceeds of the Securities sold to investors
introduced to the Company through CA’s efforts, if the total financing is
greater than US$1,000,000.  Closing shall
occur when wire transfer funds are in the escrow account agreed upon by CA and
the Company.  The Company agrees not to
contact any of CA’s clients directly, unless authorized to do so by CA, and to
have all subscription documents be sent in duplicate to CA’s office.

c)              Warrant Coverage:  8% of the Securities sold through CA’s
efforts (excluding warrants), payable in Warrants exercisable into the Company’s
Common Stock, if the total financing is under US$ 1,000,000.  9% of the Securities sold through CA’s
efforts (excluding warrants), payable in Warrants exercisable into the Company’s
Common Stock, if the total financing is greater than US$ 1,000,000.  Expiration date shall not be less than three
(3) years, unless Warrants are issued as part of the Offering, then shall have
the same expiration date of Warrants issued. 
Warrant exercise price shall be the same price of the Company’s Common
Stock issued at the time of the Offering, unless Warrants are issued as part of
the Offering, then shall have the same exercise price of Warrants issued.

d)             Any future funds
raised from investors in this round are subject to the same conditions as above
in parts 2-b, 2-c, and 2-d.

3.               The Company and CA
agree that:

a)              The Company will
furnish CA with such information including financial statements with respect to
the business, operations, assets and liabilities of the company.  The Company will provide CA with access to
the Company’s officers, directors, accountants, counsel,

business partners, and
agents for any reasonable request in order to permit it to assist the Company
in preparing materials to provide prospective investors in the Private
Placement and for use in connection with the Offering.  CA may rely upon the accuracy and
completeness of such information without independent verification.  The Company will be solely responsible for
any and all  written communication
describing the Company, its business, or the Offering.  The Company represents and warrants that the
Private Placement materials  and such other
communication will not, as the date of the offer or sale of the Securities,
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statement
therein, in light of the circumstances under which they were made, are not
misleading.

b)             The Company will
allow CA access to information regarding the receipt of funds in the escrow
account designated by the Company and CA, and undertakes to make prompt
delivery of share certificates to investors in a period not to exceed 15 days
from the receipt of fund.

4.               If in connection
with the services or matters that are the subject of this Agreement an
Indemnified Person (as defined below) becomes involved in any capacity in any
actual lawsuit, claim or other proceeding, the Company shall immediately
reimburse such Indemnified Person for 
all reasonable out-of-pocket legal or other expenses reasonably incurred
by such Indemnified Person in connection with investigating, preparing to defend
or defending such lawsuit, claims or proceedings.  The Company also agrees to indemnify each
Indemnified Person from and hold them harmless against any and all losses,
claims, damages, liabilities or expenses to which they may become subject (i)
arising out of or based upon any untrue statement of a material fact contained
in a Private Placement Memorandum provided to any actual or  provided to any actual or prospective
purchaser of the Securities or arising out of or based upon the omission or
alleged omissions state therein a material fact required to be stated
therein  or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading or (ii) arising in any manner out of or in connection with
this Agreement of the services or matters which are the subject of this
Agreement, including, without limitation, the offer and sale of the Securities;
provided, however, that the Company shall not be liable under clause (ii) of
this paragraph in respect of any loss, claim, damage liability or expenses
incurred by an Identified Person to the extent that it is finally judicially
determined that such loss, claim, damage or liability resulted directly from
the gross negligence or willful misconduct of that party in the performance of
its services hereunder.

If any action or proceeding (including any
governmental investigation) shall be brought or asserted against any
Indemnified Person in respect of which indemnity may be sought from the Company
hereunder, such Indemnified Person shall promptly notify the Company in writing
and the company shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to such Indemnified Person and the payment of
all expenses.  Such Indemnified Person
shall have the right to employ separate counsel in any such action and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be that of such Indemnified Person unless (a) the Company has agreed to
pay such fees and expenses or (b) the Company shall have failed to assume the
defense of such action or proceedings and employ counsel reasonably
satisfactory to such Indemnified Person in any such proceeding or  (c) the named parties in any such action or
proceedings (including any imp leaded parties) include both such Indemnified
Person and the Company and such Indemnified Person shall have been advised by
counsel that there may be one or more legal defenses available to the
Indemnified Person (in which case, if such Indemnified Person notifies the
Company, the Company shall not have the right to assume the defense of such
action or proceeding on behalf of such Indemnified Person), it being
understood, however, that the Company then shall have the right to employ
separate counsel at it’s own expenses and to participate in the defense thereof
and shall not, in connection with any one such action or proceeding or separate
but substantially similar or related actions or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the 

reasonable expenses of more than one separate firm of
attorneys at any time for any indemnified persons, which firm shall be
designated in writing by CA.

The Company agrees that all the indemnification and
reimbursement commitments set forth in this paragraph 4: (A) shall apply
whether or not any Indemnified Person in a party to any such actual lawsuit,
claim or other proceeding and that the Indemnified Person shall be entitled to
retain one separate counsel of its choice in connection with any of the matters
to which such commitments relate and (B) are in addition to any liability that
the Company may otherwise have to CA. 
The Company will not, without prior written consent of CA, which consent
shall not be unreasonably withheld, settles or compromise or consent to entry
of any judgment in any pending claim, action, suit or proceeding in respect of
which indemnification may be sought hereunder (whether or not CA or any person
who controls CA within the meaning of Section 20 of the US Securities Exchange
Act of 1934 is a party to such claim, action suit or proceeding), unless such
settlement, compromise or consent includes an unconditional release of CA and
each such controlling person from all liability arising out of such claim,
action, suit or proceeding.

5.               CA will not have
any obligation in connection with the Private Placement of the Securities
contemplated by this Agreement except as expressly provided in the
Agreement.  In no event shall CA be
obligated to underwrite or otherwise purchase Securities for its own account.

6.               The appointment and
authorization of CA under paragraph 1 of this Agreement shall terminate 90 days
from the of this Agreement or at such other time as may be mutually agreed upon
by the Company and CA (“The Termination Date”) provided that the Company shall
remain responsible for the reimbursement, indemnification and contribution
obligations of the Company under paragraph 4 of this Agreement.  If during a period of six months following
the Termination Date, the Company obtains any financing from purchasers which
were contacted by CA in its capacity as placement agent hereunder (as evidenced
by a list certified as accurate by officers of CA of such purchasers delivered
by CA to the Company within 30 days after the Termination Date) then the
Company shall pay CA upon the completion of such sale fee equal to the fee
which would have been payable to CA pursuant to paragraph 2 if the sale had
occurred during the period (“The Term”) commencing with the date of this
Agreement and ending with the Termination Date.

7.               The Company
represents and warrants that this Agreement has been duly authorized and
constitutes a legal, valid and binding obligation of the Company under
applicable law enforceable against the Company in accordance with its terms and
that this Agreement does not, and the offering and sale of the Securities will
not, conflict with, violate or constitute a indebtedness or other material
agreement building upon or affecting the Company or its properties.

8.               The invalidity or
unenforceability of any provision of this Agreement shall not effect other
provisions of this agreement, which shall remain in full force and effect.

9.               The Company or its
agents shall not contact CA’s clients directly or indirectly, unless authorized
to do so by CA.

10.         This Agreement may not be
amended or modified except in writing signed by each of the parties hereto and
shall be governed by and constructed in accordance with the laws of The Grand
Dutchy of Luxembourg without giving effect to the conflict of the laws
principles thereof.

If the foregoing
correctly sets forth the understanding and agreement between CA and the
Company, please so indicate in the space provided for that purpose below,
whereupon this letter shall constitute a binding agreement between us as of the
first date written above.

	
  Continental Advisors SA

  	
   

  	
  15 September
  2006

  	
   

  	
  Callisto Pharmaceuticals, Inc.

  
	
  Riccardo
  Moraldi, Director

  	
   

  	
   

  	
   

  	
  Gary S. Jacob, Ph.D.

  
	
  By:

  	
  /s/ Riccardo
  Moraldi

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gary S. JacobExhibit 10.3

 

CONSULTING
AGREEMENT

 

 

THIS
AGREEMENT, made, entered into this 29th day of December 2006, by and between Prism Ventures, LLC, a Delaware limited liability company,
(hereinafter referred to as "Consultant"), and Callisto
Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred
to as "Company").

 

W I T N E S S E T H:

 

WHEREAS, Consultant desires to provide such
consulting services for the Company as an independent contractor, with the
understanding that it shall not be required to devote its full time to the
business of the Company and shall be free to pursue other personal and business
interests; and

 

WHEREAS, the Company is desirous of retaining the
Consultant for the purpose of corporate planning and financial restructuring.

 

NOW, THEREFORE, in consideration of the premises, the
mutual covenants of the parties herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each of the parties hereto, it is agreed as follows:

 

1.             CONSULTING
ARRANGEMENT.  

 

                1.1          Contract
for Services.  The Company
hereby contracts for the services of Consultant, and Consultant agrees to
perform such duties and responsibilities and to render advice and consulting as
may be requested by the Company during the term of this consulting arrangement
in connection with the Company's business throughout the United States and
world wide ("Consulting Arrangement").    

 

                1.2          Services Rendered by Consultant.  Said consulting services shall include, but
not be limited to, re-structuring the balance sheet for the Company,
negotiating with creditors, retiring debt, contract negotiation, identify and
evaluate merger or acquisition candidates for the Company, assist the Company
in the identification, evaluation of such candidates, assist the Company in
structuring mergers, consolidations, acquisitions, joint ventures and strategic
alliances (hereinafter collectively 

 1
 

referred to as “Acquisitions”), providing certain
financial public relations services for the Company and other consulting
services as the Company deems necessary directed toward strengthening the
Company's financial and business position.  

 

                1.3          Prohibited
Services.  The services to
be rendered by the Consultant to the Company shall under no circumstances
include, directly or indirectly, the following: (i) any activities which could
be deemed by the Securities and Exchange Commission to constitute investment
banking or any other activities required the Consultant to register as a
broker-dealer under the Securities Exchange Act of 1934; (ii) any activities
which could be deemed to be in connection with the offer or sale of securities
in a capital-raising transaction; or (iii) any market making or promotional
activities regarding or involving the Company’s common stock.

 

2.             RELATIONSHIP
BETWEEN PARTIES. 
During the term of the Consulting Arrangement, Consultant shall be
deemed to be an independent contractor.   
Consultant shall not be considered as having an employee status vis-a-vis
the Company, or by virtue of the Consulting Arrangement being entitled to
participate in any plans, arrangements or distributions by the Company
pertaining to or in connection with any pension, stock, bonus, profit sharing,
welfare benefits, or similar benefits for the regular employees of the
Company.  The Company shall not withhold
any taxes in connection with the compensation due Consultant hereunder, and
Consultant and its principals and shareholders will be responsible for the payment
of any such taxes and hereby each agree to indemnify the Company against
nonpayment thereof.

 

3.             COMPENSATION FOR
THE CONSULTING ARRANGEMENT.  

 

                3.1 
Payment for  Consulting Services.  In consideration for  services
rendered by the Consultant, the Company shall issue to Consultant or its
designees six year warrants to purchase 147,188 shares of its common stock with
an exercise price of $0.75 per share .

 

                3.2          Expenses.  All expenses of the Consultant shall be borne
by the Consultant unless otherwise agreed to in writing by the Company.

 

4.             EFFECTIVE DATE,
TERM AND TERMINATION. 
This Agreement shall be effective as of December 29, 2006 (the
“Effective Date”), and shall continue for a period of six (6) months (the
"Consulting Period").  This Agreement
may be terminated at any time by the expressed written consent of the parties
hereto.

 2
 

5.             CONFIDENTIALITY
COVENANTS. 

 

5.1           Acknowledgments by the
Consultant.  The
Consultant acknowledges that (a) during the Consulting Period and as a
part of his Consulting Arrangement, the Consultant will be afforded access to
Confidential Information (as defined below); (b) public disclosure of such
Confidential Information could have an adverse effect on the Company and its
business; (c) because the Consultant possesses substantial technical
expertise and skill with respect to the Company's business, the Company desires
to obtain exclusive ownership of each Consultant Invention (as defined below),
and the Company will be at a substantial competitive disadvantage if it fails
to acquire exclusive ownership of each Consultant Invention; (d) the
provisions of this Section 5 are reasonable and necessary to prevent the
improper use or disclosure of Confidential Information and to provide the
Company with exclusive ownership of all Consultant Inventions and other work product.

 

5.2           Agreements of the
Consultant.  In
consideration of the compensation and benefits to be paid or provided to the
Consultant by the Company under this Agreement, the Consultant covenants as
follows:

 

(a)           Confidentiality.
During and following the Consulting Period for a period of not less than three
years, the Consultant will hold in confidence the Confidential Information and
will not disclose it to any person except with the specific prior written
consent of the Company or except as otherwise expressly permitted by the terms
of this Agreement.

 

(i)            Any trade secrets of the Company
will be entitled to all of the protections and benefits under New York Statutes
and common law and any other applicable law. If any information that the
Company deems to be a trade secret is found by a court of competent
jurisdiction not to be a trade secret for purposes of this Agreement, such
information will, nevertheless, be considered Confidential Information for
purposes of this Agreement.

 

 (ii)          None
of the foregoing obligations and restrictions applies to any part of the
Confidential Information that the Consultant demonstrates was or became
generally available to the public other than as a result of a disclosure by the
Consultant.

 

(iii)          The Consultant will not remove from
the Company's premises any document, record, notebook, plan, model, component,
device, or computer software or code, whether embodied in a disk or in any
other form (collectively, the "Proprietary Items"). The Consultant
recognizes that, as between the Company and the Consultant, all of the 

 3
 

Proprietary Items, whether or not developed by the
Consultant, are the exclusive property of the Company. Upon termination of this
Agreement by either party, or upon the request of the Company during the Consulting
Period, the Consultant will return to the Company all of the Proprietary Items
in the Consultant's possession or subject to the Consultant's control, and the
Consultant shall not retain any copies, abstracts, sketches, or other physical
embodiment of any of the Proprietary Items.

 

(b)           Consultant Inventions.  Each Consultant Invention will belong
exclusively to the Company.  The
Consultant acknowledges that all of the Consultant's writing, works of
authorship, and other Consultant Inventions or work product, are works made for
hire and the property of the Company, including any copyrights, patents, or
other intellectual property rights pertaining thereto.  If it is determined that any such works are
not works made for hire, the Consultant hereby assigns to the Company all of
the Consultant's right, title, and interest, including all rights of copyright,
patent, and other intellectual property rights, to or in such Consultant
Inventions.  The Consultant covenants that
it will promptly:

 

(i)            disclose to the Company in writing
any Consultant Invention;

 

(ii)           assign to the Company or to a party
designated by the Company, at the Company's request and without additional
compensation, all of the Consultant's right to the Consultant Invention for the
United States and all foreign jurisdictions;

 

(iii)          execute and deliver to the Company
such applications, assignments, and other documents as the Company may request
in order to apply for and obtain patents or other registrations with respect to
any Consultant Invention in the United States and any foreign jurisdictions;

 

(iv)          sign all other papers necessary to
carry out the above obligations; and

 

(v)           give testimony and render any other
assistance in support of the Company's rights to any Consultant Invention.

 

5.3           Disputes or
Controversies.  The
Consultant recognizes that should a dispute or controversy arising from or
relating to this Agreement be submitted for adjudication to any court,
arbitration panel, or other third party, the preservation of the secrecy of Confidential
Information may be jeopardized. All pleadings, documents, testimony, and
records relating to any such adjudication will be maintained in secrecy and
will be available for inspection by the Company, the Consultant, and their
respective attorneys

 4

and experts, who will agree, in advance and in
writing, to receive and maintain all such information in secrecy, except as may
be limited by them in writing.

5.4           Definitions.  

 

(a)           For the purposes of this Section 5,
"Confidential Information" shall mean any and all:

 

(i)            trade secrets concerning the
business and affairs of the Company, product specifications, data, know-how,
formulae, compositions, processes, designs, sketches, photographs, graphs,
drawings, samples, inventions and ideas, past, current, and planned research
and development, current and planned manufacturing or distribution methods and
processes, customer lists, current and anticipated customer requirements,
non-public financial or business information, price lists, market studies,
business plans, computer software and programs (including object code and
source code), computer software and database technologies, systems, structures,
and architectures and related formulae, compositions, processes, improvements,
devices, know-how, inventions, discoveries, concepts, ideas, designs, methods
and information; 

 

(ii)           information concerning the business
and affairs of the Company, including but not limited to historical financial
statements, financial projections and budgets, historical and projected sales,
capital spending budgets and plans, the names and backgrounds of key personnel,
personnel training and techniques and materials, and other important corporate
information and documents; and

 

(iii)          notes, analysis, compilations,
studies, summaries, and other material prepared by or for the Company
containing or based, in whole or in part, on any information included in the
foregoing.

 

(b)           For
the purposes of this Section 5, "Consultant Invention" shall mean any
idea, analysis, compilation, invention, technique, modification, process, or
improvement (whether or not subject to patent, copyright or trademark
protection), any industrial design (whether registerable or not), and any work
of authorship (whether or not copyright protection may be obtained for it)
created, conceived, or developed by the Consultant, either solely or in
conjunction with others, during the Consulting Period, or a period that
includes a portion of the Consulting Period, that relates in any way to, or is
useful in any manner in, the business then being conducted or proposed to be
conducted by the Company, and any such item created by the Consultant, either
solely or in conjunction with others, following termination of the Consultant's
Consulting 

 5
 

Arrangement
with the Company, that is based upon or uses Confidential Information.

 

 

 

6.             NOTICES.  All notices, consents, waivers, and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (a) delivered by hand (with written confirmation
of receipt), (b) sent by facsimile (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(c) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses and
facsimile numbers as a party may designate by notice to the other
parties):                          

 

	
  

  	
  If to the
  Company:

  	
  Callisto Pharmaceuticals, Inc.

  
	
   

  	
  420 Lexington Avenue, Suite 1609

  
	
   

  	
  New York, New York 10170

  
	
   

  	
   

  
	
   

  	
  If to the
  Consultant:

  	
  Prism Ventures, LLC 

  

 

 

 

7.             BINDING EFFECT.  This Agreement shall extend to, shall inure
to the benefit of and shall be binding upon all the parties hereto and upon all
of their respective heirs, successors and representatives.

 

8.             ENTIRE
AGREEMENT.  This
Agreement, including the agreements incorporated by reference, contains the
entire Agreement among the parties hereto with respect to the matters
contemplated hereby and supersedes all prior agreements and undertakings
between the parties with respect to such matters.  This Agreement may not be amended, modified
or terminated in whole or in part, except in writing, executed by each of the
parties hereto.

 

9.             INDEMNIFICATION.  Consultant hereby agrees to
hold harmless and indemnify Company from and against any and all loss, damage,
expense, and cost (including reasonable attorneys' fees incurred in connection
with the same) incurred by Company as a result of Consultant's breach of any
covenant or agreement made herein or any other action committed by the
Consultant in the course of performing his duties hereunder.

 

 6
 

10.          SPECIFIC PERFORMANCE.  The Consultant acknowledges that any violation
of the restrictive covenants or confidentiality provisions in this agreement
would result in damages to the Company that are imminent and irreparable in
nature and are further difficult to measure in terms of monetary damages.  It is acknowledged and agreed by Consultant
that any breach of these provisions shall constitute irreparable injury to the
Company and Consultant consents to the entry of a temporary, preliminary and
permanent injunction without need of a bond to prevent any such injury to the
Company.

 

11.          SEVERABILITY.  Should any part of any
provision of this Agreement be declared invalid by a court of competent
jurisdiction, such decision or determination shall not affect the validity of
any remaining portion of such provision or any other provision and the
remainder of the Agreement shall remain in full force and effect and shall be
construed in all respects as if such invalid or unenforceable provision or
portion thereof were not contained herein. 
In the event of a declaration of invalidity, the provision or portion
thereof declared invalid shall not necessarily be invalidated in its entirety,
but shall be observed and performed by the parties to the Agreement to the
extent such provision is valid and enforceable.

 

12.           SECTION HEADINGS.  The section headings contained herein are for
convenience of reference only and shall not be considered any part of the terms
of this Agreement.

 

13.          CHOICE OF LAW.  This Agreement shall be interpreted and
performed in accordance with the laws of the State of New York, and the parties
agree, notwithstanding the principles of conflicts of law, that the internal
laws of the State of New York shall govern and control the validity,
interpretation, performance, and enforcement of this Agreement.  Venue for any action under this Agreement
shall rest in the Courts of New York County in the State of New York.

 7

IN WITNESS WHEREOF, Consultant
has hereunto put its hand, and the Company has caused this instrument to be
executed in its corporate name by its duly authorized officer, all as of the
day and year first above written.

 

	
   

  	
  CONSULTANT:

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Name: Gary S. Jacob

  
	
   

  	
  Title: Managing Member

  	
  Title: Chief Executive Officer

  
									

 

 

 8

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