Document:

Exhibit
10.40

THIS WARRANT AND THE SHARES OF
COMMON STOCK ISSUED UPON ITS

EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON

TRANSFER SET FORTH IN SECTION 5 OF THIS WARRANT

	
  Warrant No. [   ]

  	
  Number of Shares: [           ]

  (subject to adjustment)

  
	
  Date of Issuance:
  [           ],
  2006

  

  Original Issue Date (as defined in subsection 2(a)): [           ],
  2006

  	
   

  

 

Senesco Technologies,
Inc.

Common Stock Purchase
Warrant

(Void after [           ],
2011(1))

Senesco Technologies,
Inc., a Delaware corporation (the “Company”), for value received, hereby
certifies that [           ],
or its registered assigns (the “Registered Holder”), is entitled, subject to
the terms and conditions set forth below, to purchase from the Company, at any
time or from time to time on or after [           ](2) and on or before 5:00 p.m. (New York time) on [           ],
2011, [           ](3)
shares of Common Stock, $0.01 par value per share, of the Company (“Common
Stock”), at a purchase price of $1.18 per share.  The shares purchasable upon exercise of this
Warrant, and the purchase price per share, each as adjusted from time to time
pursuant to the provisions of this Warrant, are hereinafter referred to as the “Warrant
Shares” and the “Purchase Price,” respectively. 
This Warrant is one of a series of Warrants issued by the Company in
connection with a private placement of Common Stock and of like tenor, except
as to the number of shares of Common Stock subject thereto (collectively, the “Company
Warrants”).

1.             Exercise.

(a)           Exercise for Cash.  The Registered Holder may, at its option,
elect to exercise this Warrant, in whole or in part and at any time or from
time to time, by surrendering this Warrant, with the purchase form appended
hereto as Exhibit I duly executed by or on behalf of the Registered
Holder, at the principal office of the Company, or at such other office or
agency as the Company may designate, accompanied by payment in full, in lawful
money of the United States, of the Purchase Price payable in respect of the
number of Warrant Shares purchased upon such exercise.  A facsimile signature of the Registered
Holder on the purchase form shall be sufficient for purposes of exercising this
Warrant, provided that the Company receives the Registered Holder’s original
signature within three (3) business days thereafter.

(1) Fifth anniversary of closing date.

(2) Six months and 1 day after Closing date.

(3) 50% of the common stock purchased by such Purchaser pursuant
to the Securities Purchase Agreement.

 

(b)           Exercise Date.  Each exercise of this Warrant shall be deemed
to have been effected immediately prior to the close of business on the day on
which this Warrant shall have been surrendered to the Company as provided in
subsection 1(a) above (the “Exercise Date”). 
At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise as
provided in subsection 1(d) below shall be deemed to have become the holder or
holders of record of the Warrant Shares represented by such certificates.

(c)           Issuance of Certificates.  As soon as practicable after the exercise of
this Warrant in whole or in part, and in any event within 10 days thereafter,
the Company, at its expense, will cause to be issued in the name of, and
delivered to, the Registered Holder, or as the Registered Holder (upon payment
by the Registered Holder of any applicable transfer taxes) may direct:

(i)            a certificate or certificates for
the number of full Warrant Shares to which the Registered Holder shall be
entitled upon such exercise plus, in lieu of any fractional share to which the
Registered Holder would otherwise be entitled, cash in an amount determined
pursuant to Section 3 hereof; and

(ii)           in case such exercise is in part
only, a new warrant or warrants (dated the date hereof) of like tenor, calling
in the aggregate on the face or faces thereof for the number of Warrant Shares
equal (without giving effect to any adjustment therein) to the number of such
shares called for on the face of this Warrant minus the number of Warrant
Shares for which this Warrant was so exercised.

2.             Adjustments.

(a)           Adjustment for Stock Splits and
Combinations.  If the Company shall
at any time or from time to time after the date on which this Warrant was first
issued (or, if this Warrant was issued upon partial exercise of, or in
replacement of, another warrant of like tenor, then the date on which such
original warrant was first issued) (either such date being referred to as the “Original
Issue Date”) effect a subdivision of the outstanding Common Stock, the Purchase
Price then in effect immediately before that subdivision shall be
proportionately decreased.  If the
Company shall at any time or from time to time after the Original Issue Date
combine the outstanding shares of Common Stock, the Purchase Price then in effect
immediately before the combination shall be proportionately increased.  Any adjustment under this paragraph shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

(b)           Adjustment for Certain Dividends
and Distributions.  In the event the
Company at any time, or from time to time after the Original Issue Date shall
make or issue, or fix a record date for the determination of holders of Common
Stock entitled to receive, a dividend or other distribution payable in
additional shares of Common Stock, then and in each such event the Purchase
Price then in effect immediately before such event shall be decreased as of the
time of such issuance or, in the event such a record date shall have been
fixed, as of the close of business on such record date, by multiplying the
Purchase Price then in effect by a fraction:

 2
 

 

(1)           the numerator of which shall be the
total number of shares of Common Stock issued and outstanding immediately prior
to the time of such issuance or the close of business on such record date, and

(2)           the denominator of which shall be the
total number of shares of Common Stock issued and outstanding immediately prior
to the time of such issuance or the close of business on such record date plus
the number of shares of Common Stock issuable in payment of such dividend or
distribution;

provided,
however, that if such record date shall have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the
date fixed therefor, the Purchase Price shall be recomputed accordingly as of
the close of business on such record date and thereafter the Purchase Price
shall be adjusted pursuant to this paragraph as of the time of actual payment
of such dividends or distributions.

(c)           Adjustment in Number of Warrant
Shares.  When any adjustment is
required to be made in the Purchase Price pursuant to subsections 2(a) or
2(b), the number of Warrant Shares purchasable upon the exercise of this
Warrant shall be changed to the number determined by dividing (i) an
amount equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Purchase Price in
effect immediately prior to such adjustment, by (ii) the Purchase Price in
effect immediately after such adjustment.

(d)               Adjustments for Other
Dividends and Distributions.  In the
event the Company at any time or from time to time after the Original Issue
Date shall make or issue, or fix a record date for the determination of holders
of Common Stock entitled to receive, a dividend or other distribution payable
in securities of the Company (other than shares of Common Stock) or in cash or
other property (other than regular cash dividends paid out of earnings or
earned surplus, determined in accordance with generally accepted accounting
principles), then and in each such event provision shall be made so that the
Registered Holder shall receive upon exercise hereof, in addition to the number
of shares of Common Stock issuable hereunder, the kind and amount of securities
of the Company, cash or other property which the Registered Holder would have
been entitled to receive had this Warrant been exercised on the date of such
event and had the Registered Holder thereafter, during the period from the date
of such event to and including the Exercise Date, retained any such securities
receivable during such period, giving application to all adjustments called for
during such period under this Section 2 with respect to the rights of the
Registered Holder.

(e)               Adjustment for Reorganization.  If there shall occur any reorganization,
recapitalization, reclassification, consolidation or merger involving the
Company in which the Common Stock is converted into or exchanged for
securities, cash or other property (other than a transaction covered by
subsections 2(a), 2(b) or 2(d)) (collectively, a “Reorganization”), then,
following such Reorganization, the Registered Holder shall receive upon
exercise hereof the kind and amount of securities, cash or other property which
the Registered Holder would have been entitled to receive pursuant to such
Reorganization if such exercise had taken place immediately prior to such
Reorganization.  Notwithstanding the
foregoing sentence, if (x) there shall occur any Reorganization in which
the Common Stock is converted into or exchanged for anything 

 3
 

 

other than solely equity
securities, and (y) the common stock of the acquiring or surviving company
is publicly traded, then, as part of such Reorganization, (i) the
Registered Holder shall have the right thereafter to receive upon the exercise
hereof such number of shares of common stock of the acquiring or surviving
company as is determined by multiplying (A) the number of shares of Common
Stock subject to this Warrant immediately prior to such Reorganization by
(B) a fraction, the numerator of which is the Fair Market Value per share
of Common Stock as of the effective date of such Reorganization, as determined below,
and the denominator of which is the fair market value per share of common stock
of the acquiring or surviving company as of the effective date of such
transaction, as determined in good faith by the Board (using the principles set
forth below to the extent applicable), and (ii) the exercise price per
share of common stock of the acquiring or surviving company shall be the
Purchase Price divided by the fraction referred to in clause (B)
above.  In any such case, appropriate
adjustment (as determined in good faith by the Board) shall be made in the
application of the provisions set forth herein with respect to the rights and
interests thereafter of the Registered Holder, to the end that the provisions
set forth in this Section 2 (including provisions with respect to changes in
and other adjustments of the Purchase Price) shall thereafter be applicable, as
nearly as reasonably may be, in relation to any securities, cash or other
property thereafter deliverable upon the exercise of this Warrant.

The Fair Market Value per share of Common
Stock shall be determined as follows:

(1)           If the Common Stock is listed on a
national securities exchange, The NASDAQ Stock Market, Inc. (“Nasdaq”) or
another nationally recognized trading system as of the Exercise Date, the Fair
Market Value per share of Common Stock shall be deemed to be the reported
closing price per share of Common Stock thereon on the trading day immediately
preceding the Exercise Date (provided that if no such price is reported
on such day, the Fair Market Value per share of Common Stock shall be
determined pursuant to clause (2) below).

(2)           If the Common Stock is not listed on
a national securities exchange, Nasdaq or another nationally recognized trading
system as of the Exercise Date, the Fair Market Value per share of Common Stock
shall be deemed to be the amount most recently determined by the Board of
Directors of the Company (the “Board”) to represent the fair market value per
share of the Common Stock (including without limitation a determination for
purposes of granting Common Stock options or issuing Common Stock under any
plan, agreement or arrangement with employees of the Company); and, upon
request of the Registered Holder, the Board (or a representative thereof)
shall, as promptly as reasonably practicable but in any event not later than 10
days after such request, notify the Registered Holder of the Fair Market Value
per share of Common Stock and furnish the Registered Holder with reasonable
documentation of the Board’s determination of such Fair Market Value.  Notwithstanding the foregoing, if the Board has
not made such a determination within the three-month period prior to the
Exercise Date, then the Board shall make, and shall provide or cause to be
provided to the Registered Holder notice of, a determination of the Fair Market
Value per share of the Common Stock within 15 days of a request by the Registered
Holder that it do so.

(f)            Certificate as to Adjustments.  Upon the occurrence of each adjustment or
readjustment of the Purchase Price pursuant to this Section 2, the Company at
its expense shall, as promptly as reasonably practicable but in any event not
later than 10 days thereafter, compute 

 4
 

 

such adjustment or readjustment
in accordance with the terms hereof and furnish to the Registered Holder a
certificate setting forth such adjustment or readjustment (including the kind
and amount of securities, cash or other property for which this Warrant shall
be exercisable and the Purchase Price) and showing in detail the facts upon
which such adjustment or readjustment is based. 
The Company shall, as promptly as reasonably practicable after the
written request at any time of the Registered Holder (but in any event not
later than 10 days thereafter), furnish or cause to be furnished to the
Registered Holder a certificate setting forth (i) the Purchase Price then
in effect and (ii) the number of shares of Common Stock and the amount, if
any, of other securities, cash or property which then would be received upon
the exercise of this Warrant.

3.             Fractional
Shares.  The Company shall not be
required upon the exercise of this Warrant to issue any fractional shares, but
shall pay the value thereof to the Registered Holder in cash on the basis of
the Fair Market Value per share of Common Stock, as determined pursuant to
subsection 2(e) above.

4.             Transfers,
etc.

(a)           This Warrant and the Warrant Shares
shall not be sold or transferred unless either (i) they first shall have
been registered under the Securities Act of 1933, as amended (the “Act”), or
(ii) such sale or transfer shall be exempt from the registration requirements
of the Act and the Company shall have been furnished with an opinion of legal
counsel, reasonably satisfactory to the Company, to the effect that such sale
or transfer is exempt from the registration requirements of the Act.  Notwithstanding the foregoing, no
registration or opinion of counsel shall be required for (i) a transfer by
a Registered Holder which is an entity to a wholly owned subsidiary of such
entity, a transfer by a Registered Holder which is a partnership to a partner
of such partnership or a retired partner of such partnership or to the estate
of any such partner or retired partner, or a transfer by a Registered Holder
which is a limited liability company to a member of such limited liability
company or a retired member or to the estate of any such member or retired
member, provided that the transferee in each case agrees in writing to
be subject to the terms of this Section 4, or (ii) a transfer made in
accordance with Rule 144 under the Act.

(b)           Each certificate representing Warrant
Shares shall bear a legend substantially in the following form:

“The securities represented hereby have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws and neither the securities nor any interest therein may not be
offered, sold, transferred, pledged or otherwise disposed of except pursuant to
an effective registration under such act or an exemption from registration,
which, in the opinion of counsel reasonably satisfactory to counsel for this
corporation, is available.”

The foregoing legend
shall be removed from the certificates representing any Warrant Shares, at the
request of the holder thereof, at such time as they become eligible for resale
pursuant to Rule 144(k) under the Act or at such time as the Warrant
Shares are sold or 

 5
 

 

transferred in
accordance with the requirements of a registration statement of the Company on
Form S-3, or such other form as may then be in effect.

(c)           The Company will maintain a register
containing the name and address of the Registered Holder of this Warrant.  The Registered Holder may change its address
as shown on the warrant register by written notice to the Company requesting
such change.

(d)           Subject to the provisions of Section
4 hereof, this Warrant and all rights hereunder are transferable, in whole or
in part, upon surrender of this Warrant with a properly executed assignment (in
the form of Exhibit II hereto) at the principal office of the
Company (or, if another office or agency has been designated by the Company for
such purpose, then at such other office or agency).

5.             No
Impairment.  The Company will not, by
amendment of its charter or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Registered
Holder against impairment.

6.             Notices
of Record Date, etc.  In the event:

(a)           the Company shall take a record of
the holders of its Common Stock (or other stock or securities at the time
deliverable upon the exercise of this Warrant) for the purpose of entitling or
enabling them to receive any dividend or other distribution, or to receive any
right to subscribe for or purchase any shares of stock of any class or any
other securities, or to receive any other right; or

(b)           of any capital reorganization of the
Company, any reclassification of the Common Stock of the Company, any
consolidation or merger of the Company with or into another corporation, or any
transfer of all or substantially all of the assets of the Company; or

(c)           of the voluntary or involuntary
dissolution, liquidation or winding-up of the Company, then, and in each such
case, the Company will send or cause to be sent to the Registered Holder a
notice specifying, as the case may be, (i) the record date for such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such other stock or securities at the
time deliverable upon the exercise of this Warrant) shall be entitled to
exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up.  Such notice shall be sent at
least 10 days prior to the record date or effective date for the event
specified in such notice.

7.             Reservation
of Stock.  The Company will at all
times reserve and keep available, solely for issuance and delivery upon the
exercise of this Warrant, such number of Warrant 

 6
 

 

Shares and other securities, cash and/or property, as from time to time
shall be issuable upon the exercise of this Warrant.

8.             Exchange
or Replacement of Warrants.

(a)           Upon the surrender by the Registered
Holder, properly endorsed, to the Company at the principal office of the
Company, the Company will, subject to the provisions of Section 4 hereof, issue
and deliver to or upon the order of the Registered Holder, at the Company’s
expense, a new Warrant or Warrants of like tenor, in the name of the Registered
Holder or as the Registered Holder (upon payment by the Registered Holder of
any applicable transfer taxes) may direct, calling in the aggregate on the face
or faces thereof for the number of shares of Common Stock (or other securities,
cash and/or property) then issuable upon exercise of this Warrant.

(b)           Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of
an indemnity agreement (with surety if reasonably required) in an amount
reasonably satisfactory to the Company, or (in the case of mutilation) upon
surrender and cancellation of this Warrant, the Company will issue, in lieu
thereof, a new Warrant of like tenor.

9.             Notices.  All notices and other communications from the
Company to the Registered Holder in connection herewith shall be mailed by
certified or registered mail, postage prepaid, or sent via a reputable
nationwide overnight courier service guaranteeing next business day delivery,
to the address last furnished to the Company in writing by the Registered
Holder.  All notices and other
communications from the Registered Holder to the Company in connection herewith
shall be mailed by certified or registered mail, postage prepaid, or sent via a
reputable nationwide overnight courier service guaranteeing next business day
delivery, to the Company at its principal office set forth below.  If the Company should at any time change the
location of its principal office to a place other than as set forth below, it
shall give prompt written notice to the Registered Holder and thereafter all
references in this Warrant to the location of its principal office at the
particular time shall be as so specified in such notice. All such notices and
communications shall be deemed delivered one business day after being sent via
a reputable international overnight courier service guaranteeing next business
day delivery.

10.           No
Rights as Stockholder.  Until the
exercise of this Warrant, the Registered Holder shall not have or exercise any
rights by virtue hereof as a stockholder of the Company.  Notwithstanding the foregoing, in the event
(i) the Company effects a split of the Common Stock by means of a stock
dividend and the Purchase Price of and the number of Warrant Shares are
adjusted as of the date of the distribution of the dividend (rather than as of
the record date for such dividend), and (ii) the Registered Holder
exercises this Warrant between the record date and the distribution date for
such stock dividend, the Registered Holder shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such exercise, notwithstanding the fact that such shares
were not outstanding as of the close of business on the record date for such
stock dividend.

11.           Amendment
or Waiver.  Any term of this Warrant
may be amended or waived (either generally or in a particular instance and
either retroactively or prospectively) with the 

 7
 

 

written consent of the Company and the holders of Company Warrants
representing at least two-thirds of the number of shares of Common Stock then
subject to outstanding Company Warrants. Notwithstanding the foregoing, (a)
this Warrant may be amended and the observance of any term hereunder may be
waived without the written consent of the Registered Holder only in a manner
which applies to all Company Warrants in the same fashion and (b) the number of
Warrant Shares subject to this Warrant and the Purchase Price of this Warrant
may not be amended, and the right to exercise this Warrant may not be waived,
without the written consent of the Registered Holder (it being agreed that an
amendment to or waiver under any of the provisions of Section 2 of this Warrant
shall not be considered an amendment of the number of Warrant Shares or the
Purchase Price).  The Company shall give
prompt written notice to the Registered Holder of any amendment hereof or
waiver hereunder that was effected without the Registered Holder’s written
consent.  No waivers of any term,
condition or provision of this Warrant, in any one or more instances, shall be
deemed to be, or construed as, a further or continuing waiver of any such term,
condition or provision.

12.           Section
Headings.  The section headings in
this Warrant are for the convenience of the parties and in no way alter,
modify, amend, limit or restrict the contractual obligations of the parties.

13.           Governing
Law.  This Warrant will be governed
by and construed in accordance with the internal laws of the State of New
Jersey (without reference to the conflicts of law provisions thereof).

14.           Facsimile
Signatures. This Warrant may be executed by facsimile signature.

* * * * * * *

 8

 

EXECUTED as of the Date
of Issuance indicated above.

	
   

  	
  SENESCO TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Bruce C. Galton

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

EXHIBIT I

PURCHASE FORM

	
  To: Senesco Technologies,
  Inc.

  	
  Dated:

  

 

The undersigned, pursuant
to the provisions set forth in the attached Warrant (No.     ),
hereby elects to purchase (check applicable box):

·                               
shares of the Common Stock of Senesco Technologies, Inc. covered by such
Warrant.

The undersigned herewith
makes payment of the full purchase price for such shares at the price per share
provided for in such Warrant.  Such
payment takes the form of (check applicable box or
boxes):

·                                          $         
in lawful money of the United States.

	
   

  	
  Signature: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

 

EXHIBIT II

ASSIGNMENT FORM

FOR VALUE RECEIVED,                                                        
hereby sells, assigns and transfers all of the rights of the undersigned under
the attached Warrant (No.      ) with respect to the
number of shares of Common Stock of Senesco Technologies, Inc. covered thereby
set forth below, unto:

	
  Name of
  Assignee

  	
   

  	
  Address

  	
   

  	
  No. of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature
  Guaranteed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
						

 

The signature should be
guaranteed by an eligible guarantor institution (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved
signature guarantee medallion program) pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934, as amended.

 

 

 

	
  Purchaser

  	
   

  	
   

  	
   

  	
  Amount

  	
   

  	
  # of Shares

  	
   

  	
  # of Warrants

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Christopher
  Forbes

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  883,002

  	
   

  	
  441,501

  	
   

  
	
  Thomas C. Quick
  Charitable Foundation

  	
   

  	
  300,000

  	
   

  	
  264,901

  	
   

  	
  132,450

  	
   

  
	
  Ruedi Stalder

  	
   

  	
  105,841

  	
   

  	
  93,458

  	
   

  	
  46,729

  	
   

  
	
  Bruce C. Galton

  	
   

  	
  75,000

  	
   

  	
  66,225

  	
   

  	
  33,113

  	
   

  
	
  John N. Braca

  	
   

  	
  11,325

  	
   

  	
  10,000

  	
   

  	
  5,000

  	
   

  
	
  David Rector

  	
   

  	
  11,325

  	
   

  	
  10,000

  	
   

  	
  5,000

  	
   

  
	
  Dhananjaya
  Dvivedi

  	
   

  	
  250,000

  	
   

  	
  220,751

  	
   

  	
  110,375

  	
   

  
	
  Otago Partners,
  LLC

  	
   

  	
  166,000

  	
   

  	
  146,578

  	
   

  	
  73,289

  	
   

  
	
  Iroquois Master
  Fund Ltd.

  	
   

  	
  150,000

  	
   

  	
  132,450

  	
   

  	
  66,225

  	
   

  
	
  Timothy Forbes

  	
   

  	
  100,000

  	
   

  	
  88,300

  	
   

  	
  44,150

  	
   

  
	
  Michael Berry

  	
   

  	
  50,000

  	
   

  	
  44,150

  	
   

  	
  22,075

  	
   

  
	
  James E. Currie

  	
   

  	
  30,000

  	
   

  	
  26,490

  	
   

  	
  13,245

  	
   

  
	
   

  	
   

  	
  $

  	
  2,249,491

  	
   

  	
  1,986,306

  	
   

  	
  993,153Exhibit 10.41

H. C .WAINWRIGHT &
CO., lNC.

Investments Since 1868

	
  52 Vanderbilt Avenue, 12th Floor

  	
   

  	
  Phone:
  (212) 856-5700

  
	
  New York, NY 10017

  	
   

  	
  Fax:
  (212) 856-5753

  

 

Engagement
Letter and Proposal-Subject to Commitment Committee Approval

Private and Confidential

April 28, 2006

Senesco Technologies, Inc.

303 George Street

Suite 420

New Brunswick, NJ 08901

Attention: Mr. Bruce C. Galton

President
and Chief Executive Officer

Dear Mr. Galton:

We
are pleased that Senesco Technologies, Inc., a company incorporated under the
laws of the State of Delaware (the “Company”),
has decided to retain H.C. Wainwright & Co., Inc. (“H.C. Wainwright”) on
an exclusive basis to act as placement agent in connection with the proposed
offering of equity and/or equity linked securities, including convertible
securities, of the Company in an amount up to $10.0 million (the “Financing”). The sale of the
securities may be completed under an effective shelf registration statement, if
applicable, or may occur through a series of one or more private placements
pursuant to one or more exemptions from registration under the Securities Act
of 1933, as amended (the “Securities Act”), and
in compliance with applicable securities laws of states and other jurisdictions
(“Blue Sky Laws”). This letter agreement (“Agreement”) will confirm H.C. Wainwright’s
acceptance of such retention and set forth the terms of our engagement. For
purposes of this Agreement, the term “Company” shall include all of Senesco
Technologies, Inc.’s subsidiaries, affiliates, entities, successors and
assigns.

1.             Retention.  Subject to the terms and conditions of this
Agreement, the Company hereby retains H.C. Wainwright as its exclusive
placement agent to arrange for the sale of securities on terms and conditions
satisfactory to the Company and H.C. Wainwright and H.C. Wainwright accepts
such retention on a “best efforts” basis and on the other terms and conditions
set forth in this Agreement.

During
the term of this Agreement as set forth in Section 9, the Company shall not, and
shall not permit its affiliates or their representatives to, directly or
indirectly, (i) offer any securities for sale to, or otherwise contact, discuss
or negotiate with respect to any offer or sale of any securities with, any
person, (ii) authorize anyone other than H.C. Wainwright to act on behalf of
the Company to place any securities or (iii) have any discussions or
negotiations with any person other than H.C. Wainwright with respect to
engaging such person as a finder, broker, dealer, agent or financial advisor in
connection with any sale of securities. The Company shall, and shall cause its
affiliates and its and their officers, directors, employees and representatives
to, promptly refer to H.C. Wainwright all offers, inquiries and proposals relating
to any securities received at any time during the term of this Agreement.

2.             Information.   In connection with H.C. Wainwright’s
activities hereunder, the Company will furnish H.C. Wainwright with all material
and information regarding the business and financial

 

condition
of the Company (the “Information”),
and with a private placement memorandum with respect to the Company and the
Placement, if required (such memorandum in the form authorized by the Company,
including any exhibits or supplements thereto, being the “Private
Placement Materials”). In addition, the Company shall provide H.C.
Wainwright with reasonable access upon prior notice to the Company’s officers,
directors, employees and advisors during normal business hours. The Company represents
and warrants to H.C. Wainwright that all Information and Private Placement
Materials made available to H.C. Wainwright hereunder will be complete and
correct in all material respects and will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in light of the circumstances under which
such statements are or will be made. The Company further represents and
warrants that any projections and other forward-looking information provided by
it to H.C. Wainwright will have been prepared in good faith and will be based
upon assumptions which, in light of the circumstances under which they are
made, are reasonable. The Company recognizes and confirms that H.C. Wainwright:
(i) will use and rely primarily on the Information and the Private Placement
Materials and on information available from generally recognized public sources
in performing the services contemplated by this Agreement without having
independently verified the same; (ii) does not assume responsibility for the
accuracy or completeness of the Information and Offering Materials and such
other information; (iii) will not make an appraisal of any assets of the
Company; and (iv) retains the right to continue to perform due diligence during
the course of the engagement. In addition, H.C. Wainwright is authorized as the
Company’s exclusive placement agent in connection with capital raising efforts
to transmit to any prospective investor a copy or copies of the Private Placement
Materials, forms of purchase agreements and any other legal documentation
supplied to H.C. Wainwright for transmission to any prospective investor by or
on behalf of the Company or by any of the Company’s officers, representatives
or agents, in connection with the performance of H.C. Wainwright’s services
hereunder or any transaction contemplated hereby. Any advice rendered by H.C.
Wainwright pursuant to this Agreement may not be disclosed publicly without
H.C. Wainwright’s prior written consent. H.C. Wainwright hereby acknowledges
that certain of the Information received by H.C. Wainwright may be confidential
and/or proprietary, including Information with respect to the Company’s technologies,
products, business plans, marketing, and other Information which must be
maintained by H.C. Wainwright as confidential unless; (i) disclosure is
required by law or requested by any government, regulatory or self-regulatory
agency or body; (ii) any Information is or becomes generally available to the
public not as a result of a breach of any confidentiality agreement with the
Company; or (iii) any Information was or becomes available to H.C. Wainwright
on a non-confidential basis from a source other than the Company or any of its
representatives not as a result of a breach of any confidentiality agreement
with the Company. H.C. Wainwright agrees that it will not disclose such
confidential and/or proprietary Information to any other companies in the
industry in which the Company is involved or use such confidential and/or
proprietary Information to the detriment of the Company.

3.             Compensation.  As
consideration for H.C. Wainwright’s services pursuant to this Agreement, H.C.
Wainwright shall be entitled to receive, and the Company agrees to pay H.C.
Wainwright, the following compensation:

(a)                                                  At
each closing of the Financing, the Company shall pay H.C. Wainwright a cash fee
of seven percent (7%) of the
aggregate amount of capital actually invested in the Company from investors,
other than those investors in the Financing introduced by the Company as set
forth in subsection (b) below. The fees shall be earned by and paid
to H.C. Wainwright by the Company, via wire transfer on the day of each
closing, in connection with each Financing undertaken by the Company.

 2
 

 

(b)                                                 In
the event that the Company introduces
investors to the Financing, H.C. Wainwright shall receive a management fee
equal to three percent (3%) for any amount of investment such investors shall
make in the Company.

(c)                                                  In
the event that the Company retains a
solicitation agent with respect to its warrants, H.C. Wainwright shall act as
solicitation agent on behalf of the Company in connection with the exercise of
investor warrants issued in connection with the Financings and shall pay H.C.
Wainwright a cash fee of seven percent (7%) of the aggregate consideration received by the Company in connection
with the exercise of such warrants as a result of H.C. Wainwright’s efforts.

(d)                                                 On each closing date of a Financing, the Company shall issue to H.C.
Wainwright or its permitted assignees, warrants (the “Agent
Warrants”) to purchase such number of shares of common stock of the
Company equal to seven percent (7%) of the aggregate number of shares of common stock sold (or issuable
upon exercise of any convertible securities sold) in such Financing at an exercise price equal to 100% of the purchase price or the conversion
price of the securities sold in the Financing. The Agent Warrants shall provide
for (a) a 5-year term, and (b) cashless exercise provisions, (c) piggyback
and demand registration rights and (d) anti dilution against organic changes
(i.e. stock splits). The shares of Common Stock of the Company underlying the
Agent Warrants, if any, (or the shares of Common Stock underlying the
securities issuable upon exercise of the Agent Warrants) shall be registered in
the registration statement, if any, filed in connection with the Financing.

(e)                                                  The
Company agrees that if within twelve (12) months from the effective date of the
termination of this Agreement either the Company or any party to whom the
Company was originally introduced by H.C. Wainwright or who was contacted by
H.C. Wainwright in connection with its services for the Company hereunder
proposes a Financing involving the Company or provides Financing to the Company
and H.C. Wainwright is not engaged as the Company’s exclusive financial
advisor, agent and/or investment banker in connection with such Financing, then, if any such Financing is consummated, the Company
shall pay to H.C. Wainwright the fees set forth above, that H.C. Wainwright
would have received had H.C. Wainwright been engaged as the Company’s exclusive
financial advisor in connection with such Financing. As promptly as practicable
after the termination of this Agreement, the parties shall agree on the list of
investors introduced by H.C. Wainwright to the Company in connection with the
Financing for which this subsection (e) shall be applicable. From time to time,
H.C. Wainwright will provide this list of such investor to the Company.

4.             Certain Placement Procedures.  The
Company and H.C. Wainwright each represents to the other that it has not taken,
and the Company and H.C. Wainwright each agrees with the other that it will not
take any action, directly or indirectly, so as to cause the Financing to fail
to be entitled to rely upon the exemption from registration afforded by Section
4(2) of the Securities Act. In effecting the Financing, the Company and H.C. Wainwright each agrees to
comply in all material respects with applicable provisions of the Securities
Act and any regulations thereunder and any applicable state laws and
requirements. The Company agrees that any representations and warranties made
by it to any investor in the Financing shall be deemed incorporated herein in
their entirety and also to be made to H.C. Wainwright for its benefit. The
Company agrees that it shall cause an opinion of its counsel to be addressed
and delivered to H.C. Wainwright and any investors in the Financing.

 3
 

 

5.             Expenses.  In addition to payment to H.C.
Wainwright of the compensation set forth in Section 3 hereof, the Company shall
promptly upon request from time to time reimburse H.C. Wainwright for all
reasonable expenses (including, without limitation, fees and disbursements of
counsel, all travel expenses, blue sky fees and expenses, filings with the
National Association of Securities Dealers, Inc. (the “NASD”), expenses related
to background checks and all other out-of-pocket expenses) incurred by H.C.
Wainwright in connection with its engagement hereunder. These expenses shall
not exceed $20,000 and H.C. Wainwright will provide the Company an invoice and
copies of receipts pursuant to its expenses; provided that the foregoing
limitation and consent shall not apply to legal fees or NASD or “blue sky” fees
and expenses. In connection with the Financing, the Company shall not incur
legal fees related to the drafting and review of legal documents, on behalf of
the investors, to exceed $30,000.

6.             Indemnification.  The
Company agrees to indemnify H.C. Wainwright in accordance with the
indemnification and other provisions attached to this Agreement as Exhibit A
(the “Indemnification Provisions”), which
provisions are incorporated herein by reference and shall survive the
termination or expiration of this Agreement.

7.             Future Rights.  As additional consideration for its services hereunder
and as an inducement to cause H.C. Wainwright to enter into this Agreement, if
at any time during the term of this Agreement or within twelve (12) months from
the effective date of the termination of this Agreement, the Company proposes
to effect a public offering of its securities, a financing or any other
transaction or to engage an investment banking firm to provide such services to
the Company (other than during the term of this Agreement the services to be
provided by H.C. Wainwright hereunder), the Company shall offer to retain H.C.
Wainwright as manager of such offering, or as its exclusive advisor, agent and/or
investment banker in connection with such financing or other matter, upon such
terms as the parties may mutually agree, such terms to be set forth in a
separate engagement letter or other agreement between the parties. The terms of
such engagement for a public offering will be delineated in a separate and
specific agreement; provided that the fees associated with such engagement
would he 7% cash and 7% underwriters’ warrants, for any offering up to
$20,000,000 and negotiated above that level, as to conform with the NASD
Guideline of Underwriters’ compensation. Such offer shall be made in writing in
order to be effective. The Company shall not offer to retain any other
investment banking firm in connection with any such offering,
financing or other matter on terms more favorable than those discussed with
H.C. Wainwright without offering to retain H.C. Wainwright on such more
favorable terms. H.C. Wainwright shall notify the Company within 30 days of its
receipt of the written offer contemplated above as to whether or not it agrees
to accept such retention. If H.C. Wainwright should decline such retention, the
Company shall have no further obligations to H.C. Wainwright, except as
specifically provided for herein. Notwithstanding the foregoing, if the Company
shall terminate this Agreement pursuant to Section 9 below, then H.C. Wainwright shall not be entitled to any rights
set forth in this Section 7.

8.             Other Activities.  The
Company acknowledges that H.C. Wainwright has been, and may in the future be,
engaged to provide services as an underwriter, placement agent, finder, advisor
and investment banker to other companies in the industry in which the Company
is involved. Subject to the confidentiality provisions of H.C. Wainwright
contained in Section 2 hereof, the Company acknowledges and agrees that nothing
contained in this Agreement shall limit or restrict the right of H.C.
Wainwright or of any member, manager, officer, employee, agent or
representative of H.C. Wainwright, to be a member, manager, partner, officer,
director, employee, agent or representative of, investor in, or to engage in,
any other business, whether or not of a similar nature to the Company’s
business, nor to limit or restrict the right of H.C. Wainwright to render
services of any kind to any other corporation, firm, individual or association.
H.C. Wainwright may, but shall not be required to, present opportunities to the
Company.

9.             Termination; Survival of Provisions.  Either
H.C. Wainwright or the Company may terminate this Agreement at any time upon 30
days’ prior written notice to the other party after the three

 4
 

 

(3)
month anniversary of the completion of the Private Placement Materials. In the
event of such termination, the Company shall pay and deliver to H.C.
Wainwright: (i) all compensation earned through the date of such termination (“Termination Date”) pursuant to any provision of Section 3
hereof, and (ii) all compensation which may be earned by H.C. Wainwright after
the Termination Date pursuant to Section 3 hereof, and shall reimburse H.C.
Wainwright for all expenses incurred by H.C. Wainwright in connection with its
services hereunder pursuant to Section 5 hereof. All such fees and
reimbursements due to H.C. Wainwright pursuant to the immediately preceding
sentence shall be paid to H.C. Wainwright on or before the Termination Date (in the event such fees
and reimbursements are earned or owed as of the Termination Date) or upon the
closing of a Financing or any applicable portion thereof (in the event such
fees are due pursuant to the terns of Section 3 hereof). Notwithstanding
anything expressed or implied herein to the contrary: (i) any Agency Agreement
entered into between H.C. Wainwright and the Company may only be terminated in
accordance with the terms thereof, notwithstanding an actual or purported
termination of this Agreement, and (ii) the terms and provisions of Sections 3,
5, 6 (including, but not limited
to, the Indemnification Provisions attached to this Agreement and incorporated
herein by reference), 7, 8, 9, 10, 11, 13, 14, 15, 18, 19 and 20 shall survive the termination
of this Agreement. In the event, all of the individuals referenced on Schedule
1 were to leave the firm, the Company would have the right at such time to terminate
this Agreement upon 30 days written
notice, after such date.

10.           Notices.  All notices provided hereunder shall be given in writing and either
delivered personally or by overnight courier service or sent by certified mail,
return receipt requested, or by facsimile transmission, if to H.C. Wainwright,
to H.C. Wainwright & Co, Inc., 52 Vanderbilt Avenue, 12th Floor,
New York, NY 10017, Attention:
Anthony J. Sarkis, Director of Investment Banking, Fax No. (212) 856-5750, and
if to the Company, to the address, set forth on the first page of this
Agreement, Attention: Bruce C. Galton, Fax No.: 732-296-9292. Any notice
delivered personally or by fax shall be deemed given upon receipt (with
confirmation of receipt required in the case of fax transmissions); any notice
given by overnight courier shall be deemed given on the next business day after
delivery to the overnight courier; and any notice given by certified mail shall
be deemed given upon the second business day after certification thereof.

11.           Governing Law; Jurisdiction;
Waiver of Jury Trial.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be fully performed therein, without regard to conflicts
of law principles. The Company irrevocably submits to the exclusive
jurisdiction of any court of the State of New York or the United States
District Court for the Southern District of the State of New York for the
purpose of any suit, action or other proceeding arising out of this Agreement,
or any of the agreements or transactions contemplated hereby, which is brought
by or against the Company, and agrees that service of process in connection
with any such suit, action or proceeding may be made upon the Company in
accordance with Section 10 hereof. The parties hereby expressly waive all
rights to trial by jury in any suit, action or proceeding arising under this Agreement.

12.           Amendments.  This Agreement may not be modified or amended
except in a writing duly executed by the parties hereto.

13.           Independent Contractor;
Nondisclosure of Confidential Information.  H.C. Wainwright has been retained under this
agreement as an independent contractor with duties owed solely to the Company
and nothing in this Agreement or the nature of the H.C. Wainwright’s services
shall be deemed to create a fiduciary or agency relationship between the
Company and H.C. Wainwright. The advice, written or oral, rendered by H.C. Wainwright
pursuant to this Agreement is intended solely for the benefit and use of the
Company in considering the matters to which this agreement relates, and the
Company agrees that such advice may not be relied upon by any other person,
used for any other purpose, reproduced, disseminated, or referred to at any
time, in any manner or for any purpose, nor shall any

 5
 

 

public
references to H.C. Wainwright be made by the Company, without the prior written
consent of H.C. Wainwright, which consent shall not be unreasonably withheld. In
addition to the foregoing, H.C. Wainwright shall have no authority to bind the
Company, and the Company has the right to reject any investor in its sole
discretion.

14.           Best Efforts Engagement for
Capital Raising.  It is expressly
understood and acknowledged that H.C. Wainwright’s engagement for the Financing
does not constitute any commitment, express or implied, on the part of H.C.
Wainwright or of any of its affiliates to purchase or place the Company’s securities
or to provide any type of financing and that the Financing will be conducted by
H.C. Wainwright on a “best efforts” basis. H.C. Wainwright represents, warrants and covenants that it will comply with
all applicable provisions of the Securities Act, the Securities Exchange Act of
1934, as amended, Blue Sky Laws, and all related rules and regulations, in
connection with this Financing.

15.           Press Announcements.  The Company agrees that H.C. Wainwright shall,
upon a successful transaction, have the right to place advertisements in financial
and other newspapers and journals and websites at its own expense describing
its services to the Company hereunder. The foregoing shall also include
placement of a tombstone on the H.C. Wainwright corporate website. Conversely,
the Company agrees that it shall not use H.C. Wainwright’s name, nor the name
of any of its employees, representatives or affiliates in any public manner
without prior written consent from H.C. Wainwright.

16.           Headings.  The section headings in this
Agreement have been inserted as a matter of reference and are not part of this
Agreement.

17.           Successors and Assigns.  The
benefits of this Agreement shall inure to the parties hereto, their respective
successors and assigns and to the indemnified parties hereunder and their
respective successors and assigns, and the obligations and liabilities assumed
in this Agreement shall be binding upon the parties hereto and their respective
successors and assigns. Notwithstanding anything contained herein to the
contrary, neither H.C. Wainwright nor the Company shall assign any of its
obligations hereunder without the prior written consent of the other party.

18.           No Third Party Beneficiaries.  This Agreement does not create, and shall not
be construed as creating, any rights enforceable by any person or entity not a
party hereto, except those entitled to the benefits of the Indemnification
Provisions. Without limiting the foregoing, the Company acknowledges and agrees
that H.C. Wainwright has been retained under this Agreement as an independent
contractor and is not being engaged as, and shall not be deemed to be, an agent
or fiduciary of the Company’s stockholders or creditors or any other person by
virtue of this Agreement or the retention of H.C. Wainwright hereunder, all of
which are hereby expressly waived.

19.           Waiver.. Any waiver or any
breach of any of the terms or conditions of this Agreement shall not operate as
a waiver of any other breach of such terms or conditions or of any other term
or condition, nor shall any failure to insist upon strict performance or to
enforce any provision hereof on any one occasion operate as a waiver of such
provision or of any other provision hereof or a waiver of the right to insist
upon strict performance or to enforce such provision or any other provision on
any subsequent occasion. Any waiver must be in writing.

20.           Counterparts.  This
Agreement may be executed in any number of counterparts and by facsimile
transmission, each of which shall be deemed to be an original instrument, but
all of which taken together shall constitute one and the same agreement.
Facsimile signatures shall be deemed to be original signatures for all
purposes.

 6
 

 

[Signature Page Follows]

 7
 

 

 

If the foregoing correctly
sets forth our agreement, please sign the enclosed copy of this Agreement in
the space provided below and
return it to us.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  H.C. WAINWRIGHT & CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony J.
  Sarkis

  	
   

  
	
   

  	
   

  	
  Anthony J.
  Sarkis

  
	
   

  	
   

  	
  Head of
  Investment Banking

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John R.
  Clarke

  	
   

  
	
   

  	
   

  	
  John R. Clarke

  
	
   

  	
   

  	
  President

  
	
   

  
	
   

  
	
  Agreed
  to and accepted this
  1st day of May 2006

  
	
   

  
	
  Senesco
  Technologies, Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Bruce C.
  Galton

  	
   

  	 

	
   

  	
  Bruce C. Galton

  	
   

  	 

	
   

  	
  President and
  Chief Executive Officer

  	 

							

 8
 

 

Exhibit A

INDEMNIFICATION PROVISIONS

Capitalized
terms used in this Exhibit shall have the meanings ascribed to such terms in
the Agreement to which this Exhibit is attached.

The
Company agrees to indemnify and hold harmless H.C. Wainwright and each of the
other Indemnified Parties (as hereinafter defined) from and against any and all
losses, claims, damages, obligations, penalties, judgments, awards,
liabilities, costs, expenses and disbursements, and any and all actions, suits,
proceedings and investigations in respect thereof and any and all legal and
other costs, expenses and disbursements in giving testimony or furnishing
documents in response to a subpoena or otherwise (including, without
limitation, the costs, expenses and disbursements, as and when incurred, of
investigating, preparing, pursing or defending any such action, suit,
proceeding or investigation (whether or not in connection with litigation in
which any Indemnified Party is a party)) (collectively, “Losses”),
directly or indirectly, caused by, relating to, based upon, arising out of, or
in connection with, H.C. Wainwright’s acting for the Company, including,
without limitation, any act or omission by H.C. Wainwright in connection with
its acceptance of or the performance
or non-performance of its obligations under the Agreement between the Company
and H.C. Wainwright to which these indemnification provisions are attached and
form a part (the “Agreement”), any breach by the
Company of any representation, warranty, covenant or agreement contained in the
Agreement (or in any instrument, document or agreement relating thereto,
including any Agency Agreement), or the enforcement by H.C. Wainwright of its
rights under the Agreement or these indemnification provisions, except to the
extent that any such Losses are found in a final judgment by a court of
competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from the gross negligence or willful misconduct of the
Indemnified Party seeking indemnification hereunder. The Company also agrees
that no Indemnified Party shall have any liability (whether direct or indirect,
in contract or tort or otherwise) to the Company for or in connection with the
engagement of H.C. Wainwright by the Company or for any other reason, except to
the extent that any such liability is found in a final judgment by a court of
competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from such Indemnified Party’s gross negligence or
willful misconduct.

These
Indemnification Provisions shall extend to the following persons (collectively,
the “Indemnified Parties”): H.C.
Wainwright, its present affiliated entities, managers, members, directors,
officers, stockholders, employees, legal counsel, agents and controlling
persons (within the meaning of the federal securities laws), and the officers,
directors, partners, stockholders, members, managers, employees, legal counsel,
agents and controlling persons of any of them. These indemnification provisions
shall be in addition to any liability, which the Company may otherwise have to
any Indemnified Party.

If
any action, suit, proceeding or investigation is commenced, as to which an
Indemnified Party proposes to demand indemnification, it shall notify the
Company with reasonable promptness; provided, however, that any
failure by an Indemnified Party to notify the Company shall not relieve the
Company from its obligations hereunder. An Indemnified Party shall have the
right to retain counsel of its own choice to represent it, and the fees,
expenses and disbursements of such counsel shall be borne by the Company. Any
such counsel shall, to the extent consistent with its professional
responsibilities, cooperate with the Company and any counsel designated by the
Company. The Company shall be liable for any settlement of any claim against
any Indemnified Party made with the Company’s written consent. The Company
shall not, without the prior written consent of H.C. Wainwright, settle or
compromise any claim, or permit a default or consent to the entry of any
judgment in respect thereof, unless such settlement, compromise or consent (i)
includes, as an unconditional term thereof, the giving by the

 9
 

 

claimant to all of the
Indemnified Parties of an unconditional release from all liability in respect
of such claim, and (ii) does not contain any factual or legal admission by or
with respect to an Indemnified Party or an adverse statement with respect to
the character, professionalism, expertise or reputation of any Indemnified
Party or any action or inaction of any Indemnified Party.

In
order to provide for just and equitable contribution, if a claim for
indemnification pursuant to these indemnification provisions is made but it is
found in a final judgment by a court of competent jurisdiction (not subject to
further appeal) that such indemnification may not be enforced in such case,
even though the express provisions hereof provide for indemnification in such
case, then tile Company shall contribute to the Losses to which any Indemnified
Party may be subject (i) in accordance with the relative benefits received by
the Company and its stockholders, subsidiaries and affiliates, on the one hand,
and the Indemnified Party, on the other hand, and (ii) if (and only if) the
allocation provided in clause (i) of this sentence is not permitted by
applicable law, in such proportion as to reflect not only the relative
benefits, but also the relative fault of the Company, on the one hand, and the
Indemnified Party, on the other hand, in connection with the statements, acts
or omissions which resulted in such Losses as well as any relevant equitable
considerations. No person found liable for a fraudulent misrepresentation shall
be entitled to contribution from any person who is not also found liable for
fraudulent misrepresentation. The relative benefits received (or anticipated to
be received) by the Company and it stockholders, subsidiaries and affiliates
shall be deemed to be equal to the aggregate consideration payable or
receivable by such parties in connection with the transaction or transactions
to which the Agreement relates relative to the amount of fees actually received
by H.C. Wainwright in connection with such transaction or transactions.
Notwithstanding the foregoing, in no event shall the amount contributed by all
Indemnified Parties exceed the amount of fees previously received by H.C.
Wainwright pursuant to the Agreement.

Neither
termination nor completion of the Agreement shall affect these Indemnification
Provisions which shall remain operative and in full force and effect. The
Indemnification Provisions shall be binding upon the Company and its successors
and assigns and shall inure to the benefit of the Indemnified Parties and their
respective successors, assigns, heirs and personal representatives.

 10
 

 

Schedule 1

H.C. Wainwright Deal Team

Anthony J. Sarkis – Head
of Investment Banking

John R. Clarke – President, Managing Director, Investment
Banking

Jason A. Stein – Associate,
Investment Banking

Ari J. Fuchs – Sr. Associate, Investment Banking

 11

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