Document:

Exhibit 10.1

    Exhibit
      10.1

     

    
      EXECUTIVE
        EMPLOYMENT AGREEMENT

       

      This
        EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") dated effective as of March
        28,
        2006 (the "Effective Date") is made and entered into by and between Frederick
        Larcombe, an individual (the "Executive") FermaVir Pharmaceuticals, Inc.,
        a
        company incorporated under the laws of the state of Florida (the
        "Company").

      

      WITNESSETH:

      

      The
        Company desires to employ the Executive, and the Executive wishes to accept
        such
        employment with the Company, upon the terms and conditions set forth in this
        Agreement.

      

      In
        consideration of the mutual promises and agreements set forth herein and
        other
        good and valuable consideration, the receipt and sufficiency of which are
        hereby
        acknowledged, the parties hereto, intending to be legally bound, agree
        as
        follows:

      

      1.
        Employment.

      

      The
        Company hereby agrees to employ Executive, and Executive hereby accepts such
        employment and agrees to perform Executive's duties and responsibilities
        in
        accordance with the terms and conditions hereinafter set forth.

      

      1.1
        Duties and Responsibilities.

      

      Executive
        shall serve as Chief Financial Officer of Company. During the Employment
        Term
        (as defined below), Executive shall perform all duties and accept all
        responsibilities incident to such position and other appropriate duties as
        may
        be assigned to Executive by the Chief Executive Officer and Company's Board
        of
        Directors ("Board") from time to time, including service as an officer,
        director, employee or consultant to the Company's subsidiaries, affiliates
        and
        joint ventures. The Company shall retain full direction and control of the
        manner, means and methods by which Executive performs the services for which
        he
        is employed hereunder. The Executive shall typically work one day per week.
        However, it is acknowledged that the exact number of days the Executive will
        work in any given week may vary significantly, but, over an extended period
        of
        time, will average one day per week. Except for vacation, personal or sick
        days,
        or holidays, the Executive shall typically work during Company's normal business
        hours which are 9:00 a.m. to 5:30 p.m daily.

      

      1.2
        Place
        of Business.

      

      Executive
        acknowledges that the Company is headquartered in the Borough of Manhattan
        of
        the City of New York, New York. The Executive will perform his principal
        duties
        and responsibilities in the Company's New York office.

      

      1.3
        Employment Term.

      

      The
        term
        of Executive's employment under this Agreement shall commence as of the
        Effective Date and shall continue for one (1) year, unless earlier terminated
        in
        accordance with Section 4 hereof. The term of Executive's employment shall
        be
        automatically renewed for successive one (1) year periods until the Executive
        or
        the Company delivers to the other party a written notice of their intent
        not to
        renew the "Employment Term," (a "Non-Renewal Notice") such written notice
        to be
        delivered at least sixty (60) days prior to the expiration of the then-effective
        "Employment Term" as that term is defined below. The period commencing as
        of the
        Effective Date and ending one (1) year thereafter or such later date (the
        "Expiration Date") to which the term of Executive's employment under the
        Agreement shall have been extended by mutual written agreement is referred
        to
        herein as the "Employment Term."

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.4
        Extent of Service.

      

      During
        the Employment Term, Executive agrees to use Executive's best efforts to
        carry
        out the duties and responsibilities under Section 1.1 hereof and, subject
        to the
        constraints described in Section 1.1, to devote substantially all Executive's
        business time, attention and energy thereto. Executive further agrees not
        to
        work either on a part-time or independent contracting basis for any other
        business or enterprise during the Employment Term, except as Chief Financial
        Officer for Xenomics, Inc. or Callisto Pharmaceuticals, Inc. on a part-time
        basis, without the prior written consent of the Board, which consent shall
        not
        be unreasonably withheld.

      

      1.5
        Base
        Salary.

      

      The
        Company shall pay Executive a base salary (the "Base Salary") at the annual
        rate
        of $40,000 (U.S.), payable at such times as the Company customarily pays
        its
        other senior level executives (but in any event no less often than monthly).
        The
        Base Salary shall be subject to all state, Federal, and local payroll tax
        withholding and any other withholdings required by law. The Base Salary is
        subject to periodic increases in accordance with Company's policies and/or
        practices for senior level executives, but no less frequently than every
        twelve
        (12) months. 

      

      1.6
        Incentive Compensation.

      

      In
        addition to the Base Salary, Executive shall be eligible to earn a cash bonus
        of
        up to twenty percent (20%) of the Base Salary for the first twelve-month
        period
        during the Employment Term ("Annual Bonus") at the discretion of the Board
        or,
        if the Board organizes a compensation committee, such committee (the
        "Committee"). Within three (3) months after the Effective Date, the Board
        or the
        Committee shall agree upon goals required for Executive to earn the Annual
        Bonus. Executive's bonus, if any, shall be subject to all applicable tax
        and
        payroll withholdings. The amount of the Annual Bonus is not subject to
        decreases, but is subject to periodic increases in accordance with Company's
        policies and/or practices for senior level executives, but no less frequently
        than every twelve (12) months.

      

      1.7
        Options.

      

      
        	
                (a)

              	
                Executive
                  shall be eligible to participate in the Company’s 2005 Equity Compensation
                  Incentive Plan (the "Plan"). The Board of Directors of the Company
                  will
                  make an initial grant of options to the Executive as
                  follows:

              

      

      

      
        	 	
                (i)

              	
                The
                  number of initial option shares granted to Executive is 60,000
                  shares of
                  Company's common stock.

              

      

      

      
        	 	
                (ii)

              	
                The
                  exercise price at which Executive can purchase initial option shares
                  is
                  equal to the closing price of the Company's common stock on the
                  Effective
                  Date.

              

      

      

      
        	 	
                (iii)

              	
                The
                  option is exercisable only to the extent vested in accordance with
                  the
                  schedule set forth in paragraph 1.7(a)(iv), below, and the
                  Plan.

              

      

      

      
        	 	
                (iv)

              	
                Initial
                  option shares granted shall vest in the amount of 5,000 per month
                  beginning on the Effective Date and continuing until the Employment
                  Term.

                 

              

      

      
        	 	
                (v)

              	
                The
                  option shall expire, and be of no further force or effect, on the
                  tenth
                  anniversary of the Effective Date or, earlier in the event of disability,
                  death or other termination of service as set forth in the
                  Plan.

              

      

      

      
        	 	
                (vi)

              	
                In
                  the event the Executive voluntarily terminates his employment with
                  the
                  Company in order to be a full-time employee with Xenomics, Inc.,
                  the
                  exercise period of any vested options shall be automatically extended
                  to
                  the later of the longest period permitted by the Company’s stock option
                  plans or ten years following the Termination
                  Date.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) The
        option agreement will contain a provision that in the event there shall have
        been a Change in Control of the Company while the Executive is an employee
        of
        the Company and the Executive’s employment by the Company thereafter shall have
        been terminated by the Company (the “Termination Date”) or by the Executive for
        Good Reason, within two years of the date upon which the Change in Control
        shall
        have occurred, unless such termination is as a result of (i) the Executive’s
        death; (ii) the Executive’s Disability; (iii) the Executive’s Retirement
        (termination in accordance with the Company’s Retirement Plan applicable
        to its
        employees or in accordance with any other retirement arrangements which have
        been entered into with the Executive) or (iv) the Executive’s termination for
        Cause or Misconduct, all unvested stock options shall immediately and
        irrevocably vest and the exercise period of such options shall be automatically
        extended to the later of the longest period permitted by the Company’s stock
        option plans or ten years following the Termination Date. For purposes of
        the
        option agreement, a “Change in Control” shall be deemed to have occurred if (i)
        there shall be consummated (A) any consolidation or merger of the Company
        in
        which the Company is not the continuing or surviving corporation or pursuant
        to
        which shares of the Company’s Common Stock would be converted into cash,
        securities or other property, other than a merger of the Company in which
        the
        holders of the Company’s Common Stock immediately prior to the merger have
        substantially the same proportionate ownership of common stock of the surviving
        corporation immediately after the merger, or (B) any sale, lease, exchange
        or
        other transfer (in one transaction or a series of related transactions) of
        all
        or substantially all the assets of the Company; or (ii) the stockholders
        of the
        Company shall approve any plan or proposal for the liquidation or dissolution
        of
        the Company, or (iii) any person (as such term is used in Sections 13(d)
        and
        14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other
        than the Company or any employee benefit plan sponsored by the Company, shall
        become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange
        Act) of securities of the Company representing 20% or more of the combined
        voting power of the Company’s then outstanding securities ordinarily (and apart
        from rights accruing in special circumstances) having the right to vote in
        the
        election of directors, as a result of a tender or exchange offer, open market
        purchases, privately negotiated purchases or otherwise, or (iv) at any time
        during a period of two consecutive years, individuals who at the beginning
        of
        such period constituted the Board of Directors of the Company shall cease
        for
        any reason to constitute at least a majority thereof, unless the election
        or the
        nomination for election by the Company’s stockholders of each new director
        during such two-year period was approved by a vote of at least two-thirds
        of the
        directors then still in office who were directors at the beginning of such
        two-year period

      

      1.8
        Other
        Benefits.

      

      During
        the Employment Term, Executive shall be entitled to health care coverage
        (medical, dental, and hospitalization) for Executive and his family consistent
        with the Company’s policy. In addition, Executive shall be entitled to
        participate in all employee benefit plans and programs made available to
        the
        Company's senior level executives as a group or to its employees generally,
        as
        such plans or programs may be in effect from time to time (the "Benefit
        Coverages"), including, without limitation, short-term and long-term disability
        and life insurance plans, accidental death and dismemberment protection and
        travel accident insurance. Executive shall be provided office space and staff
        assistance appropriate for Executive's position and adequate for the performance
        of his duties and responsibilities. Executive shall be indemnified by the
        Company to the fullest extent possible allowed under applicable state laws
        and
        be a named insured under the Company's Directors' and Officers' Liability
        insurance program.

      

      1.9
        Reimbursement of Expenses.

      

      Executive
        shall be provided with reimbursement of expenses related to Executive's
        employment by the Company on a basis no less favorable than that which may
        be
        authorized from time to time by the Board, in its sole discretion, for senior
        level executives as a group.

      

      1.10
        No
        Other Compensation.

      

      Except
        as
        expressly provided in Sections 1.4 through 1.9, and under Section 4 below,
        Executive shall not be entitled to any other compensation or benefits for
        services to the Company in any capacity and for services as an officer,
        director, employee and consultant for Company's subsidiaries, affiliates
        and
        joint ventures.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.
        Confidential Information.

      

      Executive
        recognizes and acknowledges that by reason of Executive's employment by and
        service to the Company before, during and, if applicable, after the Employment
        Term, Executive will have access to certain confidential and proprietary
        information relating to the Company's business, which may include, but is
        not
        limited to, trade secrets, trade "know-how," product development techniques
        and
        plans, formulas, customer lists and addresses, financing services, funding
        programs, cost and pricing information, marketing and sales techniques, strategy
        and programs, computer programs and software and financial information
        (collectively referred to herein as "Confidential Information"). Executive
        acknowledges that such Confidential Information is a valuable and unique
        asset
        of the Company and Executive covenants that he will not, unless expressly
        authorized in writing by the Company, at any time during the course of
        Executive's employment use any Confidential Information or divulge or disclose
        any Confidential Information to any person, firm or corporation except in
        connection with the performance of Executive's duties for and on behalf of
        the
        Company and in a manner consistent with the Company's policies regarding
        Confidential Information. Executive also covenants that at any time after the
        termination of such employment, directly or indirectly, he will not use any
        Confidential Information or divulge or disclose any Confidential Information
        to
        any person, firm or corporation, unless such information is in the public
        domain
        through no fault of Executive or except in connection with any arbitration
        or
        litigation between the Company and the Executive, when required to do so
        by law
        or governmental regulation pursuant to subpoena or by a court of law, by
        any
        governmental agency having supervisory authority over the business of the
        Company or by any administrative or legislative body (including a committee
        thereof) with apparent jurisdiction to order Executive to divulge, disclose
        or
        make accessible such information. All written Confidential Information
        (including, without limitation, in any computer or other electronic format)
        which comes into Executive's possession during the course of Executive's
        employment shall remain the property of the Company. Unless expressly authorized
        in writing by the Company, Executive shall not remove any written Confidential
        Information from the Company's premises, except in connection with the
        performance of Executive's duties for and on behalf of the Company and in
        a
        manner consistent with the Company's policies regarding Confidential
        Information. Upon termination of Executive's employment, the Executive agrees
        to
        immediately return to the Company all written Confidential Information
        (including, without limitation, in any computer or other electronic format)
        in
        Executive's possession.

      

      3.
        Non-Competition; Non-Solicitation.

      

      3.1
        Non-Compete.

      

      The
        Executive hereby covenants and agrees that during the term of this Agreement
        and, in the event of (a) Voluntary Termination (as defined below), or (b)
        termination by Company for Cause (as defined below) or Misconduct (as defined
        below), or (c) the expiration of the Employment Term as a result of Executive
        giving Company a Non-Renewal Notice for a period of one year following the
        end
        of the Employment Term, the Executive will not, without the prior written
        consent of the Company, directly or indirectly, on his own behalf or in the
        service or on behalf of others, whether or not for compensation, engage in
        any
        business activity, or have any interest in any person, firm, corporation
        or
        business, through a subsidiary or parent entity or other entity (whether
        as a
        shareholder, agent, joint venturer, security holder, trustee, partner,
        consultant, creditor lending credit or money for the purpose of establishing
        or
        operating any such business, partner or otherwise) with any Competing Business
        in the Covered Area.

      

      For
        the
        purpose of this Section 3.1, (i) "Competing Business" means any medical or
        health care company, any contract manufacturer, any research laboratory or
        other
        company or entity (whether or not organized for profit) has, or is seeking
        to
        develop, one or more products or therapies that is related to the treatment
        of
        viral diseases). "Covered Area" means all geographical areas of the United
        States, United Kingdom and other foreign jurisdictions where Company then
        has
        offices and/or sells its products directly or indirectly through distributors
        and/or other sales agents. Notwithstanding the foregoing, the Executive may
        own
        shares of companies whose securities are publicly traded, so long as ownership
        of such securities do not constitute more than one percent (1%) of the
        outstanding securities of any such company.

      

      3.2
        Non-Solicitation.

      

      The
        Executive further agrees that as long as the Agreement remains in effect
        and, in
        the event of (a) Voluntary Termination, or (b) termination by Company for
        Cause,
        Misconduct or as a result of a Non-Renewal Notice given by the Company or
        Executive for a period of one (1) year from its termination, the Executive
        will
        not divert any business of the Company and/or its affiliates or any customers
        or
        suppliers of the Company and/or the Company's and/or its affiliates' business
        to
        any other person, entity or competitor, or induce or attempt to induce, directly
        or indirectly, any person to leave his or her employment with the Company
        and/or
        its affiliates.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.3
        Remedies.

      

      The
        Executive acknowledges and agrees that his obligations provided herein are
        necessary and reasonable in order to protect the Company and its affiliates
        and
        their respective business and the Executive expressly agrees that monetary
        damages would be inadequate to compensate the Company and/or its affiliates
        for
        any breach by the Executive of his covenants and agreements set forth herein.
        Accordingly, the Executive agrees and acknowledges that any such violation
        or
        threatened violation of this Section 3 will cause irreparable injury to the
        Company and that, in addition to any other remedies that may be available,
        in
        law, in equity or otherwise, the Company and its affiliates shall be entitled
        to
        obtain injunctive relief against the threatened breach of this Section 3
        or the
        continuation of any such breach by the Executive without the necessity of
        proving actual damages.

      

      4.
        Termination.

      

      4.1
        By
        Company.

      

      The
        Company, acting by duly adopted resolutions of the Board, may, in its discretion
        and at its option, terminate the Executive's employment with or without Cause
        or
        Misconduct, and without prejudice to any other right or remedy to which the
        Company or Executive may be entitled at law or in equity or under this
        Agreement. In the event the Company desires to terminate the Executive's
        employment without Cause or Misconduct, the duly adopted resolutions of the
        Board and the Company shall give the Executive not less than sixty (60) days
        advance written notice of such termination. Termination of Executive's
        employment hereunder shall be deemed to be "for Cause" in the event that
        Executive violates his duties under any provisions of this Agreement after
        there
        has been delivered to Executive a written demand for performance from the
        Company which describes the basis for the Company's belief that Executive
        has
        not substantially performed his duties. Termination of Executive's employment
        hereunder shall be deemed to be "for Misconduct", if Executive is found to
        be in
        material breach of the provisions of Sections 2 or 3 of this Agreement, is
        guilty of any felony or an act of fraud or embezzlement, is guilty of willful
        misconduct or gross neglect, misappropriation, concealment or conversion
        of any
        money or property of the Company, or reckless conduct which endangers the
        safety
        of other persons or property during the course of employment or while on
        premises leased or owned by the Company.

      

      4.2
        Good
        Reason.

      

      For
        purposes of this Agreement "Good Reason" shall mean any of the following
        events
        unless it occurs with the Executive’s express prior written
        consent:

      

      
        	
                (i)

              	
                The
                  assignment to Executive of any duties or the significant reduction
                  of
                  Executive's duties, either of which is materially inconsistent
                  with
                  Executive's position with the Company and responsibilities in effect
                  immediately prior to such assignment, or the removal of Executive
                  from
                  such position and responsibilities;

              

      

      

      
        	
                (ii)

              	
                A
                  material reduction by the Company in the compensation of Executive,
                  without the Executive's written consent, as in effect immediately
                  prior to
                  such reduction;

              

      

      

      
        	
                (iii)

              	
                A
                  material reduction by the Company in the kind or level of benefits
                  to
                  which Executive is entitled immediately prior to such reduction
                  with the
                  result that Executive's overall benefits package is significantly
                  reduced;
                  

              

      

      

      
        	
                (iv)

              	
                Change
                  where the Executive is expected to perform his principal duties
                  as defined
                  in Section 1.2 to a location more than fifty-five (55) miles from
                  or
                  beyond a normal commutation from the Executive's present
                  residence.

              

      

      

      
        	
                (v)

              	
                Any
                  termination of Executive by the Company which is not effected for
                  Misconduct, Cause or as a result of a Non Renewal Notice given
                  by the
                  Company or Executive, or any purported termination for Misconduct
                  or Cause
                  for which the grounds relied upon are determined by a court of
                  competent
                  jurisdiction not to be valid, unless Executive, following such
                  purported
                  termination, receives all compensation, including vesting of all
                  unvested
                  stock options and restricted stock within five business days of
                  such
                  determination;

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
                (vi)

              	
                Company's
                  violation of any material provision of this agreement, unless the
                  grounds
                  relied upon are determined by a court of competent jurisdiction
                  not to be
                  valid.

              

      

      

      The
        Executive may terminate his or her employment for Good Reason during the
        term of
        this Agreement and become entitled to the compensation provided in Section
        4.5(c). Termination by the Executive pursuant to this Section shall be
        communicated in writing to the Company and the Company's Board of Directors
        specifying the facts and circumstances serving as the basis for such
        termination.

      

      4.3
        By
        Executive's Death or Disability.

      

      This
        Agreement shall also be terminated upon the Executive's death and/or a finding
        of permanent physical or mental disability, such disability expected to result
        in death or to be of a continuous duration of no less than three (3) months,
        and
        the Executive is unable to perform his usual and essential duties for the
        Company.

      

      4.4
        Voluntary Termination.

      

      Executive
        may voluntarily terminate the Employment Term upon sixty (60) days' prior
        written notice for any reason; provided, however, that no further payments
        shall
        be due under this Agreement in that event except that Executive shall be
        entitled to any benefits due under any compensation or benefit plan provided
        by
        the Company for executives or otherwise outside of this Agreement.

      

      4.5
        Compensation on Termination.

      

      (a)
        Cause
        or Misconduct.

      

      In
        the
        event the Company terminates Executive for Cause or Misconduct, Executive
        shall
        not be entitled to any compensation other than Base Salary accrued through
        the
        date of termination. Such termination shall also immediately cease the vesting
        of all outstanding unvested options and restricted stock held on the date
        of
        termination and all such unvested options shall thereupon expire.

      

      (b)
        Voluntary Termination.

      

      In
        the
        event Executive resigns from the Company voluntarily, Executive shall not
        be
        entitled to any compensation other than Base Salary accrued through the
        effective date of his resignation.

      

      (c)
        Good
        Reason.

      

      In
        the
        event Executive’s employment is terminated by the Executive pursuant to Section
        4.2, the Company shall pay to Executive within fifteen (15) days after such
        termination:

      

      
        	 	
                (i)

              	
                Accrued
                  Base Salary as of the date of
                  termination;

              

      

      

      
        	 	
                (ii)

              	
                Reimbursement
                  of business related expenses;

              

      

      

      
        	 	
                (iii)

              	
                Executive's
                  Base Salary for ninety (90) calendar days from the date of termination;
                  and

              

      

      

      
        	 	
                (iv)

              	
                A
                  pro rata portion of any Annual Bonus to which Executive would otherwise
                  be
                  entitled for the year of
                  termination.

              

      

      

      
        	 	
                (v)

              	
                For
                  a period of three (3) months after termination, the Company shall
                  continue
                  to make available to Executive and to pay, consistent with the
                  Company’s
                  policy, for all health, dental, vision, life, dependent life, long-term
                  disability, accidental death and dismemberment and other similar
                  insurance
                  plans existing on the date of Executive's
                  termination

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d)
        Death
        or Disability.

      

      In
        the
        event of termination by reason of Executive's death and/or permanent disability,
        Executive or his executors, legal representatives or administrators, as
        applicable, shall be entitled to an amount equal to Executive's Base Salary
        accrued through the date of termination, plus a pro rata share of any annual
        bonus to which Executive would otherwise be entitled for the year during
        which
        death or permanent disability occurs.

      

      5.
        General Provisions.

      

      5.1
        Modification; No Waiver.

      

      No
        modification, amendment or discharge of this Agreement shall be valid unless
        the
        same is in writing and signed by all parties hereto. Failure of any party
        at any
        time to enforce any provisions of this Agreement or any rights or to exercise
        any elections shall in no way be considered to be a waiver of such provisions,
        rights or elections and shall in no way affect the validity of this Agreement.
        The exercise by any party of any of its rights or any of its elections under
        this Agreement shall not preclude or prejudice such party from exercising
        the
        same or any other right it may have under this Agreement irrespective of
        any
        previous action taken.

      

      5.2
        Notices.

      

      All
        notices and other communications required or permitted hereunder or necessary
        or
        convenient in connection herewith shall be in writing and shall be deemed
        to
        have been given when hand delivered or mailed by registered or certified
        mail as
        follows (provided that notice of change of address shall be deemed given
        only
        when received):

       

      
        
          	
                  If
                    to the Company, to:

                	
                  FermaVir
                    Pharmaceuticals, Inc.

                
	 	
                  420
                    Lexington Avenue - Suite 445

                
	 	
                  New
                    York, NY 10170

                
	 	
                  Attention:
                    Chief Executive Officer

                
	 	 
	
                  With
                    a required copy to:

                	
                  Jeffrey
                    Fessler

                
	 	
                  Sichenzia
                    Ross Friedman Ference LLP

                
	 	
                  1065
                    Avenue of the Americas

                
	 	
                  New
                    York, NY 10018

                
	 	 
	
                  If
                    to Executive, to:

                	
                  Frederick
                    Larcombe

                
	 	
                  107
                    Mill Pond Road

                
	 	
                  Belle
                    Mead, NJ 08502

                
	 	 
	
                  With
                    a required copy to:

                	
                  Russell
                    Berman

                
	 	
                  Kronish
                    Lieb Weiner & Hellman LLP

                
	 	
                  1114
                    Avenue of the Americas - 46th Floor

                
	 	
                  New
                    York, NY 10036-7798

                

        

      

      

      Or
        to
        such other names or addresses as the Company or Executive, as the case may
        be,
        shall designate by notice to each other person entitled to receive notices
        in
        the manner specified in this Section.

      

      5.3
        Governing Law.

      

      This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.4
        Further Assurances.

      

      Each
        party to this Agreement shall execute all instruments and documents and take
        all
        actions as may be reasonably required to effectuate this Agreement.

      

      5.5
        Severability.

      

      Should
        any one or more of the provisions of this Agreement or of any agreement entered
        into pursuant to this Agreement be determined to be illegal or unenforceable,
        then such illegal or unenforceable provision shall be modified by the proper
        court or arbitrator to the extent necessary and possible to make such provision
        enforceable, and such modified provision and all other provisions of this
        Agreement and of each other agreement entered into pursuant to this Agreement
        shall be given effect separately from the provisions or portion thereof
        determined to be illegal or unenforceable and shall not be affected
        thereby.

      

      5.6
        Successors and Assigns.

      

      Executive
        may not assign this Agreement without the prior written consent of the Company.
        The Company may assign its rights without the written consent of Executive,
        so
        long as the Company or its assignee complies with the other material terms
        of
        this Agreement. The rights and obligations of the Company under this Agreement
        shall inure to the benefit of and be binding upon the successors and permitted
        assigns of the Company, and the Executive's rights under this Agreement shall
        inure to the benefit of and be binding upon his heirs and executors. The
        Company's subsidiaries and controlled affiliates shall be express third party
        beneficiaries of this Agreement.

      

      5.7
        Entire Agreement.

      

      This
        Agreement supersedes all prior agreements and understandings between the
        parties, oral or written. No modification, termination or attempted waiver
        shall
        be valid unless in writing, signed by the party against whom such modification,
        termination or waiver is sought to be enforced.

      

      5.8
        Counterparts; Facsimile.

      

      This
        Agreement may be executed in one or more counterparts, each of which shall
        for
        all purposes be deemed to be an original, and all of which taken together
        shall
        constitute one and the same instrument. This Agreement may be executed by
        facsimile with original signatures to follow.

      

      IN
        WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed
        this Agreement as of the date first written above.

       

      

        
          	
                  "COMPANY:"

                	
                  FermaVir
                    Pharmaceuticals, Inc.

                	 
	 	 	 
	 	 	 
	 	
                  /s/
                    Geoffrey W. Henson

                	 
	 	
                  Name: 
                    Geoffrey
                    W. Henson

                	
                   

                
	 	
                  Title:   
                    Chief
                    Executive Officer

                	
                   

                
	 	 	 
	 	 	 
	
                  "EXECUTIVE:"

                	 	 
	 	
                  /s/
                    Frederick Larcombe

                	 
	 	
                  Frederick
                    LarcombeExhibit 10.2

    Exhibit
      10.2

     

    

      FERMAVIR
        PHARMACEUTICALS, INC.

      REPURCHASE
        OPTION AGREEMENT

      

      THIS
        AGREEMENT is made as of March 16, 2006
        between FermaVir Pharmaceuticals, Inc., a Florida corporation (the “Company”),
        and Chris McGuigan (the “Shareholder”).

      

      WHEREAS
        the Shareholder was a founder of FermaVir Research, Inc. a Delaware corporation,
        which the Company acquired in August 2005 (“FermaVir Research”);
        and

      

      WHEREAS
        the Shareholder acquired 1,029,000 shares of the Company’s common stock, $.0001
        par value (the “Shares”) in exchange for shares he had purchased from FermaVir
        Research; and

      

      WHEREAS,
        assuming the Shareholder’s active participation in the research and development
        conducted by Fermavir Research is critical to the Company’s ability to raise
        capital and fund the development of the “Licensed Subject Matter,” as defined in
        that Patent and Technology License Agreement dated February 2, 2005 between
        University College Cardiff Consultants Limited and FermaVir Research (formerly
        named Contravir Research, Inc.).

      

      THEREFORE,
        the parties agree as follows:

      

      1. Consideration.
        In
        consideration of the option granted to the Company, the Company will enter
        into
        a technology acquisition agreement with the Shareholder and certain other
        option
        holders, in the form annexed hereto as Exhibit A (the “Technology Acquisition
        Agreement”).

      

      2. Repurchase
        Option.

      

      (a) The
        Shareholder hereby grants to the Company an irrevocable, exclusive option
        for a
        period of one hundred twenty (120) days (the “Option Period”) from the “Trigger
        Event” (defined below) to repurchase up to 926,100 of the Shares which have not
        been released pursuant to Section 3 herein (the “Unreleased Shares”) for the
        aggregate price of $114,000,000 (the “Repurchase Price”). For the purposes of
        this Agreement, the “Trigger Event” shall mean the earlier of the Company’s
        abandonment of the development of the Licensed Subject Matter or December
        31,
        2006, unless on or before such date, Phase I Clinical Trials (defined as
        first
        dosing in humans) have commenced for a product utilizing the Licensed Subject
        Matter (as reasonably determined by the Company, provided such determination
        will not be necessary if, following receipt of all requisite regulation
        approvals, human patients have been administered a product incorporating
        the
        Licensed Subject Matter). Said option shall be exercised by the Company by
        delivering written notice to the Shareholder or the Shareholder’s executor (with
        a copy to the Escrow Holder (as defined in Section 6)) AND, at the Company’s
        option, (i) by delivering to the Shareholder or the Shareholder’s executor a
        check in the amount of the aggregate Repurchase Price, or (ii) by the Company
        canceling an amount of the Shareholder’s indebtedness to the Company, if any,
        equal to the aggregate Repurchase Price, or (iii) by a combination of (i)
        and
        (ii) so that the combined payment and cancellation of indebtedness equals
        such
        aggregate Repurchase Price. Upon delivery of such notice and the payment
        of the
        aggregate Repurchase Price in any of the ways described above, the Company
        shall
        become the legal and beneficial owner of the Shares being repurchased and
        all
        rights and interests therein or relating thereto, and the Company shall have
        the
        right to retain and transfer to its own name the number of Shares being
        repurchased by the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (b) Whenever
        the Company shall have the right to repurchase Shares hereunder, the Company
        may
        designate and assign one or more employees, officers, directors of the Company
        or other persons or organizations to exercise all or a part of the Company’s
        purchase rights under this Agreement and purchase all or a part of such Shares.
        

      

      3. Release
        of Shares From Repurchase Option.

      

      (a) The
        Shares shall be released from the Company’s repurchase option upon the
        commencement of Phase I clinical trials of a product incorporating the Licensed
        Subject Matter. 

      

      (b) In
        the
        event a Trigger Event has occurred and the Company has not abandoned the
        development of the Licensed Subject Matter, the Shares shall be released
        from
        the Company’s repurchase option upon the commencement of Phase I clinical trials
        of a product incorporating the Licensed Subject Matter. 

      

      (c) In
        the
        event of a “Change of Control” of the Company prior to a Trigger Event, all of
        the Shares shall be released from the Company’s repurchase option. For this
        purpose, a “Change of Control” is defined as:

      

      
        	 	
                (i)
                  

              	
                Any
                  “person,” as such term is used in Sections 13(d) and 14(d) of the
                  Securities Exchange Act of 1934, as amended (other than a group
                  consisting
                  of the Company’s shareholders as of the date of the Closing and their
                  Parents and Subsidiaries) becomes the “beneficial owner” (as defined in
                  Rule 13d-3 under said Act), directly or indirectly, of securities
                  of the
                  Company representing 75% or more of the total voting power represented
                  by
                  the Company’s then outstanding voting securities;
                  or

              

      

      

      
        	 	
                (ii)
                  

              	
                The
                  consummation of a merger, consolidation, reorganization, sale of
                  stock or
                  similar transaction in which the shareholders of the Company before
                  such
                  transaction (and their Parents and Subsidiaries) own less than
                  50% of the
                  voting stock or voting power of the surviving entity immediately
                  after
                  such transaction; or

              

      

      

      
        	 	
                (iii)
                  

              	
                The
                  consummation of the sale or disposition of all or substantially
                  all of the
                  Company’s assets.

              

      

      

      (d) The
        Shares which have been released from the Company’s repurchase option shall be
        delivered to the Shareholder at the Shareholder’s request (see Section
        5).

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      4.
         Restriction
        on Transfer.
        Except
        for the escrow described in Section 5 or transfer of the Shares to the Company
        or its assignees contemplated by this Agreement, none of the Shares or any
        beneficial interest therein shall be transferred, encumbered or otherwise
        disposed of in any way until the release of such Shares from the Company’s
        repurchase option in accordance with the provisions of this Agreement, other
        than by will or the laws of descent and distribution.

      

      5.
         Escrow
        of Shares.

      

      (a) To
        ensure
        the availability for delivery of the Shareholder’s Unreleased Shares upon
        repurchase by the Company pursuant to the Company’s repurchase option under
        Section 2 above, the Shareholder shall, upon execution of this Agreement,
        deliver and deposit with an escrow holder designated by the Company (the
“Escrow
        Holder”) the share certificates representing the Unreleased Shares, together
        with the stock assignment duly endorsed in blank, attached hereto as Exhibit
        B-1. The Unreleased Shares and stock assignment shall be held by the Escrow
        Holder, pursuant to the Joint Escrow Instructions of the Company and Shareholder
        attached as Exhibit B-2 hereto, until such time as the Company’s repurchase
        option expires. As a further condition to the Company’s obligations under this
        Agreement, the spouse of Shareholder, if any, shall execute and deliver to
        the
        Company the Consent of Spouse attached hereto as Exhibit B-3.

      

      (b) The
        Escrow Holder shall not be liable for any act it may do or omit to do with
        respect to holding the Unreleased Shares in escrow and while acting in good
        faith and in the exercise of its judgment.

      

      (c) If
        the
        Company or any assignee exercises its repurchase option hereunder, the Escrow
        Holder, upon receipt of written notice of such option exercise from the proposed
        transferee, shall take all steps necessary to accomplish such
        transfer.

      

      (d) When
        the
        repurchase option has been exercised or expires unexercised or a portion
        of the
        Shares has been released from such repurchase option, upon Shareholder’s request
        the Escrow Holder shall promptly cause a new certificate to be issued for
        such
        released Shares and shall deliver such certificate to the Company or the
        Shareholder, as the case may be.

      

      (e) Subject
        to the terms hereof, the Shareholder shall have all the rights of a shareholder
        with respect to such Shares while they are held in escrow, including without
        limitation, the right to vote the Shares and receive any cash dividends declared
        thereon. If, from time to time during the term of the Company’s repurchase
        option, there is (i) any stock dividend, stock split or other change in the
        Shares, or (ii) any merger or sale of all or substantially all of the assets
        or
        other acquisition of the Company, any and all new, substituted or additional
        securities to which the Shareholder is entitled by reason of the Shareholder’s
        ownership of the Shares shall be immediately subject to this escrow, deposited
        with the Escrow Holder and included thereafter as “Shares” for purposes of this
        Agreement and the Company’s repurchase option.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      6.
         Legends.

      

      (a) Shareholder
        understands and agrees that the Company shall cause the legends set forth
        below
        or legends substantially equivalent thereto, to be placed upon any
        certificate(s) evidencing ownership of the Shares together with any other
        legends that may be required by the Company or by applicable state or federal
        securities laws:

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
        PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN
        THE
        OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER,
        SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH, THE
        SHARES
        REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER,
        INCLUDING A REPURCHASE OPTION HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET
        FORTH
        IN THE RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL
        HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL
        OFFICE
        OF THE ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL AND REPURCHASE
        OPTION ARE BINDING ON TRANSFEREES OF THESE SHARES.

      

      (b) Stop-Transfer
        Notices.
        Shareholder agrees that, in order to ensure compliance with the restrictions
        referred to herein, the Company may issue appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company transfers
        its own securities, it may make appropriate notations to the same effect
        in its
        own records.

      

      (c) Refusal
        to Transfer.
        The
        Company shall not be required (i) to transfer on its books any Shares that
        have
        been sold or otherwise transferred in violation of any of the provisions
        of this
        Agreement or (ii) to treat as owner of such Shares or to accord the right
        to
        vote or pay dividends to any purchaser or other transferee to whom such Shares
        shall have been so transferred.

      

      7.
         Adjustment
        for Stock Split.
        All
        references to the number of Shares and the purchase price of the Shares in
        this
        Agreement shall be appropriately adjusted to reflect any stock split, stock
        dividend or other change in the Shares which may be made by the Company after
        the date of this Agreement.

      

      8.
         General
        Provisions.

      

      (a) This
        Agreement shall be governed by the laws of the State of New York. This
        Agreement, including the Exhibits hereto, represent the entire agreement
        between
        the parties with respect to the Company’s option to purchase the
        Shares.

      

      (b) Any
        notice, demand or request required or permitted to be given by either the
        Company or the Shareholder pursuant to the terms of this Agreement shall
        be in
        writing and shall be deemed given when delivered personally or deposited
        in the
        U.S. mail, First Class with postage prepaid, and addressed to the parties
        at the
        addresses of the parties set forth at the end of this Agreement or such other
        address as a party may request by notifying the other in writing.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (c) The
        rights and benefits of the Company under this Agreement shall be transferable
        to
        any one or more persons or entities, and all covenants and agreements hereunder
        shall inure to the benefit of, and be enforceable by the Company’s successors
        and assigns. The rights and obligations of the Shareholder under this Agreement
        may only be assigned with the prior written consent of the Company.

      

      (d) Either
        party’s failure to enforce any provision or provisions of this Agreement shall
        not in any way be construed as a waiver of any such provision or provisions,
        nor
        prevent that party from thereafter enforcing each and every other provision
        of
        this Agreement. The rights granted both parties herein are cumulative and
        shall
        not constitute a waiver of either party’s right to assert all other legal
        remedies available to it under the circumstances.

      

      (e) The
        Shareholder agrees upon request to execute any further documents or instruments
        necessary or desirable to carry out the purposes or intent of this
        Agreement.

      

      (f) SHAREHOLDER
        ACKNOWLEDGES AND AGREES THAT THE RELEASE OF SHARES FROM THE REPURCHASE OPTION
        OF
        THE COMPANY PURSUANT TO SECTION 3 HEREOF IS EARNED ONLY BY COMMENCEMENT OF
        PHASE
        I CLINICAL TRIALS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT THIS
        AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE
        SET
        FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
        ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD,
        OR AT
        ALL, AND SHALL NOT INTERFERE WITH PURCHASER’S RIGHT OR THE COMPANY’S RIGHT TO
        TERMINATE PURCHASER’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
        WITHOUT CAUSE.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      By
        Shareholder’s signature below, Shareholder represents that he is familiar with
        the terms and provisions of this Agreement and hereby accepts this Agreement
        subject to all of the terms and provisions thereof Shareholder has reviewed
        this
        Agreement in their entirety, has had an opportunity to obtain the advice
        of
        counsel prior to executing this Agreement and fully understands all provisions
        of this Agreement. Shareholder agrees to accept as binding, conclusive and
        final
        all decisions or interpretations of the Administrator upon any questions
        arising
        under this Agreement. Shareholder further agrees to notify the Company upon
        any
        change in the residence indicated in the Notice of Grant.

       

      
        	SHAREHOLDER	 	FERMAVIR PHARMACEUTICALS,
                INC.
	 	 	 
	/s/ Chris McGuigan	
              	 	/s/
                Geoffrey W. Henson	
              
	Signature	 	Signature
	 	 	 
	Chris McGuigan	
              	 	Geoffrey
                W. Henson	
              
	Printed Name	 	Printed Name
	 	 	President and CEO	
              
	 	 	Title

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      EXHIBIT
        A

      

      TECHNOLOGY
        ACQUISITION AGREEMENT

       

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-1

      

      ASSIGNMENT
        SEPARATE FROM CERTIFICATE

       

      

      FOR
        VALUE
        RECEIVED I, Chris
        McGuigan,
        hereby
        sell, assign and transfer unto _______________ (
        )
        shares of the Common Stock of FermaVir Pharmaceuticals, Inc. standing in
        my name
        of the books of said corporation represented by Certificate No.
        ___________ herewith
        and do hereby irrevocably constitute and appoint _________________________
        to
        transfer the said stock on the books of the within named corporation with
        full
        power of substitution in the premises.

      

      This
        Stock Assignment may be used only in accordance with the Restricted Stock
        Option
        Agreement between said corporation and the undersigned dated _________________,
        2006.

      

      

      Dated:________________,
        20__

      

      

      Signature: __________________

      

      

      INSTRUCTIONS:
        Please
        do not fill in any blanks other than the signature line. The purpose of this
        assignment is to enable the Company to exercise its “repurchase option,” as set
        forth in the Agreement, without requiring additional signatures on the part
        of
        the Shareholder.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-3

      

      JOINT
        ESCROW INSTRUCTIONS

      

       

      ____________________,
        2006

      

      FERMAVIR
        PHARMACEUTICALS, INC.

      

      

      
        	
                Attn:

              	
                Secretary

              

      

      

      Dear____________:

      

      As
        Escrow
        Agent for both FermaVir Pharmaceuticals, Inc., a Florida corporation (the
        “Company”), and the undersigned purchaser of stock of the Company (the
“Shareholder”), you are hereby authorized and directed to hold the documents
        delivered to you pursuant to the terms of that certain Restricted Stock Purchase
        Agreement (“Agreement”) between the Company and the undersigned, in accordance
        with the following instructions:

      

      1.
         In
        the
        event the Company and/or any assignee of the Company (referred to collectively
        for convenience herein as the “Company”) exercises the Company’s repurchase
        option set forth in the Agreement, the Company shall give to Shareholder
        and you
        a written notice specifying the number of shares of stock to be purchased,
        the
        purchase price, and the time for a closing hereunder at the principal office
        of
        the Company. Shareholder and the Company hereby irrevocably authorize and
        direct
        you to close the transaction contemplated by such notice in accordance with
        the
        terms of said notice.

      

      2.
         At
        the
        closing, you are directed (a) to date the stock assignments necessary for
        the
        transfer in question, (b) to fill in the number of shares being transferred,
        and
        (c) to deliver same, together with the certificate evidencing the shares
        of
        stock to be transferred, to the Company or its assignee, against the
        simultaneous delivery to you of the purchase price (by cash, a check, or
        some
        combination thereof) for the number of shares of stock being purchased pursuant
        to the exercise of the Company’s repurchase option.

      

      3.
         Shareholder
        irrevocably authorizes the Company to deposit with you any certificates
        evidencing shares of stock to be held by you hereunder and any additions
        and
        substitutions to said shares as defined in the Agreement Shareholder does
        hereby
        irrevocably constitute and appoint you as Shareholder’s attorney-in-fact and
        agent for the term of this escrow to execute with respect to such securities
        all
        documents necessary or appropriate to make such securities negotiable and
        to
        complete any transaction herein contemplated, including but not limited to
        the
        filing with any applicable state blue sky authority of any required applications
        for consent to, or notice of transfer of; the securities. Subject to the
        provisions of this paragraph 3, Shareholder shall exercise all rights and
        privileges of the Company while the stock is held by you.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.
         Upon
        written request of the Shareholder, but no more than once per calendar year,
        unless the Company’s repurchase option has been exercised, you will deliver to
        Shareholder a certificate or certificates representing so many shares of
        stock
        as are not then subject to the Company’s repurchase option. Within one hundred
        twenty (120) days after cessation of Shareholder’s continuous employment by or
        services to the Company, or any parent or subsidiary of the Company, you
        will
        deliver to Shareholder a certificate or certificates representing the aggregate
        number of shares held or issued pursuant to the Agreement and not purchased
        by
        the Company or its assignees pursuant to exercise of the Company’s repurchase
        option.

      

      5.
         If
        at the
        time of termination of this escrow you should have in your possession any
        documents, securities, or other property belonging to Shareholder, you shall
        deliver all of the same to Shareholder and shall be discharged of all further
        obligations hereunder.

      

      6.
         Your
        duties hereunder may be altered, amended, modified or revoked only by a writing
        signed by all of the parties hereto.

      

      7.
         You
        shall
        be obligated only for the performance of such duties as are specifically
        set
        forth herein and may rely and shall be protected in relying or refraining
        from
        acting on any instrument reasonably believed by you to be genuine and to
        have
        been signed or presented by the proper party or parties. You shall not be
        personally liable for any act you may do or omit to do hereunder as Escrow
        Agent
        or as attorney-in-fact for Shareholder while acting in good faith, and any
        act
        done or omitted by you pursuant to the advice of your own attorneys shall
        be
        conclusive evidence of such good faith.

      

      8.
         You
        are
        hereby expressly authorized to disregard any and all warnings given by any
        of
        the parties hereto or by any other person or corporation, excepting only
        orders
        or process of courts of law and are hereby expressly authorized to comply
        with
        and obey orders, judgments or decrees of any court. In case you obey or comply
        with any such order, judgment or decree, you shall not be liable to any of
        the
        parties hereto or to any other person, firm or corporation by reason of such
        compliance, notwithstanding any such order, judgment or decree being
        subsequently reversed, modified, annulled, set aside, vacated or found to
        have
        been entered without jurisdiction.

      

      9.
         You
        shall
        not be liable in any respect on account of the identity, authorities or rights
        of the parties executing or delivering or purporting to execute or deliver
        the
        Agreement or any documents or papers deposited or called for
        hereunder.

      

      10.
         You
        shall
        not be liable for the outlawing of any rights under the Statute of Limitations
        with respect to these Joint Escrow Instructions or any documents deposited
        with
        you.

      

      11.
         You
        shall
        be entitled to employ such legal counsel and other experts as you may deem
        necessary properly to advise you in connection with your obligations hereunder,
        may rely upon the advice of such counsel, and may pay such counsel reasonable
        compensation therefor.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      12.
         Your
        responsibilities as Escrow Agent hereunder shall terminate if you shall cease
        to
        be an officer or agent of the Company or if you shall resign by written notice
        to each party. In the event of any such termination, the Company shall appoint
        a
        successor Escrow Agent.

      

      13.
         If
        you
        reasonably require other or further instruments in connection with these
        Joint
        Escrow Instructions or obligations in respect hereto, the necessary parties
        hereto shall join in furnishing such instruments.

      

      14.
         It
        is
        understood and agreed that should any dispute arise with respect to the delivery
        and/or ownership or right of possession of the securities held by you hereunder,
        you are authorized and directed to retain in your possession without liability
        to anyone all or any part of said securities until such disputes shall have
        been
        settled either by mutual written agreement of the parties concerned or by
        a
        final order, decree or judgment of a court of competent jurisdiction after
        the
        time for appeal has expired and no appeal has been perfected, but you shall
        be
        under no duty whatsoever to institute or defend any such
        proceedings.

      

      15.
         Any
        notice required or permitted hereunder shall be given in writing and shall
        be
        deemed effectively given upon personal delivery or upon deposit in the United
        States Post Office, by registered or certified mail with postage and fees
        prepaid, addressed to each of the other parties thereunto entitled at the
        following addresses or at such other addresses as a party may designate by
        ten
        (10) days’ advance written notice to each of the other parties
        hereto.

      

      
        	COMPANY:	 	FERMAVIR PHARMACEUTICALS, INC.
	 	 	 
	PURCHASER:	 	CHRIS MCGUIGAN
	 	 	 
	ESCROW AGENT:	 	___________________________

      

       

      16.
        By
        signing these Joint Escrow Instructions, you become a party hereto only for
        the
        purpose of said Joint Escrow Instructions; you do not become a party to the
        Agreement.

      

      17.
        This
        instrument shall be binding upon and inure to the benefit of the parties
        hereto,
        and their respective successors and permitted assigns.

      

      18.
        These
        Joint Escrow Instructions shall be governed by, and construed and enforced
        in
        accordance with, the laws of the State of New York.

      

      Very
        truly yours,

      

      FERMAVIR
        PHARMACEUTICALS, INC.

       

      
        	By: 	
                ____________________________

              

        	 	 

        	
                Title:

              	
                ____________________________

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SHAREHOLDER:

       

      _________________________________________

      (Signature)

      

      Chris
        McGuigan                                                                     

      (Typed
        or
        Printed Name)

      

      ESCROW
        AGENT:

       

      _________________________________________

      Corporate
        Secretary or Assistant Corporate Secretary

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-3

      

      CONSENT
        OF SPOUSE

      

      I, spouse
        of__________________________ have read and approve the foregoing Agreement.
        In
        consideration of granting of the right to my spouse to purchase shares of
        FermaVir Pharmaceuticals, Inc., as set forth in the Agreement, I hereby appoint
        my spouse as my attorney-in-fact in respect to the exercise of any rights
        under
        the Agreement and agree to be bound by the provisions of the Agreement insofar
        as I may have any rights in said Agreement or any shares issued pursuant
        thereto
        under the community property laws or similar laws relating to marital property
        in effect in the state of our residence as of the date of the signing of
        the
        foregoing Agreement.

       

      
 

      
        	Dated:________________,2006 	 	Signed:
                ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]