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Unassociated Document

     

     

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

    

    COMMON
      STOCK PURCHASE WARRANT

    

    To
      Purchase 200,000 Shares of Common Stock of

     

    GENEREX
      BIOTECHNOLOGY CORPORATION

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, =
      (the
“Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the 181st
      day
      after the date hereof (the “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth (5th)
      anniversary of the Initial Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Generex Biotechnology
      Corporation, a Delaware corporation (the “Company”),
      up to
      200,000 shares (the “Warrant
      Shares”)
      of
      Common Stock, par value $0.001 per share, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant shall be equal
      to
      the Exercise Price, as defined in Section 2(b). 

     

    Section
      1.     Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      November 10, 2004, as amended, among the Company and the purchasers signatory
      thereto.

     

    Section
      2.     Exercise.

     

    a)  Exercise
      of Warrant.
      Subject
      to the terms hereof, exercise of the purchase rights represented by this Warrant
      may be made at any time or times on or after the Initial Exercise Date and
      on or
      before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); provided,
      however,
      within
      5 Trading Days of the date said Notice of Exercise is delivered to the Company,
      the Holder shall have surrendered this Warrant to the Company and the Company
      shall have received payment of the aggregate Exercise Price of the shares
      thereby purchased in cash or by wire transfer of immediately available funds.
      

     

    
      
         

      

      
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    b)  Exercise
      Price.
      The
      exercise price of the Common Stock under this Warrant shall be $3.00,
      subject
      to adjustment hereunder (the “Exercise
      Price”).

     

    c)  Cashless
      Exercise.
      If at
      any time after one year from the date of issuance of this Warrant there is
      no
      effective Registration Statement registering the resale of the Warrant Shares
      by
      the Holder, then this Warrant may also be exercised at such time by means of
      a
“cashless exercise” in which the Holder shall be entitled to receive a
      certificate for the number of Warrant Shares equal to the quotient obtained
      by
      dividing [(A-B) (X)] by (A), where:

     

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

    

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

    

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

    

    Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).

    

    d)  Exercise
      Limitations.
      The
      Holder shall not have the right to exercise any portion of this Warrant,
      pursuant to Section 2(c) or otherwise, to the extent that after giving effect
      to
      such issuance after exercise, the Holder (together with the Holder’s
      affiliates), as set forth on the applicable Notice of Exercise, would
      beneficially own in excess of 4.99% of the number of shares of the Common Stock
      outstanding immediately after giving effect to such issuance.  For purposes
      of the foregoing sentence, the number of shares of Common Stock beneficially
      owned by the Holder and its affiliates shall include the number of shares of
      Common Stock issuable upon exercise of this Warrant with respect to which the
      determination of such sentence is being made, but shall exclude the number
      of
      shares of Common Stock which would be issuable upon (A) exercise of the
      remaining, nonexercised portion of this Warrant beneficially owned by the Holder
      or any of its affiliates and (B) exercise or conversion of the unexercised
      or
      nonconverted portion of any other securities of the Company (including, without
      limitation, any other Debentures or Warrants) subject to a limitation on
      conversion or exercise analogous to the limitation contained herein beneficially
      owned by the Holder or any of its affiliates.  Except as set forth in the
      preceding sentence, for purposes of this Section 2(d), beneficial ownership
      shall be calculated in accordance with Section 13(d) of the Exchange Act, it
      being acknowledged by Holder that the Company is not representing to Holder
      that
      such calculation is in compliance with Section 13(d) of the Exchange Act and
      Holder is solely responsible for any schedules required to be filed in
      accordance therewith. To the extent that the limitation contained in this
      Section 2(d) applies, the determination of whether this Warrant is exercisable
      (in relation to other securities owned by the Holder) and of which a portion
      of
      this Warrant is exercisable shall be in the sole discretion of such Holder,
      and
      the submission of a Notice of Exercise shall be deemed to be such Holder’s
      determination of whether this Warrant is exercisable (in relation to other
      securities owned by such Holder) and of which portion of this Warrant is
      exercisable, in each case subject to such aggregate percentage limitation,
      and
      the Company shall have no obligation to verify or confirm the accuracy of such
      determination. For purposes of this Section 2(d), in determining the number
      of
      outstanding shares of Common Stock, the Holder may rely on the number of
      outstanding shares of Common Stock as reflected in (x) the Company’s most recent
      Form 10-Q or Form 10-K, as the case may be, (y) a more recent public
      announcement by the Company or (z) any other notice by the Company or the
      Company’s Transfer Agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of the Holder, the Company
      shall within two Trading Days confirm orally and in writing to the Holder the
      number of shares of Common Stock then outstanding.  In any case, the number
      of outstanding shares of Common Stock shall be determined after giving effect
      to
      the conversion or exercise of securities of the Company, including this Warrant,
      by the Holder or its affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported. 

     

    
      
         

      

      
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    e)  Mechanics
      of Exercise.
      

     

    i.  Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges in
      respect of the issue thereof (other than taxes in respect of any transfer
      occurring contemporaneously with such issue). The Company covenants that during
      the period the Warrant is outstanding, it will reserve from its authorized
      and
      unissued Common Stock a sufficient number of shares to provide for the issuance
      of the Warrant Shares upon the exercise of any purchase rights under this
      Warrant. The Company further covenants that its issuance of this Warrant shall
      constitute full authority to its officers who are charged with the duty of
      executing stock certificates to execute and issue the necessary certificates
      for
      the Warrant Shares upon the exercise of the purchase rights under this Warrant.
      The Company will take all such reasonable action as may be necessary to assure
      that such Warrant Shares may be issued as provided herein without violation
      of
      any applicable law or regulation, or of any requirements of the Trading Market
      upon which the Common Stock may be listed.

     

    ii.  Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant and payment of the aggregate Exercise Price as set
      forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price and all taxes required to be paid by the Holder, if any, pursuant to
      Section 2(e)(vii) prior to the issuance of such shares, have been paid.

     

    
      
         

      

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

     

    iv.  Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise; provided that if as a result of the
      limitations set forth in Section 2(d) hereof, such failure by the Company is
      for
      a portion of the Warrant Shares for which a Notice of Exercise has been
      delivered, the Holder shall be permitted to rescind solely that portion not
      so
      exercised.

     

    v.  Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) shares of Common Stock
      to deliver in satisfaction of a sale by the Holder of the Warrant Shares which
      the Holder anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In, together with applicable
      confirmations and other evidence reasonably requested by the Company. Nothing
      herein shall limit a Holder’s right to pursue any other remedies available to it
      hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief with respect to the Company’s
      failure to timely deliver certificates representing shares of Common Stock
      upon
      exercise of the Warrant as required pursuant to the terms hereof.

     

    
      
         

      

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

     

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

     

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

     

    
      
         

      

      
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    Section
      3.     Certain
      Adjustments.

     

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

     

    b)  Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, shall offer, sell, grant any option to purchase or offer, sell
      or grant any right to reprice its securities, or otherwise dispose of or issue
      (or announce any offer, sale, grant or any option to purchase or other
      disposition) any Common Stock or Common Stock Equivalents entitling any Person
      to acquire shares of Common Stock, at an effective price per share less than
      the
      then Exercise Price (such lower price, the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”),
      as
      adjusted hereunder (if the holder of the Common Stock or Common Stock
      Equivalents so issued shall at any time, whether by operation of purchase price
      adjustments, reset provisions, floating conversion, exercise or exchange prices
      or otherwise, or due to warrants, options or rights per share which is issued
      in
      connection with such issuance, be entitled to receive shares of Common Stock
      at
      an effective price per share which is less than the Exercise Price, such
      issuance shall be deemed to have occurred for less than the Exercise Price),
      then, the Exercise Price shall be reduced to equal the Base Share Price and
      the
      number of Warrant Shares issuable hereunder shall be increased such that the
      aggregate Exercise Price payable hereunder, after taking into account the
      decrease in the Exercise Price, shall be equal to the aggregate Exercise Price
      prior to such adjustment. Such adjustment shall be made whenever such Common
      Stock or Common Stock Equivalents are issued. The Company shall notify the
      Holder in writing, no later than the Trading Day following the issuance of
      any
      Common Stock or Common Stock Equivalents subject to this section, indicating
      therein the applicable issuance price, or of applicable reset price, exchange
      price, conversion price and other pricing terms (such notice the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive a number of Warrant Shares based upon the Base Share Price
      regardless of whether the Holder accurately refers to the Base Share Price
      in
      the Notice of Exercise. Notwithstanding
      the foregoing, no adjustment will be made hereunder in respect of (i) an Exempt
      Issuance other
      than an Exempt Issuance that involves an MFN Transaction or a Variable Rate
      Transaction for which the adjustment provisions of Section 3(b) shall be
      applicable or (ii) issuances of up to, in the aggregate, the first 1,500,000
      shares of Common Stock or Common Stock Equivalents (subject to adjustment for
      reverse and forward stock splits, stock dividends, stock combinations and other
      similar transactions of the Common Stock that occur after the date of this
      Agreement) to consultants of the Company in any 12 month period pursuant to
      a
      resolution duly adopted by a majority of the non-employee members of the Board
      of Directors of the Company or a majority of the members of a committee of
      non-employee directors established for such purpose.

     

    
      
         

      

      
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    c)  Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets or rights or warrants to subscribe for or purchase any
      security other than the Common Stock (which shall be subject to Section 3(b)),
      then in each such case the Exercise Price shall be adjusted by multiplying
      the
      Exercise Price in effect immediately prior to the record date fixed for
      determination of stockholders entitled to receive such distribution by a
      fraction of which the denominator shall be the VWAP determined as of the record
      date mentioned above, and of which the numerator shall be such VWAP on such
      record date less the then per share fair market value at such record date of
      the
      portion of such assets or evidence of indebtedness so distributed applicable
      to
      one outstanding share of the Common Stock as determined by the Board of
      Directors in good faith. In either case the adjustments shall be described
      in a
      statement provided to the Holders of the portion of assets or evidences of
      indebtedness so distributed or such subscription rights applicable to one share
      of Common Stock. Such adjustment shall be made whenever any such distribution
      is
      made and shall become effective immediately after the record date mentioned
      above.

     

    d)  Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent conversion of this Warrant, the Holder shall have the right
      to receive, for each Warrant Share that would have been issuable upon such
      exercise absent such Fundamental Transaction, at the option of the Holder,
      (a)
      upon exercise of this Warrant, the number of shares of Common Stock of the
      successor or acquiring corporation or of the Company, if it is the surviving
      corporation, and Alternate Consideration receivable upon or as a result of
      such
      reorganization, reclassification, merger, consolidation or disposition of assets
      by a Holder of the number of shares of Common Stock for which this Warrant
      is
      exercisable immediately prior to such event or (b) if the Company is acquired
      in
      an all cash transaction, cash equal to the value of this Warrant as determined
      in accordance with the Black-Scholes option pricing formula (the “Alternate
      Consideration”).
      For
      purposes of any such exercise, the determination of the Exercise Price shall
      be
      appropriately adjusted to apply to such Alternate Consideration based on the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Company shall apportion the
      Exercise Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration. If holders of Common Stock are given any choice as to the
      securities, cash or property to be received in a Fundamental Transaction, then
      the Holder shall be given the same choice as to the Alternate Consideration
      it
      receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3(d) and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
         

      

      
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    e)  Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. The number of shares of Common
      Stock outstanding at any given time shall not includes shares of Common Stock
      owned or held by or for the account of the Company, and the description of
      any
      such shares of Common Stock shall be considered on issue or sale of Common
      Stock. For purposes of this Section 3, the number of shares of Common Stock
      deemed to be issued and outstanding as of a given date shall be the sum of
      the
      number of shares of Common Stock (excluding treasury shares, if any) issued
      and
      outstanding.

     

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

     

    g)  Notice
      to Holders.
      

     

    i.  Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company
      shall promptly mail to each Holder a notice setting forth the Exercise Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment. If the Company issues a variable rate security, despite the
      prohibition thereon in the Purchase Agreement, the Company shall be deemed
      to
      have issued Common Stock or Common Stock Equivalents at the lowest possible
      conversion or exercise price at which such securities may be converted or
      exercised in the case of a Variable Rate Transaction (as defined in the Purchase
      Agreement), or the lowest possible adjustment price in the case of an MFN
      Transaction (as defined in the Purchase Agreement.

     

    
      
         

      

      
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    ii.  Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Company shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Company shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Company is a party, any sale or transfer of all or substantially all of
      the
      assets of the Company, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; (E) the Company shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Company; then, in each case, the Company shall cause to
      be
      mailed to the Holder at its last addresses as it shall appear upon the Warrant
      Register of the Company, at least 20 calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distributions, redemption, rights or warrants are to be determined
      or
      (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and the
      date as of which it is expected that holders of the Common Stock of record
      shall
      be entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing the date of such notice to the effective date of the
      event triggering such notice.

     

    Section
      4.     Transfer
      of Warrant.

     

    a)  Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Sections 5(a) and 4(d) hereof and to the provisions of Section 4.1 of the
      Purchase Agreement, this Warrant and all rights hereunder are transferable,
      in
      whole or in part, upon surrender of this Warrant at the principal office of
      the
      Company, together with a written assignment of this Warrant substantially in
      the
      form attached hereto duly executed by the Holder or its agent or attorney and
      funds sufficient to pay any transfer taxes payable upon the making of such
      transfer. Upon such surrender and, if required, such payment, the Company shall
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees and in the denomination or denominations specified in such instrument
      of assignment, and shall issue to the assignor a new Warrant evidencing the
      portion of this Warrant not so assigned, and this Warrant shall promptly be
      cancelled. A Warrant, if properly assigned, may be exercised by a new holder
      for
      the purchase of Warrant Shares without having a new Warrant issued.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    b)  New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

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

     

    d)  Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be registered pursuant to an effective
      registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer (i) that the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, (ii)
      that
      the holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company and (iii) that the transferee
      be
      an “accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a qualified institutional buyer as
      defined in Rule 144A(a) under the Securities Act.

     

    Section
      5.     Miscellaneous.

     

    a)  Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      Section 4 of this Warrant, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed. The
      transferee shall sign an investment letter in form and substance reasonably
      satisfactory to the Company.

     

    b)  No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price (or by means of
      a
      cashless exercise), the Warrant Shares so purchased shall be and be deemed
      to be
      issued to such Holder as the record owner of such shares as of the close of
      business on the later of the date of such surrender or payment.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

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

     

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

     

    e)  Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation 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 actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    f)  Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

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

     

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

     

    i)  Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

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

     

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

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

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

     

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

     

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

     

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

    

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

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

     

    

     

    
      	 	 	 
	 	GENEREX
              BIOTECHNOLOGY CORPORATION
	 
 	 
 	 
 
	Dated:
              March 6, 2006	By:  	/s/ 
	 	
              
Name:
              Mark A. Fletcher
	 	
              Title:
                Executive Vice-President, General
                Counsel

            

    

    
      
        
        

         

      

      
        13

        
          

        

      

      
         

      

    

     

    NOTICE
      OF EXERCISE

    BY
      l

    OF
      $3.00 WARRANT DATED MAR 6 06

    

    TO:     GENEREX
      BIOTECHNOLOGY CORPORATION

    

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

     

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

     

    [ 
]
      in lawful money of the United States; or

     

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

     

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

     

    _______________________________

     

    

    The
      Warrant Shares shall be delivered to the following:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

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

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address: _____________________________

     

                                                                                     
      _____________________________

    

    

    

    Signature
      Guaranteed: ___________________________________________

    

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.Unassociated Document

     

    Exhibit
      10.1

    AMENDED
      CHANGE IN CONTROL AGREEMENT

     

    

    Amended
      Change In Control Agreement (this “Agreement”) dated as of March 3, 2006 by and
      between Fredric M. Zinn (“Executive”) and Drew Industries Incorporated, a
      Delaware corporation (the “Company”). 

     

    WHEREAS,
      the Company recognizes that Executive’s contribution to the growth and success
      of the Company has been, and will continue to be, substantial; and the Company
      wishes to assure Executive’s continued employment with the Company;
      and

     

    WHEREAS,
      the Company believes that it is in the best interest of the Company and its
      stockholders to foster Executive’s objectivity in making decisions with respect
      to any pending or threatened Change in Control (as hereinafter defined) of
      the
      Company and to assure that the Company will have the continued dedication and
      availability of Executive notwithstanding the possibility, threat or occurrence
      of a Change in Control; and the Company believes that these goals can best
      be
      accomplished by alleviating certain of the risks and uncertainties with regard
      to Executive’s financial and professional security that would be created by a
      pending or threatened Change in Control and that inevitably would distract
      Executive and could impair his ability to objectively perform his duties for
      and
      on behalf of the Company. Accordingly, the Company believes that it is
      appropriate and in the best interest of the Company and its stockholders to
      provide to Executive compensation arrangements upon a Change in Control that
      mitigate Executive’s financial risks and uncertainties and that are reasonably
      competitive with those of other companies; and

     

    WHEREAS,
      the Company and Executive entered into a Change In Control Agreement dated
      as of
      September 12, 2003, and wish to amend said Agreement as expressly provided
      herein, 

     

    NOW,
      THEREFORE, in consideration of the foregoing, and for other good and valuable
      consideration the receipt of which is hereby acknowledged, it is hereby agreed
      as follows:

     

    
      	 	
              1.

            	
              TERM
                OF AGREEMENT

            

    

     

    This
      Agreement shall be effective from the date hereof and, subject to the provisions
      of Section 4, shall extend to (and thereupon automatically terminate) one (1)
      day after Executive’s termination of employment with the Company for any reason.
      No termination of this Agreement shall limit, alter or otherwise affect
      Executive’s rights hereunder with respect to a Change in Control which has
      occurred prior to such termination, including without limitation Executive’s
      right to receive the benefits provided herein.

     

    
      	 	
              2.

            	
              PURPOSE
                OF AGREEMENT

            

    

     

    The
      purpose of this Agreement is to provide that, in the event of a Change in
      Control, Executive may become entitled to receive certain benefits, as described
      herein, in the event of his termination under specified circumstances.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              3.

            	
              CHANGE
                IN CONTROL

            

    

     

    As
      used
      in this Agreement, the phrase “Change in Control” shall mean: 

     

    3.1 Except
      as
      provided in Section 3.2 hereof, the acquisition by any person, entity or
“group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) (excluding, for this
      purpose, the Company or its subsidiaries, or any executive benefit plan of
      the
      Company or its subsidiaries which acquires beneficial ownership of voting
      securities of the Company), of beneficial ownership (within the meaning of
      Rule
      13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of
      either the then outstanding shares of common stock or the combined voting power
      of the Company’s then outstanding voting securities entitled to vote generally
      in the election of directors (the “Voting Securities”); or 

     

    3.2 Approval
      by the stockholders of the Company of a reorganization, merger or consolidation
      with any other person, entity or corporation, other than 

     

    3.2.1 a
      merger
      or consolidation which would result in the Voting Securities outstanding
      immediately prior thereto continuing to represent (either by remaining
      outstanding or by being converted into voting securities of another entity)
      more
      than fifty percent (50%) of the combined voting power of the Voting Securities
      of the Company or such other entity outstanding immediately after such merger
      or
      consolidation, or 

     

    3.2.2 a
      merger
      or consolidation effected to implement a recapitalization of the Company (or
      similar transaction) in which no person, entity or group acquires twenty-five
      percent (25%) or more of the combined voting power of the Company’s then
      outstanding Voting Securities; or 

     

    3.3 Approval
      by the stockholders of the Company of a plan of complete liquidation of the
      Company or a sale or other disposition by the Company of all or substantially
      all of the Company’s assets in one transaction or a series of
      transactions.

     

    
      	 	
              4.

            	
              EFFECT
                OF A CHANGE IN CONTROL

            

    

     

    In
      the
      event of a Change in Control, Sections 6 through 11 of this Agreement shall
      become applicable to Executive. The provisions of these Sections shall remain
      applicable until the second anniversary of the date upon which the Change in
      Control occurs. On such second anniversary date, and provided that the
      employment of Executive has not been terminated on account of a Qualifying
      Termination (as defined herein), this Agreement shall terminate and be of no
      further force or effect. 

     

    
      	 	
              5.

            	
              QUALIFYING
                TERMINATION

            

    

     

    If
      within
      six (6) months following a Change in Control, Executive voluntarily terminates
      his employment with the Company (“Voluntary Termination”), or if within one (1)
      year following, or within one hundred twenty (120) days prior to, a Change
      in
      Control, Executive’s employment with the Company is terminated (“Involuntary
      Termination”), either of such terminations shall be conclusively considered a
“Qualifying Termination” unless: 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5.1 The
      Executive voluntarily terminates his employment on a date that is more than
      six
      (6) months after the Change in Control; provided, however, that Executive shall
      not be considered to have voluntarily terminated his employment with the Company
      if, following, or within one hundred twenty (120) days prior to, the Change
      in
      Control, (i) Executive’s overall compensation is reduced or adversely modified
      in any material respect, or (ii) his authority or duties are materially changed
      and he elects to terminate his employment within sixty (60) days following
      such
      reduction, modification or change. Executive’s authority or duties shall
      conclusively be considered to have been “materially changed” if, without
      Executive’s express and voluntary written consent, there is any substantial
      diminution or adverse modification in Executive’s title, status, overall
      position, responsibilities, reporting relationship, general working environment
      (including without limitation secretarial and staff support, offices, and
      frequency and mode of travel), or if, without Executive’s express and voluntary
      written consent, Executive’s job location is transferred to a site more than
      fifty (50) miles away from his residence. Executive’s authority and duties shall
      conclusively be considered to have been “materially changed” if, without
      Executive’s express and voluntary written consent, Executive no longer holds the
      same title or no longer has the same authority and responsibilities or no longer
      has the same reporting responsibilities, in each case with respect and as to
      a
      publicly held parent company which is not controlled by another entity or
      person, or

     

    5.2 The
      termination is on account of Executive’s death or Disability. For such purposes,
“Disability” shall mean a physical or mental incapacity as a result of which
      Executive becomes unable to continue the performance of his responsibilities
      for
      the Company and its affiliated companies and which, at least three (3) months
      after its commencement, is determined to be total and permanent by a physician
      agreed to by the Company and Executive (or Executive’s legal representative). In
      the absence of agreement between the Company and Executive, each party shall
      nominate a qualified physician and the two physicians so nominated shall select
      a third physician who shall make the determination as to Disability,
      or

     

    5.3 An
      Involuntary Termination occurs for “Cause.” For this purpose, “Cause” shall be
      limited to the following:

     

    5.3.1 the
      refusal of Executive to comply with a lawful, written instruction of the Board
      of Directors or Executive’s immediate supervisor, which refusal is not remedied
      by Executive within a reasonable period of time after his receipt of written
      notice from the Company identifying the refusal, so long as the instruction
      is
      consistent with the scope and responsibilities of Executive’s position prior to
      the Change in Control; or

     

    5.3.2 an
      act or
      acts of personal dishonesty by Executive which were intended to result in
      substantial personal enrichment of Executive at the expense of the Company
      or
      any of its affiliated companies; or 

     

    5.3.3 Executive’s
      conviction of any misdemeanor involving an act of moral turpitude or any felony.
      

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	 	
              6.

            	
              SEVERANCE
                PAYMENT

            

    

     

    6.1 Subject
      to Section 6.2 hereof, if Executive’s employment is terminated as a result of a
      Qualifying Termination, the Company shall pay Compensation (as hereinafter
      defined) to Executive (A) in the event of an Involuntary Termination, for the
      two (2) years following the Qualifying Termination, or (B) in the event of
      a
      Voluntary Termination, for one (1) year following the Qualifying Termination,
      in
      either event in accordance with the Company’s customary payroll practice (the
“Severance Payment”).

     

    6.2 During
      the second year following an Involuntary Termination, the Severance Payment
      payable by the Company to Executive shall be reduced by an amount equal to
      the
      compensation and other benefits received by Executive during either of such
      periods from other employment or business activities.

     

    6.3 For
      purposes of this Agreement, Executive’s “Compensation” shall equal the sum of
      (i) Executive’s salary at the annual rate applicable on the date of the
      Qualifying Termination, plus (ii) a “Bonus Increment.” The Bonus Increment shall
      equal the annualized average of all bonuses and incentive compensation payments
      paid to Executive during the three (3) year period immediately before the date
      of the Change of Control under all of the Company’s bonus and incentive
      compensation plans or arrangements as disclosed in the Company’s annual Proxy
      Statement.

     

    6.4 The
      Severance Payment hereunder is in lieu of any severance payment that Executive
      might otherwise be entitled to from the Company in the event of a Change in
      Control under the Company’s applicable severance pay policies, if any, or under
      any other oral or written agreement.

     

    
      	 	
              7.

            	
              ADDITIONAL
                BENEFITS

            

    

     

    7.1 In
      the
      event of a Qualifying Termination, any and all unvested stock options of
      Executive shall immediately become fully vested and exercisable. 

     

    7.2 In
      the
      event of a Qualifying Termination, Executive shall be entitled to continue
      to
      participate in the following executive benefit programs which had been made
      available to Executive (including his immediate family) and at the same level
      before the Qualifying Termination: group medical insurance, group-term life
      insurance and disability insurance, use of automobile provided by the Company,
      and long-term care insurance. These programs shall be continued at no cost
      to
      Executive, except to the extent that tax rules require the inclusion of the
      value of such benefits in Executive’s income. The programs shall continue for
      Executive’s benefit for two (2) years after the date of the Qualifying
      Termination; provided, however, that Executive’s participation in each of such
      programs shall be earlier terminated or reduced, as applicable, if and to the
      extent Executive receives benefits as a result of concurrent coverage through
      another program.

     

    
      	 	
              8.

            	
              RIGHTS
                AND OBLIGATIONS PRIOR TO A CHANGE IN
                CONTROL

            

    

     

    Prior
      to
      the date which is one hundred twenty (120) days before a Change in Control,
      the
      rights and obligations of Executive with respect to his employment by the
      Company shall be determined in accordance with the policies and procedures
      adopted from time to time by the Company and the provisions of any written
      employment contract in effect between the Company and Executive from time to
      time. Unless otherwise expressly set forth in a separate written employment
      agreement between Executive and the Company, the employment of Executive is
      expressly at-will, and Executive or the Company may terminate Executive’s
      employment with the Company at any time and for any reason, with or without
      cause, provided that if such termination occurs within one hundred twenty
      (120)
      days
      prior to or one (1) year after a Change in Control and constitutes a Qualifying
      Termination the provisions of this Agreement shall govern the payment of the
      Severance Payment and the other benefits as provided herein. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	 	
              9.

            	
              NON-EXCLUSIVITY
                OF RIGHTS

            

    

     

    Nothing
      in this Agreement shall prevent or limit Executive’s continuing or future
      participation in any benefit, bonus, incentive or other plan or program provided
      by the Company or any of its affiliated companies and for which Executive may
      qualify, nor shall anything herein limit or otherwise affect such rights as
      Executive may have under any stock option or other agreements with the Company
      or any of its affiliated companies. Except as otherwise provided in Section
      6.3
      hereof, amounts which are vested benefits or which Executive is otherwise
      entitled to receive under any plan or program of the Company or any of its
      affiliated companies at or subsequent to the date of any Qualified Termination
      shall be payable in accordance with such plan or program. 

     

    
      	 	
              10.

            	
              FULL
                SETTLEMENT

            

    

     

    The
      Company’s obligation to pay the Severance Payment and other benefits provided
      for in this Agreement and otherwise to perform its obligations hereunder (i)
      shall not be affected by any set-off, counter-claim, recoupment, defense or
      other claim, right or action which the Company may have against Executive or
      others, and (ii) are subject to receipt by the Company of a duly executed and
      acknowledged Waiver and Release in the form attached hereto as Exhibit A. In
      no
      event shall Executive be obligated to seek other employment or to take any
      other
      action by way of mitigation of the amounts payable to Executive under any of
      the
      provisions of this Agreement. The Company agrees to pay, to the full extent
      permitted by law, all legal fees and expenses which Executive may reasonably
      incur as a result of Executive’s successful collection efforts to receive
      amounts payable hereunder.

     

    
      	 	
              11.

            	
              SUCCESSORS.
                

            

    

     

    11.1 This
      Agreement is personal to Executive, and without the prior written consent of
      the
      Company shall not be assignable by Executive other than by will or the laws
      of
      descent and distribution. This Agreement shall inure to the benefit of and
      be
      enforceable by Executive’s legal representatives.

     

    11.2 The
      rights and obligations of the Company under this Agreement shall inure to the
      benefit of and shall be binding upon the successors and assigns of the Company.
      

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	 	
              12.

            	
              GOVERNING
                LAW

            

    

     

    12.1 This
      Agreement is made and entered into in the State of New York, and the internal
      laws of New York shall govern its validity and interpretation in the performance
      by the parties hereto of their respective duties and obligations
      hereunder.

     

    12.2 Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      United States District Court located in White Plains, New York over any suit,
      action or proceeding arising out of or relating to this Agreement. Each party
      hereby irrevocably waives to the fullest extent permitted by law, (i) the right
      to a trial by jury; (ii) any objection that they may now or hereafter have
      to
      the venue of any such suit, action or proceeding brought in any such court;
      or
      (iii) any claim that any such suit, action or proceeding has been brought in
      an
      inconvenient forum. Final judgement in any suit, action or proceeding brought
      in
      any such court shall be conclusive and binding upon each party duly served
      with
      process therein and may be enforced in the courts of the jurisdiction of which
      either party or any of their property is subject, by a suit upon such
      judgement.

     

    
      	 	
              13.

            	
              MODIFICATIONS

            

    

     

    This
      Agreement may be amended or modified only by an instrument in writing executed
      by all of the parties hereto.

     

    
      	 	
              14.

            	
              NOTICES

            

    

     

    Any
      notice or communications required or permitted to be given to the parties hereto
      shall be in writing and shall be delivered personally or be sent by United
      States registered or certified mail, postage prepaid and return receipt
      requested, or by nationally recognized courier, and addressed or delivered
      as
      follows, or at such other addresses the party addressed may have substituted
      by
      notice pursuant to this Section: 

     

    
      	
              To
                the Company:

            	
              To
                Executive:

            
	 	 
	
              Drew
                Industries Incorporated

              200
                Mamaroneck Avenue

              White
                Plains, New York, 10601

              Attention:
                President

            	
              Fredric
                M. Zinn

              275
                Gilbert Highway

              Fairfield,
                CT 06824

            

    

    

    
      	 	
              15.

            	
              CAPTIONS

            

    

     

    The
      captions of this Agreement are inserted for convenience and do not constitute
      a
      part hereof.

     

    
      	 	
              16.

            	
              SEVERABILITY

            

    

     

    In
      case
      any one or more of the provisions contained in this Agreement shall for any
      reason be held to be invalid, illegal or unenforceable in any respect, such
      invalidity, illegality or unenforceability shall not affect any other provision
      of this Agreement, but this Agreement shall be construed as if such invalid,
      illegal or unenforceable provision had never been contained herein and there
      shall be deemed substituted for such invalid, illegal or unenforceable provision
      such other provision as will most nearly accomplish the intent of the parties
      to
      the extent permitted by the applicable law. In case this Agreement, or any
      one
      or more of the provisions hereof, shall be held to be invalid, illegal or
      unenforceable within any governmental jurisdiction or subdivision thereof,
      this
      Agreement or any such provision thereof shall not as a consequence thereof
      be
      deemed to be invalid, illegal or unenforceable in any other governmental
      jurisdiction or subdivision thereof. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	 	
              17.

            	
              COUNTERPARTS

            

    

     

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

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered effective as of the day and year first written
      above.

     

    _______________________________

    Fredric
      M. Zinn

    

    

    DREW
      INDUSTRIES INCORPORATED

    

    By:_______________________________

    

    Name:_____________________________

    

    Title:______________________________

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Exhibit
      10.1

    Exhibit
      A

    CHANGE
      IN
      CONTROL AGREEMENT

    

    Waiver
      and Release

     

    The
      attached Waiver and Release Agreement is to be executed by Executive upon the
      occurrence of a Qualifying Termination under the Change in Control Agreement.
      

     

    WAIVER
      AND RELEASE AGREEMENT

    

    This
      Waiver and Release Agreement (the “Waiver and Release”) is entered into by and
      among Drew Industries Incorporated, a Delaware corporation (“Drew”) and Fredric
      M. Zinn (“Executive”) this ________ day of ________, 200_. 

     

    
      	 	
              1.

            	
              General
                Waiver and Release

            

    

     

    For
      and
      in consideration of the agreement of the Company to provide Executive the
      Severance Payment described in the Amended Change in Control Agreement, dated
      as
      of February 28, 2006, among Executive and the Company (the “Agreement”),
      Executive, with the intention of binding himself and all of his heirs,
      executors, administrators and assigns, does hereby release, remise, acquit
      and
      forever discharge the Company, and all of its respective past and present
      officers, directors, stockholders, employees, agents, parent corporations,
      predecessors, subsidiaries, affiliates, estates, successors, assigns and
      attorneys (hereinafter collectively referred to as “Released Parties”) from any
      and all claims, charges, actions, causes of action, sums of money due, suits,
      debts, covenants, contracts, agreements, rights, damages, promises, demands
      or
      liabilities (hereinafter collectively referred to as “Claims”) whatsoever, in
      law or in equity, whether known or unknown, suspected or unsuspected, which
      Executive, individually or as a member of any class, now has, owns or holds
      or
      has at any time heretofore ever had, owned or held against the Released Parties
      including, but not limited to, Claims arising out of or in any way connected
      with Executive’s employment with the Company or any of the Released Parties or
      the termination of any such employment relationship, including, but not limited
      to, Claims pursuant to Federal, state or local statute, regulation, ordinance
      or
      common-law for (i) employment discrimination; (ii) wrongful discharge; (iii)
      breach of contract; (iv) tort actions of any type, including those for
      intentional or negligent infliction of emotional harm; and (v) unpaid benefits,
      wages, compensation, commissions, bonuses or incentive payments of any type,
      except as follows: 

     

    1.1 those
      obligations of the Company and its affiliates under the Agreement, pursuant
      to
      which this Waiver and Release is being executed and delivered;

     

    1.2 claims,
      if any, for Executive’s accrued or vested benefits under the retirement plans,
      savings plans, stock options, investment plans and employee welfare benefit
      plans, if any, of the Released Parties (within the meaning of Section 3(1)
      of
      the Employee Retirement Income Security Act of 1974 (“ERISA”)), as amended;
      provided, however, that nothing herein is intended to or shall be construed
      to
      require the Released Parties to institute or continue in effect any particular
      plan or benefit sponsored by the Released Parties and the Company and all other
      Released Parties hereby reserve the right to amend or terminate any such plan
      or
      benefit at any time; and 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    1.3 any
      rights to indemnification or advancement of expenses to which Executive may
      otherwise be entitled pursuant to the articles of incorporation or bylaws of
      any
      of the Released Parties, or by contract or applicable law, as a result of
      Executive’s service as an officer or director of any of the Released Parties.
      Executive further understands and agrees that he has knowingly relinquished,
      waived and forever released any and all remedies arising out of the aforesaid
      employment relationship or the termination thereof, including, without
      limitation, claims for backpay, front pay, liquidated damages, compensatory
      damages, general damages, special damages, punitive damages, exemplary damages,
      costs, expenses and attorneys’ fees.

     

    
      	 	
              2.

            	
              Covenant
                Not to Sue

            

    

     

    Executive
      acknowledges and agrees that this Waiver and Release may not be revoked at
      any
      time and that he will not institute any suit, action, or proceeding, whether
      at
      law or equity, challenging the enforceability of this Waiver and Release. Should
      Executive ever attempt to challenge the terms of this Waiver and Release,
      attempt to obtain an order declaring this Waiver and Release to be null and
      void, or institute litigation against any of the Released Parties based upon
      a
      Claim which is covered by the terms of this Waiver and Release, Executive will
      as a condition precedent to such action repay all monies paid to him under
      the
      terms of the Agreement and this Waiver and Release. Furthermore, if Executive
      does not prevail in an action to challenge this Waiver and Release, to obtain
      an
      order declaring this Waiver and Release to be null and void, or in any action
      against any of the Released Parties based upon a Claim which is covered by
      the
      Waiver and Release set forth herein, Executive shall pay to the Company and/or
      the appropriate Released Parties all their costs and attorneys’ fees incurred in
      their defense of Executive’s action.

     

    
      	 	
              3.

            	
              Denial
                of Liability

            

    

     

    Executive
      acknowledges and agrees that neither the payment of the Severance Payment under
      the Agreement nor this Waiver and Release is to be construed in any way as
      an
      admission of any liability whatsoever by the Company or any of the other
      Released Parties, by whom liability is expressly denied.

     

    
      	 	
              4.

            	
              Agreement
                Not to Seek Further Relief

            

    

     

    Executive
      acknowledges and agrees that he has not, with respect to any transaction or
      state of facts existing prior to the date of execution of this Waiver and
      Release, filed any complaints, charges or lawsuits against any of the Released
      Parties with any governmental agency or any court or tribunal, with respect
      to
      any Claims related to Executive’s employment or the termination thereof as
      provided in Section 1 hereof, and that he will not do so at any time hereafter.
      Executive further acknowledges and agrees that he hereby waives any right to
      accept any relief or recovery, including costs and attorneys’ fees, that may
      arise from any charge or complaint before any Federal, state or local court
      or
      administrative agency against the Released Parties.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	 	
              5.

            	
              Company
                Property

            

    

     

    Executive
      agrees that he will not retain or destroy, and will immediately return to the
      Company, any and all property of the Company in his possession or subject to
      his
      control, including, but not limited to, keys, credit and identification cards,
      personal items or equipment provided for his use, customer files, and
      information, all other files and documents relating to the Company and its
      business, together with all written or recorded materials, documents, computer
      disks, plans, records or notes or other papers belonging to the Company.
      Executive further agrees not to make, distribute or retain copies of any such
      information or property.

     

    
      	 	
              6.

            	
              Non-Competition

            

    

     

    6.1 During
      the period beginning on the date hereof and ending on the earlier of (i) six
      (6)
      months from the date of a Qualifying Termination, or (ii) the final installment
      of the Severance Payment as provided in the Agreement (the “Restricted Period”),
      the Executive shall not, directly or indirectly, undertake or perform services
      in or for, or render services to, participate in, or have any financial interest
      in, or engage in, any business competitive to that of the business of the
      Company or its subsidiaries or affiliates (collectively, the “Affiliated
      Companies”) or solicit for employment or employ any employee of the Company or
      the Affiliated Companies. For purposes hereof, a business shall be deemed
      competitive if it is conducted in any geographic or market area in which the
      Company or any of the Affiliated Companies are engaged in business during the
      Restricted Period and involves the development, design, manufacture, marketing,
      packaging, sale or distribution of any products developed, designed,
      manufactured sold or distributed, or the offering of any services offered,
      by
      the Company or any of the Affiliated Companies; and the Executive shall be
      deemed directly or indirectly to engage in such business if he, or any member
      of
      his immediate family (i.e., his spouse and children and their respective spouses
      and children) participates in such business, or in any entity engaged in or
      which owns, such business, as an officer, director, employee, consultant,
      independent contractor, inventor, product developer, partner, individual
      proprietor, manager or as an investor who has made any loans, contributed to
      capital stock or purchased any stock; provided, however, that the Executive
      will
      not at any time utilize the names “Drew,” “Kinro,” “Better Bath,” “Lippert,”
“Lippert Components,” “Zieman,” “Venture Welding,” or “LTM,” or any other names
      used by the Company or the Affiliated Companies, in any business competitive
      to
      that of the business of the Company or any of the Affiliated Companies, or
      any
      patent, trademark, tradename, service mark, logo, copyright or similar
      intellectual property, whether or not registered, of any of the Company or
      the
      Affiliated Companies, or any proprietary information of any of the Company
      or
      the Affiliated Companies. The foregoing, however, shall not be deemed to prevent
      the Executive from investing in securities if such class of securities in which
      the investment is made is listed on a national securities exchange or is of
      a
      company registered under Section 12(g) of the Securities Exchange Act of 1934,
      and such investment represents less than five (5%) per cent of the outstanding
      securities of such class.

     

    6.2 The
      Executive agrees that all products, packaging, inventions, designs, patents,
      patent applications, creations, ideas, techniques, methods, copyrightable
      materials, software, whether or not registered, or any portions thereof, and
      any
      improvements or modifications thereon, and any applications with respect to
      each
      of the foregoing, and any know-how or procedures related thereto (whether or
      not
      patentable), which relate to the business and products of the Company or the
      Affiliated Companies, conceived, invented, discovered or executed by the
      Executive, whether or not marketed or utilized by the Company or any of the
      Affiliated Companies, shall be the sole and exclusive property of the
      Company.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	 	
              7.

            	
              Confidentiality
                Agreement

            

    

     

    Executive
      acknowledges that the terms of this Waiver and Release are confidential.
      Accordingly, Executive agrees not to disclose or publish to any person or
      entity, except as required by law or as necessary to prepare tax returns, the
      terms and conditions or sums being paid in connection with this Waiver and
      Release.

     

    
      	 	
              8.

            	
              Acknowledgment

            

    

     

    Executive
      acknowledges that he has carefully read and fully understands the terms of
      this
      Waiver and Release and the Agreement and that this Waiver and Release is
      executed by Executive voluntarily and is not based upon any representations
      or
      statements of any kind made by the Company or any or the other Released Parties
      as to the merits, legal liabilities or value of his claims. Executive further
      acknowledges that he has had a full and reasonable opportunity to consider
      this
      Waiver Release and that he has not been pressured or in any way coerced into
      executing this Waiver and Release.

     

    
      	 	
              9.

            	
              Choice
                of Laws

            

    

     

    9.1 This
      Waiver and Release and the rights and obligations of the parties hereto shall
      be
      governed and construed in accordance with the laws of the State of New York.
      

     

    9.2 Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      United States District Court located in White Plains, New York over any suit,
      action or proceeding arising out of or relating to this Agreement. Each party
      hereby irrevocably waives to the fullest extent permitted by law, (i) the right
      to a trial by jury; (ii) any objection that they may now or hereafter have
      to
      the venue of any such suit, action or proceeding brought in any such court;
      or
      (iii) any claim that any such suit, action or proceeding has been brought in
      an
      inconvenient forum. Final judgement in any suit, action or proceeding brought
      in
      any such court shall be conclusive and binding upon each party duly served
      with
      process therein and may be enforced in the courts of the jurisdiction of which
      either party or any of their property is subject, by a suit upon such
      judgement.

     

    
      	 	
              10.

            	
              Severability

            

    

     

    Except
      for the waiver and release contained in Section 1 hereof, if any provision
      of
      this Waiver and Release is unenforceable or is held to be unenforceable, such
      provision shall be fully severable, and this Waiver and Release and its terms
      shall be construed and enforced as if such unenforceable provision had never
      comprised a part hereof, the remaining provisions hereof shall remain in full
      force and effect, and the court construing the provisions shall add as a part
      hereof a provision as similar in terms and effect to such unenforceable
      provision as may be enforceable, in lieu of the unenforceable provision. In
      the
      event that the release contained in Section 1 hereof is unenforceable or is
      held
      to be unenforceable, the parties understand and agree that the remaining
      provisions of this Waiver and Release shall be rendered null and void and that
      neither party shall have any further obligation under any provision of this
      Waiver and Release

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	 	
              11.

            	
              Entire
                Agreement

            

    

     

    This
      document contains all terms of the Waiver and Release and supersedes and
      invalidates any previous agreements or contracts regarding the same subject
      matter. No representations, inducements, promises or agreements, oral or
      otherwise, which are not embodied herein shall be of any force or effect.

     

    IN
      WITNESS WHEREOF, the undersigned acknowledges that he has read this Waiver
      and
      Release Agreement and sets his hand and seal this ____ day of ____________,
      200_.

     

    

    
      	 	 	 
	 	 	Fredric M. Zinn 
	 	 	 
	Sworn to and subscribed before me this
              	 	 
	_____ day of ______________, 200_	 	 
	 	 	 
	 	 	 
	Notary Public	 	 
	 	 	 
	My Commission Expires:	 	 
	 	 	 
	
            	 	 

    

     

    
      
         

      

        12

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