Document:

Exhibit
4.19

DATED
17 DECEMBER 2004

	
      (1)
      ELAN CORPORATION, PLC

       

       

      (2)
      ELAN INTERNATIONAL SERVICES, LTD

       

       

      (3)
      GENEREX BIOTECHNOLOGY CORPORATION

       

       

      AND

       

       

      (4)
      GENEREX (BERMUDA), LTD

       

TERMINATION
AGREEMENT

 

MATHESON
ORMSBY PRENTICE

30
Herbert Street

Dublin
2

Ireland

TEL + 353 1
619 9000

FAX + 353 1
619 9010

\MOP_DUBLIN\1081878.5

CONTENTS

 

 

	 	 	
      Page No

	 	 	 
	
      1
	
      Definitions
	
      2

	
      2
	
      Termination
      of the Newco Agreements
	
      3

	3	
      Representations,
      Warranties, Confirmations and Indemnities
	
      4

	4	
      Intellectual
      Property
	
      6

	5	
      Rights
      Related to Securities
	
      6

	6	
      Sale
      of Shares and Completion
	
      6

	7	
      Confidentiality
	
      7

	8	
      Waiver
      of Accrued Rights/Mutual Releases
	
      9

	9	
      General
	
      9

			

 

 

THIS
TERMINATION AGREEMENT made
this 17th day of
December 2004 (this “Agreement”)

 

AMONG:

 

	(1)  	
      ELAN
      CORPORATION, PLC, a
      public limited company incorporated under the laws of Ireland and having
      its registered office at Lincoln House, Lincoln Place, Dublin 2, Ireland
      (“Elan
      Corp”);

 

	(2)  	
      ELAN
      INTERNATIONAL SERVICES, LTD., an
      exempted limited liability company incorporated under the laws of Bermuda,
      and having its registered office at Clarendon House, 2 Church St.,
      Hamilton, Bermuda (“EIS”);

 

	(3)  	
      GENEREX
      BIOTECHNOLOGY CORPORATION, a
      Delaware corporation having its principal place of business at 33 Harbour
      Square, Suite 202, Toronto, Ontario, Canada M5J 2G2; and
    

 

	(4)  	
      GENEREX
      (BERMUDA), LTD, an
      exempted company incorporated under the laws of Bermuda, and having its
      registered office at Clarendon House, 2 Church St., Hamilton,
      Bermuda.

 

RECITALS:

 

	A.  	
      The
      Parties entered into various agreements whereby Elan Corp, EIS and
      JVP established the joint venture company, Newco, and Elan Corp and JVP
      each licensed certain intellectual property to Newco for a specified field
      of use. Specifically:

 

	(i)  	
      Elan
      Corp, EIS, JVP and Newco entered into a Subscription, Joint Development
      and Operating Agreement dated 17 January 2001 as amended and restated on
      15 January 2002 (the “JDOA”);

 

	(ii)  	
      Elan
      Corp and Newco entered into a License Agreement dated 16 January 2001 as
      amended and restated on 15 January 2002 (the “Elan
      License Agreement”);

 

	(iii)  	
      JVP
      and Newco entered into a License Agreement dated 16 January 2001 as
      amended and restated on 15 January 2002 (the “JVP License
      Agreement”);
      and

 

	(iv)  	
      Newco,
      JVP and EIS entered into a Registration Rights Agreement with respect to
      the capital stock of Newco dated 16 January 2001 (the “Newco
      Registration Rights Agreement”).

 

	B.  	
      The
      JDOA, Elan License Agreement, JVP License Agreement, and Newco
      Registration Rights Agreement, are together defined in this Agreement as
      the “Newco
      Agreements”.
      

 

	C.  	
      The
      Parties also entered into agreements whereby JVP sold and EIS purchased
      certain securities of JVP and the Parties agreed to certain matters
      related to the ownership of such securities.
  Specifically:

 

	(i)  	
      Elan
      Corp, EIS and JVP entered into a Securities Purchase Agreement dated 16
      January 2001 (the “Securities
      Purchase Agreement”);

 

	(ii)  	
      EIS
      and JVP entered into a Registration Rights Agreement with respect to the
      capital stock of JVP dated 16 January 2001 (the “JVP
      Registration Rights Agreement”);
      and

 

	(iii)  	
      JVP
      executed and delivered to EIS a Warrant to Purchase Shares dated 16
      January 2001 (the “Warrant”).

 

	D.  	
      The
      Securities Purchase Agreement and JVP Registration Rights Agreement are
      together defined in this Agreement as the “Security
      Agreements”.

 

 

1

 

	E.  	
      The
      Parties wish to (i) terminate in full the Newco Agreements as set forth
      below, (ii) set forth their agreement in relation to other matters
      including, inter alia, the transfer of shares by EIS to JVP, and (iii)
      terminate in full the Security Agreements and amend the Warrant as set
      forth below.

 

IN
CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, AND OTHER GOOD AND
VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH ARE HEREBY
ACKNOWLEDGED, IT IS HEREBY AGREED AS FOLLOWS:

 

	1  	
      DEFINITIONS

 

Capitalised
terms used in this Agreement shall have the same meanings assigned to them in
the Newco Agreements, unless such terms are expressly defined to the contrary in
this Agreement.

 

“Affiliate”
shall
mean any corporation or entity controlling, controlled or under the common
control of any other corporation or entity, excluding, in the case of Elan Corp,
an Elan JV. For the purpose of this definition, (i) “control” shall mean direct
or indirect ownership of fifty percent (50%) or more of the stock or shares
entitled to vote for the election of directors; and (ii) Newco shall not be an
Affiliate of Elan Corp or EIS.

 

“Effective
Date” shall
mean the date of this Agreement. 

 

“Elan”
shall
mean Elan Corp and its Affiliates.

 

“Elan
Improvements” shall
mean improvements to the Elan Patents and/or the Elan Know-How, developed (i) by
Elan outside the Project, (ii) by Elan, JVP or Newco or by a third party (under
contract with Newco, Elan or JVP) pursuant to the Project, and/or (iii) jointly
by any combination of Elan, JVP, Newco or a third party (under contract with
Newco, Elan or JVP) pursuant to the Project.

 

“Elan
JV” shall
mean an entity that Elan and a third party (i) establish or have established;
(ii) take shareholdings in or have a right to take shareholdings in; and (iii)
grant certain licenses in and to certain intellectual property rights for the
purpose of implementing a strategic alliance. 

 

“Elan
Know-How” shall
have the meaning set forth in the Elan Licence Agreement.

 

“Elan
Patents” shall
have the meaning set forth in the Elan Licence Agreement.

 

“Elan
Trademark(s)” shall
have the meaning set forth in the Elan Licence Agreement.

 

“Exchange
Right” has the
meaning assigned to such term in the Certificate of Designations.

 

“Force
Majeure” shall
mean causes beyond a Party’s reasonable control, including, without limitation,
acts of God, fires, strikes, acts of war, or intervention of a governmental
authority. 

 

“JVP” shall
mean Generex
Biotechnology Corporation and its Affiliates.

 

“JVP
Improvements” shall
mean improvements to the JVP Patents and/or the JVP Know-How, developed (i) by
JVP outside the Project, (ii) by JVP, Elan or Newco or by a third party (under
contract with Newco, Elan or JVP) pursuant to the Project, and/or (iii) jointly
by any combination of JVP, Elan, Newco or a third party (under contract with
Newco, Elan or JVP) pursuant to the Project.

 

“JVP
Know-How” shall
mean Generex Know-How (as such term is defined in the JVP Licence
Agreement).

 

“JVP
Patents” shall
mean Generex Patents (as such term is defined in the JVP Licence
Agreement).

 

 

2

 

“JVP
Trademarks” shall
mean Generex Trademarks (as such term is defined in the JVP Licence
Agreement).

 

“Newco” shall
mean Generex (Bermuda), Ltd. and its Affiliates.

 

“Newco
Intellectual Property” shall
have the meaning set forth in the JDOA.

 

“Newco
Trademark” shall
mean Generex (Bermuda), Ltd..

 

“Party” shall
mean Elan
Corp, EIS, JVP or
Newco, as the case may be, and “Parties” shall
mean all such parties together. 

 

“Project”
shall
have the meaning set forth in the JDOA.

 

“Territory” shall
mean all of
the countries of the world.

 

“United
States Dollar” and
“US$” and
“$” shall
mean the lawful currency of the United States of America.

 

	2  	
      TERMINATION
      OF THE NEWCO AGREEMENTS

 

	2.1  	
      Subject
      to the provisions of Clause 2.2 hereof, the Parties hereby agree to
      terminate the Newco Agreements and the Security Agreements, including
      without limitation, those provisions expressly stated to survive
      termination, in each case with effect from the Effective
    Date.

 

All the
provisions of the Newco Agreements and the Security Agreements shall terminate
forthwith with effect from the Effective Date and be of no further legal force
or effect. 

 

	2.2  	
      For
      the avoidance of doubt and without prejudice to the generality of the
      foregoing Clause 2.1, the Parties hereby acknowledge and agree as follows
      as of the Effective Date:

 

	2.2.1  	
      the
      Management Committee (as such term is defined in the JDOA) shall be
      dissolved forthwith with effect from the Effective Date and thereby cease
      to have any function;

 

	2.2.2  	
      the
      EIS Director, Seamus Mulligan, holding
      office with Newco immediately prior to the Effective Date,
      shall resign;

 

	2.2.3  	
      the
      nominees on the Management Committee of Elan shall be deemed to have been
      removed from the Management Committee by Elan immediately prior to the
      dissolution of the Management Committee;

 

	2.2.4  	
      all
      rights granted to Newco pursuant to the Elan License Agreement to use the
      Elan Patents, the Elan Know-How, the Elan Improvements and the Elan
      Trademark(s)
      shall
      terminate forthwith;

 

	2.2.5  	
      all
      rights granted to Newco pursuant to the JVP License Agreement to use the
      JVP Patents, the JVP Know-How, the JVP Improvements and the JVP
      Trademark(s) shall terminate forthwith;

 

	2.2.6  	
      with
      effect from the Effective Date, neither JVP nor Newco shall have any
      rights in or to the Elan Patents, the Elan Know-How, the Elan Improvements
      and/or the Elan Trademark(s) and/or any other patents, know-how or any
      other intellectual property rights whatsoever of
Elan;

 

	2.2.7  	
      with
      effect from the Effective Date, neither Elan nor Newco shall not have any
      rights in or to the JVP Patents, the JVP Know-How, the JVP Improvements
      and/or the JVP Trademarks and/or any other patents, know-how or any other
      intellectual property rights whatsoever of
JVP;

 

 

3

 

	2.2.8  	
      the
      Parties shall terminate or shall cause to be terminated any and all
      research and development work being conducted in connection with or
      pursuant to any R&D Program of Newco, the Newco Agreements, or
      otherwise on behalf of Newco;

 

	2.2.9  	
      the
      Parties shall terminate or cause to be terminated any and all technical
      services and assistance being conducted in connection with the Newco
      Agreements;

 

	2.2.10  	
      for
      the avoidance of doubt, none of the Parties shall have any obligation to
      provide working capital, research or development funding, or other funding
      or financing of any nature to Newco;

 

	2.2.11  	
      Elan
      shall
      not
      have any obligation to pay any milestone payment or make any milestone
      investment to or in Newco or JVP whether relating to the Project, the
      achievement of any objectives set forth therein or
    otherwise.

 

	2.3  	
      Each
      of the Parties acknowledges and agrees with the other Parties that, as of
      the Effective Date, no monies are owed or are refundable by any of the
      Parties to the others pursuant to the Newco
Agreements.

 

For the
avoidance of doubt, the Parties acknowledge that Newco is liable to pay any fees
due and owing to Codan Corporate Administrative Services upon the Effective
Date, and thereafter.

 

	3  	
      REPRESENTATIONS,
      WARRANTIES, CONFIRMATIONS AND
INDEMNITIES

 

	3.1  	
      Sub-licenses

 

Newco
represents and warrants to the other Parties that it has not granted any
sub-licences or any other rights of any nature to any third parties pursuant to
the Elan License Agreement or the JVP License Agreement.

 

	3.2  	
      JVP
      Shares

 

JVP
confirms to the other Parties that it is the legal and beneficial owner of
(i) 6000 Common Shares (as defined in the JDOA and (ii) 3,612 Preference
Shares (as defined in the JDOA).

 

	3.3  	
      EIS
      Shares

 

EIS confirms
to the other Parties that it is the legal and beneficial owner of 2,388
Preference Shares (the “EIS
Shares”).

 

	3.4  	
      Third
      party agreements / Orders / Claims

 

	3.4.1  	
      Each
      of the Parties confirms to the other Parties hereto that, as of the
      Effective Date, to its actual knowledge, Newco is not a party to, or bound
      by, any judgment, order, decree or other directive of or stipulation with
      any court or any governmental or regulatory
authority.

 

	3.4.2  	
      Each
      of the Parties confirms to the other Parties hereto that, as of the
      Effective Date, to its actual knowledge, Newco is not a party to, or bound
      by, or is a third party beneficiary of any agreement with any third party
      except for the Newco Agreements.

 

	3.4.3  	
      Each
      of the Parties confirms to the other Parties hereto
      that, as of the Effective Date, to its actual knowledge, there are no
      claims, suits or proceedings pending or threatened against
      Newco.

 

	3.5  	
      Regulatory
      Applications

 

Each of
the Parties confirms to the
other Parties that,
prior to and as of the Effective Date, no regulatory applications have been
filed by Newco or by any Party with any government authority in any part of the
world with
respect to the Newco
Intellectual Property or otherwise howsoever in relation to the
Project.

 

 

4

 

	3.6  	
      Exclusion
      of warranties / liability

 

WITH
REFERENCE TO THE TRANSFER BY EIS TO JVP OF THE EIS SHARES AS PROVIDED BY CLAUSE
6 ON THE EFFECTIVE DATE (BUT WITHOUT PREJUDICE TO EIS’S OBLIGATION UNDER CLAUSE
6.1.1 HEREOF TO TRANSFER THE EIS SHARES TO JVP FREE FROM ALL LIENS, CHARGES AND
ENCUMBRANCES), THE PARTIES ACKNOWLEDGE AND AGREE THAT EIS AND ITS AFFILIATES
MAKE NO REPRESENTATION OR WARRANTY OF ANY NATURE TO JVP OR ANY OTHER PERSON IN
RELATION TO NEWCO OR ANY OF ITS AFFAIRS PAST, PRESENT OR
FUTURE.

 

JVP
ACKNOWLEDGES THAT IT IS ENTERING INTO THIS AGREEMENT IN RELIANCE EXCLUSIVELY ON
ITS OWN BUSINESS JUDGEMENT, THE INFORMATION WHICH HAS BEEN AVAILABLE TO IT AS A
SHAREHOLDER OF NEWCO AND OTHERWISE AND ON THE DUE DILIGENCE IT HAS CARRIED OUT
IN RELATION TO NEWCO.

 

EXCEPT
AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ALL OTHER WARRANTIES, CONDITIONS OR
REPRESENTATIONS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, ARE HEREBY
EXPRESSLY EXCLUDED BY THE PARTIES.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NO PARTY SHALL BE LIABLE TO ANY
OTHER PARTY BY REASON OF ANY REPRESENTATION OR WARRANTY, CONDITION OR OTHER TERM
OR ANY DUTY OF COMMON LAW, OR UNDER THE EXPRESS TERMS OF THIS AGREEMENT, FOR ANY
CONSEQUENTIAL SPECIAL OR INCIDENTAL OR PUNITIVE LOSS OR DAMAGE (WHETHER FOR LOSS
OF CURRENT OR FUTURE PROFITS, LOSS OF ENTERPRISE VALUE OR OTHERWISE) AND WHETHER
OCCASSIONED BY THE NEGLIGENCE OF THE RESPECTIVE PARTIES, THEIR EMPLOYEES OR
AGENTS OR OTHERWISE.

 

	3.7  	
      Organization
      and authority

 

Each of
the Parties represents and warrants to the other Parties that it is a
corporation duly organised and validly existing under the laws of its
jurisdiction of organisation and has all the requisite corporate power and
authority to enter into this Agreement and to carry out the transactions
contemplated hereby. 

 

	3.8  	
      Investment
      Representations

 

JVP
hereby represents and warrants to the
other Parties that, as
of the Effective Date, (i) it is sophisticated in transactions of this type and
capable of evaluating the merits and risks of its investment in Newco, (ii) it
has not been formed solely for the purpose of making this investment and is
acquiring the EIS Shares for investment for its own account, not as a nominee or
agent, and not with the view to, or for resale in connection with, any
distribution of any part thereof, and no other person has a direct or indirect
interest, beneficial or otherwise in the EIS Shares, (iii) it understands that
the EIS Shares have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), or applicable state and foreign securities laws
by reason of a specific exemption from the registration provisions of the
Securities Act and applicable state and foreign securities laws, the
availability of which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of its representations as expressed
herein and (iv) it understands that no public market now exists for any of the
EIS Shares and that there is no assurance that a public market will ever exist
for such shares.

 

	3.9  	
      Trademark
      Applications

 

JVP
represents and warrants to the other Parties that Newco and
JVP have not
filed for any trademark protection and/or have not adopted any new trademark,
apart from the Newco Trademark, in connection with Newco’s business
or any product or service provided thereunder.

 

 

5

 

	3.10  	
      Representation
      and Warranties as of the Effective Date

 

Except
where expressly stated otherwise, each of the representations and warranties in
this Agreement are made as of the Effective Date.

 

	4  	
      INTELLECTUAL
      PROPERTY

 

	4.1  	
      Ownership

 

On and
following the Effective Date:

 

	4.1.1  	
      For
      the avoidance of doubt, the Elan Patents, the Elan Know-How, the Elan
      Improvements and/or the Elan Trademark(s) shall remain the sole and
      exclusive property of Elan. 

 

Elan
confirms that no Elan Improvements were developed pursuant to the Project, or
otherwise pursuant to the Newco Agreements.

 

	4.1.2  	
      For
      the avoidance of doubt, the JVP Patents, the JVP Know-How, the JVP
      Improvements and/or the JVP Trademarks shall remain the sole and exclusive
      property of JVP.

 

JVP
confirms that no JVP Improvements were developed pursuant to the Project, or
otherwise pursuant to the Newco Agreements.

 

	4.1.3  	
      The
      Parties confirm that no Newco Intellectual Property was developed pursuant
      to the Project, or otherwise pursuant to the Newco
    Agreements.

 

	5  	
      RIGHTS
      RELATED TO SECURITIES

 

	5.1  	
      Except
      as otherwise provided in this Agreement, nothing contained herein shall
      constitute a waiver of any right of Elan Corp, or EIS or any of their
      respective successors and assigns with respect to their respective
      ownership of securities in JVP under any agreements of any kind in
      existence with JVP with respect thereto, which agreements are not
      specifically terminated pursuant to Clause 2.1
hereof.

 

	5.2  	
      Section
      5(b)(i) of the Warrant is amended by deleting the first and second
      sentence of such subsection and substituting the following: “This Warrant
      may be transferred in whole or in part by the Holder.” In addition,
      Section 5(b)(iii) of the Warrant is
deleted.

 

	5.3  	
      EIS
      and its Affiliates
      hereby covenants to use commercially reasonable efforts to cooperate with
      JVP to cause an amendment to the Certificate of Incorporation of JVP to be
      approved to effect the elimination of the Exchange Right, including,
      without limitation, voting all of its shares of JVP’s capital stock owned
      thereby in favor of a proposal relating to such an amendment of JVP’s
      charter.

 

	5.4  	
      EIS
      represents and warrants that Elan Pharmaceutical Investments III, Ltd. is
      the sole legal and beneficial owner of the Warrant; provided however that
      Elan Pharmaceutical Investments III, Ltd. has, or intends to, enter into a
      Securities Purchase Agreement under which it will sell the
      Warrant.

 

	6  	
      SALE
      OF SHARES AND COMPLETION

 

	6.1  	
      Subject
      to the terms of this Agreement:

 

 

6

 

	6.1.1  	
      EIS
      shall sell as legal and beneficial owner and JVP shall purchase, free from
      all liens, charges and encumbrances and together with all rights now or
      hereafter attaching to them, the EIS Shares;
      and

 

	6.1.2  	
      the
      EIS Shares will be sold by EIS to JVP for a total
      consideration
      of $1.00 (the “Consideration”).

 

	6.2  	
      On
      the Effective Date, Elan and JVP shall take or (to the extent that the
      same is within its powers) cause to be taken the following steps prior to
      or at directors and shareholders meetings of Newco, or such other
      meetings, as appropriate:

 

	6.2.1  	
      the
      delivery by EIS to JVP of a stock transfer form in respect of the EIS
      Shares duly executed by EIS in favour of JVP or as it may direct together
      with the related share certificates;

 

	6.2.2  	
      the
      payment by JVP to EIS of the Consideration;

 

	6.2.3  	
      the
      resignation of the EIS Director on Newco’s Board of
    Directors;

 

	6.2.4  	
      the
      modification, as appropriate, by board resolutions of Newco of matters
      such as the removal of EIS as book keeper for Newco, the removal of EIS
      representatives as authorised signatories of Newco’s bank account, the
      resignation of the Company Secretary and any other related matters
      whatsoever;

 

	6.2.5  	
      any
      other steps required by this Agreement.

 

	7  	
      CONFIDENTIALITY

 

	7.1  	
      Confidentiality

 

	7.1.1  	
      The
      Parties agree that it may be necessary pursuant to this Agreement, from
      time to time, to disclose to each other confidential and proprietary
      information, including without limitation, inventions, trade secrets,
      specifications, designs, data, know-how and other proprietary information,
      processes, services and business of the disclosing
  Party.

 

The
foregoing together with the terms of this Agreement shall be referred to
collectively as “Additional
Confidential Information”.

 

The
Parties also agree that it may have been necessary to disclose to each other
Confidential Information (as defined in the JDOA) pursuant to the Newco
Agreements.

 

Together
Additional Confidential Information and Confidential Information shall be
referred to collectively as “Proprietary
Information”.

 

	7.1.2  	
      Save
      as otherwise specifically provided herein, and subject to Clause 7.2 and
      7.3, each Party shall disclose Proprietary Information of another
      Party only to those employees, representatives and agents requiring
      knowledge thereof in connection with fulfilling the Party’s obligations
      under this Agreement, and not to any other third
party.

 

Each
Party further agrees to inform all such employees, representatives and agents of
the terms and provisions of this Agreement relating to Proprietary Information
and their duties hereunder and to obtain their agreement hereto as a condition
of receiving Proprietary Information.

 

Each
Party shall exercise the same standard of care as it would itself exercise in
relation to its own confidential information (but in no event less than a
reasonable standard of care) to protect and preserve the proprietary and
confidential nature of the Proprietary Information disclosed to it by
another Party.

 

 

7

 

Each
Party shall promptly, upon request of another Party,
return all documents and any copies thereof containing Proprietary Information
belonging to, or disclosed by, such Party,
save that it may retain one copy of the same solely for the purposes of ensuring
compliance with this Clause 7.

 

	7.1.3  	
      Any
      breach of this Clause 7 by any person informed by one of the Parties is
      considered a breach by the Party itself.

 

	7.1.4  	
      Proprietary
      Information shall be deemed not to include:

 

	(a)  	
      information
      which is in the public domain;

 

	(b)  	
      information
      which is made public through no breach of this
  Agreement;

 

	(c)  	
      information
      which is independently developed by a Party, as evidenced by such Party’s
      records; 

 

	(d)  	
      information
      that becomes available to a receiving Party on a non-confidential basis,
      whether directly or indirectly, from a source other than another
      Party, which source did not acquire this information on a confidential
      basis.

 

	7.1.5  	
      The
      provisions relating to confidentiality in this Clause 7 shall remain in
      effect during the term of this Agreement, and for a period of 10 years
      following the Effective Date of this
Agreement.

 

	7.1.6  	
      The
      Parties agree that the obligations of this Clause 7 are necessary and
      reasonable in order to protect the Parties’ respective businesses, and
      each Party agrees that monetary damages may be inadequate to compensate a
      Party for any breach by another
      Party of its covenants and agreements set forth herein.

 

The
Parties agree that any violation
or threatened violation under
this Clause 7 may
cause irreparable injury to a Party and that, in addition to any other remedies
that may be available, in law and equity or otherwise, each Party shall be
entitled to seek injunctive relief against the threatened breach of the
provisions of this Clause 7, or a continuation of any such breach by
another Party,
specific performance and other equitable relief to redress such breach together
with damages and reasonable counsel fees and expenses to enforce its rights
hereunder.

 

	7.2  	
      Announcements

 

	7.2.1  	
      Subject
      to Clause 7.3, no announcement or public statement concerning the
      existence, subject matter or any term of this Agreement shall
      be made by or on behalf of any Party without the prior written approval of
      the other Party or Parties.

 

The terms
of any such announcement shall be agreed in good faith by the
Parties.

 

	7.3  	
      Required
      Disclosures

 

	7.3.1  	
      A
      Party (the “Disclosing
      Party”)
      will be entitled to make an announcement or public statement concerning
      the existence, subject matter or any term of this Agreement, or to
      disclose Proprietary Information that the Disclosing Party is required to
      make or disclose pursuant to:

 

	(a)  	
      a
      valid order of a court or governmental authority;
or

 

	(b)  	
      any
      other requirement of law or any securities or stock
    exchange;

 

provided
that if the Disclosing Party becomes legally required to make such announcement,
public statement or disclosure hereunder, the Disclosing Party shall give the
other Party or Parties prompt notice of such fact to enable the other Party or
Parties to seek a protective order or other appropriate remedy concerning any
such announcement, public statement or disclosure. 

 

 

8

 

The
Disclosing Party shall fully co-operate with the other Party or Parties in
connection with that other Party’s or Parties’ efforts to obtain any such order
or other remedy. 

 

If any
such order or other remedy does not fully preclude announcement, public
statement or disclosure, the Disclosing Party shall make such announcement,
public statement or disclosure only to the extent that the same is legally
required.

 

Elan Corp
and EIS acknowledge that rules of the Securities and Exchange Commission and
NASDAQ Stock Market will require JVP to disclose this agreement and its effect
by publicly accessible filings with the Securities and Exchange Commission on
form 8-K within 4 business days after the Effective Date.

 

	7.3.2  	
      Each
      of the Parties shall be entitled to provide a copy of this Agreement (and
      any subsequent amendments hereto) and the Newco Agreements to a potential
      third party purchaser in connection with Clause 9.2.1(b); provided
      that the
      relevant third party purchaser or assignee has entered into a
      confidentiality agreement on terms no less protective than the terms of
      this Clause 7. 

 

	8  	
      WAIVER
      OF ACCRUED RIGHTS/MUTUAL RELEASES

 

	8.1  	
      With
      effect from the Effective Date, each Party
      and each of its Affiliates (“Releasor”):

 

	8.1.1  	
      waives
      any accrued rights that Releasor
      may have accrued against the other Parties and each of its Affiliates,
      officers, directors, representative, agents and employees and the assigns
      and successors in interest of any of the foregoing entities (“Releasees”),
      whether known or unknown, foreseen
      or unforeseen, fixed or contingent, of any nature whatsoever
      from the beginning of time to the Effective Date under the Newco
      Agreements and the Security Agreements;
      and 

 

	8.1.2  	
      fully
      and finally releases and discharges the
      Releasees
      from
      any and
      all manner
      of actions, claims, promises, debts, sums of money, demands, obligations,
      in law or in equity, directly
      or indirectly, whether known or unknown, foreseen
      or unforeseen, fixed
      or contingent, of any nature whatsoever that Releasor may have by reason
      of any act, omission, matter, provision, cause or thing whatsoever from
      the beginning of time to the Effective Date under the Newco Agreements and
      the Security Agreements.

 

	8.2  	
      For
      the avoidance of doubt the
      provisions of this Clause 8
      shall not in any way act as a waiver by any of the Parties in respect of
      any of the provisions set forth in this Agreement or the
      Warrant.

 

	9  	
      GENERAL

 

	9.1  	
      Governing
      law and jurisdiction

 

	9.1.1  	
      This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York without regard to conflicts of law principles
      under the laws of the State of New York. 

 

	9.1.2  	
      For
      the purposes of this Agreement, the Parties submit to the nonexclusive
      jurisdiction of the State and Federal Courts of New
  York.

 

	9.2  	
      Assignment

 

	9.2.1  	
      This
      Agreement shall not be assigned by any Party without the prior written
      consent of the others, save that any Party:

 

 

9

 

	(a)  	
      may
      assign this Agreement in whole or in part and delegate its duties
      hereunder to its Affiliate or Affiliates without such consent;
      and

 

	(b)  	
      may
      assign its rights and obligations to a successor (whether by merger,
      consolidation, reorganisation or other similar event) or purchaser of all
      or substantially all of its assets relating to such Party’s technology
      related to this Agreement, provided that such successor or purchaser has
      agreed in writing to assume all of such Party’s rights and obligations
      hereunder and a copy of such assumption is provided to the other
      Parties.

 

	9.3  	
      Notices

 

	9.3.1  	
      Any
      notice to be given under this Agreement shall be sent in writing in
      English by registered airmail, internationally recognized courier or
      telefaxed to the following addresses:

 

If to
Newco at:

 

Newco
Limited

Clarendon
House

2 Church
St.

Hamilton

Bermuda

Attention: President

with a
copy to JVP at:

 

Generex
Biotechnology Corporation

33
Harbour Square, Suite 202

Toronto,
Ontario

Canada
M5J 2G2

Attention: Chief
Executive Officer

Telephone: 416-364-8288

Fax:  416-364-8782

If to JVP
at:

Generex
Biotechnology Corporation

33
Harbour Square, Suite 202

Toronto,
Ontario

Canada
M5J 2G2

Attention: Chief
Executive Officer

Telephone: 416-364-8288

Fax:  416-364-8782

with a
copy to:

Eckert
Seamans Cherin & Mellott, LLC

1515
Market Street

9th
Floor

Philadelphia
PA 19102

Attention: Gary A.
Miller, Esq

If to
Elan Corp or EIS at: 

Elan
Corporation, plc

Elan
International Services, Ltd.

c/o Elan
International Services, Ltd.

102 St.
James Court

Flatts,

Smiths
FL04

Bermuda

Attention: Secretary

Telephone: 441 292
9169

Fax:  441 292
2224

 

 

10

or to
such other address(es) and telefax numbers as may from time to time be notified
by any Party to the others hereunder.

 

	9.3.2  	
      Any
      notice sent by mail shall be deemed to have been delivered within seven
      (7) working days after dispatch or delivery to the relevant courier and
      notice sent by fax shall be deemed to have been delivered upon
      confirmation receipt. Notice of change of address shall be effective upon
      receipt.

 

	9.4  	
      Waiver

 

No waiver
of any right under this Agreement shall be deemed effective unless contained in
a written document signed by the Party charged with such waiver, and no waiver
of any breach or failure to perform shall be deemed to be a waiver of any future
breach or failure to perform or of any other right arising under this
Agreement.

 

	9.5  	
      Severability

 

If any
provision in this Agreement is agreed by the Parties to be, or is deemed to be,
or becomes invalid, illegal, void or unenforceable under any law that is
applicable hereto:

 

	9.5.1  	
      such
      provision will be deemed amended to conform to applicable laws so as to be
      valid and enforceable; or

 

	9.5.2  	
      if
      it cannot be so amended without materially altering the intention of the
      Parties, it will be deleted, with effect from the date of this Agreement
      or such earlier date as the Parties may agree, and the validity, legality
      and enforceability of the remaining provisions of this Agreement shall not
      be impaired or affected in any way.

 

	9.6  	
      Further
      Assurances

 

At the
request of any of the Parties, the other Party or Parties shall (and shall use
reasonable efforts to procure that any other necessary parties shall) execute
and perform all such documents, acts and things as may reasonably be required
subsequent to the signing of this Agreement for assuring to or vesting in the
requesting Party the full benefit of the terms hereof.

 

	9.7  	
      Successors

 

This
Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective successors and permitted assigns.

 

	9.8  	
      Amendments

 

No
amendment, modification or addition hereto shall be effective or binding on any
Party unless set forth in writing and executed by a duly authorized
representative of each Party.

 

	9.9  	
      Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute this Agreement. 

 

 

11

 

	9.10  	
      Costs

 

Each
Party shall bear its own costs and expenses in connection with the transactions
contemplated by this Agreement.

 

	9.11  	
      Force
      Majeure

 

Neither
Party to this Agreement shall be liable for failure or delay in the performance
of any of its obligations hereunder if such failure or delay results from Force
Majeure, but any such failure or delay shall be remedied by such Party as soon
as practicable.

 

	9.12  	
      Relationship
      of the Parties

 

The
Parties are independent contractors under this Agreement. Nothing herein
contained shall be deemed to create or establish an employment, agency, joint
venture, or partnership relationship between the Parties or any of their agents
or employees, or any other legal arrangement that would impose liability upon
one Party for the act or failure to act of another
Party.

 

No Party
shall have any express or implied power to enter into any contracts, commitments
or negotiations or to incur any liabilities in the name of, or on behalf of,
another Party,
or to bind another Party in
any respect whatsoever. 

 

	9.13  	
      Entire
      agreement

 

	9.13.1  	
      This
      Agreement sets forth all of the agreements and understandings between the
      Parties with respect to the subject matter hereof. There are no agreements
      or understandings with respect to the subject matter hereof, either oral
      or written, between the Parties other than as set forth in this
      Agreement.

 

	9.13.2  	
      No
      provision of this Agreement shall be construed so as to negate, modify or
      affect in any way the provisions of any other agreement between the
      Parties unless specifically provided herein and only to the extent so
      specified.

 

THE
REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.

12

IN
WITNESS WHEREOF the
Parties have executed this Agreement.

 

	SIGNED	 
	By:		 
	 	
      

    	 
	 	
      for
      and on behalf of

      ELAN
      CORPORATION, PLC 
	 

 

 

	SIGNED	 
	By:		 
	 	
      

    	 
	 	
      for
      and on behalf of
ELAN INTERNATIONAL SERVICES,
      LTD.
	 

 

	SIGNED	 
	By:	/s/ Anna E. Gluskin 	 
	 	
      

    	 
	 	
      for
      and on behalf of
GENEREX (BERMUDA),
LTD
	 

 

 

	SIGNED	 
	By:	/s/ Rose C. Perri	 
	 	
      

    	 
	 	
      for
      and on behalf of
GENEREX BIOTECHNOLOGY
      CORPORATION
	 

 

13

DATED
17 DECEMBER 2004

	
      (1)
      ELAN CORPORATION, PLC

       

       

      (2)
      ELAN INTERNATIONAL SERVICES, LTD

       

       

      (3)
      GENEREX BIOTECHNOLOGY CORPORATION

       

       

      AND

       

       

      (4)
      GENEREX (BERMUDA), LTD.

TERMINATION
AGREEMENT

 

 

MATHESON
ORMSBY PRENTICE

30
Herbert Street

Dublin
2

Ireland

TEL + 353 1
619 9000

FAX + 353 1
619 9010

\MOP_DUBLIN\1081878.5Unassociated Document

Exhibit
4.20

WARRANT

THE
SECURITIES REPRESENTED BY THIS WARRANT AND SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE BEEN ISSUED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL IN FORM REASONABLY ACCEPTABLE TO THE
ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT. ANY SUCH
OFFER, SALE, ASSIGNMENT OR TRANSFER MUST ALSO COMPLY WITH THE APPLICABLE STATE
SECURITIES LAWS.

Generex
Biotechnology Corporation

Warrant
To Purchase Common Stock

 

	Warrant No.: 2005____	
      Number of Shares: 100,000

	Date of Original Issuance: April 28,
      2005	
		

 

Generex
Biotechnology Corporation, a Delaware corporation (the “Company”), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, The Aethena Group, LLC, the registered holder
hereof or its permitted assigns, is entitled, subject to the terms set forth
below, to purchase from the Company upon surrender of this Warrant, at any time
or times on or after the date hereof, but not after 11:59 P.M. Eastern Time on
the Expiration Date (as defined herein) 100,000 fully paid nonassessable shares
of Common Stock (as defined herein) of the Company (the “Warrant
Shares”) at the
purchase price per share provided in Section 1(b) below. 

Section
1.

(a) Finder’s
Agreement. This
Warrant is issued pursuant to the terms of that certain Exclusive Finder’s
Agreement entered into by and between the Company and The Aethena Group, LLC on
March 22, 2005 (the “Finder’s Agreement”).

(b) Definitions. The
following words and terms as used in this Warrant shall have the following
meanings:

(i) “Approved
Stock Plan” shall
mean any employee benefit plan as defined in Rule 405 under the Securities Act
which has been approved by the Board of Directors of the Company, pursuant to
which the Company’s securities may be issued to any employee, officer, director,
consultant or other service provider for services provided to the
Company.

(ii) “Common
Stock” means
(i) the Company’s common stock, $.001 par value per share, and
(ii) any capital stock into which such Common Stock shall have been changed
or any capital stock resulting from a reclassification of such Common
Stock.

(iii) “Convertible
Securities” means
any stock or securities (other than Options) directly or indirectly convertible
into or exchangeable for Common Stock.

(iv) “Expiration
Date” means
April 27, 2010.

(v) “Options” means
any rights, warrants, or options to subscribe for or purchase Common Stock or
Convertible Securities. 

(vi) “Person” means an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any
department or agency thereof.

(vii) “Principal
Market” means
the Nasdaq National Market or Nasdaq Small-Cap Market.

(viii) “Securities
Act” means
the Securities Act of 1933, as amended.

(ix) “Trading
Day” means a
day on which the Common Stock is traded on a Principal Market. 

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

(xi) “Warrant” means
this Warrant and all Warrants issued in exchange, transfer or replacement of any
thereof.

(xii) “Warrant
Exercise Price” shall be
$0.82 per common share, subject to adjustment as hereinafter
provided.

2

Section
2. Exercise
of Warrant.

(a) Subject
to the terms and conditions hereof, this Warrant may be exercised by the holder
hereof then registered on the books of the Company, in whole or in part, at any
time on any business day on or after the opening of business on the date hereof
and prior to 11:59 P.M. Eastern Time on the Expiration Date by (i) delivery
of a written notice, in the form of the subscription notice attached as
Exhibit
A hereto
(the “Exercise
Notice”), of
such holder’s election to exercise this Warrant, which notice shall specify the
number of Warrant Shares to be purchased, (ii) except as otherwise provided in
Section 2(d), payment to the Company of an amount equal to the Warrant Exercise
Price multiplied by the number of Warrant Shares as to which this Warrant is
being exercised (plus any applicable issue or transfer taxes) (the “Aggregate
Exercise Price”) in cash
or by check or wire transfer, and (iii) the surrender to a common carrier
for delivery to the Company as soon as practicable following such date, this
Warrant (or an indemnification undertaking with respect to this Warrant in the
case of its loss, theft or destruction); provided, that if such Warrant Shares
are to be issued in any name other than that of the registered holder of this
Warrant, such issuance shall be deemed a transfer and the provisions of Section
7 shall be applicable. In the event of any exercise of the rights represented by
this Warrant in compliance with this Section 2(a), a certificate or certificates
for the Warrant Shares so purchased, in such denominations as may be requested
by the holder hereof and registered in the name of, or as directed by, the
holder, shall be issued as soon as practicable, and in no event later than five
(5) business days after the Company’s receipt of the Exercise Notice, the
Aggregate Exercise Price, which shall not be required for a Cashless Exercise
(as defined in Section 2(d)), and this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction), and deliver the same at the Company’s expense to, or as directed
by, such holder. Upon delivery of the Exercise Notice and Aggregate Exercise
Price referred to in clause (ii) above, which shall not be required for a
Cashless Exercise, the holder of this Warrant shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect
to which this Warrant has been exercised, irrespective of the date of delivery
of this Warrant as required by clause (iii) above or the certificates evidencing
such Warrant Shares. In the case of a dispute as to the determination of the
Warrant Exercise Price, the Company shall promptly issue to the holder the
number of shares of Common Stock that is not disputed and shall submit the
disputed determinations or arithmetic calculations to the holder via facsimile
within five (5) business days of receipt of the holder’s subscription
notice.

(b) Unless
the rights represented by this Warrant shall have expired or shall have been
fully exercised, the Company shall, as soon as practicable and in no event later
than five (5) business days after any exercise and at its own expense, issue a
new Warrant identical in all respects to this Warrant exercised except it shall
represent rights to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant exercised, less the number
of Warrant Shares with respect to which such Warrant is exercised.

(c) Notwithstanding
anything in this Warrant to the contrary, in no event shall the holder of this
Warrant be entitled to exercise a number of Warrant Shares (or portions thereof)
in excess of the number of Warrant Shares (or portions thereof) upon exercise of
which the sum of (i) the number of Warrant Shares beneficially owned by the
holder and its affiliates (other than Warrant Shares which may be deemed
beneficially owned through the ownership of the unexercised Warrants and the
unexercised or unconverted portion of any other securities of the Company with
limitations similar to this paragraph (c)) and (ii) the number of Warrant Shares
issuable upon exercise of the Warrants (or portions thereof) with respect to
which the determination described herein is being made, would result in
beneficial ownership by the holder and its affiliates of more than 9.9% of the
outstanding shares of Company common stock. For purposes of the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Regulation 13D-G of the Securities Exchange Act of 1934, as amended, except as
otherwise provided in clause (i) of the preceding sentence.

3

(d) If at any
time after one year from the date of issuance of this Warrant there is no
effective registration statement on Form S-2 or Form S-3 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
Warrant 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. 

Section
3. Representations
and Covenants as to Common Stock. The
Company hereby represents and covenants as follows:

(a) This
Warrant is, and any Warrant issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued.

(b) All
Warrant Shares which may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issue thereof.

(c) During
the period within which the rights represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved at least 100% of the
number of shares of Common Stock needed to provide for the exercise of the
rights then represented by this Warrant and the par value of said shares will at
all times be less than or equal to the applicable Warrant Exercise
Price.

(d) The
Company shall promptly secure the listing of the shares of Common Stock issuable
upon exercise of this Warrant upon each national securities exchange or
automated quotation system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance upon exercise of this Warrant)
and shall maintain, so long as any other shares of Common Stock shall be so
listed, such listing of all shares of Common Stock from time to time issuable
upon the exercise of this Warrant; and the Company shall so list on each
national securities exchange or automated quotation system, as the case may be,
and shall maintain such listing of, any other shares of capital stock of the
Company issuable upon the exercise of this Warrant if and so long as any shares
of the same class shall be listed on such national securities exchange or
automated quotation system.

4

(e) The
Company will not, by amendment of 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 to be observed or
performed by it hereunder, but will at all times in good faith assist in the
carrying out of all the provisions of this Warrant and in the taking of all such
action as may reasonably be requested by the holder of this Warrant in order to
protect the exercise privilege of the holder of this Warrant against dilution or
other impairment, consistent with the tenor and purpose of this Warrant will
take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant.

(f) This
Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s
assets.

Section
4. Taxes. The
Company shall pay any and all taxes which may be payable with respect to the
issuance and delivery of Warrant Shares upon exercise of this
Warrant.

Section
5. Warrant
Holder Not Deemed a Stockholder. Except
as otherwise specifically provided herein, no holder, as such, of this Warrant
shall be entitled to vote or receive dividends or be deemed the holder of shares
of the Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the holder of this Warrant of the Warrant Shares which he or she is
then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities
on such holder to purchase any securities (upon exercise of this Warrant or
otherwise) or as a stockholder of the Company, whether such liabilities are
asserted by the Company or by creditors of the Company. Notwithstanding this
Section 5, the Company will provide the holder of this Warrant with copies of
the same notices and other information given to the stockholders of the Company
generally, contemporaneously with the giving thereof to the
stockholders.

Section
6. Representations
of Holder. The
holder of this Warrant, by the acceptance hereof, represents that it is
acquiring this Warrant and the Warrant Shares for its own account for investment
only and not with a view towards, or for resale in connection with, the public
sale or distribution of this Warrant or the Warrant Shares, except pursuant to
sales registered or exempted under the Securities Act; provided, however, that
by making the representations herein, the holder does not agree to hold this
Warrant or any of the Warrant Shares for any minimum or other specific term and
reserves the right to dispose of this Warrant and the Warrant Shares at any time
in accordance with or pursuant to a registration statement or an exemption under
the Securities Act. The holder of this Warrant further represents, by acceptance
hereof, that, as of this date, such holder is an “accredited investor” as such
term is defined in Rule 501(a)(1) of Regulation D promulgated by the
Securities and Exchange Commission under the Securities Act (an “Accredited
Investor”).

5

Section
7. Ownership
and Transfer.

(a) The
Company shall maintain at its principal executive offices (or such other office
or agency of the Company as it may designate by notice to the holder hereof), a
register for this Warrant, in which the Company shall record the name and
address of the person in whose name this Warrant has been issued, as well as the
name and address of each transferee. The Company may treat the person in whose
name any Warrant is registered on the register as the owner and holder thereof
for all purposes, notwithstanding any notice to the contrary, but in all events
recognizing any transfers made in accordance with the terms of this
Warrant.

(b) This
Warrant and the rights granted to the holder hereof are transferable, in whole
or in part, upon surrender of this Warrant, together with a properly executed
warrant power in the form of Exhibit
B attached
hereto; provided, however, that any transfer or assignment shall be subject to
the conditions set forth in Section 7(c) below.

(c) The
holder of this Warrant understands that this Warrant has not been and is not
expected to be, registered under the Securities Act or any state securities
laws, and may not be offered for sale, sold, assigned or transferred unless
(i) subsequently registered thereunder, or (ii) the transferee is an
affiliated entity that is an Accredited Investor, or (iii) such holder
shall have delivered to the Company an opinion of counsel, in generally
acceptable form, to the effect that the securities to be sold, assigned or
transferred may be sold, assigned or transferred pursuant to Regulation S under
the Securities Act or to an exemption from such registration; provided that
(A) any sale of such securities made in reliance on Rule 144 promulgated
under the Securities Act may be made only in accordance with the terms of said
Rule and further, if said Rule is not applicable, any resale of such securities
under circumstances in which the seller (or the person through whom the sale is
made) may be deemed to be an underwriter (as that term is defined in the
Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the Securities and Exchange
Commission thereunder; and (B) neither the Company nor any other person is
under any obligation to register the Warrants under the Securities Act or any
state securities laws or to comply with the terms and conditions of any
exemption thereunder.

(d) The
initial holder of this Warrant is entitled to certain piggyback registration
rights in respect of the Warrant Shares such that the Warrant Shares shall be
included on the next registration statement on Form S-2 or Form S-3 that the
Company files after the date hereof to register shares of Common Stock under the
Securities Act, other than any registration statement that the Company files to
register shares of Common Stock issuable pursuant to any employee benefit plan.

6

Section
8. Adjustment
of Warrant Exercise Price and Number of Shares. The
Warrant Exercise Price and the number of shares of Common Stock issuable upon
exercise of this Warrant shall be adjusted from time to time as
follows:

(a) Adjustment
of Warrant Exercise Price upon Subdivision or Combination of Common
Stock. If the
Company at any time after the date of issuance of this Warrant subdivides (by
any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of
shares, the Warrant Exercise Price in effect immediately prior to such
subdivision will be proportionately reduced and the number of shares of Common
Stock obtainable upon exercise of this Warrant will be proportionately
increased. If the Company at any time after the date of issuance of this Warrant
combines (by combination, reverse stock split or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, the
Warrant Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of shares of Common Stock obtainable
upon exercise of this Warrant will be proportionately decreased.

(b) Distribution
of Assets. If the
Company shall declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of Common Stock, by way of return
of capital or otherwise (including, without limitation, any distribution of
cash, stock or other securities, property or options by way of a dividend, spin
off, reclassification, corporate rearrangement or other transaction) (a
“Distribution”), at
any time after the issuance of this Warrant, then, in each such
case:

(i) the
Warrant Exercise Price in effect immediately prior to the close of business on
the record date fixed for the determination of holders of Common Stock entitled
to receive the Distribution shall be reduced, effective as of the close of
business on such record date, to a price determined by multiplying such Warrant
Exercise Price by a fraction of which (A) the numerator shall be the Closing bid
price on the trading day immediately preceding such record date minus the value
of the Distribution (as determined in good faith by the Company’s Board of
Directors) applicable to one share of Common Stock, and (B) the denominator
shall be the Closing bid price on the trading day immediately preceding such
record date; and

(ii) either
(A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
be increased to a number of shares equal to the number of shares of Common Stock
obtainable immediately prior to the close of business on the record date fixed
for the determination of holders of Common Stock entitled to receive the
Distribution multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i), or (B) in the event
that the Distribution is of common stock of a company whose common stock is
traded on a national securities exchange or a national automated quotation
system, then the holder of this Warrant shall receive an additional warrant to
purchase Common Stock, the terms of which shall be identical to those of this
Warrant, except that such warrant shall be exercisable into the amount of the
assets that would have been payable to the holder of this Warrant pursuant to
the Distribution had the holder exercised this Warrant immediately prior to such
record date and with an exercise price equal to the amount by which the exercise
price of this Warrant was decreased with respect to the Distribution pursuant to
the terms of the immediately preceding clause (i). 

 

7

(c) Certain
Events. If any
event occurs of the type contemplated by the provisions of this Section 8 but
not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Company’s Board of Directors will make an
appropriate adjustment in the Warrant Exercise Price and the number of shares of
Common Stock obtainable upon exercise of this Warrant so as to protect the
rights of the holders of the Warrants; provided that no such adjustment will
increase the Warrant Exercise Price or decrease the number of shares of Common
Stock obtainable as otherwise determined pursuant to this Section
8.

(d) Notices.

(i) Immediately
upon any adjustment of the Warrant Exercise Price, the Company will give written
notice thereof to the holder of this Warrant, setting forth in reasonable
detail, and certifying, the calculation of such adjustment. 

(ii) The
Company will give written notice to the holder of this Warrant at least twenty
(20) days prior to the date on which the Company closes its books or takes a
record (A) with respect to any dividend or distribution upon the Common
Stock, (B) with respect to any pro rata subscription offer to holders of
Common Stock or (C) for determining rights to vote with respect to any
Organic Change (as defined below), dissolution or liquidation, provided that
such information shall be made known to the public prior to or in conjunction
with such notice being provided to such holder.

(iii) The
Company will also give written notice to the holder of this Warrant at least
twenty (20) days prior to the date on which any Organic Change, dissolution or
liquidation will take place, provided that such information shall be made known
to the public prior to or in conjunction with such notice being provided to such
holder.

Section
9. Purchase
Rights; Reorganization, Reclassification, Consolidation, Merger or
Sale. (a) In
addition to any adjustments pursuant to Section 8 above, if at any time the
Company grants, issues or sells any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Common Stock (the “Purchase
Rights”), then
the holder of this Warrant will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which such
holder could have acquired if such holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant immediately
before the date on which a record is taken for the grant, issuance or sale of
such Purchase Rights, or, if no such record is taken, the date as of which the
record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights.

(b) Any
recapitalization, reorganization, reclassification, consolidation, merger, sale
of all or substantially all of the Company’s assets to another Person or other
transaction which is effected in such a way that holders of Common Stock are
entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for Common Stock is referred
to herein as “Organic
Change.” Prior to
the consummation of any (i) sale of all or substantially all of the Company’s
assets to an acquiring Person or (ii) other Organic Change following which the
Company is not a surviving entity, the Company will secure from the Person
purchasing such assets or the successor resulting from such Organic Change (in
each case, the “Acquiring
Entity”) written
agreement (in form and substance satisfactory to the holders of Warrants
representing a majority of the shares of Common Stock obtainable upon exercise
of the Warrants then outstanding) to deliver to each holder of Warrants in
exchange for such Warrants, a security of the Acquiring Entity evidenced by a
written instrument substantially similar in form and substance to this Warrant
and satisfactory to the holders of the Warrants (including, an adjusted warrant
exercise price equal to the value for the Common Stock reflected by the terms of
such consolidation, merger or sale, and exercisable for a corresponding number
of shares of Common Stock acquirable and receivable upon exercise of the
Warrants, if the value so reflected is less than the Warrant Exercise Price in
effect immediately prior to such consolidation, merger or sale). Prior to the
consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance satisfactory to the holders of Warrants
representing a majority of the shares of Common Stock obtainable upon exercise
of the Warrants then outstanding) to insure that each of the holders of the
Warrants will thereafter have the right to acquire and receive in lieu of or in
addition to (as the case may be) the shares of Common Stock immediately
theretofore acquirable and receivable upon the exercise of such holder’s
Warrants, such shares of stock, securities or assets that would have been issued
or payable in such Organic Change with respect to or in exchange for the number
of shares of Common Stock which would have been acquirable and receivable upon
the exercise of such holder’s Warrant as of the date of such Organic Change
(without taking into account any limitations or restrictions on the
exercisability of this Warrant).

8

Section
10. Lost,
Stolen, Mutilated or Destroyed Warrant. If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall, on receipt
of an indemnification undertaking, issue a new Warrant of like denomination and
tenor as this Warrant so lost, stolen, mutilated or destroyed.

Section
11. Notice.
Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Warrant must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party);
(iii) upon receipt, when sent by e-mail (provided that the transmission is
electronically tracked and the results of tracking kept on file by the sending
party); or (iv) one business day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same. The mailing addresses, facsimile numbers and e-mail addresses
for such communications shall be as set forth below:

If to the
Company:

Generex
Biotechnology Corporation

33
Harbour Square, Suite 202

Toronto,
Ontario M5J 2G2

Telephone: (416)
364-2551

Facsimile: (416)
364-9363

E-mail: mfletcher@generex.com

Attention: Mark A.
Fletcher
                Executive
Vice-President and General Counsel

9

With a
copy to:

Eckert
Seamans Cherin & Mellott

1515
Market Street, 9th
Floor

Philadelphia,
Pennsylvania 19102-1909

Telephone: (215)
851-8472

Facsimile: (215)
851-8383

E-mail: gmiller@escm.com

Attention: Gary A.
Miller, Esq.

Or at
such other mailing address, facsimile number or e-mail address that the Company
shall specify by notice to the holder.

To a
holder of this Warrant:

The
Aethena Group, LLC

1101
Skokie Boulevard, Suite 240

Northbrook,
Illinois 60062

Telephone: _____________

Facsimile: _____________

E-mail: chris@aethena.com
            Christopher
E. Freeburg,
            Vice-President

Or at
such other mailing address, facsimile number or e-mail address that the holder
of this Warrant shall specify by notice to the Company.

Each
party shall provide five days’ prior written notice to the other party of any
change in mailing address, facsimile number or e-mail address. 

Section
12. Amendments. This
Warrant and any term hereof may be changed, waived, discharged, or terminated
only by an instrument in writing signed by the party or holder hereof against
which enforcement of such change, waiver, discharge or termination is sought.

Section
13. Date. This
Warrant, in all events, shall be wholly void and of no effect after the
close of business on the Expiration Date, except that notwithstanding any other
provisions hereof, the provisions of Section 7 shall continue in full force and
effect after such date as to any Warrant Shares or other securities issued upon
the exercise of this Warrant.

Section
14. Descriptive
Headings; Governing Law. The
descriptive headings of the several Sections and paragraphs of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant. This
Warrant shall be governed by the internal laws of the State of Delaware, without
giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of
Delaware.

This
Warrant has been duly executed by the Company this 28th day of April,
2005.

	 	 	 
	 	GENEREX
      BIOTECHNOLOGY CORPORATION
	 
 	 
 	 
 
		By:  	/s/ Rose Perri
	 	
      

    
	 	Name: Rose
      Perri
	 	Title: Chief
      Financial Officer

 

 

10

EXHIBIT
A TO WARRANT

SUBSCRIPTION
FORM

 

TO BE
EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

 

The
undersigned holder hereby exercises the right to purchase _________________ of
the shares of Common Stock (“Warrant
Shares”) of
Generex Biotechnology Corporation, a Delaware corporation (the “Company”),
evidenced by the attached Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Warrant.

1.
Form
of Warrant Exercise Price. The
Holder intends that payment of the Warrant Exercise Price shall be made
as:

a
“Cash
Exercise” with
respect to _______________________ Warrant Shares.

2.
Payment
of Warrant Exercise Price. If the
holder has elected a Cash Exercise with respect to some or all of the Warrant
Shares to be issued pursuant hereto, the holder is transmitting herewith the sum
of $___________________ to the Company in payment for such Warrant Shares.

3.
Delivery
of Warrant Shares. The
Company shall deliver to the holder __________ Warrant Shares in accordance with
the terms of the Warrant.

Date:___________________ 
_____,
200__

Name of
Registered Holder:

 

	 Signature:	 
	 	 
	 By: 	
      ________________________________________

	 	 
	 Print Name and Title:	
      ________________________________________

	 	 
	 Title:	
      ________________________________________ 

        

     

      

11

 

EXHIBIT
B TO WARRANT

FORM OF
WARRANT POWER

FOR VALUE
RECEIVED, the undersigned does hereby assign and transfer to ________________,
Federal Identification No. __________, a warrant to purchase ____________ shares
of the capital stock of Generex Biotechnology Corporation, a Delaware
corporation, represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint ______________, attorney to transfer the
warrants of said corporation, with full power of substitution in the
premises.

Dated:
_________, 200_

	 	
      

    
	 	
      By:
      __________________________________________________

	 	
      Name:________________________________________________

	 	Title:_________________________________________________

12

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