Document:

Exhibit 10.1

WAIVER, CONSENT AND AMENDMENT

TO AGREEMENT AND PLAN OF MERGER

THIS WAIVER, CONSENT AND
AMENDMENT TO AGREEMENT AND PLAN OF MERGER (this “Amendment”)
is made and entered into as of February 1, 2007, by and among VALENTIS,
INC., a Delaware corporation (“Parent”),
VALENTIS HOLDINGS, INC., a Delaware corporation and direct wholly-owned
subsidiary of Parent (“Merger Sub”),
and URIGEN N.A., INC., a Delaware corporation (“Urigen”).

Reference is hereby made
to that certain Agreement and Plan of Merger, dated as of October 5, 2006,
by and among Parent, Merger Sub, and Urigen (the “Merger
Agreement”).  Capitalized
terms used and not otherwise defined herein shall have the respective meaning
ascribed to such terms in the Merger Agreement.

WHEREAS, Parent has
recently entered into agreements with Genetronics, Inc., Biolitec, Inc.,
Juvaris Biotherapeutics, Inc., Vical Incorporated, Althea Technologies, Inc.
and Medarex, Inc., copies of which have been filed with the Securities and
Exchange Commission (the “Commission”) as
exhibits to Current Reports on Form 8-K and are incorporated herein
by reference, for the sale or licensing by Parent of certain capital assets,
including, but not limited to, a number of patents, patent applications and
related intellectual property and intellectual property rights, the aggregate
market value of the capital assets sold or licensed exceeding $20,000 in each
of these transactions (the “Capital Asset Transactions”),
and may enter into future transactions for the sale or licensing of certain of
its capital assets with an aggregate market value per transaction in excess of
$20,000;

WHEREAS, pursuant to Sections 6.4
and 6.5 of the Merger Agreement, Parent is required to obtain Urigen’s
consent to enter into the Capital Asset Transactions or any future transactions
for the sale or licensing of its capital assets with an aggregate market value
per transaction in excess of $20,000;

WHEREAS, Parent
previously notified Urigen of, and obtained Urigen’s oral acknowledgement of
and consent to, the Capital Asset Transactions, and desires a written record of
such acknowledgement and consent;

WHEREAS, Urigen has
recently entered into agreements for the issuance of shares of Urigen
Series B Preferred Stock, par value $0.00001 per share (the “Urigen Series B Preferred Stock”), and for the issuance of
certain debt in excess of $20,000, and desires to issue additional debt in
excess of $20,000 and additional shares of Urigen Series B Preferred Stock
in future transactions;

WHEREAS, pursuant to Sections 2.5,
5.3, 5.4, and 5.5 of the Merger Agreement, Urigen is
required to obtain Parent’s written consent to the issuance of shares of Urigen’s
capital stock, to the issuance of debt in excess of $20,000, and to the
transfer of any shares of the capital stock of Urigen;

WHEREAS, Urigen desires
to obtain Parent’s waiver and consent to the recent and future issuances of
shares of Urigen Series B Preferred Stock, and to the recent and future
issuances of certain debt in excess of $20,000 in accordance with the terms of
Merger Agreement; and

WHEREAS, the parties
hereto wish to amend the terms of the Merger Agreement as more fully set forth
under Section III of this Amendment.

NOW, THEREFORE, in
consideration of the agreements, provisions and consents contained herein, and
other good and valuable consideration, the receipt and sufficiency of which the
parties hereby acknowledge, the parties hereto agree as follows:

I.                                         Waiver
and Consent

A.                                   Urigen
herby consents to, and waives any consent, approval or other rights to
additional satisfaction it may have under the Merger Agreement (including,
without limitation, under Sections 6.4 and 6.5 thereof) with
respect to Parent’s entry into and consummation of the transactions
contemplated by the following:

(1)                                  the
Capital Asset Transactions; and

(2)                                  any
future transactions for the sale or licensing of Parent’s capital assets with
an aggregate market value per transaction in excess of $20,000.

B.                                     Parent
hereby consents to, and waives any consent, approval or other rights to additional
satisfaction it may have under the Merger Agreement (including without
limitation under Sections 2.5, 5.3, 5.4 and 5.5
thereof) with respect to Urigen’s entry into and consummation of the
transactions contemplated by the following:

(1)                                  the
promissory note issued by Urigen to C. Lowell Parsons, dated as of
November 17, 2006, attached hereto as Exhibit A,
and the issuance of 1,000 shares of Urigen Series B Preferred Stock to
C. Lowell Parsons pursuant to the terms thereof;

(2)                                  the
Exchange Agreement dated November 16, 2006, by and between Urigen and Jeffrey
Bacha, attached hereto as Exhibit B,
pursuant to which Urigen issued 1,000 shares of Urigen Series B Preferred
Stock to Jeffrey Bacha pursuant to the terms thereof;

(3)                                  The
Investor Relations Group Inc. Letter of Agreement dated September 20, 2006, by
and between Urigen and The Investor Relations Group, Inc. (“IRG”), attached hereto as Exhibit C, pursuant to which Urigen has agreed to pay
IRG a maintenance fee in the form of 4,000 shares of Urigen Series B
Preferred Stock per month commencing on November 1, 2006, pursuant to the terms
thereof;

(4)                                  the
issuance of shares of Urigen Series B Preferred Stock in lieu of payroll
to the persons and in the amounts as provided for on Exhibit D hereto, such shares
reflecting the amount of compensation payable through the date or dates
reflected thereon excluding applicable tax withholdings;

(5)                                  the
issuance of shares of Urigen Series B Preferred Stock to the persons and
for the consideration provided for on Exhibit E
hereto;

(6)                                  the
Consulting Agreement dated December 11, 2006, by and between Urigen and
Dennis Giesing, attached hereto as Exhibit F,
pursuant to which Urigen has issued 19,200 shares of Urigen Series B
Preferred Stock to Dennis Giesing pursuant to the terms thereof, and the Stock
Restriction Agreement, dated as of December 11, 2006, attached hereto as Exhibit G, pursuant to which the
shares issued to Dennis Giesing are subject to the repurchase right of Urigen
as to unvested shares pursuant to the terms therof;

(7)                                  the
promissory note issued by Urigen to KTEC Holdings, Inc. (“KTEC”),
dated as of January 5, 2007, attached hereto as Exhibit H, and the issuance of 500
shares of Urigen Series B Preferred Stock to KTEC pursuant to the terms
thereof;

(8)                                  Urigen’s
issuance of 500 shares of Urigen Series B Preferred Stock to Dian Griesel;

(9)                                  the
Executive Employment Agreement, dated as of May 1, 2006, attached hereto
as Exhibit I, pursuant
to which Urigen has agreed to pay Terry Nida compensation in the form of 10,000
shares of Urigen Series B Preferred Stock commencing on October 31, 2006,
pursuant to the terms thereof;

(10)                            the
future issuance of Urigen Series B Preferred Stock to “accredited
investors” as defined in Regulation D promulgated under the Securities Act of
1933, as amended (the “Accredited Investors”),
for an aggregate consideration of up to $15.0 million;

(11)                            in
addition to the issuances provided for in (10) above, the future issuance of
additional equity securities to Accredited Investors for an aggregate
consideration of up to $15.0 million on such terms and conditions as Urigen and
such investor(s) may agree; and

(12)                            the
future transfer of certain shares of Urigen common stock, par value $0.00001
per share (the “Urigen Common Stock”), standing
in the name of C. Lowell Parsons, to the persons and in the amounts
provided for on Exhibit J;

Notwithstanding anything
in this Amendment to the contrary, Parent and Urigen agree that the
aforementioned issuances of debt, equity or convertible or other derivative
securities by Urigen shall not increase the aggregate Merger Consideration to
be received by the Urigen Stockholders assuming that such transactions had not
occurred. Additionally, Urigen agrees that the aforementioned issuances of
debt, equity or convertible or other derivative securities by Urigen shall be
subject to, among other things, compliance with Sections 7.10 and 7.13
of the Merger Agreement.

II.                                     Acknowledgements

A.                                   Parent
hereby acknowledges and agrees that the Phase II clinical study results for
U101 in Chronic Pelvic Pain of bladder origin expressly set forth in the
Form 425 filed with the Commission on October 31, 2006 (file
no. 0-22987) do not constitute grounds to terminate the Merger Agreement,
whether under Section 5.7 of the Merger Agreement or under any
other provision thereof.

B.                                     Parent
hereby acknowledges that Urigen has engaged an investment banking firm to
assist it in raising additional capital, but there is no guarantee that the
investment banking firm will be able to raise any additional capital.  Parent agrees that the engagement of an
investment banking firm by Urigen upon the terms previously disclosed to Parent
shall not constitute grounds to terminate the Merger Agreement, whether under Sections
5.3, 5.4 or 5.5 or under any other provision thereof.

C.                                     Urigen
hereby acknowledges that Parent has used its commercially reasonable efforts to
maintain the listing of Parent Stock on the Nasdaq Capital Market and has
otherwise complied with all other provisions in the Merger Agreement relating
to the Nasdaq Capital Market.

Additionally,
Urigen acknowledges that Parent is not in full compliance with the listing
maintenance requirements of the Nasdaq Capital Market and that the Parent Stock
may be delisted from the Nasdaq Capital Market. 
Urigen agrees that any failure to maintain a listing of the Parent Stock
on the Nasdaq Capital Market or any other exchange or quotation service shall
not constitute grounds to terminate the Merger Agreement under any provision
thereof.

III.                                 Amendments
to Merger Agreement

A.                                   Section 1.2
of the Merger Agreement is hereby amended by deleting clause (e) in its
entirety and replacing such clause with the following:

(e)                                  each
share of the Fully Diluted Urigen Stock issued and outstanding immediately prior
to the Effective Time (other than any shares held by dissenting stockholders
referred to in Section 2.11 below who have not waived in writing or
failed to perfect or effectively withdrawn or lost their rights to appraisal
under Section 262 of the DGCL), shall by virtue of the Merger and subject
to the proviso at the end of this clause (e) become and be converted into
the right to receive from Parent a number of shares of the common stock, par
value $0.001 per share, of Parent (“Parent Stock”)
equal to the Conversion Number (the value of all shares of Parent Stock so
issued to Urigen Stockholders (as defined below) are collectively referred to
as the “Merger Consideration”), subject to the
adjustments set forth in Section 2.13 and Section 2.14
below; provided that, for purposes of determining the number of shares of
Parent Stock to be issued to the holders of the Urigen Series B Preferred
Stock by operation of this clause (e), each share of Urigen Series B
Preferred Stock shall be deemed to be the equivalent of five shares of Urigen
Common Stock meaning that each share of Urigen Series B Preferred Stock
will by operation of this clause (e) be converted into the right to
receive a number of shares of Parent Stock equal to five (5) times the Conversion
Number;

B.                                     Section 2.10
of the Merger Agreement is hereby amended by deleting such Section in its
entirety and replacing such Section with the following:

2.10                        Exercise
of Options, Warrants and Conversion of Notes and Preferred Stock.  On or before the Effective Time, all
outstanding stock options, warrants and other rights to purchase or acquire
capital stock of Urigen shall be exercised or exchanged as provided in Section 7.8
hereof and all outstanding securities exchangeable for or convertible into
Urigen Common Stock, including, without limitation, the Urigen Preferred Stock
(with the exception of the Urigen Series B Preferred Stock) shall be
exchanged and/or converted into Urigen Common Stock.  Immediately prior to the Effective Time, the
outstanding capital stock of Urigen shall consist only of Urigen Common Stock
and Urigen Series B Preferred Stock. 
For all purposes of this Agreement, the shares of Urigen Common Stock
issued upon exercise or in exchange for such outstanding stock options,
warrants and other rights or upon conversion of any other securities
exchangeable for or convertible into the capital stock of Urigen shall be
deemed Urigen Common Stock and the recipients thereof shall be deemed to be
Urigen Stockholders.

C.                                     Section
2.11 of the Merger Agreement is hereby amended by deleting such Section in
its entirety and replacing such Section with the following:

2.11                            Dissenting
Shares.  Notwithstanding Section
1.2(e) and Article 2 hereof, and except for the shares of Urigen
Series B Preferred Stock, the shares of Urigen Stock that are issued and
outstanding immediately prior to the Effective Time and that are held by Urigen
Stockholders who did not vote in favor of the Merger and who comply with all of
the relevant provisions of Section 262 of DGCL (the “Dissenting
Shares”) shall not be converted into Parent Stock, unless and until
such Urigen Stockholders shall have waived in writing or failed to perfect or
shall have effectively withdrawn or lost their rights to appraisal under
Section 262 of DGCL; and any such Urigen Stockholder shall have only such
rights in respect of the Dissenting Shares owned by them as are provided by
DGCL.  If any such Urigen Stockholder
shall have waived in writing or failed to perfect or shall have effectively
withdrawn or lost such right, such Urigen Stockholder’s Dissenting Shares shall
thereupon be deemed to have been converted into and to have become
exchangeable, as of the Effective Time, for Parent Stock without any interest
thereon, pursuant to the terms of Section 1.2(e) and Article 2.  Urigen will promptly comply with its
obligations under Section 262 of the DGCL and will give Parent prompt notice of
any demands and withdrawals of such demands received by Urigen for appraisals
of Dissenting Shares.

D.                                    Section 3.4
of the Merger Agreement is hereby amended by deleting such Section in its
entirety and replacing such Section with the following:

3.4                               Capitalization.  The authorized capital of Urigen consists of
(i) 20,000,000 shares of common stock, par value $0.00001 per share, of
which 15,506,490 shares are issued and outstanding, and (ii) 6,000,000
shares of preferred stock, par value $0.00001 per share, of which 5,000,000
shares has been designated as Urigen Series A Preferred Stock, of which
4,358,938 shares are issued and outstanding on the date hereof, and of which
1,000,000 shares has been designated as Urigen Series B Preferred Stock,
of which 223,700 shares are issued and outstanding on the date hereof.  All such outstanding shares of Urigen Stock
are owned of record by Urigen Stockholders as set forth on Schedule 3.4
hereto and are validly issued, fully paid and non-assessable and were
issued in material compliance with the Securities Act.  Except as set forth in Schedule 3.4,
each holder of shares of capital stock or securities that are or may become
convertible into or exercisable or exchangeable for shares of capital stock of
Urigen qualifies as an “accredited investor” as defined in Regulation D
promulgated under the Securities Act. 
Except as set forth in Schedule 3.4, Urigen is neither a party to
nor is bound by any outstanding subscriptions, options, warrants, calls,
commitments or agreements of any character calling for Urigen to issue, deliver
or sell, or cause to be issued, delivered or sold any shares of Urigen Stock or
any other equity security of Urigen or any securities convertible into,
exchangeable for or representing the right to subscribe for, purchase or
otherwise receive any shares of Urigen Stock or any other equity security of
Urigen or obligating Urigen to grant, extend or enter into any such
subscriptions, options, warrants, calls, commitments or agreements.  As of the date hereof there are no
outstanding contractual obligations of Urigen to repurchase, redeem or
otherwise acquire any shares of capital stock of Urigen.  As of the date hereof, there are no
outstanding agreements with respect to the voting of Urigen Stock or any rights
of first refusal, preemptive rights or registration rights.

E.                                      Section 3.26
of the Merger Agreement is hereby amended by deleting such Section in its
entirety and replacing such Section with the following:

3.26                        Stockholder
Vote Required.  The only vote of the
holders of any class or shares of capital stock of Urigen necessary to approve
the Merger and the transactions contemplated by this Agreement is the
affirmative vote of holders of a majority of the outstanding Urigen Common
Stock,  Urigen Series A Preferred
Stock and Urigen Series B Preferred Stock voting together as a single
class.  The only vote of the holders of
any class or shares of capital stock of Urigen necessary to approve the
automatic conversion of the Urigen Series A Preferred Stock into Urigen
Common Stock immediately prior to the Effective Time is the affirmative vote of
the holders of 66 2/3% of the outstanding Urigen Series A Preferred
Stock.  No stockholder or other vote is
required to approve the automatic conversion of the Urigen Series B Preferred
Stock into Parent Stock upon the Effective Time.

F.                                      Section
4.4 of the Merger Agreement is hereby amended by deleting such Section in
its entirety and replacing such Section with the following:

4.4                                   Listing.  As of February 1, 2007, the Parent Stock is
listed for quotation on the Nasdaq Capital Market under the symbol “VLTS”.  Parent has received notices that
(i) Parent is not in full compliance with the listing maintenance
requirements of the Nasdaq Capital Market, and (ii) that Parent Stock may
be delisted from the Nasdaq Capital Market.

G.                                     Section
6.15 of the Merger Agreement is hereby amended by deleting such Section in
its entirety and replacing such Section with the following:

6.15                        Maintenance
of Listing.  Parent will use its
commercially reasonable efforts to keep current its filings with the Commission
as required under Section 13 of the Exchange Act, and shall immediately notify
Urigen of, and provide Urigen a copy of, any notice or correspondence from the
Commission.  Parent shall immediately
notify Urigen of, and provide Urigen a copy of, any notice or correspondence
from the Nasdaq Capital Market.

H.                                    Section 7.8
of the Merger Agreement is hereby amended by deleting such Section in its
entirety and replacing such Section with the following:

7.8                             Exercise
of Stock Options; Conversion of Convertible Securities; Release of Claims.  Each outstanding stock option, warrant, and
other right to purchase or acquire the capital stock of Urigen (with the
exception of the Urigen Series B Preferred Stock) shall have been
exercised, waived or released and/or Urigen shall have entered into an
agreement, satisfactory in form and substance to Parent and its counsel, with
each Person holding outstanding stock options, warrants, and other rights to
purchase shares of the capital stock of Urigen (including convertible debt) or
shall be exchangeable for shares of Parent Stock to be issued by Parent taking
into account the Conversion Number. 
Additionally, all outstanding securities exchangeable for or convertible
into capital stock of Urigen, including, without limitation, the Urigen Preferred
Stock (with the exception of the Urigen Series B Preferred Stock) shall be
exchanged and/or converted into Urigen Common Stock prior to the Merger.  The Urigen Series B Preferred Stock shall
automatically convert into shares of Parent Stock upon the Effective Time
without any action by Urigen or any Urigen Stockholder.

I.                                         Section 16.1
of the Merger Agreement is hereby amended by adding the following paragraph
containing the definition of Certificate of Designation to such Section:

“Certificate of Designation” shall mean the Certificate of
Designation of Preferences, Rights, and Limitations of Series B Preferred
Stock of Urigen filed with the Delaware Secretary of State on November 13,
2006.

J.                                        Section 16.1
of the Merger Agreement is hereby amended by deleting the paragraph containing
the definition of Conversion Number in its entirety and replacing such
paragraph with the following:

“Conversion Number” shall mean the number that equals to 2
times the quotient obtained when the number of the Fully Diluted Parent Shares
issued and outstanding immediately prior to the Effective Time is divided by
the number of shares of Fully Diluted Urigen Shares issued and outstanding, or
deemed to have been issued and outstanding (by operation of the definition of
the term “Fully Diluted Urigen Stock”) in the case of the Urigen Series B
Preferred Stock, immediately prior to the Effective Time, subject to a cash
payment in lieu of the issuance of fractional shares as provided in Section 2.9
hereof.  By way of illustration, if the
Fully Diluted Parent Shares outstanding immediately prior to the Effective Time
were 1,000,000 and the total number shares of Fully Diluted Urigen Shares
outstanding immediately prior to the Effective Time were 100,000, the
Conversion Number would be 20 (1,000,000 ÷ 100,000 x 2), such that for each one
share of Urigen Common Stock the holder thereof would receive 20 shares of
Parent Stock.

K.                                    Section 16.1
of the Merger Agreement is hereby amended by deleting the paragraph containing
the definition of Fully Diluted Urigen Stock in its entirety and replacing such
paragraph with the following:

“Fully Diluted Urigen Stock” shall be determined as if
(a) all shares of Urigen Preferred Stock as are, or are required to be,
issued and outstanding have been converted into Urigen Common Stock at the
applicable rate(s) of conversion and, for the purposes of this calculation,
each share of Urigen Series B Preferred Stock shall be deemed to have been
converted into shares of Urigen Common Stock as provided in
Section 4(a)(ii) of the Certificate of Designation, whether or not this
shall actually have occurred, (b) all warrants, stock options and other
contractual rights (including without limitation any “anti-dilution”
rights) to acquire or receive Urigen Common Stock have been exercised or
otherwise fulfilled, and (c) all other securities convertible or
exchangeable, whether directly or indirectly, into shares of Urigen Common
Stock have been converted or exchanged, including without limitation
convertible debt and any shares of Urigen Common Stock.

L.                                      Section 16.1
of the Merger Agreement is hereby amended by deleting the paragraph containing
the definition of Urigen Preferred Stock in its entirety and replacing such
paragraph with the following:

“Urigen Preferred Stock” shall mean the Urigen Series A
Preferred Stock and Urigen Series B Preferred Stock collectively.

M.                                 Section 16.1
of the Merger Agreement is hereby amended by adding the following paragraph
containing the definition of Urigen Series A Preferred Stock to such
Section:

“Urigen Series A Preferred Stock” shall mean the
preferred stock of Urigen, designated Series A, par value $0.00001 per
share.

N.                                    Section 16.1
of the Merger Agreement is hereby amended by adding the following paragraph
containing the definition of Urigen Series B Preferred Stock to such
Section:

“Urigen Series B Preferred Stock” shall mean the
preferred stock of Urigen, designated Series B, par value $0.00001 per
share.

O.                                    Section 16.2
of the Merger Agreement is hereby amended by inserting the following references
to such Section in alphabetical order:

Certificate of Designation                                                                                                                                                        16.1

Urigen Series A Preferred Stock                                                                                                                        16.1

Urigen Series B Preferred Stock                                                                                                                          16.1

IV.                                Miscellaneous
Provisions

A.                                   Remaining
Terms Unaffected.  Except for the
amendments to the Merger Agreement set forth herein, all other provisions of
the Merger Agreement shall remain in full force and effect and are incorporated
herein as if fully set forth herein.

B.                                     Governing
Law.  This Amendment shall be
governed by and construed and interpreted in accordance with the laws of the
State of Delaware without giving effect to the principles of conflicts of law
thereof, except to the extent that Section 2709 of the Delaware Code would
require or permit application of the laws of the State of Delaware.

C.                                     Counterparts
and Facsimile Signature.  This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.  This Amendment may be
executed by facsimile signature.

[Signatures appear on the
following page]

IN WITNESS WHEREOF, the
parties hereto have executed this Amendment as of the date first above written.

	
  

  	
  VALENTIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Benjamin F. McGraw, III

  
	
   

  	
   

  	
  Benjamin F.
  McGraw, III

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VALENTIS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin F. McGraw, III

  
	
   

  	
   

  	
  Benjamin F.
  McGraw, III

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  URIGEN N.A., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin E. Shmagin

  
	
   

  	
   

  	
  Martin E.
  Shmagin

  
	
   

  	
   

  	
  Chief Financial
  Officer

  

 

Exhibit
A: Parsons Promissory Note

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS (A) REGISTERED UNDER THE ACT OR (B) AN EXEMPTION FROM REGISTRATION UNDER
THE ACT IS AVAILABLE.

UNSECURED
PROMISSORY NOTE

	
  Burlingame, CA

  	
   

  	
  $200,000.00

  
	
  November 17, 2006

  	
   

  	
   

  

FOR
VALUE RECEIVED,the
undersigned, Urigen N.A., Inc., a corporation organized under the laws of
Delaware (“Maker”), for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, promises to pay to the order of C.
LOWELL PARSONS, an individual and resident of the State of Nevada (“Payee”),
in lawful money of the United States of America, at the office of Payee in
Burlingame, California, the principal sum of TWO HUNDRED THOUSAND AND NO/100
UNITED STATES DOLLARS (US$200,000.00), and to pay interest thereon at a rate
per annum (computed on the basis of a 360-day year of twelve (12) 30-day
months) at all times equal to 12% simple interest. The foregoing amount is due
and payable by Maker on the earlier of (i) forty-five (45) days after
consummation of the Merger (as defined in the Agreement and Plan of Merger,
dated as of October 5, 2006, by and among Valentis, Inc., Valentis Holdings,
Inc., and Urigen N.A., Inc., hereinafter, the “Merger Agreement”), or
(ii) two (2) calendar years from the date hereof (in either case, the “Due
Date”).

Subject
to the approval of the board of directors of Maker, Maker shall in connection
herewith issue to Payee 1,000 shares of Series B Preferred Stock, par value
$.00001 per share, of Maker.

Maker
may, in its discretion, pay this Note in whole or in part at any time, without
premium or penalty.

Payee
may not sell, assign, transfer, pledge, give or otherwise dispose of all or any
part of its respective rights or obligations under this Note.

All
capitalized terms used herein and not specifically defined herein shall have
the meanings ascribed to such terms in the Merger Agreement.

This
Note shall be governed by, and construed and enforced in accordance with, the
laws of the State of Delaware (to the exclusion of the conflicts of laws provisions
thereof), and is intended to take effect as an instrument under seal.

IN
WITNESS WHEREOF, the undersigned has caused this promissory note to be duly
executed as a sealed instrument as of November 17, 2006.

	
  

  	
   

  	
  URIGEN N.A., INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Martin Shmagin

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Martin Shmagin

  
	
   

  	
   

  	
  Title: 

  	
  CFO

  
						

 

 A-1

  
  Exhibit B: Exchange
Agreement
  EXCHANGE
AGREEMENT
  This
EXCHANGE AGREEMENT (this “Agreement”) is made as of this 16th day of
November 2006, by and between URIGEN N.A., INC. (the “Company”) and Jeffrey
Bacha an individual resident in Vancouver British Columbia (the “Holder”).
  WHEREAS,
pursuant to that certain letter agreement, dated August 29, 2006 by and between
the Company and Holder (the “Letter Agreement”), the Company (then
operating as “Urigen Holdings Inc.”, which had been its former name prior to
its continuance and domestication out of British Columbia and into the State of
Delaware) had agreed to issue to Holder an option to purchase 10,000 shares of
its common shares at a price of CDN $10.00 per share (the “Option”);
  WHEREAS,
the Company has entered into that certain Agreement and Plan of Merger, dated
as of October 5, 2006, by and among the Company, Valentis Inc., and Valentis
Holdings, Inc. (the “Merger Agreement”), pursuant to which all
outstanding stock options, warrants and other rights to purchase the stock of
the Company are required to be exercised, waived or released prior to the
consummation of the “Merger” (as such term is defined in the Merger Agreement);
and
  WHEREAS,
the Company and Holder wish for the Company to be in compliance with its obligations
under the Merger Agreement and thus the Company desires to issue to Holder
1,000 shares (the “Shares”) of the Series B Preferred Stock of the
Company, par value $.00001 per share (the “Series B Preferred Stock”),
in exchange for and consideration of the termination of the Letter Agreement
and any rights of the Holder to exercise the Option as may arise thereunder
(the “Exchange”).
  NOW
THEREFORE, for and in consideration of the promises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and Holder hereby agree as follows.
  ARTICLE
I

THE EXCHANGE
  1.1                               Exchange of
Securities. Holder hereby irrevocably agrees to terminate the Letter
Agreement and any rights of the Holder to exercise the Option as may arise
thereunder, and, in consideration thereof, the Company hereby agrees to issue
1,000 shares of the Series B Preferred Stock (the “Shares”) to Holder,
on the terms and conditions set forth in this Agreement.
  1.2                               Closing of Exchange.
The Exchange shall be consummated concurrently with the execution of this
Agreement (the “Closing”).
  1.3                               Delivery of
Certificates. At the Closing the Company shall deliver to the Holder
certificate(s) representing the Shares.
  1.4                               Termination of Letter
Agreement. Upon execution of this Exchange Agreement, the Letter
Agreement and all rights of the Holder arising under such Letter Agreement,
including but not limited to the Holder’s right to the Options, shall
terminate.

 B-1
 

    ARTICLE II

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY
  The
Company represents and warrants to Holder that the following are true and
correct as of the date of this Exchange Agreement and shall be true and correct
as of the Closing.
  2.1                               Power; Due Execution;
Enforceability. The Company is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Delaware with the
full corporate power and authority to execute, deliver and perform this
Agreement and to carry out the transactions contemplated hereby. The Company
has taken all necessary corporate and other actions to authorize the execution
and delivery of this Agreement. This Agreement has been duly executed and
delivered, and the Shares when delivered hereunder will have been duly
authorized and issued by the Company, and duly and validly delivered by the
Company. This Agreement is the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
to the extent that the enforceability thereof may be limited by the effect of
any applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws now or hereafter in effect relating to or affecting creditor’s rights
generally and to general equitable principles.
  ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF HOLDER
  Holder hereby represents and warrants to the Company
that the following are true and correct as of the date of this Agreement and
shall be true and correct as of the Closing Date.
  3.1                               Nature of Holder Power. Holder is a resident of Vancouver, British
Columbia with full legal capacity to manage his affairs. Holder is over the age
of majority and has full power, legal right and authority to enter into, execute and deliver this
Agreement and to carry out the transactions contemplated hereby.
  3.2                               Due Execution and
Delivery; Enforceability. This Agreement has been duly executed and
delivered by Holder. This Agreement is the legal, valid and binding obligation
of Holder, enforceable against Holder in accordance with its terms, except to
the extent that the enforceability thereof may be limited by the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
now or hereafter in effect relating to or affecting creditors rights generally
and to general equitable principles.
  3.3                               No Liens. Holder is the sole owner of the Option, free
and clear of any and all charges, liens and encumbrances whatsoever. Holder has
not assigned or sought to assign the Letter Agreement or the rights
represented thereby.
  3.4                               Restrictions on
Transfer Legends. Holder understands that the transfer of the Shares is
restricted by applicable state and Federal securities laws’ and that the
certificates representing the Shares will be imprinted with legends restricting
transfer except in compliance therewith. Holder acknowledges that the Shares
must be held indefinitely unless subsequently registered under the Securities
Act of 1993 (the “Securities Act”) or unless an exception from such
registration is available. Holder further acknowledges that Holder is aware of
the provisions and limitations of Rule 144 promulgated under the Securities
Act.
  3.5                               Consents. No
authorization of, by or with any governmental authority or any other person
having a contractual or similar relationship with Holder, the Company or their
property, on the

 B-2
 

    part of Holder is, or prior to the Closing will be
required in connection with the valid execution, delivery and performance of
this Agreement, the purchase of the Shares, and the consummation of any other
transaction contemplated hereby.
  3.6                               Litigation.
There is no litigation affecting this Agreement, the Letter Agreement, the
Option or Holder pending or, to the knowledge of Holder, threatened in by or
before any governmental authority that purports to adversely affect the
legality, validity or enforceability of any aspect of Holder’s obligations
under this Agreement, or the consummation of any of the transactions
contemplated hereby.
  3.7                               Disclosure.
Holder has been afforded the opportunity: (a) to ask such questions as Holder
has deemed necessary of, and to receive answers from the Company concerning the
terms and conditions of the Exchange and the merits and risks of investing in
the Shares and the Company, and (b) to obtain such additional information as
the Company possesses or can acquire without unreasonable effort or expense
that is necessary to verify the accuracy and completeness of the information furnished to such Holder
by the Company.
  3.8                               Investment Intent;
Accredited Investor Status; Blue Sky. Holder is acquiring and will
acquire the Shares for investment for his own account, not as a nominee or
agent, and not with the view to, or for resale in connection with, any
distribution thereof. Holder understands that the sale of the Shares has not
been, and will not be, registered under the Securities Act by reason of a
specific exemption from the registration provisions of the Securities Act, the
availability of which depends upon, among other things, the bona fide nature of
Holder’s investment intent and the accuracy of Holder’s representations as
expressed herein.
  ARTICLE
IV

MISCELLANEOUS
  4.1                               Governing Law.
This Agreement shall be governed in all respect by the internal laws of the
State of Delaware without regard to conflict of laws provisions that would
cause the laws of any other jurisdiction to govern.
  4.2                               Successors and
Assigns. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without
the prior written consent of the other party of parties. Except as otherwise
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon the successors permitted assigns, heirs, executors and
administrators of the parties hereto.
  4.3                               Entire Agreement;
Amendment. This Agreement constitutes the full and entire understanding
and agreement among the parties with regard to the subjects hereof, and no
party shall be liable or bound to any other person in any manner by any
warranties, representations or covenants except as specifically set forth herein. Except as expressly provided
herein, neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the party
against whom enforcement of any such amendment, waiver, discharge of
termination is sought.
  4.4                               Counterparts.
This Agreement may be executed in any number of counterparts each of which
shall be an original and all of which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page to this Agreement by
facsimile transmission or by electronic mail in a PDF file shall be effective
as delivery of a manually executed counterpart of this Agreement.

 B-3
 

    4.5                               Severability.
If any provision of this Agreement becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision, which shall be
replaced with an enforceable provision closest in intent and economic effect as
the severed provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to
any party.
  [Remainder of Page Intentionally Left Blank]

 B-4
 

    The foregoing Agreement is hereby executed effective
as of the date first above written.
  	  “COMPANY”
  	   
  	  “HOLDER”
  	   
  
	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  
	  URIGEN N.A.,
  INC.
  	   
  	  JEFFREY BACHA
  	   
  
	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  
	  By:
  	  /s/ Martin
  Shmagin
  	   
  	  /s/ Jeffrey Bacha
  	   
  
	   
  	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  
	  Name:
  	  MARTIN SHMAGIN
  	   
  	   
  	   
  
	    (PLEASE PRINT)
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  
	  Title:
  	  CFO
  	   
  	   
  	   
  
							

   

 B-5

Exhibit C: IRG Agreement

THE
INVESTOR RELATIONS GROUP INC.

LETTER OF AGREEMENT
Date: September 20, 2006

Section
1. Services to be Rendered. The purpose of this letter is to set forth
the terms and conditions on which The Investor Relations Group, Inc. (IRO)
agrees to provide Urigen Holdings Inc. (the “Company”) investor relations and
public relations services. These services may include, but are not limited to:
overall management of the corporate communications program; designing a
corporate fact sheet that can readily be mass produce for distribution to
brokers, analysts, and other industry personnel; securing one-on-one and group
appointment with industry professionals for presentations by, for, and about
Company management; targeted mailings assistance with compiling promotional
materials; writing and editing news releases and other corporate materials;
advice on packaging the Company story; writing pitch letters to and
solicitation of the appropriate media and press; syndicated stories; and, daily
update reports.

Section
2. Fees. The Company shall pay to IRG for its services hereunder
including investor relations and public relations services a maintenance fee of
ten thousand shares per month for a renewable term of 6 months beginning
October 1, 2006. The shares shall be issued in the name of Dian Griesel.

Fees are payable on or before the 1st day after the
beginning of each month which occurs during the Engagement Period. Unless other
arrangements have been made and agreed upon in writing, lack of payment for
services rendered by the 5th of the month will be considered default of
this agreement, and IRG shall be entitled to cease all services on behalf of
the Company until such time as payment in full of amounts due is made.

Section
3. Expenses. In addition to all other fees payable to IRG hereunder, the
Company hereby agrees to reimburse IRG for all reasonable out-of-pocket
expenses incurred in connection with the performance of services hereunder.
These out-of-pocket expenses shall include, but are not limited to: telephone,
photocopying, postage, messenger service, clipping service, maintaining mailing
lists, information retrieval service, wire services, monitoring advisory
service, all production costs for press releases including paper, envelopes,
folding, insertion and delivery to the post office, all reasonable travel
expenses, and all reasonable meeting expenses including rental of audio/visual
equipment. No individual expenses over $500 will be expended without first
notifying the Company. The Company agrees to remit upon the signing of this
agreement a check for $2,500 to be placed on deposit with IRG and credited to
the Company against expenses incurred, on a permanent basis, throughout the
program. From time to time, the Company will replenish the expense account as
necessary to maintain a balance of $2,500. The balance of said deposit is fully
refundable should the program terminate. A running invoice will be maintained
of all expenses incurred and will be submitted to the Company each month.

Section
4. Indemnification. The Company and IRG agree to defend, indemnify and
hold each other, their affiliates, stockholders, directors officers, agents,
employees, successors and assigns (each an “Indemnified Person”) harmless from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgements, suits, costs, expenses and disbursements of any kind
whatsoever (including, without limitation, reasonable attorneys’ fees) arising
solely from the Company’s or IRG’s breach of their obligations, warranties and
representations under this Agreement. It is further agreed that the foregoing
indemnity shall be in addition to any rights that either party may have at
common law or otherwise, including, but not limited to, any right to contribution.

Section
5. Term of Agreement and Guarantee of Satisfaction. (a) The engagement
of IRG under the provisions of this agreement shall continue until notice of
termination is received. (b) The Company may terminate IRGs engagement
hereunder, with or without cause, immediately at any time during this
agreement. Any fees accrued to IRG prior to cancellation will be payable
immediately. (c) IRG may terminate its engagement

 C-1
 

hereunder, with or without
cause, at any time during this agreement. The obligations of the Company under
Sections 4 and 6 shall survive termination or breach of this agreement, with or
without cause, by either party.

Section
6. Solicitation of Employees. For a period commencing two years after
the termination of this Agreement, the Company shall not, directly or
indirectly; (i) Influence or attempt to influence any employee of IRG to leave
its employ; (ii) agree to aid any competitor or customer of IRG in any attempt
to hire any person who was employed by IRG within the two year period preceding
termination of this Agreement; or (iii) solicit or induce any person who was
employed by IRG within the two year period preceding the termination of this
Agreement to become employed by the Company. The Company acknowledges that the
restrictions in this section are reasonable and necessary for the protection of
IRG’s business.

Section
7. Severability. In case any provision of this letter agreement shall be
invalid, illegal, or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not be affected or impaired thereby.

Section
8. Consent to Jurisdiction. This Agreement shall be governed and
construed in accordance with the laws of the State of New York, and the parties
hereby consent to the exclusive jurisdiction of the State and Federal Courts,
located within the City, County and State of New York to resolve any disputes
arising under this Agreement.

Section
9. Other Services. If the Company desires additional services not
included in this agreement, any such additional services shall be covered by a
separate agreement between the parties hereto.

Please evidence your acceptance of the provisions of
this letter by signing the copy of this letter enclosed herewith and returning
it to The Investor Relations Group Inc., 11 Stone Street, 3rd Floor, New York, NY 10004.
Attention: Dian Griesel, Ph.D., Chairman & CEO.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Dian Griesel

  	
   

  
	
   

  	
   

  	
  Dian Griesel

  
	
   

  	
   

  	
  Founder & Chairman

  
	
   

  	
   

  	
  The Investor Relations Group, Inc.

  

 

	
  ACCEPTED
  AND AGREED

  AS OF THE DATE FIRST ABOVE WRITTEN:

  
	
   

  
	
  Urigen Holdings Inc.

  
	
   

  
	
  /s/ Martin Shmagin

  	
  CFO

  	
   

  
	
  Martin Shmagin

  

 

 C-2

Exhibit D: Stock in Lieu
of Payroll Payments

	
   

  	
   

  	
  Shares of Series B Preferred Stock Issued
  Per Month

  	
   

  
	
  Name

  	
   

  	
  October

  	
   

  	
  November

  	
   

  	
  December

  	
   

  	
  January

  	
   

  	
  February

  	
   

  	
  March

  	
   

  	
  Total

  	
   

  
	
  Martin Shmagin

  	
   

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [60,065

  	
  ]

  
	
  William J.
  Garner

  	
   

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [59,402

  	
  ]

  
	
  Amie Franklin

  	
   

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [7,539

  	
  ]

  
	
  Terry Nida

  	
   

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [66,164

  	
  ]

  
	
  Total

  	
   

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [·

  	
  ]

  	
  [193,170

  	
  ]

  

 

 D-1

Exhibit E: Existing
Equity Investors

	
  Shareholder

  	
   

  	
  Number of Shares

  	
   

  	
  Consideration Paid

  	
   

  	
  Date of Issuance

  	
   

  
	
  Jane A. White

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  11/17/2006

  	
   

  
	
  Joel H. Owens

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  11/17/2006

  	
   

  
	
  Tri Murr, LLC

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  11/17/2006

  	
   

  
	
  Port Royal Investment
  LLC

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  11/17/2006

  	
   

  
	
  James R. and Paula
  Massey

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  11/17/2006

  	
   

  
	
  Robert Perrey

  	
   

  	
  20,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  10/19/2006

  	
   

  
	
  Gregg Palmer

  	
   

  	
  10,000

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10/19/2006

  	
   

  
	
  Joan Zacher

  	
   

  	
  10,000

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10/19/2006

  	
   

  
	
  Alan Sherman

  	
   

  	
  6,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
  10/19/2006

  	
   

  

 

 E-1

Exhibit F: Consulting
Agreement

CONSULTING AGREEMENT

URIGEN N.A., INC., a
Delaware corporation with offices located at 875 Mahler Road, Suite 235,
Burlingame, CA 94010 (the “Company”)
and DENNIS CLESING, an individual
domiciled at 4421 SW Guil Point Drive, Lee’s Summitt, MO 64082 (“Consultant”) enter into this Consulting
Agreement (the “Agreement”) as of
December 11, 2006 (the “Effective Date”).

The Company and
Consultant, intending to be legally hound, hereby agree as follows:

Section
1.                                       SERVICES.
Consultant agrees to perform such services as the “Director of Product
Development” for one full day per calendar week during the term of this
Agreement as may be requested by the Company relating to the design,
structuring, monitoring, and conduct of certain clinical trials by the Company.
Consultant shall report to (i) the Chief Executive Officer of the Company, and
(ii) the Chief Financial Officer of the Company, and/or (iii) one or more of
their designees. The Company acknowledges that Consultant is a resident of the
State of Missouri and will perform his services from his home unless his
presence elsewhere is requested by the Company upon reasonable notice or is
otherwise necessary.

The Company shall
have sole discretion to determine the need for such services. Consultant shall
not perform services without receiving prior approval from the Company.

Section
2.                                       COMPENSATION.
During the term hereof, the Company shall compensate Consultant as follows:

(a)                                       A
fee of $4,000 per month (pro rated for any partial month) payable as set forth
in clause (c), below, and issuance of 19,200 shares (the “Compensation Shares”) of the Series B
Preferred Stock, per value $0.00001 per share, of the Company to Consultant on
or before January 31, 2007, subject to the repurchase right of the Company as
to invested shares provided for in the Stock Restriction Agreement by and
between the Consultant and the Company of even date herewith, a copy of which
is appended hereto as Exhibit B.

(b)                                      Reimbursement
of reasonable and necessary expenses incurred by Consultant, approved by the
Company, and directly related to Consultant’s performance of Consultant’s
duties hereunder including consultant’s reasonable travel, lodging and meals in
connection with Consultant’s travel to the Company’s headquarters and any other
trips reasonably requested by the Company. Reimbursement requests for such
expenses shall be submitted in accordance with the Company’s standard expense
reimbursement policies and procedures.

(c)                                       Payment
by Company of fees and expenses shall be made following receipt by the Company
of Consultant’s monthly invoice for the monthly fee setting forth a description
of all approved expenses incurred and paid by Consultant. Consultant’s invoice
shall be supported by appropriate receipts for expenses. Payment of such fees
and expenses shall be due in accordance with the Company’s policies and
procedures in effect, from time to time, with respect to payments of
compensation and reimbursement of expenses to employees of the Company.

Section
3.                                       DURATION
AND TERMINATION. This Agreement shall become effective as of the Effective
Date, shall have an initial term of one year (1), and shall automatically renew
on each anniversary of the Effective Date of this Agreement unless either party
gives notice of its intention and to renew this Agreement at least thirty (30)
days prior to the expiration of the initial form or any renewal term. In
addition, the Company may terminate this Agreement at any time for “Cause” in
the event Consultant has breached any obligation hereof and such breach is not
cured within thirty (30) days of Consultant’s receipt of notice thereof. The
Company shall be obligated to continue to pay Consultant’s fees and to
reimburse Consultant’s expenses for all periods up to the

 F-1
 

date of any termination. In the event the Company
terminates this Agreement without “Cause” (other than due to Consultant’s death
or disability) then Consultant shall be entitled to the remaining compensation
payable during the term of this Agreement, payable as provided in Section
2(a).

The obligations of
Consultant under Sections 4, 5, 14, 15, 16, 17, and 18 below shall survive any
expiration or termination of this Agreement. Upon termination, Consultant shall
return to the Company all written information, drawings, models and other
materials or files supplied to Consultant or created by Consultant at the
expense of the Company.

Section 4.                                          INVENTIONS
AND COPYRIGHTABLE WORKS.

(a)                                       Consultant
agrees promptly to communicate and disclose to the Company, or to its nominees,
all documentation and other copyrightable works (hereinafter called “Works”) and all discoveries, improvements
and inventions (hereinafter called “Inventions”)
authorized, conceived, reduced to practice or made by Consultant, whether
solely or jointly with others, during the term of this Agreement (i) along the
lines of the Company’s products or applicable thereto or useful therewith, or
(ii) relating to the Company’s inventions (whether or note patented or patentable)
useful in connection therewith, or (iii) relating to the Company’s business at
the time of the Invention, or (iv) resulting from or related to any work that
Consultant may do on behalf of the company or at its request. All such
Inventions and Works that Consultant is obligated to disclose shall be and
remain entirely the property of the Company or its nominees, successors or
assigns. Consultant agrees to assign and hereby assigns to the Company any
rights it may have in such Works and Inventions.

(b)                                      Consultant
will assist the Company and its nominees, successors or assigns, upon request,
during and following the term of this Agreement, at the expense of the Company,
to obtain and maintain for its own benefit, patents, trademarks and copyright
registrations for any such Inventions and/or Works in any and all countries.
Such assistance shall include, but not be limited to, the execution and
delivery of specific assignments of any such Invention or Work and all domestic
and foreign patent rights and copyrights therein, and all other papers and
documents which relate to the securing and maintenance of such rights, and the
performance of all other lawful acts, as may be deemed necessary or advisable
to the Company or its nominees, successors or assigns.

Section
5.                                          ADDITIONAL
REPRESENTATIONS AND WARRANTIES. Consultant represents and warrants that
Consultant has the right to perform the services required herein without
violation of obligations to others, and that Consultant has the right to
disclose to the Company all information transmitted to the Company in the
performance of services under this Agreement. Consultant agrees that any
information submitted to the Company, whether patentable or not, may be
utilized fully and freely by the Company.

Section
6.                                          INDEPENDENT
CONTRACTOR. The status of Consultant shall be that of an independent
contractor and not of an agent or employee of the Company and, as such,
Consultant shall not have the right or power to enter into any contracts or
commitments on behalf of the Company.

Section
7.                                          DEALINGS
WITH THIRD PARTIES. Consultant shall not at any time in Consultant’s
dealings with third parties represent that Consultant is, or permit such third
parties to deal with Consultant or the assumption that Consultant is, an
authorized agent, or an officer, director or employee of the Company, unless
the Company expressly authorizes in writing such representation as an
authorized agent.

Section
8.                                          ASSIGNMENT.
The rights of Consultant under this Agreement are personal to Consultant and
may not be assigned or transferred without the prior written consent of the
Company.

 F-2
 

Section
9.                                         NOTICES.
Any notices required or contemplated hereunder or in connection herewith shall
be deemed sufficiently given on the date of mailing, if sent by certified mail,
with sufficient postage prepaid, and if addressed to Consultant at the
following address:

Dennis Giesing

4421 SW Gull Point Drive

Lee’s Summit, MO 64082

and if addressed to the Company at:

Urigen N.A., Inc.

875 Mahler Road, Suite 235

Burlingame, CA 94010

Attention: President

Section
10.                                   APPLICABLE
LAW.

This Agreement shall be
construed and enforced in accordance with the laws of the State of California.

Section
11.                                   RESTRICTIVE
CONVENANTS.

(a)                                  Confidentiality. Consultant
acknowledges that the Company is engaged in the Business as more fully defined
and set forth on Exhibit A.
Consultant further acknowledges that in order to conduct its business, the
Company owns and uses Confidential Information (as hereinafter defined) as well
as trade secrets. Consultant agrees that, both during and after termination of
this Agreement for any reason, Consultant with hold in a fiduciary capacity for
the benefit of the Company, and shall not, without the prior written consent of
the Company, directly or indirectly use (for his own benefit or for the benefit
of any other person or entity) or disclose, except as authorized by the Company
in connection with the performance of Consultant’s duties, any Confidential
Information, as defined hereinafter, that Consultant may have or acquire
(whether or not developed or compiled by Consultant and whether or not
Consultant has been authorized to have access to such Confidential Information)
during the term of, or in connection with, his engagement under this Agreement.

(b)                                 With
respect to Confidential Information, during the term of this Agreement and for
two years thereafter (but indefinitely, in the case of the Company’s trade
secrets in Consultant’s possession), Consultant also shall;

(i)                                  use
the Confidential Information only as necessary for the purpose of performing
the services described in this Agreement;

(ii)                               hold
the Confidential Information in confidence and protect it in accordance with
not less than the same degree of care with which Consultant protects Consultant’s
own Confidential Information of like importance which he does not wish to
disclose, but in no event with less than reasonable care;

(iii)                            refrain
from making a copy or duplicate of the Confidential Information or from
allowing anyone else to copy or otherwise duplicate any of the Confidential
Information then under his control;

(iv)                           promptly
notify the Company in the event that Consultant receives notice that any third
party seeks to legally compel Consultant to a judicial, administrative or
governmental

 F-3
 

proceeding to disclose any of the Confidential
Information, so that the Company may elect whether, at its expense, to seek a
protective order or other appropriate remedy;

(v)                                 refrain
from performing any testing or analysis upon the Company’s Confidential Information
for the purpose of gaining a competitive advantage, or conferring a competitive
advantage upon a competitor of the Company; and

(vi)                              obtain
the prior written consent of a senior corporate officer of the Company to any
use or disclosure of any Confidential Information that is at variance with the
terms of this Section 11.

(c)                                  Consultant
shall not disclose or permit access to or use of the Confidential Information
by his employees, or to his subcontractors, consultants, counsel or agents,
without the prior written consent of the Company.

(d)                                 The
obligations of this Section 11 shall become effective on the date of
first disclosure of Confidential Information.

(e)                                  Consultant
expressly acknowledges and agrees that the terms of this Agreement, including
but not limited to this Section 11, are reasonable and necessary for the
protection of the legitimate business interests of the Company. Consultant
further acknowledges that a violation of a provision of this Agreement would
cause serious, immediate and irreparable harm to the Company, and therefore
agrees that the Company shall be entitled to injunctive relief without the
necessity of proving such harm. However, in the event that this Agreement or
any part hereof is found to be unenforceable by a court of law, then the
parties agree that such unenforceable portion shall be severed and the
remainder of this Agreement shall be enforced in accordance with its terms, to
the fullest extent of the law.

(f)                                    The
term “Confidential Information”
as used in this Agreement shall mean and include any information, date and
know-how relating to the business of the Company that is disclosed to
Consultant by the Company or known by him as a result of his relationship with
the Company and which is not generally within the public domain (whether
constituting a trade secret or not), including without limitation, the
following information:

(i)                                     financial
information, such as Company’s earnings, assets, debts, prices, fee structures,
volumes of purchases or sales or other financial data, whether relating to
Company generally, or to particular products, services, geographic areas, or
time periods;

(ii)                                  Supply
and service information, such as information concerning the goods and services
utilized or purchased by the Company, the names or addresses of suppliers,
terms of supply or service contracts, or of particular transaction, or related
information about potential suppliers, to the extent that such information is
not generally known to the public, and to the extent that the combination of
suppliers or use of a particular supplier, though generally known or available,
yields advantages to Company, the details of which are not generally known;

(iii)                               marketing
information, such as details about ongoing or proposed marketing programs or
agreements by or on behalf of Company, marketing forecasts or results of
marketing efforts or information about impending transactions (including,
without limitation, business plans, marketing strategies, advertising plans,
game launch schedules, cost estimates, surveys, studies, research results,
ticket designs, working papers, computer programs, technical drawings, reports,
charts, graphs, and business, technical, and product development plans and
strategies);

 F-4
 

(iv)                              personnel
information, such as employees’ personal or medical histories, compensation or
other terms of employment, actual or proposed promotions, hirings,
resignations, disciplinary actions, terminations or reasons therefore, training
methods, performance, or other employee information;

(v)                                 customer
information, such as any compilation of past, existing or prospective
customers, customer proposals or agreements between customers and the Company,
status of customer accounts or credit, or related information about actual or
prospective customers; and

(vi)                              information
provided to the Company by a third party under an obligation of
confidentiality.

The term “Confidential
Information” does not include information that has become generally
available to the public by the act of one who has the right to disclose such
information without violating any right of the Company or the customer to which
such information pertains; or information already known to Consultant at the
time of such disclosure to him and under circumstances where Consultant had no
other duty of confidentiality to the Company or third parties with respect to
the disclosed information, if such pre-existing knowledge is documented by a
written, dated record in Consultant’s possession before the date of the
disclosure of Confidential Information to Consultant; or subsequently received
by Consultant in good faith from a third party having the prior right to make
such disclosure and authorize its public disclosure.

(g)                                 The
covenants contained in this Section 11 shall survive the termination of
this Agreement for any reason for a period of two (2) years; provided,
that with respect to those items of Confidential Information which constitute a
trade secret under applicable law, the Consultant’s obligations of
confidentiality and non-disclosure as set forth in this Section 11 shall
continue to survive after said two (2) year period to the greatest extent
permitted by applicable law. These rights of the Company are in addition to
those rights the Company has under the common law or applicable statutes for
the protection of trade secrets.

(h)                                 Non-Solicitation; Employees or Sales Representatives.
During the term of this Agreement and for two (2) calendar years immediately
following cessation of Consultant’s employment with the Company for any reason.
Consultant will not solicit or in any manner encourage employees of the Company
to leave the employ of the Company. The foregoing prohibition applies only to
employees with whom Consultant had Material Contact pursuant to Consultant’s
duties during the twelve (12) month period immediately preceeding cessation of
Consultant’s employment with the Company. “Material
Contact” under this subsection means interaction between the
Consultant and another employee of the Company with whom Consultant actually
dealt.

(i)                                     Non-Solicitation; Customers. During the
term of this Agreement and for two (2) years immediately following termination
of this Agreement, for any reason, Consultant shall not, on Consultant’s own
behalf or on behalf of any person, firm, partnership, association, corporation
or business organization, entity or enterprise (except the Company), solicit
any customer of the Company, or any representative of any customer of the
Company with a view to selling or providing any product, equipment or service
competitive with any product, equipment or service sold or provided by the
Company in the Company’s Business during the twelve (12) month period
immediately preceding termination of this Agreement; provided, that
the restrictions set forth in this section shall apply only to customers of the
Company, or representatives of customers of the Company with whom Consultant
had Material Contact during such twelve (12) month period. “Material Contact” under this subsection
exists between Consultant and each of the Company’s existing customers: (i)
with whom Consultant actually dealt for a business purpose while engaged by the
Company or to further a business relationship between the customer and the
Company; (ii) whose dealings with the Company were handled, coordinated or supervised
by Consultant; or (iii) about whom Consultant obtains or has obtained
Confidential Information in the ordinary course of business as a result of
Consultant’s association with the Company; or (iv) as to any customer which
receives or

 F-5
 

has received products or services from the Company,
the sale or provision of which results, or has resulted, in earnings or income
being included in the calculation of any performance based compensation of
Consultant.

(j)                                     Non-Compete. Consultant shall comply
with the non-compete covenant set forth in Exhibit A hereto.

(k)                                  Survival: Tolling of Period of Restraint.
Notwithstanding the termination of this Agreement, Consultant hereby expressly
agrees that (i) the provisions contained in this Section 11 shall
survive for the periods necessary to give effect to the provisions thereof, and
(ii) any purported violation of the restraints set forth in this Section 11
shall automatically toll and suspend the period of the restraint and extend the
term of this Agreement for the amount of time from the date Consultant or
Company commences litigation with respect to the enforceability of such
provisions and/or such purported violation until a final, non-appeasable
decision is rendered or the parties otherwise resolve the purported violation; provided
that the applicable period of restraint shall not be extended unless
there shall have been a violation of the restraints set forth in the applicable
section at issue during such period of time.

(l)                                     Acknowledgements. Consultant hereby acknowledges
and agrees that the restrictions continued in Section 11 are fair and
reasonable and necessary for the protection of legitimate business interests of
the Company. Consultant acknowledges that in the event the Consultant’s
engagement with the Company terminates for any reason, the Consultant will be
able to earn a livelihood without violating the restrictions contained in Section
11 and that the Consultant’s ability to earn a livelihood without violating
such restrictions is a material conditions to the Consultant’s engagement and
continued engagement with the Company.

Section
12.                                   NON-DISPARAGEMENT.

Consultant covenants and
agrees that during the course of Consultant’s engagement by the Company or at
any time thereafter during which Consultant is receiving payments of any kind
from the Company, Consultant shall not, directly or indirectly, in public or
private, deprecate, impugn, disparage, or make any remarks that would tend to
or be construed to tend to define the Company or any of its employee, members
of its board of directors or agents, nor shall Consultant assist any other
person or entity in so doing. The provisions of this Section shall not
constitute grounds for termination for “Cause” except in the case either of
Consultant’s willful violation of the provisions of this Section or Consultant’s
repeated violation of the provisions of this Section after notice by the
Company to the Consultant that his conduct violates the provisions of this
Section.

Section
13.                                   CONFLICT
OF INTEREST.

Consultant may not use
his position, influence, knowledge of confidential information or the Company
assets for personal gain. A direct or indirect financial interest, including
joint ventures in or with a supplier, vendor, customer or prospective customer
without disclosure and written approval from the Board is strictly prohibited
and constitutes Cause for terminations of this Agreement.

Section
14.                                   ENFORCEMENT
OF COVENANTS.

(a)                                  Termination of Employment and Forfeiture of
Compensation. Consultant agrees that in the event that the
Company determines that consultant has breached any of the covenants set forth
in Section 11 above during the term of this Agreement, the Company shall
have the right to terminate this Agreement for “Cause”.

(b)                                 Injunctive
Relief. Consultant understands, acknowledges and agrees that in the
event of a breach or threatened breach of any of the covenants and promises
contained in this Agreement, the Company will suffer irreparable injury for
which there is no adequate remedy at law and the Company will therefore be

 F-6
 

entitled to obtain, without bond, injunctive relief
enjoining said breach or threatened breach. Consultant further acknowledges,
however, that the Company shall have the right to seek a remedy at law as well
as or in lieu of equitable relief in the event of any such breach.

(c)                                  Consultant’s Obligations Upon Termination.
Upon the termination of this Agreement hereunder for whatever reason,
Consultant shall not at any time thereafter represent himself to be connected
or to have any connection with the Company or its related entities.

Section
15.                                   RIGHT
TO ARBITRATION.

All claims, disputes or
controversies arising out of or relating to this Agreement, or the breach
thereof (including, without limitation, any claim that any provision of this Agreement
or any obligation of Consultant is illegal or otherwise unenforceable or
violable under law, ordinance or ruling or that Consultant’s engagement by the
Company was illegally terminated) shall be settled exclusively by final and binding arbitration before a
neutral arbitrator through arbitration administrated by the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes, and judgment upon the award rendered by the arbitrator may
be entered by any court having competent jurisdiction thereof, with costs of
the arbitration proceeding and the arbitrator’s fees to borne by the Company.
By way of example only, such claims include claims under federal, state, and
local statutory or common law, such as the Age Discrimination in Employment
Act, Title VII of the Civil Rights Act of 1964, as amended, including the
amendments of the Civil Rights Act of 1991, the Americans with Disabilities Act
and contracts and tort laws. The Company and Consultant each consents and submits
to the personal jurisdiction and venue of the trial courts of San Francisco,
California, and also to the personal jurisdiction and venue of the United
States District Court resident in San Francisco, CA for purposes of enforcing
this provision. All awards of the arbitration shall be binding and non-appealed
except as otherwise provided in the United States Arbitration Act. Judgment
upon the award of the arbitrator may be entered in any court having
jurisdiction thereof. The arbitrator shall have the authority to order and
award, among other things, specific performance of any obligations created
under this Agreement, the issuance of an injunction or other provisional
relief, or the imposition of sanctions for abuse or frustration of the
arbitration process. The parties shall be entitled to engage in reasonable
discovery, including a request for the production of relevant documents.
Depositions may be ordered by the arbitrator upon a showing of need. The
foregoing provisions shall not preclude the Company from bringing an action in
any court of competent jurisdiction for injunctive or other provisional relief
as the Company may determine is necessary or appropriate. [This Section to be initiated below by Consultant and
on behalf of the Company]

	
  

  	
   

  	
  /s/ WG

  	
   

  	
    1/5/07

  	
   

  
	
  Consultant

  	
  Company

  	
  Date

  

 

Section
16.                                   ENTIRE
AGREEMENT. This Agreement shall constitute the entire Agreement between the
parties with regard to the subject matter hereof.

[Remainder
of Page Internationally Left Blank]

 F-7
 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed on the day and year
first above written.

	
  CONSULTANT:

  	
   

  	
   

  	
   

  	
  THE COMPANY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DENNIS GIESING

  	
   

  	
   

  	
   

  	
  URIGEN N.A., INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ DENNIS
  GIESING

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ William J. Garner

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  William J. Garner

  
	
   

  	
   

  	
  Title:

  	
   

  	
  CEO

  
								

 

 F-8
 

EXHIBIT “A”

(a)                                  Non-Competition.

(i)                                     During
the term of this Agreement, and for
a period equal to the longerof any period during which
Consultant shall continue to receive compensation or other remuneration from
the Company, or two (2) years after termination of this Agreement for any
reason, Consultant agrees not to engage in any Competitive Activity within the
Non-Compete Territory.

(ii)                                  Consultant
acknowledges and agrees, based upon the nature of the Company’s business and
its current activities that the Non-Compete Territory as of the date of this
Agreement currently is the entire United States.

(b)                                  Additional
Definitions.

For purposes of the Agreement and this Exhibit A
the Agreement shall have the following additional definitions:

(i)                                     “Competitive Activity” means
any activity in which the Consultant directly or indirectly owns, managed,
operates, controls, is employed by in a sales, Consultant, managerial, business
development or business technology capacity (whether as an employee or
Independent contractor) or participates in the ownership, management, operation
or control of any business (a “Competitor”)
that is engaged, either directly or indirectly, in the provision of services or
products which are part of the Business.

(ii)                                  “Business” means the development and commercialization of
therapeutic products for urological disorders, including without limitation
U101 (targeting chronic pelvic pain), U102 (targeting symptoms of CPP secondary
to pelvic irradiation), U103 (targeting dyspareunia), U301 (targeting acute
urethral discomfort), and U302 (targeting urethritis), and further including,
without limitation, the design, implementation and conduct of clinical trials
relating to such compounds.

(iii)                               “Person” means an individuals, corporation, partnership, association, tribe,
trust, business trust, limited liability company, joint venture, joint
stock company, pool, syndicate, sole proprietorship, unincorporated authority,
governmental entity or other form of entity or group.

 F-9
 

EXHIBIT “B”

Stock Restriction
Agreement

 F-10

Exhibit G: Stock
Restriction Agreement

URIGEN N.A., INC. 

STOCK RESTRICTION AGREEMENT

This STOCK RESTRICTION AGREEMENT (this “Agreement”) is made as of the 11th day of December, 2006 (the “Effective Date”), by and between URIGEN N.A., INC.,
a Delaware corporation (the “Company”) and in its capacity as escrow holder hereunder (the “Escrow Holder”), and DENNIS GIESING (the “Stockholder”.

WHEREAS, the Stockholder is a consultant to
the Company pursuant to the terms of a Consulting Agreement by and between the Stockholder
and the Company of even date herewith (the “Consulting Agreement”);

WHEREAS, the Stockholder is the owner of
19,200 shares (the “Original
Shares”) of the Company’s Series B Preferred Stock, par value $0.00001
per share (the “Preferred Stock”); and

WHEREAS, the Company and the Stockholder have
agreed that the Preferred Stock held by the Stockholder shall be subject to
vesting asprovided herein in
consideration of the agreement by the Company to enter into a Consulting
Agreement and to issue such shares of Preferred Stock to the Stockholder.

NOW, THEREFORE, in
consideration of the promises and mutual covenants herein set forth, and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby mutually covenant and agree as follows:

1.                                      Definitions.
For purposes of this Agreement, the following terms shall have the meanings
provided therefor below in this Section 1 or elsewhere in this Agreement as
referred to below in this Section 1:

“Agreement” shall have the meaning
ascribed to such term in the preamble hereof.

“Cause” shall have the meaning ascribed
to such term in the Consulting Agreement.

“Closing” shall have the meaning
ascribed to such term in Section 3 below.

“Company” shall have the meaning
ascribed to such term in the preamble hereof.

“Consulting Agreement” shall have the
meaning ascribed to such term in the preamble hereof.

“Effective Date” shall have the meaning
ascribed to such term in the preamble hereof.

“Escrow Holder” shall have the meaning ascribed to such term in
the preamble hereof.

“Notice” shall have the meaning ascribed
to such term in Section 3 hereof.

“Original Shares” shall have the meaning
ascribed to such term in the preamble hereof.

“Preferred Stock” shall have the meaning ascribed to such term in
the preamblehereof.

 G-1
 

“Sale of the Company”
shall mean a single transaction or a series of related transactions in which
the Company and its business is sold, whether by merger, consolidation, sale of
all or substantially all of the assets of the Company, sale of all of the
issued and outstanding shares of capital stock of the Company, or otherwise.

“Shares” shall
mean, collectively, (a) the Original Shares, and (b) all shares of any class or
series of capital stock of the Company or any other issuer, or any other
securities of the Company or any other issuer, that are issued in exchange for,
upon exercise or conversion of, or in respect of, the Original Shares or any of
the securities referred to in this clause (b) (in each case, whether by way of
stock split, stock dividend, combination, reclassification, reorganization, or
any other means).

“Stockholder”
shall have the meaning ascribed to such term in the preamble hereof.

“Unvested Shares”
shall mean, at the relevant time of reference thereto, those Shares that have
not vested on or prior to such time pursuant to Section 2hereof.

“Vested Shares”
shall mean, at the relevant time of reference thereto, those Shares that have
vested on or prior to such time pursuant to Section 2 hereof.

2.                                      Vesting of Shares.

(a)                                  Vesting
Schedule. Subject to all of the provisions of this Section 2, the
Shares shall vest in twelve (12) monthly installments that are as nearly equal
as possible on the last calendar day of each month beginning with January 31,
2007.

(b)                                  Acceleration
of Vesting. Notwithstanding anything expressed or implied in Section
2(a), above, to the contrary, the vesting of Shares shall be accelerated as
follows:

In the event of a Sale of
the Company, the vesting of all of the Unvested Shares that are outstanding
immediately prior to such Sale of the Company shall be accelerated so that such
Unvested Shares shall become fully vested, and shall be considered Vested
Shares hereunder, immediately prior to, but subject to, the consummation of
such Sale of the Company.

(c)                                  No
Further Vesting Following Termination. Except if and to the extent
otherwise expressly provided in Section 2(b) or Section 3, upon termination of
the Stockholder’s consulting relationship with the Company for any reason or
for no reason, regardless of whether such termination is effected by the
Company, by the Stockholder (whether voluntarily or involuntarily and with or
without Cause), or upon the Stockholder’s death, none of the Unvested Shares
owned of record or beneficially by the Stockholder on the date of termination
shall thereafter vest.

(d)                                  Determination
of Vested Shares. It is understood and agreed that, for purposes of
determining the number of Shares that have become vested as of any date
pursuant to the provisions of this Agreement, all of the Shares owned of record
or beneficially by the Stockholder on such date shall be deemed to have been
acquired by the Stockholder on the date hereof, notwithstanding that any of
such Shares may have been acquired by the Stockholder at any time or from time
to time after the date of this Agreement.

 G-2
 

(e)                                  Delivery
of Vested Shares. Vested Shares shall, at the request of the
Stockholder, be released from the escrow provided for in Section 4 hereof and
shall be delivered to the Stockholder. Vested shares shall continue to be
subject to applicable restrictions set forth in any other agreements to which
the Stockholder is a party.

(f)                                    Escrow of Unvested Shares. All Unvested Shares shall be held in escrow
pursuant to Section 4 below.

3.                                      Repurchase Right. If the Stockholder terminates his or her
consulting relationship with the Company, or if the Stockholder’s consulting
relationship is terminated by the Company, for any reason or for no reason
(whether voluntarily or involuntarily), or in the event of the Stockholder’s
death, the Company shall have the right, but not the obligation, to repurchase
all or any number of the then Unvested Shares (after giving effect to the
acceleration of vesting provisions of Section 2(b), if and to the extent
applicable) subject to and in accordance with the terms of this Section 3. The
Company may exercise such repurchase right by delivering to the Stockholder,
within twelve (12) calendar months following the date of termination, a notice
(the “Notice”) of its intention to exercise its repurchase right under
this Section 3, specifying the number of Unvested Shares that the Company
desires to repurchase, whereupon, subject to the provisions of this Section 3,
the Company shall become legally obligated to repurchase from the Stockholder,
and the Stockholder shall become legally obligated to sell to the Company, at
the Closing (as such term is defined below), the number of Unvested Shares
referred to in the Notice, and the Company shall not be required after such
delivery to treat the Stockholder as owner of such number of Unvested Shares,
to accord the right to vote to the Stockholder with respect thereto or to pay
dividends thereon. The purchase price per share for all the Unvested Shares
repurchased by the Company pursuant to this Section 3 shall be equal to $2.50
(subject to adjustment pursuant to Section 6 hereof), and shall be payable, at
the election of the Company, in cash or through the cancellation of any
outstanding indebtedness. The closing (the “Closing”) of the repurchase
by the Company of all or any number of Unvested Shares pursuant to this Section
3 shall take place at the offices of the Company at such time and on such date
as the Company shall specify in the Notice. At the Closing, the Stockholder
shall deliver to the Company a certificate or certificates evidencing the
number of Unvested Shares to be repurchased, duly endorsed for transfer or
accompanied by duly executed stock powers, against payment by the Company of
the purchase price therefor in accordance with the terms of this Section 3. If
the Company has a right to repurchase any Unvested Shares pursuant to this
Section 3 and elects not to, or fails to repurchase all or a portion of such
Unvested Shares in accordance with the provisions of this Section 3, all of the
Unvested Shares not so repurchased shall, thereafter, be treated as Vested
Shares for all purposes of this Agreement.

4.                                      Escrow of Unvested Shares.

(a)                                  Escrow Holder. Each stock certificate representing Unvested
Shares shall be held in escrow by the Escrow Holder, together with a stock
assignment executed in blank by the Stockholder with respect to the Unvested
Shares represented by such stock certificate. Each stock certificate
representing Unvested Shares shall be held in escrow pursuant to this Section 4
until all of such Unvested Shares become fully vested pursuant to, and in
accordance with, the provisions of Section 2 hereof or until all of such
Unvested Shares are repurchased by the Company pursuant to, and in accordance
with, the provisions of Section 3 hereof, whichever occurs earlier.

(b)                                  Rights
of Stockholder with respect to Unvested Shares held in Escrow. Subject
to the terms hereof and the terms of any other agreements to which the
Stockholder is a party, the Stockholder shall have all the rights of a
stockholder with respect to the Unvested

 G-3
 

Shares while they are held in escrow, including
without limitation, the right to vote such Unvested Shares and receive any cash
dividends declared thereon. If there is (i) any stock dividend, stock split or
other change in the Unvested Shares, or (ii) any merger or sale of all or
substantially all of the assets or other acquisition of the Company, any and
all new, substituted or additional securities to which the Stockholder is
entitled by reason of his or her ownership of the Unvested Shares shall be
immediately subject to this escrow, deposited with the Escrow Holder and
included thereafter as “Unvested Shares” for purposes of this Agreement.

(c)                                  Obligations
and Liabilities of the Escrow Holder. The Escrow Holder shall be
obligated only for the performance of such duties as are specifically set forth
herein and may rely and shall be protected in relying or refraining from acting
on any instrument reasonably believed by him or her to be genuine and to have
been signed or presented by the proper party or parties. The Escrow Holder
shall not be personally liable for any act he may do or refrain from doing
hereunder as Escrow Holder or as attorney-in-fact for the Stockholder, provided
that the Escrow Holder acts or refrains from acting in good faith and in the
exercise of his or her own good judgment, and any act that he does or refrains
from doing pursuant to the advice of his or her own attorneys, who may be
counsel to the Company, shall be conclusive evidence of such good faith.

(d)                                  Duties
of the Escrow Holder.

(i)                                     In
the event of any repurchase of Unvested Shares pursuant to, and in accordance
with, the provisions of Section 3 hereof, the Escrow Holder shall take all
steps necessary to consummate such repurchase, including, but not limited to,
presentment of stock certificates representing the Unvested Shares subject to
such repurchase, together with stock powers executed by or in the name of the
Stockholder appropriately completed by the Escrow Holder, to the Company or its
transfer agent with irrevocable instructions to register the transfer of such
Unvested Shares into the name of the Company or its designee. The Stockholder
hereby appoints the Escrow Holder his or her irrevocable attorney-in-fact to
execute in his or her name, acknowledge and deliver all stock powers and other
instruments as may be necessary or desirable with respect to the repurchase of
any Unvested Shares pursuant to, and in accordance with, the provisions of
Section 3 hereof.

(ii)                                  Upon
the vesting of any Unvested Shares, the Escrow Holder shall, at the request of
the Stockholder, either (A) promptly deliver to the Stockholder the certificate
or certificates representing such Unvested Shares that have become vested or
(B) promptly cause a new certificate endorsed with the appropriate legends to
be issued for such Unvested Shares that have become vested and shall deliver
such certificate to the Stockholder.

(iii)                               The
Escrow Holder may, but need not, submit a memorandum to the Stockholder and to
the Company setting forth the action the Escrow Holder intends to take with
respect to the escrow of the Unvested Shares and requesting the parties to
acknowledge the propriety of the intended action. If, in any such case, either
party fails or refuses to acknowledge the propriety of the intended action, the
Escrow Holder may seek the advice of counsel, who may be counsel to the
Company, and any action taken in accordance with the written advice of such
counsel shall be full protection to the Escrow Holder in respect thereto
against any person. It is agreed that in any event the Escrow Holder shall not
be liable for any action or failure to act taken in good faith, and that his

 G-4
 

or her liability shall be limited to actions or
inaction constituting gross negligence or willful misconduct.

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

(v)                                 The
Escrow Holder is hereby expressly authorized to comply with and obey orders,
judgments or decrees of any court. In case the Escrow Holder obeys or complies
with any such order, judgment or decree, he shall not be liable to any of the
parties hereto or to any other person, firm or corporation by reason of such
compliance, notwithstanding any such order, judgment or decree being
subsequently reversed, modified, annulled, set aside, vacated or found to have
been entered without jurisdiction.

(vi)                              The
parties hereto understand that the Escrow Holder is legal counsel to the
Company, and that said counsel may continue to act as such in the event of any
dispute in connection with this Agreement or any other transaction contemplated
herein or affected hereby.

(vii)                           By
signing this Agreement, the Escrow Holder becomes a party to this Agreement
only for the purposes of this Section 4.

(e)                                  Change
of Duties. The Escrow Holder’s duties hereunder may be altered,
amended, modified, or revoked only by a writing signed by all of the parties
hereto; provided, that the Company may at any time, at its option, elect
to terminate this escrow by notice to the Stockholder and the Escrow Holder.

(f)                                    Costs
and Fees. All reasonable costs, fees and disbursements incurred by the
Escrow Holder in connection with the performance of his or her duties hereunder
shall be borne by the Company.

(g)                                 Resignation.
The Escrow Holder reserves the right, upon notice to the Company and the
Stockholder, to resign from his or her duties as Escrow Holder and to appoint a
substitute Escrow Holder.

5.                                      Restrictions
on Transfer.

(a)                                  No
Transfers of Unvested Shares. Except for (i) the escrow described in
Section 4 above or (ii) the transfer of any Unvested Shares to the Company as
contemplated by this Agreement, none of the Unvested Shares or any beneficial
interest therein shall be transferred, encumbered or otherwise disposed of in
any way until such Unvested Shares have became vested pursuant to, and in
accordance with the provisions of Section 2hereof.

 G-5
 

(b)                                  Legend
for Unvested Shares. The certificates evidencing any of the Unvested
Shares shall be endorsed with a legend, in addition to any other legend
required by any other agreements to which the Stockholder is a party,
substantially as follows:

“THIS CERTIFICATE AND THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCK RESTRICTION AGREEMENT
DATED AS OF DECEMBER ___, 2006 AND TO THE RESTRICTIONS UPON TRANSFER CONTAINED
THEREIN, A COPY OF SUCH STOCK RESTRICTION AGREEMENT WILL BE FURNISHED TO ANY
INTERESTED PARTY UPON WRITTEN REQUEST.”

(e)                                  Transfers
in Violation of this Agreement. The Company shall not be required to
transfer any shares of Unvested Shares on its books which shall purportedly
have been transferred, encumbered or otherwise disposed of in any way in
violation of this Agreement, or to treat as owner of such shares, or to accord
the right to vote as such owner or to pay dividends to, any person or
organization to which any such shares shall purportedly have been transferred,
encumbered or otherwise disposed of in any way in violation of this Agreement.
It is expressly understood and agreed that the restrictions on transfer imposed
by this Agreement shall apply not only to voluntary transfers but also to
Involuntary transfers, by operation of law or otherwise. The Stockholder shall
pay all legal fees and expenses of the Company arising out of or relating to
any purported transfer, encumbrance or other disposal in any way of any shares
of Unvested Shares in violation of this Agreement.

6.                                      Adjustment
for Stock Splits Etc. All references in this Agreement to the number of
Shares or the purchase price for any shares of Preferred Stock shall be
appropriately adjusted to reflect any stock split, stock dividend, reverse
stock split, reclassification, recapitalization or other change in the
Preferred Stock which may be made by the Company. If any such stock split,
stock dividend, reverse stock split, reclassification, recapitalization or
other change in the Preferred Stock would cause an adjustment in the number of
Shares that would otherwise result in fractional shares of Preferred Stock, or
in the event that any calculation or determination of the number of Shares that
are or have vested or that are subject to vesting under this Agreement would otherwise
result in fractional shares of Preferred Stock, then such fractional shares
shall be disregarded by rounding down to the nearest whole number of shares.
Without limiting the generality of the foregoing, the purchase price with
respect to any shares of Preferred Stock shall never be reduced to a value
below the par value of such shares of Preferred Stock.

7.                                      General Provisions.

(a)                                  Governing
Law. This Agreement shall be governed by the internal substantive laws
of the State of Delaware, without reference to any conflict of laws provisions
thereof that would implicate the substantive or procedural laws of any other
jurisdiction.

(b)                                  Entire
Agreement. This Agreement represents the entire agreement between the
parties with respect tothe
subject matter hereof and supercedes all prior written and oral agreements and
understandings between the parties to the extent that such prior written and
oral agreements relate or pertain to the subject matter of this Agreement. This
Agreement may only be modified or amended pursuant to a written agreement or
instrument signed by the Company and the Stockholder or, with respect to
Section 4, the Company, the Stockholder and Escrow Holder.

 G-6
 

(c)                                  Notices.
All notices, requests, consents and other communications hereunder to any party
shall be deemed tobe sufficient
if contained in a written instrument delivered in person, sent to the receiving
party’s then current e-mail address or duly sent by first class, registered,
certified or overnight mail, postage prepaid, or telecopied with a confirmation
copy by regular mail, addressed or telecopied, as the case may be, to such
party atthe address or telecopier
number, as the case may be, set forth below or such other address or telecopier
number, as the case may be, as may hereafter be designated in writing by the
addressee to the addressor listing all parties:

(i)                             if to
the Company or to the Escrow Holder, to:

Urigen N.A., Inc.

875 Mahler Road, Suite
235

Burlingame, CA 94010

Tel.#: 650-259-0239

Fax #: 650-259-0901

Attention: President

with acopy
to:

Marc J. Ross, Esq.

Sichenzia Ross Friedman
Ference LLP

1065 Avenue of the
Americas, 21st Floor

New York, NY 10018

Tel.#: 212-930-9700

Fax #: 2l2-930-9725

(ii)                          if
to the Stockholder, to:

Dennis Giesing

4421 SW Gull Point Drive

Lee’s Summit, MO 64082

Tel.#: 816-537-0571 

Fax #: 816-537-0571

Any notice or other
communication pursuant to this Agreement shall be deemed to have been duly
given or made and to have become effective (A) when delivered in hand to the
party to which it was directed. (B) if sent by facsimile machine and property
addressed in accordance with the foregoing provisions of this Section 7(c),
when received by the addressee, (C) if sent by commercial courier guaranteeing,
next business day delivery, on the business day following the date of delivery
to such courier, or (D) if sent by first-class mail, postage prepaid, andproperly addressed in accordance with the
foregoing provisions of this Section 7(e), upon the earlier of (1) receipt by
the addressee, or (2) the third business day following the day of dispatch.

(d)                                  Binding
Effect. This Agreement shall be binding upon the heirs, personal
representatives, executors, administrators, successors and/or assigns of the
parties, and shall be binding upon any transferee of the Shares.

 G-7
 

(e)                                  Assignment.
The rights and benefits of the Company under this Agreement shall be
transferable to any one or more persons or entities, and all covenants and
agreements hereunder shall insure to the benefit of, and be enforceable by, the
Company’s successors und assigns.

(f)                                    No
Waiver.Either party’s
failure to enforce any provision or provisions of this Agreement shall not in
any way be construed as a waiver of any such provision or provisions, nor
prevent the party thereafter from enforcing each and every other provision of
this Agreement. The rights granted both parties herein are cumulative and shall
not constitute a waiver of either party’s right to assert all other legal
remedies available to it under the circumstances.

(g)                                 Severability.If any provision of this Agreement shall
be held illegal, invalid or unenforceable, such illegality, invalidity or
unenforceability shall attach only to such provision and shall not in any
manner affect or render illegal, invalid or unenforceable any other severable
provisions of this Agreement.

(h)                                 Headings.
Headings are for convenience only and are not deemed to be part of this
Agreement.

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

(j)                                    Counterparts.This Agreement may be executed in
counterparts, all of which together shall for all purposes constitute one
Agreement, binding on each of the parties hereto notwithstanding that each such
party shall not have signed the same counterpart.

(k)                                Relationship
with Stockholder.The
Company is not by reason of this Agreement or the issuance of any Shares
obligated to continue the Stockholder association with the Company as an employee
or in any other capacity (other than as a shareholder).

(l)                                    Consent
to Jurisdiction; Waiver of Jury Trial.In case of any dispute hereunder, the parties will submit to the
exclusive jurisdiction and venue of any court of competent jurisdiction sitting
in San Francisco. CA, and will comply with all requirements necessary to give
such court jurisdiction over the parties and the controversy. EACH PARTY HEREBY
WAIVES ANY RIGHT TO A JURY TRIAL AND TO CLAIM OR RECOVER PUNITIVE DAMAGES.

(m)                              Remedies.
The Stockholder acknowledges that money damages alone will not adequately
compensate the Company for breach of any of the Stockholder’s covenants and
agreements herein and, therefore, agrees that in the event of the breach or
threatened breach of any such covenant or agreement, in addition to all other
remedies available to the Company, at law,
in equity or otherwise, the Company shall be entitled to injunctive
relief compelling specific performance of or other compliance with, the terms
hereof,

[remainder
of page intentionally left blank]

 G-8
 

IN WITNESS WHEREOF, the
parties have duly executed this Stock Restriction Agreement under seal as of
the day and year first set forth above.

	
  

  	
  STOCKHOLDER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dennis
  Giesing

  	
   

  
	
   

  	
  Dennis Giesing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  URIGEN N.A., INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin Shmagin

  	
   

  
	
   

  	
  Name:

  	
  Martin Shmagin

  	
   

  
	
   

  	
  Title

  	
  CFO

  	
   

  
					

 

 G-9

Exhibit H: KTEC
Promissory Note

PROMISSORY NOTE

	
  $1000,000.00

  	
   

  	
  Burlingame, California

  
	
   

  	
   

  	
  January 5, 2007

  

 

FOR VALUE RECEIVED, the
undersigned, URIGEN N.A., INC, a Delaware corporation (the “Borrower”), hereby
promises to pay to the order of KTEC HOLDINGS, INC, a Kansas corporation (the “Lender”),
the principal amount of One Hundred Thousand and no/100 Dollars ($100,000),
plus interest on the unpaid principal balance outstanding from time to time at
the rate of Twelve Percent (12%) per annum until paid in full, such interest to
be compounded as additional principal on a monthly basis if said interest is
not paid in full by the end of each month, and any other amounts owned by
Urigen to Lender hereunder. Interest shall be computed on the basis of a Three
Hundred Sixty (360) day year. All amounts owed by borrower to Lender hereunder
are due and payable by Borrower at its option, without notice or demand, on the
earlier of (i) ninety (90) days after consummation of the Marger (as defined in
the Agreement and plan of Merger, dated October 5, 2006, by and among Valentis,
Inc., Valentis Holdings, Inc., and Urigen N.A. Inc. hereinafter, the “Merger
Agreement”) or the consummation of any other business combination or similar
transaction that results in a Change of Control (as defined below) of the
Borrower, (ii) the occurrence of an Event of Default (as defined below), or
(iii) the second anniversary of the date hereof (in each case, the “Due Date”).
As used herein, the term “Change of Control” shall mean (i) any sale of all or
substantially all of the assets of the Borrower, or (ii) any sale or issuance
of stock, merger, consolidation, or other business combination transaction that
results after such transaction in any person or entity owning a majority of the
voting securities of the Borrower who did not hold that majority prior to such
transaction.

In connection herewith,
the Lender acknowledges receipt of a certificate representing ownership of Five
Hundred (500) shares of Series B Preferred Stock, par value $.00001 per share
from the Borrower and the Borrower acknowledges receipt of adequate
consideration for the issuance thereof, such shares being validly issued, fully
paid and nonassessable.

If any amount owed under
this promissory Note (the “Note”) becomes due and payable on a Saturday, Sunday
or business holiday in the State of Kansas payment shall be made on the next
successive business day and interest shall be payable thereon at the rate
herein specified during such extension. The Borrower reserves the right to
prepay, without penalty, all or any portion of this Note at any time and from
time to time.

As used herein, an “Event
of Default” shall mean (i) a default in the payment of any amounts owed under
this Note when due hereunder; (ii) excluding any payment default, the Borrower
materially breaches any provision of this Note and such breach continues for
Ten (10) days after the Lender gives written notice of such breach to the
Borrower; (iii) the Borrower makes as assignment for the benefit of creditors;
(iv) attachment or garnishment proceedings are commenced against the Borrower
liable hereon and are not dismissed within Sixty (60) days; (v) a receiver
trustee or liquidator is appointed over or execution levied upon any property
of the Borrower and is not dismissed, discharged, stayed or bonded against
within Sixty (60) days; (vi) proceedings are instituted by or against the
Borrower or any other person liable hereon under any bankruptcy, insolvency,
reorganization or other law relating to the relief of debtors, including
without limitation the United States Bankruptcy Code, as amended, and, if
instituted against the Borrower or any of such other persons, are not dismissed
within Sixty (60) days; (vii) the Borrower

 H-1
 

liquidates or dissolves; or (viii) this Note ceases to
have effect or becomes invalid or otherwise ceases to be in full force and
effect.

Any amount hereunder
which is not paid when due, whether at stated maturity, by acceleration or
otherwise, shall bear interest from the date when due until paid at the lesser
of (i) the rate of Eighteen percent (18%) per annum, or (ii) the maximum rate
permitted by law, said interest to becompounded
monthly and computed on the basis of a Three Hundred Sixty (360) day year.

All payments made
hereunder shall be made in the lawful currency of the United States of America
tothe Lender, to such domestic
account as the Lender may designate, or at such other place as the Lender may
designate in writing. Payments will be credited when Lender receives same day
funds. All payments made hereunder, whether a scheduled installment,
prepayment, or payment as a result of acceleration, shall be allocated first to
accrued but unpaid interest, next to any interest premiums due, next to amounts
owed hereunder other than principal repayments, next to installments of
principal overdue and currently due, and then to installments of principal
remaining outstanding hereunder.

The Borrower agrees to
pay reasonable costs of collection, paid or incurred by the Lender in enforcing
this Note on default of the rights and remedies herein provided, including to
the fullest extent permitted by applicable law, all costs, charges,
disbursements and attorney’s fees.

The Borrower, for itself
and for any guarantors, sureties, endorsers and/or any other person or persons
now or hereafter liable hereon, if any, hereby waives demand of payment,
presentment for payment, protest, notice of nonpayment or dishonor and any and
all other notices and demands whatsoever, and any and all delays or lack of
diligence in the collection hereof, and expressly consents and agrees to any
and all extensions or postponements of the time of payment hereof from time to
time at or after maturity and any other indulgence and waives all notice thereof.

No delay or failure by
the Lender in exercising any right, power, privilege or remedy hereunder shall
affect such right, power, privilege or remedy or be deemed to be a waiver of
the same or any part thereof, nor shall any single or partial exercise thereof
or any failure to exercise the same in any instance preclude any further or
future exercise thereof, or exercise of any other right, power, privilege or
remedy, and the rights and privileges provided for hereunder are cumulative and
not exclusive.

The Lender may sell,
assign, pledge or otherwise transfer all or any portion of its interest in this
Note at any time or from time to time without prior notice to or consent of and
without releasing any party liable or become liable hereon.

By executing this Note on
behalf of the Borrower, the undersigned officer of the Borrower, in his or her
personal and individual capacity, represent to the Lender that such officer is
duly authorized and empowered to execute and deliver this Note on behalf of the
Borrower and that this Note constitutes the legal and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms.

THE BORROWER HEREBY
WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTIONS OR CLAIMS ARISING
OUT OF ANY DISPUTE IN CONNECTION WITH THIS NOTE OR ANY OF ITS OBLIGATIONS
HEREUNDER.

 H-2
 

THIS
NOTE AND ALL OBLIGATIONS OF THE BORROWER HEREUNDER SHALL FOR ALL PURPOSES BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF KANSAS
(EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER
AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE MAY BE BROUGHT IN THE
COURTS OF THE STATE OF KANSAS OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS
TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY
SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN THE
FORMATION AGREEMENT. THE BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO SUCH VENUE IN CONNECTION WITH SUCH SUIT OR THAT SUCH SUIT
IS BROUGHT IN AN INCONVENIENT COURT.

IN WITNESS WHEREOF, the
undersigned has duly caused this Note to be executed and delivered at the place
specified above and as of the date first written above.

	
  URIGEN N.A., INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Martin Shmagin

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Martin Shmagin

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  	
   

  

 

 H-3

Exhibit 1: Terry Nida
Compensation Agreement

EXECUTIVE
EMPLOYMENT AGREEMENT

URIGEN
HOLDINGS INC.

	
  PRIVATE AND CONFIDENTIAL

  	
   

  	
  As of May 1, 2006

  

Terry
Nida

211 Perry Landing Road 

Cordele, Georgin

31015 USA

Dear
Mr. Nida:

Re: Terms of Employment with URIGEN HOLDINGS INC. (the “Company”)

This Agreement confirms the terms and conditions of
your employment by the Company and will constitute your employment agreement.
Those terms and conditions are set out below:

1.                          Position
and Duties. You will beemployed
by and will serve the Company as its Vice President, Sales, Marketing and
Corporate Development, having the duties and functions customarily performed
by, and have all responsibilities customary to, a vice president, sales,
marketing and corporate development of a corporation engaged in a business
similar to that of theCompany,
including those duties and functions particularly described in Schedule A attached to this Agreement. You
will report directly to the President andChief
Executive Officer of the Company. Your duties and functions pertain to the
Company and any of its subsidiaries from time to time and may be varied or
added to from time to time by the President and Chief Executive Officer, at his
discretion, exercised reasonably. You will devote the amount of your working
time, attention and energies to the business and affairs of the Company
required to discharge the performance of your duties, andin any event no less than 80% of your
working time.

2.                          Term. The terms and conditions
of this Agreement will have effect as of and from May 1, 2006 (the “Effective Date”) and your employment will
continue until terminated as provided in this Agreement (the “Term of Employment”).

3.                          Base Salary. The Company will pay you a base salary (the “Base Salary”) in the amount of CDN$188,800
per year, payable monthly, and will transfer or cause to be transferred to you
360,000 Common shares (the “Trust Shares”)
from the Urigen 2005 Incentive Stock Purchase Plan Trust. The company will have
no obligation to pay the Base Salary to you or transfer or cause to be transferred the Trust Shares
to you, nor will any Base Salary or other compensation accrue to you pursuant
to this Agreement, until the Company has completed offerings of its equity
securities raising aggregate gross proceeds of at least CDN$5 million in
addition to any proceeds raised by the Company up to the Effective Date.

Your Base Salary and other compensation and taxable
benefits received under this Agreement or in respect of your employment will be
subject to the withholding of all applicable statutory deductions. All Trust
Shares issued to pursuant to this Section 3 will be subject to repurchase by
the Company pursuant to Section 17.

4.                          Annual
Review. The Board of Directors (the “Board”)
of the Company or a compensation committee established by the Board (the “Compensation Committee”) will review your
Base Salary annually. This review will not necessarily result in an increase in
your Base Salary and any increase will be in the discretion of the Board or the
Compensation Committee, as the case may be.

5.                        Benefits.
Once the Company has completed offerings of its equity securities raising
aggregate gross proceeds of at least an additional CDN$5 million, you will be
eligible for health, medical, dental, accident and life insurance and such
other benefits as are reasonable and appropriate for an executive level
benefits plan, as determined by the Board from time to time, when such a plan
has been secured by the Company. You may be required to provide information and
undergo reasonable assessments of the insurers in order to determine your
eligibility for benefits coverage. You hereby acknowledge that coverage under
any benefit plan in effect from time to time is subject to availability and other
requirements of the applicable insurer and that the components of the benefits
plan may be amended, modified or terminated from time to time by the Company in
its sole discretion, and that this may include terminating or changing
carriers.

6.                          Vacation.
During your Term of Employment, you will be entitled to an annual paid vacation
of 20 days per year, in addition to statutory holidays, subject to any policies
of the Company in place from time to time. Except with the prior approval of
the Company, you may carry over a maximum of 10 days of vacation to the next
calendar year. The Company reserves the right, acting reasonably, to request
that vacations be scheduled so as not to conflict with critical business
operations.

7.                          Reimbursement
for Expenses. During your Term of Employment, the Company will reimburse
you for reasonable travelling and other expenses actually and properly incurred
by you in connection with the performance of your duties and functions, such
reimbursement to be made in accordance with, and subject to, the policies of
the Company in effect from time to time. For all such expenses you will be
required to keep proper accounts and to furnish statements, vouchers, invoices
and/or other supporting documents to the Company.

8.                          Trust
Shares. You hereby acknowledge the transfer by the Company to you of 60,000
Trust Shares. In the event the Company has not completed offerings of its
equity securities raising aggregate gross proceeds of at least an additional
CDN$5 million by August 1, 2006, the Company will transfer to you 25,000 Trust
Shares on the last day of each additional month following August 1, 2006 that
the Company has not raised gross proceeds from equity securities offerings of
at least an additional CDN$5 million. All Trust Shares issued to pursuant to
this Section 8 will be subject to repurchase by the Company pursuant to Section
17.

 H-5
 

9.                          Purchase
of Series A Preferred Shares. As of the Effective Date, the Company hereby
grants to you options to purchase up to 100,000 Series A Preferred shares of
the Company at a price of CDN$1.00 per share. These options will vest
immediately and may be exercised at any time and from time to time within 2
months of the Effective Date upon written notice to the Company from you, after
which time they will expire.

10.                    Directors’
& Officers’ Liability Insurance. The Company will provide you with
directors’ and officers’ liability insurance under the policies for such
insurance arranged by the Company from time to time upon such terms and in such
amounts as the Board may reasonably determine in its discretion.

11.                    No Other
Compensation or Benefits. You expressly acknowledge and agree that unless
otherwise expressly agreed in writing by the Company subsequent to execution of
this Agreement by the parties hereto, you will not be entitled by reason of
your employment by the Company or by reason of any termination of such
employment, to any remuneration, compensation, severance, damages or benefits
other than as expressly set forth in this Agreement.

12.                    Service to
Employer. During your employment under this Agreement you will:

(a)                    well and
faithfully serve the Company,

(b)                   act in, and
promote, the best interests of the Company,

(c)                    devote the
agreed upon percentage of your working time, attention and energies to the business
and affairs of the Company; and

(d)                   comply with all
rules, regulations, policies and procedures of the Company.

13.                    Termination
By Executive. Subject toSection
16 (Termination Following Change in Control), you may resign at any time, but
only by giving the Company at least 3 months’ prior written notice of the
effective date of your resignation. On the giving of any such notice, the
Company will have the right to waive the notice period, have you cease your
employment immediately or at a specified date prior to the end of the notice
period and pay you for the notice period or remainder of the notice period, as
applicable, plus such other sums owed for arrears of salary and vacation pay.
In this case, your resignation and the termination of your employment will be
effective on the date the Company waives the notice period (or remainder
thereof).

14.           Termination by the Company Without
Cause.

(a)                    The Company
may terminate your employment at any time without cause by giving you written
notice of the effective date of such termination and in all respects, except as
set out below, the termination of your employment will be effective
immediately.

(b)                   If your
employment is terminated by the Company pursuant to this Section, the Company
will pay to you as a lump sum the number of months of Base Salary, as referred
to in Section 3 (Base Salary) and as adjusted from time to time in

 H-6
 

accordance with Section 4 (Annual Review), set out in
the table below depending upon the year of employment in which you are terminated,
plus such other sums owed for arrears of salary and vacation pay:

	
  Year of
  Employment

  	
   

  	
  Lump Sum Payment of Base Salary (as
  adjusted)

  
	
   

  	
   

  	
   

  
	
  1 — 2

  	
   

  	
  6 months

  
	
   

  	
   

  	
   

  
	
  3 — 5

  	
   

  	
  12 months

  
	
   

  	
   

  	
   

  
	
  6 and over

  	
   

  	
  24 months

  

(c)                    To the extent
permitted by law and subject to the terms and conditions of any benefit plans
in effect from time to time, the Company will maintain the benefits and
payments set out in Section 5 (Benefits) of this Agreement during the notice
period equivalent.

(d)                   The payments
set out in this Section 14 will be in lieu of any applicable notice period.

(c)                    You will not
be required to mitigate the amount of any payment provided for in this Section
14 by seeking other employment or otherwise, nor will any sums actually
received be deducted.

(f)                      If you are
successful in any action claiming wrongful dismissal or constructive dismissal
against the Company, you hereby agree that you will only be entitled such
notice set forth in this Section 14, less any amounts earned by you in
mitigation.

15.                    Termination
by the Company for Cause. The Company may terminate your employment for
cause at any time without any notice, severance or other payments. In the event
the Company dismisses you for cause pursuant in this Section 15 and,
subsequently, a court or arbitrator rules that the Company did not have cause,
you hereby agree that you will only be entitled to damages in an amount equal
to that number of months’ Base Salary set forth in Section 14 (Termination by
Company Without Cause), less any amounts earned by you in mitigation.

16.                    Termination
Following Change in Control. Concurrently with execution and delivery of
this Agreement, you and the Company will enter into a “Change in Control
Agreement” attached hereto as Schedule C setting
out the compensation provisions to be applicable in the event of the
termination of your employment in certain circumstances following a “Change in
Control” of the Company (as defined in the Change inontrol Agreement).

17.                    Repurchase
of Shares. You agree that upon termination of this Agreement by you
pursuant to Section 13 or by the Company for cause pursuant to Section 15 (each
a “Triggering Event”) prior to May
1, 2009, the Company will have the right to purchase all of the Trust shares
owned by you at the time of the Triggering Event at their issue price, less the
number of Trust Shares determined by the following calculation:

 H-7
 

(a)                    the
number of months that have elapsed from the Effective Date to the Triggering
Event, multiplied by

(b)                   1/36
of the total number of Trust Shares owned by you.

In the event of such
mandatory repurchase, you hereby appoint thePresident and Chief Executive Officer of the Company as your true
and lawful attorney in fact and agent for you to execute and deliver, and to
receive delivery of, all such assignments, transfers, deeds, assurances and
instruments as may be necessary to effectively complete the repurchase of the
Trust Shares.

18.                    Confidentiality
and Assignment of Inventions. Concurrently with execution and delivery of
this Agreement and in consideration of your employment by the Company, you and
the Company will enter into a “Confidentiality and Assignment of Inventions
Agreement” in the form attached hereto as Schedule
D.

19.           Avoidance of Conflicts of Interest.
During your Term of Employment:

(a)                    You will not, without the Company’s consent,
hold any office, acquire any property or enter into any contract, arrangement,
understanding or transaction with any other person or entity that would
conflict or interfere with this Agreement or your duties or obligations under this Agreement or that would
otherwise prevent you from performing your obligations hereunder. You hereby
represent and warrant that as of the Effective Date you or your Affiliates or
Associates do not hold any such office, have not acquired any such property and
have not entered into any such contract, arrangement understanding or
transaction.

(b)               You will promptly, fully and frankly disclose to the
Company in writing:

(i)                        the nature
and extent of any interest you or your Affiliates or Associates have or may
have, directly or indirectly, in any actual or proposed contract, arrangement,
understanding or transaction between a third party and the Company or any
Affiliate of the Company; and

(ii)                     every office
you or your Affiliates or Associates may hold or acquire, and every property
you or your Affiliates or Associates may possess or acquire, whereby directly
or indirectly a duty or interest might be created in conflict with the
interests of the Company or your duties and obligations under this Agreement.

and following such disclosure
the Company may, in its sole discretion, determine that a conflict of interest
exists and require you to eliminate such conflict of interest.

(c)                    For greater clarity, the Company acknowledges
that those positions listed in Schedule Bare not considered a conflict of interest
contrary to paragraph (a).

 H-8
 

In this Agreement, the term “Affiliate” will include all those persons
and entities that are included within the definition or meaning of “affiliate”
as set forth in Sections 1(1) and 2 of the Business
Corporations Act (British Columbia) or any successor legislation of
similar force and effect, as amended and the term “Associate” will include all those persons and entities that
are included within the definition or meaning of “associate” as set forth in
Section 1(1) of the Securities Act (British
Columbia) or any successor legislation of similar force and effect, asamended, including your spouse, children,
parents, brothers and sisters.

20.           Provisions Reasonable. It is
acknowledged and agreed that:

(a)                    both before
and since the Effective Date the Company has operated and competed and will
operate and compete in a global market, with respect to the business (the “Business”) actually carried on by it
directly or indirectly, whether under an agreement with or in collaboration
with, any other party, which Business includes without limitation the
discovery, development, manufacturing, distribution,marketing and sale of (i) U101 and
products for the treatment of Interstitial Cystitis (a disease of the bladder
characterized by pain, urgency and frequency of urination), and (ii) any other
products that the Company discovers or commercially develops during your
involvement in any capacity with the Company;

(b)                   competitors of the
Company and its Business are located in countries around the world;

(c)                    in order to
protect the Company adequately, any restrictive covenant must apply world wide;

(d)                   during the
course of your employment by the Company, both before and after the Effective
Date, you have acquired and will acquire knowledge of, and you have come into
contact with, initiated and established relationships with and will come into
contact with, initiate and establish relationships with, both existing and new
clients, customers, suppliers, principals, contacts and prospects of the
Company, and that in some circumstances you have been or may well become the
senior or sole representative of the Company dealing with such persons; and

(e)                    in light of
the foregoing, the provisions of Section 21 (Restrictive Covenant) below are
reasonable and necessary for the proper protection of the Business, property
and goodwill of the Company.

21.                    Restrictive Covenant. You agree that you will not, either alone or
in partnership or in conjunction with any person, firm, corporation, syndicate,
association or any other entity or group, whether as principal, agent,
employee, director, officer, shareholder, consultant or in any capacity or
manner whatsoever, whether directly or indirectly, for the Term of Employment and containing for a period of 6 months
from the termination of your employment, regardless of the reason for such
termination:

(a)                    carry on or be engaged in oradvise, provide services to, be employed
by, consult with, invest in or give financial assistance to, any business,
enterprise or other

 H-9
 

entity that is involved in
the sale, distribution, development or supply of any product or service thatis competitive with any product or service
of the Business; provided, however, that the foregoing will not prohibit you
from acquiring, solely asan
investment and through market purchases, securities of any such enterprise or
undertaking which are publicly traded, so long as you are not part of any
control group of such entity and such securities, which if converted, do not
constitute more than 5% of the outstanding voting power of that entity;

(b)                   approach or contact any person, firm,
corporation or other entity that was a client, customer, supplier, principal,
shareholder, investor, collaborator, strategic partner, licensee, contact or
prospect of the Company during the time of your employment with the Company for
the purpose of inducing such party to reduce its level of business with the
Company or to encourage such party to start doing business or to increase its
level of business with any other person or entity when such a change may
negatively affect the opportunity of the Company to maintain or increase its
level of business with such party; or

(c)                    persuade or attempt to persuade any employee(s)
of the Company to leave employment with the Company.

22.                    Remedies.
You acknowledge and agree that any breach or threatened breach of any of the
provisions of Section 12 (Service to Employer), Section 18 (Confidentiality and
Assignment of Inventions), Section 19 (Conflicts of Interest) or Section 21
(Restrictive Covenant) could cause irreparable damage to the Company or its
partners, subsidiaries or affiliates, that such harm could not be adequately
compensated by the Company’s recovery of monetary damages, and that in the
event of a breach or threatened breach thereof, the Company will have the right
to seek an injunction, specific performance or other equitable relief as well
as any equitable accounting of all your profits or benefits arising out of any such
breach. It is further acknowledged and agreed that the remedies of the Company
specified in this Section are in addition to and not in substitution for any
rights or remedies of the Company at law or in equity and that all such rights
and remedies are cumulative and not alternative and that the Company may have
recourse to any one or more of its available rights or remedies as it will see
fit.

23.                    Assignment.
Your rights and obligations contained in this Agreement are personal and such
rights, benefits and obligations will not be voluntarily or involuntarily
assigned, alienated or transferred, whether by operation of law or otherwise,
without the prior written consent of the Company. The Company may assign its
rights (but not its obligations) hereunder without your consent. Any purported
assignment by you contrary to this Section will be null and void.

24.                    Binding
Effect. This Agreement will be binding upon and enure to the benefit of the
Company and its successors and assigns and be binding upon and enure to the
benefit of your personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, legatees and permitted assigns.

25.                    Agreement
Confidential. You will keep the terms and conditions of this Agreement
confidential except that you will be entitled to disclose such information to
your bankers.

 H-10
 

advisors, agents, consultants
and other third parties who have a duty of confidence to you and who have a
need to know such information in order to provide advice, products or services
to you, as may be required to enforce any provision of this Agreement or as may
otherwise be required by any law, regulation or other regulatory requirement.

26.                    Governing
Law and Jurisdiction. This Agreement will be governed by and interpreted in
accordance with the laws of the Province of British Columbia and applicable
laws of Canada and the parties hereto attorn to the exclusive jurisdiction of
the provincial and federal courts of such province.

27.                    Acknowledgment
of Fiduciary Capacity. You expressly acknowledge and agree that due to your
position with the Company, you are employed in a fiduciary capacity.

28.                    Exercise of
Functions. The rights of the Company as provided in this Agreement may be
exercised on behalf of the Company by the Board.

29.                    Entire
Agreement. The terms and conditions of this Agreement are in addition to
and not in substitution for the obligations, duties and responsibilities
imposed by law on employees of corporations generally, and you agree to comply
with such obligations, duties and responsibilities. Except as otherwise
provided in this Agreement, this Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and may only be
varied by further written agreement signed by you and the Company. This
Agreement supersedes any previous communications, understandings and agreements
between you and the Company regarding your employment. It is acknowledged and
agreed that this Agreement is mutually beneficial and is entered into for fresh
and valuable consideration with the intent that it will constitute a legally
binding agreement.

30.                    Further
Assurances. The parties will execute and deliver to each other such further
instruments and assurances and do such further acts as may be required to give
effect to this Agreement.

31.                    Surviving
Obligations. Your obligations and covenants under Section 18
(Confidentiality and Assignment of Inventions). Section 20 (Provisions
Reasonable), Section 21 (Restrictive Covenant), Section 22 (Remedies), Section
23 (Assignment), Section 24 (Binding Effect), Section 25 (Agreement
Confidential), Section 26 (Governing Law and Jurisdiction), Section 27
(Acknowledgement of Fiduciary Capacity), Section 29 (Entire Agreement), Section
30 (Further Assurances). Section 33 (Notice). Section 34 (Severability) and
Section 35 (Time of Essence/No Waiver) will survive the termination of this
Agreement.

32.                    Independent
Legal Advice. You hereby acknowledge that you have obtained or have had an
opportunity to obtain independent legal advice in connection with this
Agreement, and further acknowledge that you have read, understand, and agree to
be bound by all of the terms and conditions contained herein.

33.                    Notice.
Any notice or other communication required or contemplated under this Agreement
to be given by one party to the other will be delivered or mailed by prepaid
registered post with return receipt requested or by recognized international
courier

 H-11
 

service providing written
proof of delivery to the party to receive same at the address as set out below:

To You

Terry Nida

211 Ferry Landing Road

Cordele, Georgia 

31015 USA

Fax: (229) 273-0325

To the
Company:

Urigen Holdings Inc.

515 West Hustings Street, Suite 7333

Vancouver, B.C. V6B 5K3

Attn: President and CEO

With a copy
to counsel for the Company:

Farris, Vaughan, Wills &
Murphy LLP

2500 - 700 West Georgia Street 

Vancouver, BC., V7Y 1B3

Attn: R. Hector MacKay-Dunn. Q.C

Fax: (604) 661-9349

Any such notice will be
deemed to have been received on the earlier of the date actually received, on
the next business day following transmission if by facsimile transmission, or
the date five (5) days after the same was posted or sent. Either party may
change its address or its facsimile number by giving the other party written
notice, delivered in accordance with this Section.

34.                    Severability.
If any provision of this Agreement or the application thereof to any
circumstance will, in any jurisdiction and to any extent, be invalid or
unenforceable, such provision will be ineffective as to such jurisdiction to
the extent of such invalidity or unenforceability without invalidating or
rendering unenforceable the remaining terms and provisions of this Agreement or
the application of such terms and provisions to circumstances other than those
as to which it is held invalid or unenforceable, and a suitable and equitable
term or provision will be substituted therefore to carry out insofar as may be
valid and enforceable, the intent and purpose of the invalid or unenforceable
provision.

35.                    Time of
Essence/No Waiver. Time is of the essence hereof. No waiver, delay,
indulgence, or failure to act by the Company regarding any particular default
or omission by you will affect or impair any of the Company’s rights or
remedies regarding that or any subsequent default or omission that is not
expressly waived in writing, and in all events time will continue to be of the
essence without the necessity of specific reinstatement.

 H-12
 

36.                    Counterparts.
This Agreement may be executed in any number of counterparts, each of which so
executed will be deemed to be an original, and such counterparts will together
constitute but one agreement.

If
you accept and agree to the foregoing, please confirm your acceptance and
agreement by signing the enclosed duplicate copy of this letter where indicted
below and by returning it to us. You are urged to consider fully all the above
terms and conditions and to obtain independent legal advice or any other advice
you feel is necessary before you execute this agreement.

	
  

  	
   

  	
  Yours truly.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  URIGEN HOLDINGS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Martin Shmagin CFO

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorize Signatory

  	
   

  	
   

  

Accepted and agreed to by
Terry Nida as of the 21st day of April, 2006

	
  

  	
   

  	
   

  
	
  /s/ Terry Nida

  	
   

  	
   

  	
   

  
	
  Terry Nida

  	
   

  	
   

  
				

 

 H-13

SCHEDULE A

DESCRIPTION OF THE DUTIES
AND FUNCTIONS

Description

Via routine interface
with Company executive managers and the Board, as appropriate, develop, guide
and direct global commercialization strategies by providing expert advice for
the functional areas of sales, marketing, corporate and business development;
and be responsible for the day-to day implementation and management of all
sales, marketing, corporate and business development activities in which the
Company is involved.

Responsibilities:
Responsibilities include the following:

1.                         Provide
proactive sales, marketing, corporate and business development service to the
Company, as directed and required.

2.                         Provide
proactive interaction with all functional areas of the Company to support all
on-going product commercialization activities.

3.                         Manage
and serve as the Company interface for all global and regional pharmaceutical
companies with whom the Company establishes supply and commercialization
agreements.

4.                         Provide
proactive interaction will all functional areas of the Company to support the
commercialization aspects of all on-going product development activities.

5.                         Propose
and manage the operating budget for all commercialization activities in which
the Company is involved.

6.                         Establish
and maintain competency levels of all Company employees, contractors and
vendors involved in commercialization activities.

 H-14

SCHEDULE B

EXCEPTIONS TO CONFLICT OF
INTEREST

Vivus, Inc. — Vice President,
Worldwide Sales, Marketing & Corporate Development

 H-15

SCHEDULE C

URIGEN
HOLDINGS INC.

As of May 1, 2006

Terry Nida

211 Ferry Landing Road

Cordele, Georgia

31015 USA

Dear Mr. Nida:

Re:
Change in Control Agreement

Urigen
Holdings Inc. (the “Company”) considers it essential to the best interests of
its members to foster the continuous employment of its senior executive
officers. In this regard, the Board of Directors of the Company (the “Board”)
has determined that it is in the best interests of the Company and its members
that appropriate steps should be taken to reinforce and encourage management’s
continued attention, dedication and availability to the Company in the event of
a Potential Change in Control (as defined in Section 2), without being
distracted by the uncertainties which can arise from any possible changes in
control of the Company.

In
order to induce you to agree to remain in the employ of the Company, such
agreement evidenced by the employment agreement entered into as of the date of
this Agreement between you and the Company (the “Employment Agreement”) and in
consideration of your agreement as set forth in Section 3 below, the Company
agrees that you will receive and you agree to accept the severance and other
benefits set forth in this Agreement should your employment with the Company be
terminated subsequent to a Change in Control (as defined in Section 2) in full
satisfaction of any and all claims that now exist or then may exist for
remuneration, fees, salary, bonuses or severance arising out of or in
connection with your employment by the Company or the termination of your
employment;

1.        Term of Agreement.

This
Agreement will be in effect for a term commencing on the Effective Date of the
Employment Agreement (as therein defined) and ending on the date of termination
of the employment Agreement.

2.        Definitions.

(a)                    “Affiliate”
means a corporation that is an affiliate of the Company under the Business Corporations Act (British
Columbia), as amended from time to time.

(b)                   “Change
in Control” of the Company will be deemed to have occurred:

 H-16
 

(i)                        if
a merger, amalgamation, arrangement, consolidation, reorganization or transfer
takes place in which Securities of the Company possessing more than 50% of the
total combined voting power of the Company’s outstanding Securities are
acquired by a person or persons different from the persons holding those
Securities immediately prior to such transaction, and the composition of the
Board following such transaction is such that the directors of the Company
prior to the transaction constitute less than 50% of the Board membership
following the transaction except that no Change in Control will be deemed to
occur if such merger, amalgamation, arrangement, consolidation, reorganization
or transfer is with any subsidiary or subsidiaries of the Company;

(ii)                     if any person,
or any combination of persons acting jointly or in concert by virtue of an
agreement, arrangement, commitment or understanding will acquire or hold,
directly or indirectly, 50% or more of the voting rights attached to all
outstanding Securities; or

(iii)                  if any person,
or any combination of persons acting jointly or in concert by virtue of an
agreement, arrangement, commitment or understanding will acquire or hold,
directly or indirectly, the right to appoint a majority of the directors of the Company; or

(iv)                 if
the Company sells, transfers or otherwise disposes of all or substantially all
of its assets, except that no
Change of Control will be deemed to occur if such sale or disposition is made
to a subsidiary or subsidiaries of the Company.

provided however, that a Change in Control will not be
deemed to have occurred if such Change in Control results solely from the
issuance, in connection with a bona fide financing or series of financings by
the Company of Securities.

(c)                    “Base Salary”
will mean the annual base salary, as referred to in Section 3 (Base Salary),
and as adjusted from time to time in accordance
with Section 4 (Annual Review), of the Employment Agreement.

(d)                   “Date
of Termination” will mean, if your employment is terminated, the date specified
in the Notice of Termination.

(e)                    “Good Reason”
will mean the occurrence of one or more of the following events, without your
express written consent, within 12 months of Change in Control:

(i)                        a material
change in your status, position, authority or responsibilities that does not
represent a promotion from or represents an adverse change from your status,
position, authority or responsibilities in effect immediately prior to the
Change in Control:

(ii)                     a material reduction by the Company,
in the aggregate, in your Base Salary, or incentive, retirement, health
benefits, bonus or other

 H-17
 

compensation plans provided to you immediately prior
tothe Change in Control, unless
an equitable arrangement has been made with respect to such benefits in
connection with a Change in Control;

(iii)                  a failure by the
Company to continue in effect any other compensation plan in which you
participated immediately prior to the Change in Control (except for reasons of
non insurability), including but not limited to, incentive, retirement and
health benefits, unless an equitable arrangement has been made with respect to
such benefits in connection with a Change in Control;

(iv)                 any request by
the Company or any affiliate of the Company that you participate in an unlawful
act; or

(v)                    any purported
termination of your employment by the Company after a Change in Control which
is not effected pursuant to aNotice
of Termination satisfying the requirements of clause (i) below and for the
purposes of this Agreement, no such purported termination will be effective.

(f)                      “Notice of
Termination” will mean a notice, in writing, communicated to the other party in
accordance with Section 6 below,
which will indicate the specific termination provision in this Agreement relied
upon and will set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of your employment under the
provision so indicated.

(g)                   “Potential
Change in Control” of the Company will be deemed to have occurred if:

(i)                        the
Company enters into an agreement, the consummation of which would result in the
occurrence of a Change in Control;

(ii)                     any person
(including the Company) publicly announces an intention to take or to consider
taking actions which if consummated would constitute a Change in Control; or

(iii)                  the Board adopts
a resolution to the effect that, for the purposes of this Agreement, a
Potential Change in Control of the Company has occurred.

(h)                   “Security” in
respect of a security of the Company, will have the meaning ascribed thereto in
Part II of the Securities Act(British Columbia), as it existed on
the date of this Agreement, and also means any security carrying the right to
convert such security into, exchange such security for, or entitling the holder
to subscribe for, any equity security, or into or for any such convertible or
exchangeable security or security carrying a subscription right.

 H-18
 

3.        Potential
Change in Control.

You
agree that, in the event of a Potential Change in Control of the Company
occurring after the Effective Date, and until 12 months after a Change in
Control, subject to your right to terminate your employment by issuing and
delivering a Notice of
Termination for Good Reason, you will continue to diligently carry out your
duties and obligations, on the terms set out in the Employment Agreement.

4.        Compensation
Upon Termination Following Change in Control.

Subject to compliance by you with Section 3, upon
your employment terminating pursuant to a Notice of Termination within 12
months after a Change in Control, the Company agrees that you will receive and
you agree to accept, subject to your prior resignation as a director of the
Company, the following payments in full satisfaction of any and all claims you
may have or then may have against the Company, for remuneration, fees, salary,
benefits, bonuses or severance, arising out of or in connection with your
employment by the Company or the termination of your employment:

(a)                    If your
employment will be terminated by the Company for cause or by you other than for
Good Reason, the terms of the Employment Agreement will govern and the Company
will have no further obligations to you under this Agreement.

(b)                   If your
employment by the Company will be terminated by you for Good Reason or by the
Company other than for cause, then you will be entitled to the payments and
benefits provided below:

(i)                        subject to
the withholding of all applicable statutory deductions, the Company will pay
you a lump sum equal to 12 months’ Base Salary, as referred to in Section 3
(Base Salary) of the Employment Agreement, plus other sums owed for arrears of
salary and vacation pay;

(ii)                     to the extent
permitted by law and subject tothe
terms and conditions of any benefit plans in effect from time to time, the
Company will maintain the benefits and payments set out in Section 6 (Benefits)
of the Employment Agreement during the 12 month period;

(iii)                  all incentive
stock options granted to you by the Company under any stock option agreement
that is entered into between you and the Company and is outstanding at the time
of termination of your employment, which incentive stock options have not yet
vested, will immediately vest upon the termination of your employment and will
be fully exercisable by you in accordance with the terms of the agreement or
agreements under which such options were granted; and

(iv)                 all Trust Shares
(as defined in the Employment Agreement) transferred to you by or for the
Company under the Employment Agreement or other agreement that is entered into
between you and the Company and is outstanding at the time of termination of
your employment, which Trust

 H-19
 

Shares continue to be subject
to a right of repurchase by the Company, shall no longer be subject to such
right of repurchase.

You
will not be required to mitigate the amount of any payment provided for in this
Section 4 by seeking other employment or otherwise, nor will any sums actually
received be deducted.

5.        Binding
Agreement.

This
Agreement will ensure to the benefit of and be enforceable by your personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If you die while any amount would still be
payable to you under this Agreement if you had continued to live, that amount
will be paid in accordance with the terms of this Agreement to your devisee,
legatee or other designee or, if there is no such designee, to your estate.

6.        Notices.

Any
notice or other communication required or contemplated under, this Agreement to
be given by one party to the other will be delivered or mailed by prepaid
registered post to the party to receive same at the addresses set out below:

To You

Terry Nida

211 Ferry Landing Road

Cordele, Georgia

31015 USA

Fax: (229) 273-0325

To the Company:

Urigen Holdings Inc.

515 West Hastings Street, Suite 7333

Vancouver, B.C., V6B 5K3

Attn: President and CEO

With a copy
to counsel for the Company:

Farris, Vaughan, Wills & Murphy LLP

2500 – 700 West Georgia
Street

Vancouver, B.C., V7Y 1B3

Attn: R. Hector MacKay-Dunn. Q.C.
Fax. (604) 661-9349

Any such notice will be
deemed to have been received on the earlier of the date actually received, on
the next business day following transmission if by facsimile transmission or
the date five(5) days after the same was posted or sent.

 H-20
 

7         Modification; Amendments; Entire Agreement.

This Agreement may not be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in
writing and signed by you and such officer as may be specifically designated by
the Board. No waiver by either party at any time of any breach by the other
party of, or compliance with, any condition or provision of this Agreement to
be performed by such other party will be deemed a waiver of similar ordissimilar provisions or conditions at
the same or at any prior or subsequent time. Except as set forth in your
Employment Agreement, no agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement.

8.        Governing
Law and Jurisdiction.

This
Agreement will be governed by and interpreted in accordance with the laws of
the Province of British Columbia and applicable laws of Canada and the parties
hereto attorn to the exclusive jurisdiction of the courts of such province.

9.        Validity.

The
invalidity or unenforceability of any provision of this Agreement will not
affect the validity or enforceability of any other provision of this Agreement,
which will remain in full force and effect.

10.      No Employment
or Service Contract.

Nothing in this Agreement will confer upon you any
right to continue in the employment of the Company for any period of specific
duration. Further, this Agreement does not restrict in any way either party’s
rights to terminate your employment pursuant to the Employment Agreement.

If the foregoing sets forth our agreement on this
matter, kindly sign and return to the Company a copy of this letter.

	
  

  	
   

  	
  Yours truly,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  URIGEN
  HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Martin Shmagin CFO

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory 

  

 

 H-21
 

Accepted and agreed to by
Terry Nida as of the 21st day of April, 2006

	
  /s/ Terry Nida

  	
   

  	
   

  	
   

  
	
  Terry Nida

  	
   

  	
   

  	
   

  

 

 H-22

SCHEDULE D

CONFIDENTIALITY
AGREEMENT AND

ASSIGNMENT OF INVENTIONS

URIGEN
HOLDINGS INC.

 

	
  PRIVATE AND CONFIDENTIAL

  	
  As
  of May 1, 2006

  

Terry
Nida

211 Ferry Landing Road

Cordele, Georgia

31015 USA

Dear
Mr. Nida:

The purpose of this letter
is to confirm and record the terms of the agreement (the “Agreement”) between you and Urigen Holdings
Inc. (the “Company”) concerning
the terms on which you will (i) receive from and disclose tothe Company proprietary and confidential
information; (ii) agree to keep the information confidential, to protect it
from disclosure and to use it only in accordance with the terms of this
Agreement; and (iii) assign to the Company all rights, including any ownership
interest which may arise inall
inventions and intellectual property developed or disclosed by you over the
course of your work during your employment with the Company. The effective date
(“Effective Date”) of this
Agreement is the date that you start or started working at the Company, as
indicated in the employment agreement between you and the Company dated as of
the date of this Agreement.

In
consideration of the offer of employment by the Company and the payment bythe Company to you of the sum of CDN$1.00
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, you and the Company hereby agree as follows:

1.                    INTERPRETATION

1.1                 Definitions. In this Agreement:

(a)                    “Business” will mean the business actually
carried on by the Company, directly or indirectly, whether under an agreement
with or in collaboration with, any other party including but not exclusively
the discovery, development, manufacturing, distribution, marketing and saleof (i) U101 and products for the
treatment of Interstitial Cystitis and (ii) any other products that the Company
discovers or commercially develops during your involvement in any capacity with
the Company.

(b)                   “Confidential Information”, subject to the
exemptions set out inSection
2.8, will mean any non-public information relating to the Company’s Business.

 H-23
 

whether or not conceived,
originated, discovered, or developed in whole or in part by you, and which,
without limiting the generality of the foregoing, will include;

(i)                        scientific;
strategies, concepts, designs, inventions, know-how, information, material,
formulas, processes, devices, programs, methods and proprietary rights in the
nature of copyrights, patents, trademarks, licenses and industrial designs;

(ii)                     financial,
personnel, operations, clinical, regulatory, marketing, advertising and
commercial information and strategies, customer lists, compilations, agreements
and contractual records and correspondence;

(iii)                  all biological,
chemical, pharmacological, toxicological, pharmaceutical, physical and analytical,
clinical, research, safety and quality control data and information, and all
applications, registrations, licenses, authorizations, approvals and
correspondence submitted to regulatory authorities;

(iv)                 unique
combinations ofseparate items
that are notgenerally known and
items provided or disclosed to the Company by third parties subject to
restrictions on use or disclosure; and

(v)                    all
information relating to the businesses of competitors of the Company including
information relating to competitors’ research and development,intellectual property, operations,
financial, clinical, regulatory, marketing, advertising and commercial
strategies that is not generally known.

(c)                    “Interstitial Cystitis” means a disease ofthe bladder characterized by pain,
urgency and frequency of urination.

(d)                   “Inventions” will mean any and all
inventions, discoveries, developments, enhancements, improvements, concepts,
formulas, processes, ideas, technology, know-how, all documents, memoranda,
notes or other writings prepared by you and all other intellectual property,
whether or not patentable and whether or not reduced to practice, as well as
all applications, registrations and related foreign applications filed and
registrations granted thereon.

(e)                    “Work Product” will mean any and all
Inventions relating to the Company’s Business resulting fromany work performed by you for the Company
that you may invent or co-invent during your involvement in any capacity with
the Company, except those Inventions invented by you entirely on your own time
that do not relate to the Company’s Business or do not derive from any
equipment, supplies, facilities. Confidential information or other information,
gained, directly or indirectly, by you from or through your involvement in any
capacity with the Company.

2.                    CONFIDENTIALITY

2.1                 Basic Obligation ofConfidentiality. Except as set out in this Agreement, you
will keep strictly confidential all Confidential information and all other
information belonging to

 H-24
 

the
Company that you acquire, observe or are informed of, directly or indirectly,
in connection with your involvement, in any capacity, with the Company.

2.2                   Fiduciary Capacity. You will be and act toward the Company as a
fiduciary in respect of the Confidential Information.

2.3                 Non-disclosure. Unless the Company first gives you written
permission to do so under Section 2.7of
this Agreement, you will not at any time, either during or after your
involvement in any capacity with the Company;

(a)                    use or copy
Confidential Information or your recollections thereof;

(b)                   publish or
disclose Confidential information or your recollections thereof to any person
other than to employees or consultants of the Company who have a need to know
such Confidential Information for their work for the Company;

(c)                    permit or
cause any Confidential Information to be used, copied, published, disclosed,
translated or adapted except as otherwise expressly permitted by this Agreement; or

(d)                   permit or cause any Confidential Information to be
stored off the premises of the Company, including permitting or causing such
Information to be stored in electronic format on personal computers, except in
accordance with any written procedures of the Company in effect from time to
time.

2.4                 Taking Precautions. You will take all reasonable precautions
necessary or prudent to prevent material in your possession or control that
contains or refers to Confidential Information from being discovered, used or
copied by third parties. You will not transfer any material to another person outside
of the Company, unless a material transfer agreement has been signed by both
the Company and the other party. You will not accept any material from another
person outside of the Company, unless in accordance with any written procedures
of the Company in place from time to time.

2.5                 Company Ownership of
Confidential Information. As
between you and the Company, the Company will own all right, title and interest
in and to the Confidential Information, whether or not created or developed by
you.

2.6                 Return of Confidential
Information. Upon the request
of the Company, you will promptly return to the Company every original and copy
in whatever medium in your possession orcontrol
containing Confidential Information.

2.7                 Purpose of Use. You will use Confidential Information only
for purposes authorized or directed by the Company.

2.8                 Exemptions. Your obligation of confidentiality under
this Agreement will not apply to any of the following:

(a)                    information
that is already known to you, though not due to a prior disclosure by the
Company or by aperson who
obtained knowledge of the information, directly or indirectly, from the
Company:

 H-25
 

(b)                   information
disclosed to you by another person who is not obliged to maintain the
confidentiality of that information and who did not obtain knowledge of the
information, directly or indirectly, from the Company;

(c)                    information
that is developed by you independently of Confidential Information received
from the Company and such independent development can be documented by you;

(d)                   other
particular information or material which the Company expressly exempts by
written instrument signed by the Company;

(e)                    information or
material that is in the public domain through no fault of your own; and

(f)                      information
or material that you are obligated, by law to disclose, to the extent of such
obligation, provided that:

(i)                        in the
event that you are required to disclose such information or material, then, as
soon as you become aware of this obligation to disclose, you will provide the
Company with prompt written notice so that the Company may seek a protective
order or other appropriate remedy and/or waive compliance with the provisions
of this Agreement;

(ii)                     if the
Company agrees that the disclosure is required by law, it will give you written
authorization to disclose the information for the required purposes only;

(iii)                  if the Company
does not agree that the disclosure is required by law, this Agreement will
continue to apply, except to the extent that a Court of competent jurisdiction orders
otherwise; and

(iv)                 if a protective
order or other remedy is not obtained or if compliance with this Agreement iswaived, you will furnish only that
portion of the Confidential Information that is legally required and will
exercise all reasonable efforts to obtain confidential treatment of such
Confidential Information.

3.                    ASSIGNMENT OF
INTELLECTUAL PROPERTY RIGHTS

3.1                 Notice of
Invention. You agree to promptly and fully inform the Company of all your
Work Product throughout the course of your involvement in any capacity with the
Company, whether or not developed before or after your execution of this
Agreement. On your ceasing to be employed by the Company for any reason
whatsoever, you will immediately deliver up to the Company all of your Work Product.
You further agree that all of your Work Product will at all times be the
Confidential Information of the Company.

3.2                 Assignment of
Rights. Subject only to those exceptions set out in Exhibit A hereto, you will assign, and do
hereby assign, to the Company or, at the option of the Company and upon notice
from the Company, to the Company’s designee, your entire right, title and
interest in and to all of your Work Product during your involvement in any
capacity with the

 H-26
 

Company and all other rights and interests of a
proprietary nature in and associated with your Work Product. To the extent that
you retain or acquire legal title to any such rights and interests, you hereby
declare and confirm that such legal title is and will be held by you only as
trustee and agent for the Company. You agree that the Company’s rights
hereunder will attach to all of your Work Product, notwithstanding that it may
be perfected or reduced to specific form after you have terminated your
relationship with the Company. You further agree that the Company’s rights
hereunder are not limited to Canada but will extend to every country of the
world.

3.3                 Moral Rights.
Without limiting the foregoing, you irrevocably waive any and all moral rights
arising under the Copyright Act
(Canada), as amended, or any successor legislation of similar force and effect
or similar legislation in other applicable jurisdictions or at common law that
you may have with respect to your Work Product, and agree never to assert any
moral rights which you may have in your Work Product, including without
limitation, the right to the integrity of such Work Product, the right to be
associated with the Work Product, the right to restrain or claim damages for
any distortion, mutilation or other modification or enhancement of the Work
Product and the right to restrain the use or reproduction of the Work Product
in any context and in connection with any product, service, cause or
institution, and you further confirm that the Company may use or alter any such
Work Product as the Company sees fits in its absolute discretion.

3.4                 Goodwill. You
hereby agree that all goodwill you have established or may establish with
clients, customers, suppliers, principals, shareholders, investors,
collaborators, strategic partners, licensees, contacts or prospects of the
Company relating to the business or affairs of the Company (or of its partners,
subsidiaries or affiliates), both before and after the Effective Date, will as
between you and the Company, be and remain the property of the Company
exclusively, for the Company to use, alter, vary, adapt and exploit as the
Company will determine in its discretion.

3.5                 Assistance. You hereby agree that during your employment
by the Company and thereafter, you will reasonably assist the Company, at the
Company’s expense, with respect to signing further documents and doing such
acts and other things reasonably requested by the Company to confirm the
transfer of ownership of rights in the Work Product to the Company and to
permit the Company to obtain patents or copyrights or other similar
registration rights covering the Work Product. You further agree to cooperate
to the extent and in the manner requested by the Company in the prosecution and
maintenance of any such rights.

3.6                 Assistance with
Proceedings. You hereby agree that during your employment by the Company
and thereafter, you will reasonable assist the Company, at the Company’s
reasonable request and expense, in connection with any defense to an allegation
of infringement of another person’s intellectual property rights, claim of
invalidity of another person’s intellectual property rights, opposition to, or
intervention regarding, an application for letters patent, copyright or
trademark or other proceedings relating to intellectual property or
applications for registration thereof or any other litigation or proceeding
involving any Work Product in any country of the world.

4.                    GENERAL

4.1                 Term and Duration
of Obligation. The term of this Agreement is from the Effective Date and
terminates on the date that you are no longer working at or for the Company.

 H-27
 

Except as otherwise agreed in a written instrument
signed by the Company, Articles 1, 2 and
3 and Sections 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12 and
4.13 will survive the termination of this Agreement, including your obligations
of confidentiality and to return Confidential Information, and with endure,
with respect to each item of Confidential Information, for so long as those items fall within the
definition of Confidential Information.

4.2                 Binding Nature of
Agreement. This Agreement is not assignable by you. You agree that this
Agreement will be binding upon your heirs and estate. This Agreement andrights and obligations hereunder may be
assigned by the Company.

4.3                 No Conflicting
Obligations. You represent and warrant that you will not without legal
authority use or disclose to other persons at the Company information that (i)
constitutes a trade secret of persons other than the Company during your
employment at the Company, or (ii) which is confidential information owned by
another person. You represent and warrant that you have no agreements with or
obligations to others with respect to the matters covered by this Agreement or
concerning the Confidential Information that are in conflict with anything in
this Agreement.

4.4                 Equitable
Remedies. You acknowledge and agree that a breach by you of any of your
obligations under this Agreement would result in damages to the Company that
could not be adequately compensated by monetary award, Accordingly, in the
event of any such breach by you, in addition toall other remedies available to the Company at law or in equity, the
Company will be entitled as a matter of right to apply to a court of competent
jurisdiction for such relief by way of restraining order, injunction, decree or
otherwise, as may be appropriate to ensure compliance with the provisions of
this Agreement, without having to prove damages or post security to the court,
as well as an equitable accounting of all your profits or benefits arising out of such breach. In the event the
Company is successful in obtaining any injunction or is otherwise successful in
any other action arising out of a breach of this Agreement, you will pay to the
Company the full amount of the Company’s legal fees and expenses incurred by
the Company in pursuing such action(s).

4.5                 Publicity.
You will not, without the prior written consent of the Company, make or give
any public announcements, press releases or statements to the public or the
press regarding the Company’ Business or any Confidential Information.

4.6                 Severability.
If any covenant or provision of this Agreement or of a section of this
Agreement is determined by a court of competent jurisdiction to
be void or unenforceable in whole or in part, then such void or unenforceable
covenant or provision will not affect or impair the enforceability or validity
of the balance of the section or any other covenant or provision.

4.7                 Time ofEssence/No Waiver. Time is of
the essence hereof and no waiver, delay, indulgence, or failure to act by the
Company regarding any particular default or omission by you will affect or
impair any of the Company’s rights or remedies regarding that or any subsequent
default or omission that is not expressly waived in writing, and in all events
time will continue to be of the essence without the necessity of specific
reinstatement.

4.8                 Further
Assurances. The parties will execute and deliver to eachother such further instruments and
assurances and do such further acts asmay be required to give, effect to this
Agreement.

 H-28
 

4.9                 Notices. All
notices and other communications that are required or permitted by this
Agreement must be in writing and will be hand delivered or sent by express
delivery service or certified or registered mail, postage prepaid, or by
facsimile transmission (with written confirmation copy by registered
first-class mail) to the parties at the addresses indicated below.

If to the Company:

Urigen Holdings Inc. 

515 West Hastings Street, Suite 7333 

Vancouver, B.C. V6B 5K3 

Attn: President and CEO

With a copy to counsel for the
Company:

Farris, Vaughan, Wills & Murphy LLP

2500 – 700 West Georgia Street 

Vancouver, BC, V7Y 1B3

Attn: R. Hector MacKay-Dunn, Q.C. 

Fax: (604) 661-9349

If to you:

Terry Nida

211 Ferry Landing Road

Cordele, Georgia

31015 USA

Fax: (229) 273-0325

Any such notice will be
deemed to have been received on the earlier of the date actually received, on
the next business day following transmission if byfacsimile transmission, or the date five (5)days after the same wasposted or sent. Either party may change
its address or its facsimile number by giving the other party written notice,
delivered in accordance with this Section.

4.10               Amendment. No
amendment, modification, supplement or other purported alteration of this
Agreement will be binding unless it is in writing and signed by you and by the
Company.

4.11               Entire Agreement.
This Agreement supersedes all previous dealings, understandings, and
expectations of the parties and constitutes the whole agreement with respect to
the matters contemplated hereby. Except as set forth in your Employment
Agreement, there are no representations, warranties, conditions or collateral
agreements between the parties with respect to the matters contemplated hereby
except as expressly set out herein.

4.12               Governing Law.This Agreement will be governed by and
interpreted in accordance with the laws of the Province of British Columbia and
applicable laws of Canada and the parties hereto attorn to the exclusive
jurisdiction of the provincial and federal courts of such province.

4.13               Independent Legal
Advice. You hereby acknowledge that you have obtained or have had an
opportunity to obtain independent legal advice in connection with this
Agreement and further acknowledge that you have read, understand, and agree to
be bound by all of the terms and conditions contained herein.

 H-29
 

Acceptance

If
the foregoing terms and conditions are acceptable to you, please indicate your
acceptance of and agreement to the terms and conditions of this Agreement by
signing below on this letter and on the enclosed copy of this letter in the
space provided and by returning the enclosed copy so executed to us. Your
execution and delivery to the Company of the enclosed copy of this letter will
create a binding agreement between us.

Thank you for your
cooperation in this matter.

Yours truly,

	
  URIGEN HOLDINGS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Martin Shmagin CFO

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
   

  
						

 

Accepted and agreed as of
the 21st day
of April, 2006

	
  /s/ Amie Franklin

  	
   

  	
   

  	
   

  	
  /s/ Terry Nida

  	
   

  
	
  Witness Signature

  	
   

  	
   

  	
  Signature of Terry Nida

  
	
   

  	
   

  	
   

  	
   

  
	
  Amie Franklin

  	
   

  	
   

  	
   

  	
   

  
	
  Witness Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Scientist

  	
   

  	
   

  	
   

  	
   

  
	
  Occupation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  693 San Bruno Ave #2, Brisbane CA 94005

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
							

 

 H-30

EXHIBIT A

EXCEPTIONS TO SECTION 3.2

ASSIGNMENT OF RIGHTS

[NONE IF LEFT BLANK]

 H-31

Exhibit J: C. Lowell Parsons’ Redistribution

	
  Name of
  Shareholder

  	
   

  	
  Shares of Common Stock Transferred from

  C. Lowell Parsons

  
	
  Robert Parsons

  	
   

  	
  30,000

  
	
  Howard Parsons

  	
   

  	
  2,000

  
	
  Marilyn and Robert Rieker

  	
   

  	
  38,000

  
	
  Karen Rieker

  	
   

  	
  10,000

  

 

 H-32

Schedule 3.4

CapitalizationExhibit
10.1

Execution
Copy

SEPARATION AGREEMENT

THIS AGREEMENT (this “Agreement”), made and entered
into as of this 7th day of February, 2007 (the “Termination Date”), by and
between the Seneca Gaming Corporation (“Parent”), a wholly-owned governmental
instrumentality of the Seneca Nation of Indians (the “Nation”) with its
principal place of business in the Allegany and Niagara Territories of the
Nation and John Pasqualoni (“Executive”),

W I T N E S S E T
H:

WHEREAS, Executive
and Parent entered into that certain Second Amended and Restated Employment
Agreement, dated April 6, 2005, as amended by Amendment No. 1 to Second
Amended and Restated Employment Agreement, dated as of January 30, 2006, (collectively,
the “Employment Agreement”), pursuant to which Executive served as the
President and Chief Executive Officer of Parent; and

WHEREAS, Executive
also serves as the President and Chief Executive Officer of each of Parent’s
wholly-owned subsidiaries:  Seneca
Niagara Falls Gaming Corporation, Seneca Territory Gaming Corporation, and the
Seneca Erie Gaming Corporation (collectively, the “Subsidiaries” and together
with Parent, “Employer”); and

WHEREAS, Executive has elected to resign as an
employee and officer of Parent and each of the Subsidiaries effective as of the
Termination Date.

NOW, THEREFORE, for and in consideration of the mutual
covenants and obligations contained herein, Parent and Executive hereby agree
as follows:

ARTICLE I:                           RESIGNATION
AND POST-TERMINATION COOPERATION

Section 1.1             Resignation.   Executive
hereby resigns as an employee and officer of Parent and the Subsidiaries
effective as of the close of business on the Termination Date.  Except as specifically provided in Article
III of this Agreement, notwithstanding any other written or oral agreements
between Employer and Executive relating to Executive’s employment or
termination thereof, and all subsequent amendments thereto, including, without
limitation, the Employment Agreement, such resignation shall not be deemed to
be a breach by Executive or Employer of any such agreements, and in
consideration of the payments and benefits herein described, any and all terms
set forth in such agreements, including, without limitation, the Employment
Agreement, shall terminate and cease to have any effect as of the Termination
Date notwithstanding any survival clauses therein contained.  Executive agrees to execute all other
necessary documents that Employer requests that he execute to evidence his
termination of employment and his status as an employee and officer of
Employer.  Executive represents,
understands and agrees that following the Termination Date, he will not, at any
time, apply for, seek, or accept any employment with, and waives any right to
employment with, Employer.

Section
1.2             Post-Termination
Cooperation.   Following the Termination Date, Executive agrees to
reasonably cooperate with Employer, as and when reasonably requested, for
purposes of facilitating Employer’s transitioning of matters in which Executive
was engaged or for which Executive was responsible as an employee of Employer,
including reasonable participation in ongoing litigation in which Parent or any
Subsidiary is a party (e.g., as a witness). 
Executive shall have no power to bind Employer in contractual or other
matters, and shall not hold himself out as having such authority. Executive
shall personally provide all of the consulting services required hereunder.

ARTICLE II:                          SEVERANCE PAYMENTS,
BENEFITS AND FEES

Section
2.1             Severance Payments.   Upon
execution and delivery of this Agreement by the parties, and consistent with
customary policies of Parent, to the extent not previously paid, the Company
shall pay Executive:  (a) all
compensation payable under Section 5(e) of Executive’s Employment Agreement
(i.e., including payment of 120 days base compensation) and (b) any unpaid
reasonable business expenses incurred through the Termination Date.  Parent further agrees to reimburse Executive
for reasonable costs and expenses incurred by Executive at Parent’s direction
in connection with Executive’s efforts pursuant to Section 1.2 above, including
participation in litigation proceedings, subject to Parent’s receipt of
adequate documentation thereof and compliance with Parent’s applicable policies
and procedures.

Section 2.2             Benefits.                   Subsequent to the close
of business on the Termination Date, Executive shall cease to be eligible to
participate in all Employer employee benefit plans, provided that, for the
period commencing on the Termination Date and ending on the earlier of (a) the
date 120 days following the Termination Date, or (b) the date on which
Executive is eligible to receive employer health insurance coverage through a
new employer, Employer will pay the cost of (1) Executive’s premiums for
continuation healthcare coverage under Section 4980B of the Internal Revenue
Code of 1986, as amended (COBRA) and (2) reimbursement under Exec-u-Care®
consistent with Executive’s participation in Exec-u-Care® prior to the
Termination Date.   Employer further
acknowledges that it shall reasonably cooperate with Executive, upon request,
to ensure that Executive is allowed to maximize his Employer 401(k) plan
deductions for 2007 consistent with applicable law.

Section 2.3             Withholding of Taxes.   Parent
may withhold from any benefits or compensation payable under this Agreement all
federal, state, city or other taxes as may be required pursuant to any law or
governmental regulation or ruling.

Section 2.4             No Other Payments.   Except
as specifically provided in this Agreement or as otherwise may be required by
law, Executive acknowledges and agrees that he shall not be entitled to receive
any other payments, salary, bonus, pension, medical, life, disability insurance
or any other benefits, incentive compensation, or severance or separation pay
or any other claim or compensation or benefits of any kind or nature whatsoever
that Executive may now have or ever claimed to have been entitled to from
Employer or any affiliate.  Executive’s
participation in any other employee benefit plan maintained by Employer or any
affiliate shall terminate effective as of the Termination Date in accordance
with the terms of such employee benefit plans and applicable law.  Except as specifically set forth herein,
Executive acknowledges and agrees that as of the Termination Date, his rights
under the Employment Agreement shall be void and cease to have any effect and
this Agreement shall provide the sole right Executive may have upon termination
of his employment.

 2
 

ARTICLE III:                         RESTRICTIVE COVENANTS

Section
3.1             Acknowledgements.   Executive
acknowledges that:  (i) as a result of
Executive’s employment  with Employer, he
obtained secret, proprietary and confidential information concerning the
business of Employer, including, without limitation, business and marketing
plans, strategies, employee lists, patron lists, operating procedures, business
relationships (including persons, corporations or other entities performing
services on behalf of or otherwise engaged in business transactions with the Employer),
accounts, financial data, know-how, computer software and related
documentation, trade secrets, processes, policies and/or personnel, and other
information relating to the Employer (“Confidential Information”); (ii) the
Confidential Information has been developed and created by Employer at
substantial expense and the Confidential Information constitutes a valuable
proprietary asset and that Employer will suffer substantial damage and
irreparable harm which will be difficult to compute if, during the Restricted
Period, Executive should enter a Competitive Business (as defined herein) in
violation of the provisions of this Agreement; (iii) Employer will suffer
substantial damage which will be difficult to compute if, during the Restricted
Period, Executive should solicit or interfere with Employer’s employees, or
patrons or should divulge Confidential Information relating to the business of
Employer; (iv) the provisions of this Article III are reasonable and necessary
for the protection of the business of Employer; (v) Employer would not have
entered into this Agreement unless Executive made the acknowledgements set
forth in this Section; and (vi) the provisions of this Agreement will not
preclude Executive from other gainful employment.  For purposes of this Agreement, “Competitive
Business” means any gaming establishment which provides to its patrons games of
chance such as slot machines, card games, roulette, and similar games in the
State of New York or within a 100 mile radius of Nation Territory.  For purposes of this Agreement, “Nation
Territory” means, collectively, the Seneca Nation of Indians’ Allegany,
Cattaraugus, Oil Springs, Niagara Falls, and Buffalo Creek Territories.

Section
3.2             Confidentiality.   Executive
acknowledges and agrees that the unauthorized disclosure or misuse of
Confidential Information will cause substantial damage to the Employer.  Therefore, Executive agrees not to, at any
time, either during the Term of the Agreement or thereafter, divulge, use,
publish or in any other manner reveal, directly or indirectly, to any person,
firm or corporation any Confidential Information obtained or learned by
Executive during the course of his employment with Employer, with regard to the
operational, financial, business or other affairs and activities of Employer,
their officers, directors or employees and the entities with which they have
business relationships, except (i) as may be necessary to the performance of
Executive’s duties with Employer, (ii) with Employer’s express prior written
consent, (iii) to the extent that any such information is in the public domain
other than as a result of Executive’s breach of any of his obligations
hereunder, or (iv) where required to be disclosed by court order, subpoena or
other government process and, in such event, Executive shall cooperate with the
Employer in attempting to keep such information confidential.

 3
 

Section
3.3             Non-Compete.   For
the period commencing on the Termination Date and ending eighteen (18) months
thereafter (the “Restricted Period”), Executive, without the prior written
permission of Parent, shall not, directly or indirectly, (i) enter into the
employ of or render any services to any person or entity engaged in or
preparing to engage in a Competitive Business; or (ii) become affiliated with
or interested in any Competitive Business as an individual, partner,
shareholder, member, creditor, director, officer, principal, agent, employee,
trustee, consultant, or advisor, or in any other relationship or capacity.  This section 3.3 shall not prevent Executive
from owning common stock in a publicly traded corporation which owns or manages
a casino, provided that Executive does not take an active role in the ownership
or management of such corporation and his ownership interest represents less
than 3% of the voting securities and/or economic value of such corporation.

Section
3.4             Non-Solicitation —
Employees.   By executing this Agreement, Executive acknowledges that
he understands that Employer’s ability to operate its business depends upon its
ability to attract and retain skilled people and that Employer has and will
continue to invest substantial resources in training such individuals.  Therefore, during the Restricted Period,
Executive shall not, without the prior written permission of Parent, directly
solicit, employ or retain, or have or cause any other person or entity to
solicit, employ or retain, any person who is employed by Employer.

Section
3.5             Non-Solicitation —
Vendors.   By executing this Agreement, Executive acknowledges that he
understands that Employer’s ability to operate its business depends upon its
ability to attract and retain vendors and patrons.  Therefore, during the Restricted Period,
Executive shall not, directly or indirectly, take any action with respect to
any current or potential vendors of Employer, or any such persons or entities
that were vendors of the Employer within the one year period immediately prior
to Executive’s termination of employment, that would be adverse to the
interests of Employer.

Section
3.6             Non-Disparagement.   The
parties hereto acknowledge and agree that during the Term and for all time
thereafter that they will not defame or publicly criticize the services,
business, integrity, veracity or personal or professional reputation of the
other party, or such party’s officers, directors, employees, agents or
affiliates, in either a professional or personal manner.

Section
3.7             Blue-Pencil.   If,
at any time, the provisions of this Agreement shall be determined to be invalid
or unenforceable under any applicable law, by reason of being vague or
unreasonable as to area, duration or scope of activity, this Agreement shall be
considered divisible and shall become and be immediately amended to only such
area, duration and scope of activity as shall be determined to be reasonable
and enforceable by the court or other body having jurisdiction over the matter
and Executive and Employer agree that this Agreement as so amended shall be
valid and binding as though any invalid or unenforceable provision had not been
included herein.

 4
 

ARTICLE
IV:                         RELEASE

Section
4.1             Release of Known
Claims.

(a)           It
is understood and agreed by the parties to this Agreement that in consideration
of the mutual  covenants and obligations
contained in this Agreement, and after consultation with counsel, Executive for
himself and each of his respective heirs, representatives, agents, successors
and assigns, irrevocably and unconditionally releases and forever discharges
the Nation, Parent, and each Subsidiary, and its and their respective current
and former officers, directors, shareholders, employees, representatives,
heirs, attorneys and agents, as well as its and their respective predecessors,
parent companies, subsidiaries, affiliates, divisions, successors and assigns
and its respective current and former officers, directors, shareholders,
employees, representatives, attorneys and agents (the “Released Parties”), from
any and all causes of action, claims, actions, rights, judgments, obligations,
damages, demands, accountings or liabilities of whatever kind or character,
which Executive may have against them, or any of them, by reason of or arising
out of, touching upon or concerning Executive’s employment with Employer and
the termination of his employment, or any statutory claims, or any and all
other matters of whatever kind, nature or description, whether known or
unknown, occurring prior to the Termination Date.  Executive acknowledges that this release of
claims specifically includes, but is not limited to, any and all claims for
fraud; breach of contract; breach of the implied covenant of good faith and
fair dealing; inducement of breach; interference with contractual rights;
wrongful or unlawful discharge or demotion; violation of public policy;
invasion of privacy; intentional or negligent infliction of emotional distress;
intentional or negligent misrepresentation; conspiracy; failure to pay wages,
benefits, vacation pay, severance pay, attorneys’ fees, or other compensation
of any sort; defamation; unlawful effort to prevent employment; discrimination
on the basis of race, color, sex, national origin, ancestry, religion, age,
disability, handicap, medical condition or marital status; any claim under
Title VII of the Civil Rights Act of 1964 (Title VII, as amended), 42 U.S.C.
§2000, et seq., the Age Discrimination in
Employment Act (“ADEA”), 29 U.S.C. §621, et seq., the
Older Workers Benefit Protection Act (“OWBPA”), 29 U.S.C. §626(f), the
Equal Pay Act, the Family and Medical Leave Act, the New York Human Rights Law;
the New York Labor Law; the New York Whistleblower Protection Law; the New York
Wage and Hour Laws; violation of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (“COBRA”); the Americans with Disabilities Act (“ADA”); violation
of the Occupational Safety and Health Act (“OSHA”) or any other health and/or
safety laws, statutes or regulations; violation of the Employee Retirement
Income Security Act of 1974 (“ERISA”); violation of the Internal Revenue Code
of 1986, as amended; any other foreign, federal, state, or local laws, common law
or case law relating to employment discrimination or the regulation of
employment; or any other wrongful conduct based upon events occurring prior to
the Termination Date.

(b)           Executive
represents and warrants that he has not assigned or subrogated any of his
rights, claims and causes of action, including any claims referenced in this
Agreement, or authorized any other person or entity to assert such claim or
claims on his behalf, and he agrees to indemnify and hold harmless the Released
Parties against any assignment of said rights, claims and/or causes of action.

(c)           Executive
acknowledges and agrees that the making of this Agreement, and anything
contained herein, is not intended, and shall not be construed, as an admission
that the Released Parties have: violated or abridged any foreign, federal,
state or local law (statutory or common law), ordinance or regulation; breached
any contract, or violated any right or obligation that it may owe or may have
owed to Executive or committed any wrong whatsoever against Executive.

 5
 

Section 4.2             Waiver
of Rights Under the Age Discrimination Act.

(a)           Executive
understands that this Agreement, and the release contained herein, waives
claims and rights Executive might have under the ADEA. The waiver of Executive’s
rights under the ADEA does not extend to claims or rights that might arise
after the Effective Date.  Executive may
revoke the terms of this Agreement relating to ADEA claims by a written
document received by the Parent’s General Counsel at Seneca Niagara Falls
Casino and Hotel, 310 Fourth Street, Niagara Falls, New York (Seneca Nation
Territory) 14303 within seven (7) calendar days after Executive’s execution of
this Agreement.  Executive agrees that
any such revocation will not be effective unless it is made in writing and
delivered to Parent, to the attention of its General Counsel at the address set
forth above, by the end of the seventh (7th) calendar day.  This Agreement and the provisions of this
Section 4.2 will become effective on the eighth (8th) calendar day after the
Agreement is executed by both parties (the “Effective Date”).  In the event of a valid revocation of this
Agreement by Executive, Executive shall not be entitled to be paid any of the
amounts described in this Agreement and this Agreement shall become null and
void.

(b)           Executive
acknowledges that he has been given up to 21 days to decide whether to sign
this Agreement.  At Executive’s option
and sole discretion, Executive may waive the twenty-one (21) day review period
and execute this Agreement before the expiration of twenty-one (21) days.  If Executive elects to waive the twenty-one
(21) day review period, Executive acknowledges and admits that Executive was
given a reasonable period of time within which to consider this Agreement and
Executive’s waiver is made freely and voluntarily, without duress or any
coercion by any other person

Section 4.3             Workers
Compensation.   Executive expressly acknowledges that he has not, to
his knowledge, suffered from any illness or injury arising out of and in the
course of his employment with Employer that would be compensable under the
Workers’ Compensation Act (the “WC Act”), that he has not filed any claim
against Employer under the WC Act, and that he represents that he will not file
or otherwise assert any workers’ compensation claim against Employer seeking to
remedy an injury or illness caused by Executive’s employment and termination
thereof.

Section 4.4             Breach.   If
Executive should breach any of his obligations under this Article IV, Employer
shall have no further obligation to make the payments and benefits described
herein attached hereto and Executive shall be required to return all amounts
paid to Executive hereunder.

 6
 

Section 4.5             Release
of Claims by Parent.   Subject to the provisions of this Agreement and
subject to Executive not exercising his revocation rights hereunder, Parent and
Employer hereby irrevocably and unconditionally release, waive and fully and
forever discharge Executive, from and against any and all claims, liabilities,
obligations, covenants, rights, demands and damages of any nature whatsoever,
whether known or unknown, anticipated or unanticipated, arising from, by reason
of or in any way related to any transaction, event or circumstance which
occurred or existed prior to and including the date of this Agreement arising
out of or in any way related to Executive’s employment with Employer or the
termination thereof.  Notwithstanding the
provisions of this paragraph, nothing in this waiver or release shall be
construed to constitute any release or waiver by either party of its rights or
claims against the other party arising out of or referred to in this Agreement
or for any fraudulent acts engaged in by the other party during the course of
Executive’s employment.

ARTICLE V:                          MISCELLANEOUS

Section
5.1             Remedy.   Should
Executive engage in or perform, either directly or indirectly, any of the acts
prohibited by Articles III and IV or, in any other way, violate such Articles,
it is agreed that Employer shall be entitled to full injunctive relief, to be
issued by any competent court of equity, enjoining and restraining Executive
and each and every other person, firm, organization, association, or
corporation concerned therein, from the continuance of such violative
acts.  The foregoing remedy shall not be
deemed to limit or prevent the exercise by Employer of any or all further
rights and remedies which may be available to Employer hereunder or at law or
in equity.

Section
5.2             Notices.   For
purposes of this Agreement, notices and all other communica­tions provided for
herein shall be in writing and shall be deemed to have been duly given when
personally delivered, sent by facsimile or when mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed to such address as provided in the signature pages hereto or sent to
such other address or facsimile number as each party may furnish to the other
in writing from time to time in accordance with this Section 5.3.

Section
5.3             Applicable Law.   This
Agreement is entered into under, and shall be governed for all purposes by, the
laws of the State of New York without giving effect to any choice of law
principles.

Section
5.4             No Waiver.   No
failure by either party hereto at any time to give notice of any breach by the
other party of, or to require compliance with, any condition or provision of
this Agreement shall (i) be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time or (ii) preclude insistence
upon strict compliance in the future.

Section
5.5             Severability.   If
a court of competent jurisdiction determines that any provision of this
Agreement is invalid or unenforceable, then the invalidity or unenforceability
of that provision shall not affect the validity or enforceability of any other
provision of this Agreement, and all other provisions shall remain in full
force and effect and such invalid or unenforceable provision shall be
reformulated by such court to preserve the intent of the parties hereto.

Section
5.6             Counterparts.   This
Agreement may be executed in one or more counter­parts, each of which shall be
deemed to be an original, but both of which together will constitute one and
the same Agreement.

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Section
5.7             Headings.   The
paragraph headings have been inserted for purposes of convenience and shall not
be used for interpretive purposes.

Section
5.8             Gender and Plurals.   Wherever
the context so requires, the masculine gender includes the feminine or neuter,
and the singular number includes the plural and conversely.

Section
5.9             Affiliate.   As
used in this Agreement, unless otherwise indicated, “affiliate” shall mean any
person or entity which directly or indirectly through any one or more
intermediaries owns or controls, is owned or controlled by, or is under common
ownership or control with the Parent.

Section
5.10           Assignment.   This
Agreement is binding on Executive and Employer and their successors and
assigns; provided, however, that the rights and obligations of
Employer under this Agreement may be assigned to a successor entity.  No rights or obligations of Executive
hereunder may be assigned by Executive to any other person or entity, except by
will or the laws of descent and distribution. 
In the event of Executive’s death prior to receipt by Executive of all
amounts payable by Employer hereunder, such amounts shall be payable to
Executive’s designated beneficiaries on the same schedule as provided for in
this Agreement.

Section
5.11           Entire Agreement.   Except
as otherwise specifically provided herein, this Agreement constitutes the
entire agreement of the parties with regard to the subject matter hereof,
contains all the covenants, promises, representations, warranties and
agreements between the parties with respect to Executive’s resignation from
Employer and supersedes all prior employment or severance or other agreements
between Executive and Employer whether written or oral or any of predecessor or
affiliate of Employer, including, but not limited to the Employment Agreement.  Executive acknowledges and agrees that the
consideration provided for herein is adequate consideration for Executive
waiving his rights under any other agreement whether written or oral between
Executive and Employer, including, without limitation, the Employment Agreement.  Except as otherwise provided herein,
Executive acknowledges that no representation, inducement, promise or
agreement, oral or written, has been made by either party, or by anyone acting
on behalf of either party, which is not embodied herein, and that no agreement,
statement, or promise relating to Executive’s resignation from Employer, that
is not contained in this Agreement, shall be valid or binding.  Any modification of this Agreement will be
effective only if it is in writing and signed by the party to be charged.

ARTICLE
VI:                         JOINT
DRAFTING

Executive and Parent acknowledge and agree that this
Agreement was jointly drafted by Parent on the one side and by Executive on the
other side.  Neither party, nor any party’s
counsel, shall be deemed the drafter of this Agreement in any proceeding that
may hereafter arise between them.

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ARTICLE
VII:                       EXECUTIVE ACKNOWLEDGEMENTS

Executive
acknowledges that:

(a)           He
has read and understands the terms of this Agreement and has voluntarily agreed
to these terms without coercion or undue persuasion by Parent or any officer,
director or other agent thereof;

(b)           He
has been encouraged by Parent to seek, and has had the opportunity to seek
competent legal counsel in his review and consideration of this Agreement and
its terms; and

(c)           This
Agreement does not purport to waive, and does not waive, any rights Executive
may have which arise after the Termination Date.

*              *              *

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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first written above.

 

	
  

  	
   

  	
  SENECA GAMING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Barry E. Snyder, Sr.

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  John Pasqualoni

  

 

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