Document:

Warrant to Purchase Common Stock

 EXHIBIT 4.5 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR ANY APPLICABLE STATE SECURITIES LAWS COVERING SUCH SECURITIES OR THE SALE IS MADE IN ACCORDANCE WITH AN EXEMPTION UNDER THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS, AND THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
  
 No. CO - 33 
  
 WARRANT
TO PURCHASE COMMON STOCK 
 of 
 INCARA PHARMACEUTICALS CORPORATION 
  
 1.
Number of Shares Subject to Warrant. FOR VALUE RECEIVED, on and after the Commencement Date (as defined below), and subject to the terms and conditions herein set forth, Holder (as defined below) is entitled to purchase from Incara
Pharmaceuticals Corporation, P.O. Box 14287, Research Triangle Park, NC 27709, a Delaware corporation (the “Company”), at any time before 6:00 p.m. North Carolina time on July 11, 2008 (“Termination Date”), at a price per share
equal to the Exercise Price (as defined below), the Warrant Stock (as defined below and subject to adjustments as described below) upon exercise of this Warrant pursuant to Section 6 hereof. 
  
 2. Definitions. As used in this Warrant, the following terms shall
have the definitions ascribed to them below: 
  
 a.
“Commencement Date” shall mean July 11, 2003. 
  
 b.
“Common Stock” shall mean the Company’s common stock, par value $0.001 per share. 
  
 c. “Exercise Price” shall mean the lower of (i) $0.10, (ii) the per share price paid for the Company’s securities in the Offering, or (iii)
the exercise price of any warrant for Common Stock issued in the Offering. 

 d. “Holder” shall mean W. Ruffin Woody, Jr., P.O. Drawer 381, Roxboro, NC 27573, or his
successors and assigns. 
  
 e. “Note” shall mean the
Convertible Secured Promissory Note issued by the Company to Holder in the amount of Thirty-Five Thousand Dollars ($35,000.00) dated July 11, 2003. 
  
 f. “Offering” shall have the meaning set forth in the Note. 
  
 g. “Warrant Stock” shall mean the Common Stock purchasable upon exercise of this Warrant or issuable upon
conversion of this Warrant. The total number of shares to be issued upon exercise of the Warrant shall be 350,000 shares. 
  
 3. Adjustments and Notices. This Warrant shall be subject to adjustment from time to time in accordance with the following provisions: 

 
 (a) Subdivision, Stock Dividends or Combinations. In case the
Company shall at any time subdivide the outstanding shares of the Common Stock or shall issue a stock dividend with respect to the Common Stock, the Exercise Price in effect immediately prior to such subdivision or the issuance of such dividend
shall be proportionately decreased and the number of shares of Common Stock issuable shall be proportionately increased, and in case the Company shall at any time combine the outstanding shares of the Common Stock, the Exercise Price in effect
immediately prior to such combination shall be proportionately increased and the number of shares of Common Stock issuable shall be proportionately decreased, effective at the close of business on the date of such subdivision, dividend or
combination, as the case may be. 
  
 (b) Reclassification,
Exchange, Substitution, In-Kind Distribution. Upon any reclassification, exchange, substitution or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant or upon the
payment of a dividend in securities or property other than Common Stock, the Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the
Common Stock if this Warrant had been exercised immediately before the record date for such reclassification, exchange, substitution, or other event or immediately prior to the record date for such dividend. The Company or its successor shall
promptly issue to Holder a new Warrant for such new securities or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3 including,
without limitation, adjustments to the Exercise Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this Section 3(b) shall similarly apply to successive reclassifications, exchanges,
substitutions, or other events and successive dividends. 
  
 (c)
Reorganization or Merger. In case of any merger, reverse merger or consolidation of the Company into or with another corporation where the Company is not the surviving corporation, the Company, or such successor or purchasing corporation, as
the case may be, shall, as a condition to closing any such reorganization or merger, duly execute and deliver to the Holder hereof a new warrant so that the Holder shall have the right to receive, at a 
  

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total purchase price not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and in lieu of the shares of the Common Stock
theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock, other securities, money and property receivable upon such reorganization or merger by the Holder of the number of shares of Common Stock then purchasable
under this Warrant. Such new warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3. The provisions of this subparagraph (c) shall similarly apply to
successive reorganizations and mergers. 
  
 (d) No
Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Warrant and in taking all such action as
may be necessary or appropriate to protect the Holder’s rights under this Warrant against impairment. If the Company takes any action affecting the Common Stock other than as described above that adversely affects Holder’s rights under
this Warrant, the Exercise Price shall be appropriately adjusted downward. 
  
 (e) Notice. Upon any adjustment of the Exercise Price and any increase or decrease in the number of shares of the Common Stock purchasable upon the exercise or conversion of this Warrant, then, and in each such
case, the Company, as promptly as practicable thereafter, shall give written notice thereof to the Holder of this Warrant at the address of such Holder as shown on the books of the Company which notice shall state the Exercise Price as adjusted and
the increased or decreased number of shares purchasable upon the exercise or conversion of this Warrant, setting forth in reasonable detail the method of calculation of each. The Company further agrees to notify the Holder of this Warrant in writing
of a reorganization, merger or sale in accordance with Section 3(c) hereof at least twenty (20) days prior to the effective date thereof. 
  
 (f) Fractional Shares. No fractional shares shall be issuable upon exercise or conversion of the Warrant and the number of shares to be issued
shall be rounded down to the nearest whole share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying the Holder an amount computed by multiplying
the fractional interest by the fair market value of a full share. 
  
 4. No Stockholder Rights. This Warrant, by itself, as distinguished from any shares purchased hereunder, shall not entitle its Holder to any of the rights of a stockholder of the Company. 
  
 5. Reservation of Stock; Taxes. 
  
 (a) The Company will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of Warrant Stock upon the exercise or conversion of this Warrant. Issuance of this Warrant shall constitute full authority to the Company’s officers who are charged with the duty of
executing stock certificates to execute 
  

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and issue the necessary certificates for shares of Warrant Stock issuable upon the exercise or conversion of this Warrant. 
  
 (b) The Company covenants that all Common Stock that may be issued upon the
exercise of rights represented by this Warrant will, upon exercise, be fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue (other than taxes in respect of any transfer occurring contemporaneously with such
issue). The Company shall pay any and all United States federal, state and local taxes and other charges that may be payable in connection with the preparation, issuance and delivery of the certificates representing shares of Common Stock issued
hereunder. 
  
 6. Exercise of Warrant. This Warrant may be
exercised in whole or in part by the Holder at any time after the Commencement Date by the surrender of this Warrant, together with the Notice of Exercise and Investment Representation Statement in the forms attached hereto as Attachments 1 and
2, respectively, duly completed and executed at the principal office of the Company, specifying the portion of the Warrant to be exercised and accompanied by payment in full of the Exercise Price in cash or by check with respect to the shares of
Warrant Stock being purchased. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, and the person entitled to receive the shares of Warrant Stock
issuable upon such exercise shall be treated for all purposes as holder of such shares of record as of the close of business on such date. As promptly as practicable after such date, the Company shall issue and deliver to the person or persons
entitled to receive the same a certificate or certificates for the number of full shares of Warrant Stock issuable upon such exercise. If the Warrant shall be exercised for less than the total number of shares of Warrant Stock then issuable upon
exercise, promptly after surrender of the Warrant upon such exercise, the Company will execute and deliver a new Warrant, dated the date hereof, evidencing the right of the Holder to the balance of the Warrant Stock purchasable hereunder upon the
same terms and conditions set forth herein. 
  
 7.
Conversion. In lieu of exercising this Warrant or any portion hereof, the Holder hereof shall have the right to convert this Warrant or any portion hereof into Warrant Stock at any time after the Commencement Date by executing and delivering
to the Company at its principal office the Investment Representation Statement and Notice of Conversion in the forms attached hereto as Attachments 2 and 3, respectively, specifying the portion of the Warrant to be converted, and accompanied
by this Warrant. The number of shares of Warrant Stock to be issued to Holder upon such conversion shall be computed using the following formula: 
  
 X = (P)(Y)(A-B)/A 

			
	         where    
	  	X =	 	the number of shares of Warrant Stock to be issued to the Holder for the portion of the Warrant being converted.
			
	 	  	P =	 	the portion of the Warrant being converted expressed as a decimal fraction.
			
	 	  	Y =	 	the total number of shares of Warrant Stock issuable upon exercise of the Warrant in full.

  
  

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	 	  	A =	 	the fair market value of one share of Warrant Stock which shall mean (i) the closing price of shares of the Company’s Common Stock quoted on a market or exchange or quotation
system on which such shares are listed or quoted, whichever is applicable, on the trading day immediately preceding the date of delivery of the notice pursuant to this Section 7, or (ii) if (i) is not applicable, the fair market value of one share
of Warrant Stock as determined in good faith by the Company’s Board of Directors.
			
	 	  	B =	 	the Exercise Price on the date of conversion.

  
 Any portion of this Warrant that is
converted shall be immediately canceled. If the Warrant shall be converted for less than the total number of shares of Warrant Stock then issuable upon conversion, promptly after surrender of the Warrant upon such conversion, the Company will
execute and deliver a new Warrant, dated the date hereof, evidencing the right of the Holder to the balance of the Warrant Stock purchasable hereunder upon the same terms and conditions set forth herein. 
  
 8. Transfer of Warrant. This Warrant may be transferred or assigned by
the Holder hereof in whole or in part, provided that (i) the transferor provides, at the Company’s reasonable request, an opinion of counsel reasonably satisfactory to the Company that such transfer does not require registration under the Act
and the securities law applicable with respect to any other applicable jurisdiction, and (ii) the Company, in its sole discretion, consents to such assignment or transfer.  
  
 9. Exchange of Warrants. Upon the surrender by the Holder of this Warrant, properly endorsed, to the Company at the
principal office of the Company, the Company will, subject to the provisions of Section 8 hereof, issue and deliver to or upon the order of such Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such
Holder or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock called for on the face of the Warrant so surrendered.

  
 10. Replacement of Warrants. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of a reasonable indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company, at its own expense, will issue, in lieu thereof, a new Warrant of like tenor. 
  
 11. Miscellaneous. This Warrant shall be governed by the laws of the State of North Carolina, as such laws are
applied to contracts to be entered into and performed entirely in North Carolina. The headings in this Warrant are for purposes of convenience and reference only, and shall not be deemed to constitute a part hereof. Neither this Warrant nor any term
hereof may be changed or waived orally, but only by an instrument in writing signed by the Company and the Holder of this Warrant. All notices and other communications from the Company to the Holder of this Warrant shall be delivered personally,
sent by facsimile with confirmation of receipt or if 
  

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mailed by registered or certified mail, return receipt requested, postage prepaid, to the address furnished to the Company in writing by the last Holder of
this Warrant who shall have furnished an address to the Company in writing, and if mailed shall be deemed given four (4) business days after deposit in the United States mail. 
  
 [Signature Page Follows] 
  

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 ISSUED: July 11, 2003 
  

	 INCARA PHARMACEUTICALS
 CORPORATION

		
	 By:
	 	  

	 	 	 Clayton I. Duncan

	 	 	 President and Chief Executive Officer

  
  

 7Secured Convertible Promissory Note

 EXHIBIT 10.96 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR ANY APPLICABLE STATE SECURITIES LAWS COVERING SUCH SECURITIES OR THE SALE IS MADE IN ACCORDANCE WITH AN EXEMPTION UNDER THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, AND THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
  
 SECURED CONVERTIBLE PROMISSORY NOTE 
  

	 $35,000.00
	 	July 11, 2003

  
 Incara Pharmaceuticals Corporation,
P.O. Box 14287, Research Triangle Park, NC 27709, a Delaware corporation (the “Company”), for value received, hereby promises to pay to W. Ruffin Woody, Jr., P.O. Drawer 381, Roxboro, NC 27573 (the “Holder”), the principal sum of
Thirty-Five Thousand Dollars ($35,000.00) or so much thereof as may have been advanced, with interest on the unpaid amount thereof at the rate of six percent (6.0%) per annum based upon a 365 day year and compounded annually. The Company will use
the proceeds of this Note solely for working capital purposes. 
  
 1. Payment
and Warrants. 
  
 1.1 Subject to the provisions of Section 3
hereof relating to the conversion of this Note, all unpaid principal and interest shall be due and payable in full upon the earlier to occur of either one of the Events of Default described in Section 4 hereof, the closing of an Offering (as
hereinafter defined), or October 11, 2003 (the “Maturity Date”). The unpaid principal and interest outstanding under this Note may be prepaid in full by the Company without premium or penalty at any time or from time to time without the
consent of the Holder. If the Company offers to prepay the principal and interest outstanding under this Note in full before the Maturity Date or the closing of an Offering, the Holder, at its sole option, shall have the right to accept the
prepayment in cash or convert the prepayment amount into Shares, as provided in Section 3 below. Payments hereunder shall be made by the Company to the Holder, at the address as provided to the Company by the Holder in writing, in lawful money of
the United States of America. 
  
 1.2 If any payment on this Note
shall become due on a Saturday, Sunday or a public holiday under the laws of the State of North Carolina, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest in connection
with such payment. 
  
 1.3 In addition, the Holder shall be
entitled to receive warrants to purchase an additional number of shares of the Company’s common stock, such number to be determined as provided in the warrant attached hereto and incorporated herein for all purposes. 

 2. Creation of a Security Interest. 
  
 2.1 As security for payment of all obligations and liabilities of the Company to Holder hereunder, including any extensions,
modifications or renewals thereof when and as due, the Company hereby grants Holder a security interest in (a) all of the Company’s laboratory equipment and furniture, and (b) all proceeds realized by the Company from the sale, lease or other
disposition of any of the foregoing (the “Collateral”). 
  
 2.2 The Company hereby represents and warrants to Creditor that, with respect to the Collateral, (i) the Company has good and marketable title to all of the Collateral, free and clear of all liens, encumbrances and other adverse claims or
interests of any kind, (ii) until such time as the principal and interest outstanding under this Note, including any extensions, modifications or renewals thereof when and as due, has been paid in full, the Company shall not create any lien or
encumbrance on the Collateral, and (iii) neither the grant of this security interest, nor Holder’s foreclosure on such interest, violates, breaches or terminates any of the Collateral or related agreements. 
  
 3. Conversion. 
  
 3.1 Subject to and upon compliance with the provisions of this Section 3, in the event the Company shall issue and sell
shares of the Company’s or one of its subsidiary’s common or preferred stock (“Stock”) after the date hereof and on or before the Maturity Date which results in aggregate proceeds to the Company of at least One Million Dollars
($1,000,000) (an “Offering”), the principal and accrued interest due under the Note shall, at the election of the Holder, which election shall be delivered in writing to the Company, convert, at the closing of the Offering, on the same
terms and conditions, with the same rights and preferences, into that number of shares of such Stock of the Company (“Shares”) equal to the quotient obtained by dividing the then-outstanding principal and accrued interest under this Note
by the price at which the Shares are issued in the Offering (the “Offering Price”) (such amounts to be adjusted for stock splits, dividends, recapitalizations and the like). 
  
 3.2 As promptly as practicable after the date upon which the conversion described in Section 3.1 has occurred, the Company,
at its expense, shall issue and deliver to the Holder, or as such Holder may direct, a certificate or certificates for the full number of Shares to which the Holder is entitled and a check or cash with respect to any fractional interest in a Share
as provided in Section 3.3. The Company shall pay any and all issue and other taxes that may be payable in respect of any issue or delivery of Shares upon conversion of this Note. 
  
 3.3 No fractional Shares shall be issued upon conversion of this Note. In lieu of any fractional Shares to which the Holder
would otherwise be entitled, the Company shall pay cash equal to the product of such fraction multiplied by the Offering Price (such amounts to be adjusted for stock splits, dividends, recapitalizations and the like). 
  

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 4. Events of Default. 
  
 4.1 If any of the following events shall occur (each herein individually referred to as an “Event of Default”), the Holder of this Note may
declare the entire unpaid principal on the Note, together with accrued interest, immediately due and payable, without presentment, demand, protest or notice of protest of any kind, all of which are hereby expressly waived: 
  
 4.1.1 If the principal and interest due hereunder is not paid within ten
calendar (10) days of when due and payable. 
  
 4.1.2 If the
Company shall: 
  
 (a) commence any proceedings or any other
action relating to it in bankruptcy or seek reorganization, arrangement, readjustment of its debts, dissolution, liquidation, winding-up, composition or any other relief under the United States Bankruptcy Act, as amended, or readjustment or debt or
any other similar act or law, of any jurisdiction, domestic or foreign, now or hereafter existing; 
  
 (b) apply for, or consent to or acquiesce in, an appointment of a receiver, conservator, trustee or similar officer for it or for all or a substantial
part of its property; or 
  
 (c) make a general assignment for
the benefit of creditors. 
  
 4.1.3 If any proceedings are
commenced or any other action is taken against the Company in bankruptcy or seeking reorganization, arrangement, readjustment of its debts, liquidation, dissolution, winding-up, composition or any other relief under the United States Bankruptcy Act,
as amended, or under any other insolvency, reorganization, liquidation, dissolution, arrangement, foreign, now or hereafter existing; or a receiver, conservator, trustee or similar officer for the Company or for all or a substantial part of its
property is appointed; and, in each such case, such event continues for sixty days undismissed or undischarged. 
  
 5. Exchange and Transfer. 
  
 5.1 This Note is subject to the restrictions on transfer set forth herein. Upon surrender for transfer of this Note and compliance with said restrictions
on transfer, the Company, at its expense, shall execute and deliver in the name of the transferee or transferees a new Note or Notes for a like principal amount. 
  
 5.2 This Note shall not be sold, assigned, transferred or otherwise conveyed, in whole or in part, by the Holder except with
the prior written consent of the Company. This Note, if presented for a transfer or exchange to which the Company has consented, shall (if so required by the Company) be duly endorsed by, or be accompanied by instruments of transfer in form
reasonably satisfactory to the Company duly executed by, the registered Holder or its authorized attorney. The obligations of the Company under this Note may not be assigned without the prior written consent of the Holder except to the purchaser or
surviving entity in a merger, sale of all or substantially all of the Company’s assets or similar transaction. 
  

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 5.3 Any such sale, assignment, transfer or conveyance shall be without charge, except that the Company
may require payment of the sum sufficient to cover any transfer tax or similar governmental charge that may be imposed in relation thereto. 
  
 5.4 The Company may deem and treat the registered Holder hereof as the absolute owner hereof (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or on account of the principal hereof), for the conversion hereof and for all other purposes, and the Company shall not be affected by any notice to the contrary. 
  
 6. Representation of Holder. Holder represents, warrants and acknowledges to the
Company as follows: 
  
 6.1 By acceptance of this Note, the
Holder represents to the Company that he is an accredited investor (as defined in Rule 501(a) of Regulation D promulgated under the Act). 
  
 6.2 This Note, and any securities of the Company acquired by Holder as a result of this transaction, is solely for the account of Holder, for investment
purposes only, and not with a view to the resale or distribution thereof or of dividing or allowing others to participate in this investment. 
  
 6.3 Holder has had a reasonable opportunity to ask questions of and receive answers from the Company and its executive officers concerning the Company and
all such questions, if any, have been answered to the full satisfaction of Holder. 
  
 6.4 Holder has had the opportunity to obtain from the Company any information, to the extent possessed by the Company or obtainable without unreasonable effort and expense, necessary to evaluate the merits and risks
of this investment and has concluded, based on the information presented to Holder, Holder’s own understanding of investments of this nature and of an investment in any of the Company’s securities in particular, and the advice of such
consultants or counsel as Holder has deemed appropriate, that Holder wishes to make the investment. 
  
 6.5 Holder understands that no public market now exists for the Note, and that no public market might exist for the securities into which it is
convertible, or any other securities issued by the Company, and that the Company has made no assurances that a public market will ever exist for the Note, the securities into which it is convertible, or any other securities issued by the Company.

  
 6.6 Holder understands that the securities into which the Note
is convertible, and any securities issued in exchange therefore, may bear the following legend: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR ANY APPLICABLE STATE SECURITIES LAWS COVERING SUCH SECURITIES OR THE SALE IS MADE IN ACCORDANCE WITH AN
EXEMPTION UNDER THE ACT AND ANY APPLICABLE 
  

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 STATE SECURITIES LAWS, AND THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES
REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS.” 
  
 7. Notices. Any notice required by any provision of this Note to be given to the
Holder shall be in writing and may be delivered by personal service, sent by facsimile with confirmation of receipt or four (4) business days after being deposited in the U.S. mail if by registered or certified mail, return receipt requested, with
postage thereon fully prepaid. All such communications shall be addressed to the Holder of record at its address appearing on the books of the Company or as subsequently modified by written notice delivered in accordance with the provisions of this
Section 6. 
  
 8. No Rights as Stockholder. This Note, as such, shall not
entitle the Holder to any rights as a stockholder of the Company, except as otherwise specified herein. 
  
 9. Headings and Governing Law. The descriptive headings in this Note are inserted for convenience only and do not constitute a part of this Note. The validity, meaning and effect of this Note shall be
determined in accordance with the laws of the State of North Carolina, without regard to principles of conflicts of law. 
  
 10. Amendment and Waiver. Any of the terms of this Note (including, without limitation, the Maturity Date, the rate of interest and the conversion features) may be
waived or modified only in writing, signed by the Company and the Holder of the Note. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such
provision or of any breach of any other provision of this Note. The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Note. 
  
 11. Lost Documents. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Note or any Note exchanged for it, and an indemnity agreement
reasonably satisfactory to the Company (in case of loss, theft or destruction) or surrender and cancellation of such Note (in case of mutilation), the Company, at its own expense, will make and deliver in lieu of such Note a new Note of like tenor
and unpaid principal amount and dated as of the date to which interest has been paid on the unpaid principal amount of the Note in lieu of which such new Note is made and delivered. 
  
 12. Invalidity. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. In such an event, the parties will in good faith attempt to effect the business agreement represented
by such invalidated term to the fullest extent permitted by law. 
  
 13.
Attorneys’ Fees. In the event of a dispute pertaining to this Note, the prevailing party in such dispute shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled. 
  

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 14. Limitation on Interest. This Note is subject to the express condition that at no time shall the Company be
obligated or required to pay interest hereunder at a rate which could subject the Holder to either civil or criminal liability as a result of being in excess of the maximum contract rate which is permitted by law. If, by the terms of this Note, the
Company is at any time required or obligated to pay interest at a rate in excess of such rate, the maximum contract rate of interest under this Note shall be deemed to be immediately reduced to such maximum contract rate and interest payable
hereunder shall be computed at such maximum contract rate and the portion of all prior interest payments in excess of such maximum contract rate shall be applied and shall be deemed to have been payments in reduction of the principal balance of this
Note. 
  
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the undersigned has duly caused this Note to be signed in its name and on its behalf
by its duly authorized officer as of the date hereinabove written. 
  

	INCARA PHARMACEUTICALS CORPORATION
		
	 By:
	 	  

	 	 	 Clayton I. Duncan
 President and Chief Executive Officer

  

	
	HOLDER:
	
	  

	 W. Ruffin Woody, Jr.

  

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