Document:

EX-10.1 Form of Lock-Up Agreement

 

EXHIBIT 10.1

FORM OF LOCKUP AGREEMENT

eXegenics, Inc.

1250 Pittsford-Victor Road

Building 200, Suite 280

Pittsford, New York 14534

Ladies and Gentlemen:

 

     The
undersigned, a holder of shares of __________________ (“Company”), desires that
the Company merge with and into a wholly-owned subsidiary of eXegenics, Inc. (“Parent”)
(the “Merger”). For good and valuable consideration, the undersigned is entering into this
agreement (this “Lock-Up Letter Agreement”) and hereby irrevocably agrees that following
the closing of the Merger, and until the second anniversary of closing of the Merger (the
“Lock-Up Period End Date”), the undersigned will not, directly or indirectly:

     (1) offer for sale, sell, pledge or otherwise dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the
disposition by any person at any time in the future of) any shares of Parent Common Stock
or any other securities of Parent convertible into or exercisable for Parent Common Stock
which are owned as of the date of this Lock-Up Letter Agreement (collectively, the
“Shares”), including, without limitation, Shares that may be deemed to be
beneficially owned by the undersigned in accordance with the rules and regulations of the
Securities and Exchange Commission and Shares that may be issued upon exercise of any
options or warrants, or securities convertible into or exercisable or exchangeable for
Shares,

     (2) enter into any swap or other derivatives transaction that transfers to another, in
whole or in part, any of the economic benefits or risks of ownership of Shares, whether any
such transaction described in clause (1) or (2) above is to be settled by delivery of
Shares or other securities, in cash or otherwise;

     (3) make any demand for or exercise any right or cause to be filed a registration
statement, including any amendments thereto, with respect to the registration of any Shares
or securities convertible into or exercisable or exchangeable for Shares or any other
securities of Parent; or

     (4) publicly disclose the intention to do any of the foregoing, for a period
commencing on the date of the closing of the Merger and ending on the second anniversary of
the closing of the Merger.

     Notwithstanding sections (1) through (4) above, (i) up to one-third of the Shares shall be
exempt from and shall not be subject to this Lock-Up Letter Agreement

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and the undertakings set forth herein beginning upon the twelve month anniversary of the
closing of the Merger, (ii) one third of the Shares shall be exempt from and shall not be subject
to this Lock-Up Letter Agreement and the undertakings set forth herein beginning upon the eighteen
month anniversary of the closing of the Merger; and (iii) one-third of the Shares shall be exempt
from and shall not be subject to this Lock-Up Letter Agreement and the undertakings set forth
herein beginning upon the twenty four month anniversary of the closing of the Merger

     In furtherance of the foregoing, Parent and its transfer agent on its behalf are hereby
authorized to decline to make any transfer of securities if such transfer would constitute a
violation or breach of this Lock-Up Letter Agreement.

     It is understood that if the Merger Agreement entered into in connection with the Merger has
been terminated without the consummation of the Merger, this Lock-Up Letter Agreement shall be
cancelled and of no further force and effect.

     The undersigned understands that the Company will proceed with the Merger in reliance on this
Lock-Up Letter Agreement.

     The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs, personal representatives,
successors and assigns of the undersigned.

     Nothing herein shall be understood to prevent the undersigned from exercising any warrants to
purchase Shares; provided that the Shares issued to the undersigned upon such exercise shall be
subject to the terms and conditions of this Lock-Up Letter Agreement until the Lock-Up Period End
Date.

     For the avoidance of doubt, nothing herein shall be understood to prevent the undersigned from
taking any of the actions described in sections (1) through (4) above with respect to any Shares
acquired by the undersigned through open market purchases consummated after the date of this
Lock-Up Letter Agreement.

     The undersigned may transfer Shares to any to any entity directly or indirectly controlled by
or under common control with the undersigned; provided, however, that it shall be a condition to
such transfer that the transferee executes and delivers to Parent, prior to such transfer, an
agreement stating that such transferee is receiving and holding the Shares subject to the
provisions of this Lock-Up Letter Agreement.

     If the Parent agrees to enter into any agreement with any other holder (or effects a waiver
with the same effect) of Shares who agreed to enter into a lock-up letter agreement which is
substantially the same as this Lock-Up Letter Agreement to permit such holder to sell Shares prior
to the Lock-Up Period End Date which sale would otherwise be restricted by the lock-up letter
agreement, the Parent shall enter into a

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similar agreement with (or provide a similar waiver to) the undersigned to provide for the
release of a proportionate number of Shares.

     This Lock-Up Letter Agreement shall terminate upon the Lock-Up Period End Date.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: March ___, 2007

-3-EX-10.2 Credit Agreement

 

EXHIBIT 10.2

CREDIT AGREEMENT

          THIS CREDIT AGREEMENT (this “Agreement”), dated as of March 27, 2007 (the “Initial Closing
Date”), is entered into by and among eXegenics Inc., a Delaware corporation (“Borrower”), The Frost
Group, LLC, a Florida limited liability company (the “Frost Group”) and Acuity Pharmaceuticals,
LLC, a Delaware limited liability company formerly known as Acuity Pharmaceuticals, Inc.
(“Acuity”).

RECITALS

          WHEREAS, on January 11, 2007, the Frost Group entered into that certain Master Agreement (the
“Master Agreement”) with Acuity and Froptix Corporation, a Florida corporation (“Froptix”), whereby
the Frost Group, among other things, agreed to extend up to a $7,000,000 line of credit to Acuity.

          WHEREAS,
on March 27, 2007, Acuity and Froptix entered into a Merger Agreement and Plan of
Reorganization (the “Merger Agreement”) with Borrower and certain of its subsidiaries, pursuant to
which Borrower agreed (i) to assume the obligations of Acuity under the Master Agreement and the
Subordinated Note and Security Agreement executed and delivered by Acuity in connection therewith
(the “Original Note”) and (ii) to enter into a credit agreement on substantially the terms set
forth in the Master Agreement (capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Merger Agreement).

          WHEREAS, the Merger Agreement further provides that Borrower and the Frost Group increase the
amount of available borrowings under the Master Agreement and Original Note to provide Borrower
with a subordinated secured line of credit (the “Line of Credit”) in the amount of $12,000,000 (the
“Available Amount”) on the terms set forth herein.

          NOW, THEREFORE, in consideration of the covenants, promises and representations set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
expressly and mutually acknowledged, and intending to be legally bound hereby, the parties hereto
agree as follows:

ARTICLE I

LINE OF CREDIT

          Section 1.1. Assumption. Acuity hereby assigns, and Borrower hereby assumes from
Acuity, all rights and liabilities outstanding under the Master Agreement and Original Note,
whether for principal, accrued interest, expenses and otherwise, and Borrower agrees to discharge
all such liabilities in full; provided that Borrower does not assume any liabilities of Acuity or
Froptix pursuant to Section 7.8 of the Master Agreement, and this Agreement shall in no way affect
or diminish such obligations or the rights of Borrower with respect to such obligations. By
executing a counterpart signature page to this Agreement, Acuity agrees to this assignment and
assumption, and represents and warrants to Borrower and the Frost Group that

 

 

there is no default under the Master Agreement or Event of Default (as defined in the Original
Note) under the Original Note as of the date hereof.

          Section 1.2. The Line of Credit. From time to time prior to the Maturity Date (as
defined in the Note (as hereafter defined)), subject to the provisions below, the Frost Group shall
make Advances (as hereafter defined) to Borrower, which Borrower shall pay and may reborrow, so
long as the aggregate amount of Advances outstanding at any one time shall not exceed the Available
Amount.

          Section 1.3. Warrants. In consideration of the extension of credit hereunder,
Borrower will grant to the Frost Group one or more Warrants (the “Warrants”), which warrants will
be issued substantially in the form attached hereto as Exhibit A, with an exercise price
equal to the Parent Per Share Stock Valuation (as defined in the Merger Agreement) and will provide
such parties the right to buy 333,400 shares of the Borrower’s common stock for each million
dollars committed by such party (including amounts loaned to Acuity prior to the consummation of
the transactions contemplated by the Merger Agreement and assumed hereunder).

          Section 1.4. Note. The indebtedness of Borrower to the Frost Group will be evidenced
by an amended and restated subordinated note and security agreement in substantially the form of
Exhibit B (the “Note”). The original principal amount of the Note will be $12,000,000;
provided, however, that notwithstanding the face amount of the Note, Borrower’s liability under the
Note shall be limited at all times to its actual indebtedness, principal, interest, fees, charges,
expenses and reasonable attorneys’ fees and costs and other amounts, obligations, covenants and
duties owing by Borrower to the Frost Group (or any permitted assignee) of any kind and description
(whether pursuant to or evidenced by the Note or this Agreement), whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising, including Lender’s
Expenses (collectively, the “Obligations”), in each case as then outstanding hereunder and under
the Note. As used herein, “Lender’s Expenses” means all reasonable attorneys’ fees, costs and
expenses incurred in amending, enforcing or defending the Note (including fees and expenses of
appeal or review), including the exercise of any rights or remedies afforded under the Note or
under applicable law, whether or not suit is brought, whether before or after bankruptcy or
insolvency, including without limitation all fees and costs incurred by the Frost Group in
connection with the Frost Group’s enforcement of its rights in a bankruptcy or insolvency
proceeding filed by or against Borrower or its property.

          Section 1.5. Use of Proceeds. Funds advanced under the Line of Credit shall be used
for working capital or general corporate purposes of Borrower.

          Section 1.6. Payment of Outstanding Amount. The aggregate Obligations outstanding on
the Maturity Date (as defined in the Note) shall be due and payable on the Maturity Date in
accordance with the terms of the Note.

          Section 1.7. Interest. Interest on the outstanding principal amount of the Line of
Credit shall accrue at a rate equal to ten percent (10%) per annum, compounded quarterly (the
“Interest Rate”), and shall be payable on the last day of each calendar month until the repayment
in full of all Obligations, the termination of this Agreement and cancellation of the Note.

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          Section 1.8. Default Rate. Upon the Maturity Date, whether by acceleration, demand or
otherwise, and at the Frost Group’s option upon the occurrence of any Event of Default (as defined
in the Note) and during the continuance thereof, the Note shall bear interest at a rate that shall
be five percent (5.0%) in excess of the Interest Rate but not more than the maximum rate allowed by
law (the “Default Rate”). The Default Rate shall continue to apply whether or not judgment shall
be entered on the Note. The Default Rate is imposed as liquidated damages for the purpose of
defraying the Frost Group’s expenses incident to the handling of delinquent payments, but are in
addition to, and not in lieu of, the Frost Group’s exercise of any rights and remedies hereunder or
under applicable law, and any fees and expenses of any agents or attorneys which the Frost Group
may employ. In addition, the Default Rate reflects the increased credit risk to the Frost Group of
carrying a loan that is in default. Borrower agrees that the Default Rate is a reasonable forecast
of just compensation for anticipated and actual harm incurred by the Frost Group, and that the
actual harm incurred by the Frost Group cannot be estimated with certainty and without difficulty.

          Section 1.9. Subordination Agreement. On the date of this Agreement, Borrower, the
Frost Group and Horizon Technology Funding Company LLC, have entered into a Amended and Restated
Subordination Agreement, attached here to as Exhibit C.

          Section 1.10. Advances. Borrower shall give the Frost Group prior written notice not
later than 3:00 p.m., Eastern time, on the third business day prior to the date of any advance of
credit pursuant to the Line of Credit hereunder (an “Advance”). Any such notice shall be in the
form of the Borrowing Notice set forth as Exhibit D (the “Borrowing Notice”), shall be
certified by the president of Borrower, and shall set forth the aggregate amount of the requested
Advance. Upon receiving a request for an Advance to which Borrower is entitled hereunder and
under the Note, and provided there is no Event of Default (as defined in the Note), the Frost Group
shall make available to Borrower the amount of the requested Advance by wire transfer of
immediately available funds to a bank account designated by Borrower on the third business day
after receipt of such Borrowing Notice.

          Section 1.11. Prepayment. Borrower may prepay the outstanding Obligations under the
Line of Credit at any time without premium or penalty. Prepayments of all or any portion of the
Obligations shall not reduce the Available Amount, and funds may be reborrowed hereunder up to the
Available Amount, subject to the provision hereof and the Note.

          Section 1.12. Payment Application. Any and all payments on account of the Obligations
will be applied first to accrued and unpaid interest and second to outstanding principal and other
sums due hereunder. If Borrower makes a payment or payments and such payment or payments, or any
part thereof, are subsequently invalidated, declared to be fraudulent or preferential, set aside or
are required to be repaid to a trustee, receiver, or any other person under any bankruptcy act,
state, provincial or federal law, common law or equitable cause, then to the extent of such payment
or payments, the Obligations or part thereof hereunder intended to be satisfied shall be revived
and continued in full force and effect as if said payment or payments had not been made.

          Section 1.13. Conditions to First Advance. The obligation of the Frost Group to make
the first Advance (which shall consist of the Borrower’s assumption of obligations

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outstanding under the Master Agreement and Original Note assumed from Acuity hereunder) shall
be subject to the Frost Group’s receipt of the following documents, each in form and substance
satisfactory to the Frost Group:

          (a) This Agreement. This Agreement duly executed by Borrower and the Frost Group.

          (b) Secured Subordinated Promissory Note. The Note duly executed by Borrower.

          (c) Borrowing Notice. A completed Borrowing Notice required under Section 1.10
hereof.

          (d) The Warrants. The Warrants duly executed by Borrower.

          (e) Borrower Secretary’s Certificate. The duly authorized Secretary of Borrower shall
have delivered a certified copy of Borrower’s Certificate of Incorporation, and a certificate as to
its Bylaws and resolutions adopted by its board of directors authorizing this Agreement and the
transactions contemplated hereby.

          (f) Third-Party Consents. Borrower shall have procured all of the third-party
consents specified in the Schedule of Exceptions which are required to be procured by Borrower
before it can incur the indebtedness evidenced by the Note, issue the Warrants, and otherwise
commit itself to its obligations hereunder.

          (g) Other Documents. Such additional documents as the Frost Group reasonably may
request.

          Section 1.14. Subsequent Advances. The obligation of the Frost Group to make
additional Advances shall be subject to the Frost Group’s receipt of a completed Borrowing Notice
and such additional documents as the Frost Group reasonably may request and the absence of any
Event of Default.

ARTICLE II

CLOSINGS

          Section 2.1. Initial Closing. The closing of this Agreement (the “Initial Closing”)
shall take place at the offices of Akerman Senterfitt, in Miami, Florida, or at such other
location(s) as the parties may agree commencing at 9:00 a.m. local time on the Closing Date of the
Merger Agreement (as defined therein). At the Initial Closing:

          (a) Borrower shall deliver to the Frost Group a fully executed copy of this Agreement, the
Note, the Warrants and the other documents described in Section 1.13.

          (b) The Frost Group shall deliver to Borrower a fully executed copy of this Agreement.

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          Section 2.2. Subsequent Closings. The closing of any subsequent advance under this
Agreement shall take place at the offices of Akerman Senterfitt, in Miami, Florida, or at such
other location(s) as the parties may agree commencing at 9:00 a.m. local time on the date set forth
in the Borrowing Notice (provided timely delivery of such Borrowing Notice to the Frost Group has
been made). At each such subsequent closing, the Frost Group shall have timely received a
completed Borrowing Notice and such additional documents as the Frost Group reasonably may request.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BORROWER

          Except as set forth on the Schedule of Exceptions delivered to the Frost Group in connection
with this Agreement (together with the Schedule of Exceptions delivered to the Borrower in
connection with this Agreement by the Frost Group, the “Schedule of Exceptions”), Borrower
represents and warrants to each of the Frost Group as of the date of this Agreement as follows:

          Section 3.1. Organization and Standing. Borrower is a corporation duly organized,
validly existing and in good standing under the Laws of the State of Delaware. Borrower has the
requisite corporate power and authority to own and operate its properties and assets, and to carry
on its business as currently conducted. Borrower is presently qualified to do business as a
foreign corporation in each jurisdiction in which the failure to be so qualified would have a
Material Adverse Effect with respect to Borrower. True and accurate copies of Borrower’s
Certificate of Incorporation (the “Borrower Certificate”), Borrower’s By-laws (the “Borrower
By-laws”), each as in effect as of the date hereof have been delivered to the Frost Group and
Acuity.

          Section 3.2. Corporate Power. Borrower has all requisite legal and corporate and
other power and authority to execute and deliver this Agreement and to carry out and perform its
other obligations hereunder.

          Section 3.3. Authorization. All corporate and other action on the part of Borrower,
and its officers and directors necessary for the (i) due authorization, execution and delivery of
this Agreement and (ii) performance of all obligations of Borrower hereunder has been taken. This
Agreement has been duly executed by Borrower, and, assuming the due authorization, execution and
delivery by the other parties hereto, constitutes and will constitute a valid and legally binding
obligation of Borrower, except (i) as limited by Laws of general application relating to
bankruptcy, insolvency and the relief of debtors and (ii) as limited by rules of Law governing
specific performance, injunctive relief or other equitable remedies and by general principles of
equity.

          Section 3.4. Authorized Securities. The Warrants have been duly issued and authorized
and any share of Borrower Common Stock issued upon the exercise thereof according to their
respective terms, as applicable, will be duly and validly issued, fully paid and non-assessable,
free and clear of all Liens and shall not be subject to preemptive or similar rights of
stockholders.

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          Section 3.5. Subsidiaries. Other than its interest in Acuity and Froptix, LLC,
Borrower does not own or control, directly or indirectly, any interest in any corporation,
partnership, limited liability company, association, other business entity or person. Borrower is
not a participant in any joint venture, partnership or similar arrangement. Borrower has not
during the period covered by the SEC Reports consolidated or merged with, acquired all or
substantially all of the assets of, or acquired the stock of or any interest in any Person.

          Section 3.6. Capitalization.

               3.6.1. The authorized capital stock of Borrower on the date hereof consists of
225,000,000 shares of Borrower Common Stock, of which 36,505,369 shares of Common Stock are
issued and outstanding, and 10,000,000 shares of Borrower Preferred Stock, of which
4,000,000 are designated Borrower Series A Preferred Stock and of which 30,000 are
designated Series B Junior Participating Preferred Stock pursuant to the Borrower
Certificate as of the date hereof. As of the date of this Agreement, 1,083,404 shares of
Borrower Series A Preferred Stock were issued and outstanding and convertible into Borrower
Common Stock on a one-for-one basis, and no shares of Borrower Series B Preferred were
issued or outstanding. The Borrower Common Stock and the Borrower Preferred Stock have the
rights, preferences, privileges and restrictions set forth in the Borrower Certificate and
under Delaware Law. All issued and outstanding shares of Borrower’s capital stock have been
duly authorized and validly issued in compliance with applicable Laws, and are fully paid
and nonassessable and free and clear of Liens or third party rights and of any restrictions
on transfer, except for transfer restrictions of the federal and state securities laws.

               3.6.2. There are no options, warrants, preemptive rights, rights of first refusal, put
or call rights or obligations or anti-dilution or other rights to purchase or acquire from
Borrower any of Borrower’s authorized and unissued capital stock. Except as contemplated by
this Agreement, there are (i) no rights to have Borrower’s capital stock registered for sale
to the public in connection with the Laws of any jurisdiction, (ii) to the Borrower’s
knowledge, no agreements relating to the voting of Borrower’s voting securities and (iii) no
restrictions on the transfer of Borrower’s capital stock or other equity securities, other
than those arising under applicable securities Laws. All outstanding shares, options and
warrants were issued pursuant to a valid registration statement filed with the SEC or an
exemption from registration under the Securities Act and have been issued in compliance with
applicable state securities Laws.

          Section 3.7. ~SEC Reports; Financial Statements. Borrower has duly filed all required
registration statements, reports, schedules, forms, statements and other documents (including
exhibits and all other information incorporated by reference) required to be filed by it with the
SEC under the Exchange Act, including pursuant to Sections 13(a) or 15(d) thereof, for the two
years preceding the date hereof (the foregoing materials (together with any materials filed by
Borrower under the Exchange Act, whether or not required) being collectively referred to herein as
the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act and the rules and regulations of the SEC promulgated

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thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The financial statements of Borrower included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and regulations of the SEC
with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with GAAP, except as may be otherwise specified in such financial statements
or the notes thereto, and fairly present in all material respects the financial condition, results
of operations and cash flows of Borrower as of the dates, and for the periods, indicated therein,
subject, in the case of unaudited statements, to normal, year-end audit adjustments.

          Section 3.8. Absence of Changes. Since the date of the latest audited financial
statements included within the SEC Reports, except as disclosed in the SEC Reports or in
Schedule 6.8 of the Schedule of Exceptions or incident to the transactions contemplated
hereby or in connection with the Mergers, (i) there has been no event, occurrence or development
that, individually or in the aggregate, has had or that would reasonably be expected to result in a
Material Adverse Effect on Borrower, (ii) Borrower has not incurred any material liabilities, (iii)
Borrower has not altered its method of accounting or the identity of its auditors, except as
disclosed in its SEC Reports, (iv) Borrower has not declared or made any dividend or distribution
of cash or other property to its stockholders, in their capacities as such, or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) Borrower has
not issued any equity securities. Borrower has not taken any steps to seek protection pursuant to
any bankruptcy Law nor does Borrower have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that
would reasonably lead a creditor to do so. Borrower is not Insolvent as of the date hereof.

          Section 3.9. Sarbanes-Oxley Act. The Borrower and, to Borrower’s knowledge, each of
its officers and directors are in compliance with, and have complied, in each case in all material
respects, with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”) and the related rules and regulations promulgated under or pursuant to the Exchange Act.
Each SEC Report containing financial statements that has been filed with or submitted to the SEC by
Borrower was accompanied by the certifications required to be filed or submitted by the Borrower’s
chief executive officer and/or chief financial officer, as required, pursuant to the Exchange Act
and, at the time of filing or submission of each such certification, such certification was true
and accurate and complied in all material respects with the Exchange Act. Neither Borrower nor, to
Borrower’s knowledge, any of its executive officers has received notice from any Governmental
Authority challenging or questioning the accuracy, completeness, form or manner of filing such
certifications.

          Section 3.10. Internal Controls. Neither Borrower (including, to Borrower’s
Knowledge, any employee thereof) nor the Borrower’s independent auditors has identified or been
made aware of (A) any significant deficiency or material weakness in the design or operation of
internal controls utilized by Borrower (other than a significant deficiency or material weakness
that has been disclosed to the Audit Committee of the Board of Directors of Borrower, and, in the
case of a material weakness, that has been disclosed as required in the SEC Reports), (B) any
fraud, whether or not material, that involves Borrower’s management or other

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employees who have a significant role in the preparation of financial statements or the
internal controls utilized by Borrower or (C) any claim or allegation regarding any of the
foregoing (other than claims or allegations that have been duly investigated and found not to
involve any of the foregoing).

          Section 3.11. Material Contracts. A list of the oral and written material agreements
of Borrower are included as exhibits to the SEC Reports (each, a “Borrower Material Agreement”).
Borrower and to Borrower’s knowledge, each other party thereto, has in all material respects
performed all the obligations required to be performed by them to date (or such non performing
party has received a valid, enforceable and irrevocable written waiver with respect to its non
performance), has received no notice of default and are not in default (with due notice or lapse of
time or both) under any Borrower Material Agreement. Borrower has no knowledge of any breach or
anticipated breach by the other party to any Borrower Material Agreement.

          Section 3.12. Title to Properties and Assets; Liens. Borrower has good and marketable
title to its properties and assets, and has good title to all its leasehold interests, in each case
subject to no Lien, other than Permitted Liens. With respect to the property and assets it leases,
Borrower is in compliance with such leases in all material respects and holds a valid leasehold
interest free of all Liens. Borrower’s properties and assets are in good condition and repair in
all material respects. Borrower does not currently own, and has never owned, any real property.

          Section 3.13. Compliance with Other Instruments and Laws. Borrower is not in
violation or default of any provision of the Borrower Certificate or the Borrower By-laws, each as
amended and in effect on the date hereof. Borrower is not in violation of, default under or breach
of any provision of any agreement, instrument, mortgage, deed of trust, loan, contract, commitment,
judgment, decree, order or obligation to which it is a party or by which it or any of its
properties or assets are bound, which violation, default or breach, individually or in the
aggregate, would or could reasonably be expected to have a Material Adverse Effect on Borrower.
Borrower is not in violation of any provision of any federal, state or local statute, rule or
governmental regulation, judgment, injunction or decree of any governmental authority, which
violation, individually or in the aggregate, would or could reasonably be expected to have a
Material Adverse Effect on Borrower. The execution and delivery of this Agreement by Borrower, and
Borrower’s performance of and compliance with the terms hereof, or the consummation of the Merger
and the other transactions contemplated hereby, will not result in any violation, breach or
default, be in conflict with or constitute, with or without the passage of time or giving of
notice, a default under any Borrower Material Agreement or any of the foregoing provisions, require
any consent or waiver under any Borrower Material Agreement or any of the foregoing provisions
(other than any consents or waivers that have been obtained), result in the creation of any Lien
upon any of the properties or assets of Borrower, trigger any right of cancellation, termination or
acceleration under any Borrower Material Agreement or any of the foregoing provisions, create any
right of payment in any Person (except as contemplated herein), or result in a Material Adverse
Effect on Borrower.

          Section 3.14. Litigation. There is no action, suit, proceeding or investigation
pending or, to Borrower’s knowledge, threatened against or affecting Borrower or any of their

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respective properties or rights before any court or by or before any governmental agency.
Borrower is party or subject to, and none of their respective assets is bound by, the provisions of
any order, writ, injunction, judgment or decree of any Governmental Authority. There is no action,
suit or proceeding initiated by Borrower currently pending or which Borrower intends to initiate.

          Section 3.15. Governmental Consents. No consent, approval or authorization of or
registration, qualification, designation, declaration or filing with any governmental authority on
the part of Borrower is required in connection with the valid execution and delivery of this
Agreement or the consummation of any transaction contemplated hereby, except the qualification or
registration (or taking such action as may be necessary to secure an exemption from qualification
or registration, if available) of the offer, issuance and sale of the shares of the Warrants and
the securities of Borrower issuable upon conversion or exercise of the Warrants under applicable
federal and state securities Laws.

          Section 3.16. Permits. Borrower has all franchises, permits, licenses, and any
similar authority necessary for the conduct of its business as now being conducted by it. Borrower
is not in default in any material respect under any of such franchises, permits, licenses, or other
similar authority. Borrower has complied in all material respects with all federal, state or
foreign Laws applicable to its business.

          Section 3.17. Brokers or Finders. Borrower has not engaged any brokers, finders or
agents, and Borrower has not incurred, and neither will incur, directly or indirectly, as a result
of any action taken by Borrower or any of its affiliates, any liability for brokerage or finders’
fees or agents’ commissions or any similar charges in connection with this Agreement and the
transactions contemplated hereby.

          Section 3.18. Tax Returns and Payments. Borrower has accurately prepared and timely
filed all United States income tax returns and all state and municipal tax returns required to be
filed by it, if any, has paid all taxes, assessments, fees and charges owed by it (regardless of
whether shown on any such tax return) or has otherwise made adequate provision for the payment of
all taxes, assessments, fees and charges owed by it. Borrower has withheld or collected from each
payment made to each of its employees, the amount of all taxes (including, but not limited to,
federal income taxes, Federal Insurance Contribution Act taxes and Federal Unemployment Tax Act
taxes) required to be withheld or collected therefrom, and has paid the same to the proper tax
receiving officers or authorized depositaries. Borrower has not been advised in writing (a) that
any of its returns have been or are being audited or (b) of any deficiency in assessment or
proposed adjustment to its federal, state or other taxes. No assessment or proposed adjustment of
Borrower’s United States income tax or state or municipal taxes is pending. Borrower is not
currently the beneficiary of any extension of time within which to file any tax report or return.
No claim has been made by a Governmental Authority in a jurisdiction where Borrower does not file
reports and returns that it is or may be subject to taxation by that jurisdiction. There are no
Liens on any of the assets of Borrower that arose in connection with the failure or alleged failure
to pay any tax. Borrower has withheld and paid all taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee, creditor, independent contractor or third
party. Borrower has not waived any statute of limitations in respect of taxes or agreed to any
extension of time with respect to a tax

- 9 -

 

assessment or deficiency. Borrower has not entered into a closing agreement pursuant to
Section 7121 of the Code. Borrower has not made any payments in connection with the transactions
contemplated by this Agreement, or in connection with a combination of the transactions
contemplated by this Agreement and any other event, that will be non-deductible under Code Section
280G or subject to the excise tax under Code Section 4999 or that would give rise to any obligation
to indemnify any person for any excise tax payable pursuant to Code Section 4999. Borrower is not a
party to or bound by any tax allocation or tax sharing agreement or has any current or potential
obligation to indemnify any other person with respect to taxes. Except for consolidated income tax
liabilities of any wholly-owned corporate subsidiaries it has owned since their inception, Borrower
does not have any liability for taxes of any person under Treasury Regulations Section 1.1502-6 (or
any corresponding provision of state, local or foreign income tax Law), or as transferee,
successor, by contract or otherwise. References in this Section to Borrower include references to
any and all subsidiaries of Borrower that may affect its liability. Borrower has not participated
in any reportable transaction as contemplated in Treasury Regulations Section 1.6011-4.

          Section 3.19. Employees. To Borrower’s knowledge, no employee of Borrower, nor any
consultant with whom Borrower has contracted, is in violation of any term of any employment
contract, noncompetition or proprietary information agreement or any other agreement relating to
the right of any such individual to be employed by, or to contract with, Borrower or any judgment,
decree or order of any court or administrative agency under which it is subject. Borrower has not
received any notice alleging that any such violation has occurred. Borrower is not in default with
respect to any obligation to any of its employees. No employee of Borrower is represented by any
labor union or covered by any collective bargaining agreement. There is no pending or, to
Borrower’s knowledge, threatened dispute involving Borrower and any employee or group of its
employees. Borrower has complied and is currently complying with all applicable Laws relating to
employment and employment practices, terms and conditions of employment, and wages and hours,
except for noncompliance that, individually and in the aggregate, would not have a Material Adverse
Effect on Borrower.

          Section 3.20. Employee Benefit Plans.

               3.20.1. Schedule 6.20 of the Schedule of Exceptions sets forth a correct and
complete list of all Borrower Employee Benefit Plans. Each Borrower Employee Benefit Plan,
and its related documents, has been made available to Froptix and Acuity. No Borrower
Employee Benefit Plan is subject to Title IV of ERISA, or Section 412 of the Code, is or has
been subject to Sections 4063 or 4064 of ERISA, or is a multi-employer welfare arrangement
as defined in Section 3(40) of ERISA. Neither Borrower nor any ERISA Affiliate has any
obligation or liability, contingent or otherwise, under Title IV of ERISA with respect to
any “pension plan” as defined in Section 3(2) of ERISA. Neither Borrower nor any of it
ERISA Affiliates has ever participated in and has never been required to contribute to any
“multi employer plan,” as defined in Sections 3(37)(A) and 4001(a)(3) of ERISA and Section
414(f) of the Code or any “multiple employer plan” within the meaning of Section 210(a) of
ERISA or Section 413(c) of the Code. No Borrower Employee Benefit Plan provides for, nor
does Borrower or any of its subsidiaries have any liability for post-employment life
insurance or health benefit coverage for any participant or any beneficiary of a
participant, except as may be required

- 10 -

 

under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and at
the expense of the participant or the participant’s beneficiary.

               3.20.2. The Borrower Employee Benefit Plans have been maintained in all material
respects in accordance with their terms and with all provisions of ERISA, the Code
(including rules and regulations thereunder) and other applicable federal and state Laws and
regulations. The exercise price of each option to purchase or acquire from Borrower any of
Borrower’s authorized and unissued capital stock was intended to constitute a price which is
equal to or greater than the fair market value of the underlying shares on the date of
grant, as then determined in good faith by the Borrower board of directors.

               3.20.3. There are no pending actions, claims or lawsuits that have been asserted or
instituted against any Borrower Employee Benefit Plan, the assets of any of the trusts under
any Borrower Employee Benefit Plan or the sponsor of any Borrower Employee Benefit Plan, or,
to the knowledge of Borrower, against any fiduciary or administrator of any Borrower
Employee Benefit Plan with respect to the operation of any Borrower Employee Benefit Plan
(other than routine benefit claims), nor does Borrower have any knowledge of facts that
could reasonably be expected to form the basis for any such claim or lawsuit.

               3.20.4. Neither will the execution and delivery of this Agreement nor the consummation
of the transactions contemplated herein (i) result in any payment becoming due to any
current or former employee, officer, director or consultant of Borrower or any of its
subsidiaries, (ii) increase any benefits otherwise payable under any Borrower Employee
Benefit Plan, (iii) result in the acceleration of the time of payment or vesting of any
rights with respect to any such benefits under any Borrower Employee Benefit Plan or (iv)
require any contributions or payments to fund, or any security to secure, any obligations
under any Borrower Employee Benefit Plan. There are no Borrower Employee Benefit Plans
that, individually or collectively, could give rise to the payment of any amount in
connection with the transactions contemplated by this Agreement, or in connection with a
combination of the transactions contemplated by this Agreement and any other event, that
would not be deductible pursuant to the terms of Section 280G of the Code.

               3.20.5. With respect to each Borrower Employee Benefit Plan intended to qualify under
Code Section 401(a) or 403(a), (i) the Internal Revenue Service has issued a favorable
determination letter, which has not been revoked, that any such plan is tax-qualified and
each trust created thereunder has been determined by the Internal Revenue Service to be
exempt from federal income tax under Code Section 501(a); (ii) nothing has occurred which
would cause the loss of such qualification or exemption or the imposition of any penalty or
tax liability; (iii) no reportable event (within the meaning of Section 4043 of ERISA) has
occurred; (iv) there has been no termination or partial termination of such plan within the
meaning of Code Section 411(d)(3); and (v) the present value of all liabilities under any
such plan will not exceed the current fair market value of the assets of such plan
(determined using the actuarial assumption used for the most recent actuarial valuation for
such plan).

- 11 -

 

          Section 3.21. Obligations to Related Parties. There are no loans, leases, agreements,
understandings, commitments or other continuing transactions between Borrower and any employee,
officer, director or member of his or her immediate family or stockholder of Borrower or member of
his or her immediate family or any person or entity that, directly or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with any of the
foregoing persons. To Borrower’s knowledge, none of such persons has any direct or indirect
ownership interest in any firm or corporation with which Borrower is affiliated or with which
Borrower has a business relationship, or any firm or corporation that competes with Borrower,
except in connection with the ownership of stock of publicly-traded companies (but not exceeding 2%
of the outstanding capital stock of any such company). No employee, officer, director or member of
his or her immediate family or, to Borrower’s knowledge, stockholder of Borrower or member of his
or her immediate family or any person or entity that, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with any of the foregoing
persons, is, directly or indirectly, interested in any material contract with Borrower (other than
such contracts as relate to any such person’s ownership of capital stock or other securities of
Borrower or employment by Borrower). Borrower is not a guarantor or indemnitor of any Indebtedness
of any other Person.

          Section 3.22. Insurance. Borrower has in full force and effect general commercial,
fire and casualty insurance policies and insurance against other hazards, risks and liabilities to
persons and property to the extent and in the manner customary for companies in similar businesses
similarly situated and sufficient in amount to allow it to replace any of its material properties
or assets that might be damaged or destroyed or sufficient to cover liabilities to which Borrower
may reasonably become subject.

          Section 3.23. Environmental and Safety Laws. Borrower is in compliance with all
applicable environmental Laws, rules and regulations except for noncompliance that, individually or
in the aggregate, would not or could not reasonably be expected to have a Material Adverse Effect
on Borrower. There is no environmental litigation or other environmental proceeding pending or, to
Borrower’s knowledge, threatened, by any governmental regulatory authority or others with respect
to the business of Borrower. No state of facts exists as to environmental matters or Hazardous
Substances that involves the reasonable likelihood of a material capital expenditure by Borrower or
that may otherwise have a Material Adverse Effect on Borrower. To Borrower’s knowledge, no
Hazardous Substances have been used, treated, stored or disposed of, or otherwise deposited, in or
on the properties owned or leased by Borrower in violation of any applicable environmental Laws.

          Section 3.24. No Assets; No Liabilities. Except as specifically disclosed in the SEC
Reports, Borrower has the right to own (including without limitation, tangible and intangible,
personal and real property) and is not involved in the operation of any business or property.
Other than as specifically disclosed in the SEC Reports and those liabilities related to this
Agreement set forth in the Schedule of Exceptions, Borrower has no direct or indirect material
liability, Indebtedness or obligation (including without limitation, known or unknown, absolute or
contingent, liquidated or unliquidated or due or to become due) except relating to the transactions
contemplated hereby.

- 12 -

 

          Section 3.25. Disclosure. All disclosures provided by Borrower are true and correct
in all material respects and do not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. To Borrower’s knowledge, no event or
circumstance has occurred or information exists with respect to Borrower or its business,
properties, operations or financial conditions, which, under applicable Law, rule or regulation,
requires public disclosure or announcement by Borrower but which has not been so publicly announced
or disclosed.

          Section 3.26. Trading Matters. The Borrower Common Stock is quoted on the OTCBB.
There is no action or proceeding pending or, to Borrower’s knowledge, threatened against Borrower
by Nasdaq or NASD, Inc. with respect to any intention by such entities to prohibit or terminate the
quotation of any such securities on the OTCBB.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF LENDERS

          Except as set forth on the Schedule of Exceptions delivered to Borrower in connection with
this Agreement, each of the Frost Group represents and warrants to Borrower as of the date of this
Agreement as follows:

          Section 4.1. Capacity; Execution of Agreement. The Frost Group has all requisite
power, authority, and capacity to enter into this Agreement and to perform the transactions and
obligations to be performed by it hereunder. The execution and delivery of this Agreement, and the
performance by the Frost Group of the transactions and obligations contemplated hereby have been
duly authorized by all requisite corporate action of the Frost Group. This Agreement has been duly
executed and delivered by the Frost Group and constitutes a valid and legally binding agreement of
the Frost Group, enforceable in accordance with its terms, except as enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws, both state and
federal, affecting the enforcement of creditors’ rights or remedies in general from time to time in
effect and the exercise by courts of equity powers or their application of principles of public
policy.

          Section 4.2. Formation and Standing. The Frost Group is a limited liability company
duly formed, validly existing and in good standing under the laws of the State of Florida. The
Frost Group has the requisite power and authority to own and operate its properties and assets, and
to carry on its business as currently conducted.

          Section 4.3. Power and Authority. The Frost Group has all requisite legal and other
power and authority to execute and deliver this Agreement and to carry out and perform its other
obligations hereunder.

          Section 4.4. Accredited Investor. The Frost Group is an “accredited investor” as
defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

          Section 4.5. Suitability and Sophistication. The Frost Group has (i) such knowledge
and experience in financial and business matters that it is capable of independently

- 13 -

 

evaluating the risks and merits of entering into this Agreement acquiring the Warrants and
(ii) independently evaluated the risks and merits of acquiring the Warrants and has independently
determined that the Warrants are a suitable investment for it.

          Section 4.6. Brokers or Finders. The Frost Group has not engaged any brokers, finders
or agents, or incurred, directly or indirectly, any liability for brokerage or finders’ fees or
agents’ commissions or any similar charges in connection with this Agreement and the transactions
contemplated hereby.

ARTICLE V

MISCELLANEOUS

          Section 5.1. Survival of Representations and Warranties; Indemnification.

          (a) The representations and warranties of Borrower and the Frost Group contained in or made
pursuant to this Agreement will survive the execution and delivery of this Agreement and the
Initial Closing, and for an additional 12 months subsequent to the Initial Closing, and with
respect to the representations and warranties of Borrower only, for the longer of an additional 12
months subsequent to any subsequent Advance and the time period during which any Obligations are
outstanding.

          (b) Borrower hereby agrees to indemnify and hold harmless the Frost Group and, as applicable,
its officers, directors, stockholders, agents and representatives from and against any and all
claims, demands, losses, damages, expenses or liabilities (including reasonable attorneys’ fees)
due to or arising out of a material breach of any representation, warranty or covenant provided,
made or agreed to by Borrower hereunder or under the Note.

          (c) The Frost Group hereby agrees to indemnify and hold harmless Borrower and, as applicable,
its officers, managers, directors, stockholders, members, agents and representatives from and
against any and all claims, demands, losses, damages, expenses or liabilities (including reasonable
attorneys’ fees) due to or arising out of a material breach of any representation, warranty or
covenant provided, made or agreed to by the Frost Group hereunder.

          Section 5.2. Successors and Assigns. This Agreement is binding upon and inures to the
benefit of the parties and their successors and assigns. Borrower may not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Frost Group. The
Frost Group may assign its rights and obligations hereunder to an entity directly or indirectly
controlled by or under common control with the Frost Group.

          Section 5.3. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which together shall constitute
one instrument.

          Section 5.4. Facsimile. A facsimile copy of an original written signature shall be
deemed to have the same effect as an original written signature.

- 14 -

 

          Section 5.5. Captions and Headings. The captions and headings used in this Agreement
are used for convenience only and are not to be considered in construing or interpreting this
Agreement.

          Section 5.6. Notices. Unless otherwise provided herein, all notices, requests,
waivers and other communications made pursuant to this Agreement will be in writing and will be
conclusively deemed to have been duly given (i) when hand delivered to the other party; (ii) upon
receipt, when sent by facsimile to the number set forth below or email to the address set forth
below; (iii) five business days after deposit in the U.S. mail, postage prepaid and addressed to
the other party at the address set forth below; or (iv) the next business day after deposit with a
national overnight delivery service, postage prepaid, addressed to the parties as set forth below
with next business day delivery guaranteed. Each person making a communication hereunder by
facsimile or email will promptly confirm by telephone to the person to whom such communication was
addressed each communication made by it by facsimile or email pursuant hereto but the absence of
such confirmation will not affect the validity of any such communication. A party may change or
supplement the addresses given below, or designate additional addresses for purposes of this
Section 5.6, by giving the other party written notice of the new address in the manner set forth
above.

If to Borrower:

eXegenics Inc.

1250 Pittsford-Victor Road

Building 200, Suite 280

Pittsford, New York 14534

Attention: Chief Executive Officer

Phone: _239-561-8966

Facsimile: 239-561-8766

with a copy to:

Harris Beach PLLC

99 Garnsey Road

Pittsford, NY 14534

Attention: Thomas E. Willett

Phone: 585-419-8646

Facsimile: 585-419-8801

If to the Frost Group:

The Frost Group, LLC

4400 Biscayne Blvd.

15th Floor

Miami, FL 33137

Attention: Steven D. Rubin, Esq.

Phone: 305-575-6015

Facsimile: 305-575-6444

- 15 -

 

with a copy to:

Akerman Senterfitt

One Southeast Third Avenue

27th Floor

Miami, FL 33131

Attention: Teddy D. Klinghoffer, Esq.

Phone: 305- 374-5600

Facsimile: 305-374-5095

          Section 5.7. Amendments and Waivers. Any term of this Agreement may be amended and
the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of Borrower and
the Frost Group.

          Section 5.8. Enforceability; Severability. The parties hereto agree that each
provision of this Agreement will be interpreted in such a manner as to be effective and valid under
applicable law. If one or more provisions of this Agreement are nevertheless held to be
prohibited, invalid or unenforceable under applicable law, such provision will be effective to the
fullest extent possible excluding the terms affected by such prohibition, invalidity or
unenforceability, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. If the prohibition, invalidity or unenforceability referred to in the prior
sentence requires such provision to be excluded from this Agreement in its entirety, the balance of
the Agreement will be interpreted as if such provision were so excluded and will be enforceable in
accordance with its terms.

          Section 5.9. Governing Law. This Agreement shall be construed in accordance with, and
governed in all respects by, the laws of the State of Florida.

          Section 5.10. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF. EACH
OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND THAT MIGHT, BUT FOR
THIS WAIVER, BE REQUIRED OF THE OTHER PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE PARTIES HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT. EACH OF THE
PARTIES HERETO HEREBY FURTHER ACKNOWLEDGES AND AGREES THAT EACH HAS REVIEWED OR HAD THE OPPORTUNITY
TO REVIEW THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL

- 16 -

 

COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.

          Section 5.11. Further Assurances; Access. The Frost Group and Borrower will from time
to time and at all times hereafter make, do, execute, or cause or procure to be made, done and
executed such further acts, deeds, conveyances, consents and assurances without further
consideration, which may reasonably be required to effect the transactions contemplated by this
Agreement. Upon reasonable written notice, Borrower shall afford the officers, employees and
authorized agents and representatives of the Frost Group reasonable access, during normal business
hours, to the offices, properties, books, records and such additional financial and operating data
and other information regarding the assets, goodwill and business of the Borrower as the Frost
Group may from time to time reasonably request.

          Section 5.12. Entire Agreement. This Agreement and all exhibits hereto and thereto
constitute the entire agreement among the parties with respect to the subject matter hereof and
thereof and no party will be liable or bound to any other party in any manner by any warranties,
representations or covenants except as specifically set forth herein or therein.

          Section 5.13. Delays or Omissions. No delay or omission to exercise any right power
or remedy accruing to any party under this Agreement, or upon any breach or default of any other
party under this Agreement, will impair any such right, power or remedy of such non-breaching or
non-defaulting party nor will it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter occurring; nor will any
waiver of any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any provisions or conditions of this Agreement, must be in
writing and will be effective only to the extent specifically set forth in such writing. Except as
otherwise set forth herein, all remedies, either under this Agreement or by law or otherwise
afforded to any party, will be cumulative and not alternative.

          Section 5.14. Third Party Beneficiaries. This Agreement is intended for the benefit
of the parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other person or entity.

          Section 5.15. Equitable Relief. The parties hereto recognize that, if such party
fails to perform or discharge any of its obligations under this Agreement, any remedy at law may
prove to be inadequate relief to the other parties. Each party hereto therefore agrees that the
other parties are entitled to seek temporary and permanent injunctive relief and any other
equitable remedy a court of competent jurisdiction may deem appropriate in any such case.

          Section 5.16. No Strict Construction. The language used in this Agreement is deemed
to be the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

          Section 5.17. Public Announcements. No public announcements shall be made by any
party hereto relating to the transactions contemplated by this Agreement without the prior written
consent of the Borrower and the Frost Group, such consent not to be unreasonably

- 17 -

 

withheld, except where required by applicable law; provided, however, that in the event of
such a legally required disclosure, the disclosing party will consult with the other consenting
party with respect to the text of such disclosure and will provide the other consenting party with
a copy of the disclosure prior to its publication.

          Section 5.18. Expenses. Each party shall bear its own costs and expenses in
connection with the transactions contemplated hereby, except to the extent that Lender’s Expenses
shall be Obligations subject to the provisions hereof.

          Section 5.19. Exhibits and Schedule of Exceptions. All exhibits, annexes and
schedules, including the Schedule of Exceptions, annexed hereto or referred to herein are hereby
incorporated in and made a part of this Agreement as if set forth in full herein. A disclosure in
any particular Schedule of the Schedule of Exceptions or otherwise in this Agreement will be deemed
adequate to disclose another exception to a representation or warranty made herein if the
disclosure identifies the exception with reasonable particularity so that any exception to any
other Schedule is reasonably apparent.

[Signatures begin on next page.]

- 18 -

 

     IN WITNESS THEREOF, this Agreement has been executed by the undersigned as of the day, month
and year first above written.

	 	 	 	 	 
	 	eXegenics Inc.

 	 
	 	By:  	/s/ John A. Paganelli
 	 
	 	 	Name:  	John A. Paganelli 	 
	 	 	Title:  	Interim Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	The Frost Group, LLC

 	 
	 	By:  	/s/ Steven D. Rubin
 	 
	 	 	Name:  	Steven D. Rubin 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	Acuity Pharmaceuticals, LLC

 	 
	 	By:  	/s/ Dale R. Pfost
 	 
	 	 	Name:  	Dale R. Pfost 	 
	 	 	Title:  	President 	 

- 19 -

 

	 	 	 	 	 

EXHIBIT A

FORM OF WARRANT

C-1

 

EXHIBIT B

NOTE

D-1

 

EXHIBIT C

SUBORDINATION AGREEMENT

F-1

 

EXHIBIT D

NOTICE OF BORROWING

The Frost Group, LLC

4400 Biscayne Blvd.

15th Floor

Miami, FL 33137

               RE: Notice of Borrowing

Date ___

Gentlemen:

          Pursuant to the terms of a Credit Agreement dated as of March ___, 2007 (“Credit Agreement”),
we hereby request you to make an advance in the amount of $___.

          This notice constitutes a reaffirmation by the undersigned that the representations and
warranties in the Credit Agreement are true, correct and accurate in all material respects as if
the date hereof was the Initial Closing Date and a certification by the undersigned that it is in
compliance with the Credit Agreement and the Note in all material respects as of the date of this
Notice of Borrowing as if the date hereof was the Initial Closing Date.

          Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Credit Agreement.

	 	 	 	 	 
	 	Very truly yours,

eXegenics Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

I-1

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