Document:

Form of Securities Purchase Agreement 5/29/2003

 
Exhibit 10.1

 
SECURITIES PURCHASE AGREEMENT

 
Dated as of May 29, 2003 
 
among 
 
CYTRX CORPORATION 
 
and 
 
THE PURCHASERS LISTED ON EXHIBIT A 
 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	 ARTICLE I
	  	 
Purchase and Sale of Common Stock and Warrants 
	  	 1

	
	 Section 1.1  
	  	 
Purchase and Sale of Common Stock and Warrants 
	  	 1

	 Section 1.2  
	  	 
Purchase Price and Closing 
	  	 1

	 Section 1.3  
	  	 
Warrants 
	  	 1

	 Section 1.4  
	  	 
Warrant Shares 
	  	 2

	
	 ARTICLE II
	  	 
Representations and Warranties 
	  	 2

	
	 Section 2.1  
	  	 
Representations and Warranties of the Company 
	  	 2

	 Section 2.2  
	  	 
Representations and Warranties of the Purchasers 
	  	 12

	
	 ARTICLE III
	  	 
Covenants 
	  	 14

	
	 Section 3.1  
	  	 
Securities Compliance 
	  	 14

	 Section 3.2  
	  	 
Registration and Listing 
	  	 14

	 Section 3.3  
	  	 
Inspection Rights 
	  	 15

	 Section 3.4  
	  	 
Compliance with Laws 
	  	 15

	 Section 3.5  
	  	 
Keeping of Records and Books of Account 
	  	 15

	 Section 3.6  
	  	 
Reporting Requirements 
	  	 15

	 Section 3.7  
	  	 
Other Agreements 
	  	 16

	 Section 3.8  
	  	 
Subsequent Financings; Right of First Refusal 
	  	 16

	 Section 3.9  
	  	 
Reservation of Shares 
	  	 16

	 Section 3.10
	  	 
Non-public Information 
	  	 16

	 Section 3.11
	  	 
No Shorting of Stock 
	  	 16

	 Section 3.12
	  	 
Subsequent Financings 
	  	 17

	
	 ARTICLE IV
	  	 
Conditions 
	  	 17

	
	 Section 4.1  
	  	 
Conditions Precedent to the Obligation of the Company to Close and to Sell the Shares and Warrants 
	  	 17

	 Section 4.2  
	  	 
Conditions Precedent to the Obligation of the Purchasers to Close and to Purchase the Shares and Warrants 
	  	 18

	
	 ARTICLE V
	  	 
Certificate Legend 
	  	 19

	
	 Section 5.1  
	  	 
Legend 
	  	 19

	
	 ARTICLE VI
	  	 
Termination 
	  	 20

	
	 Section 6.1  
	  	 
Termination by Mutual Consent. 
	  	 20

	 Section 6.2  
	  	 
Effect of Termination 
	  	 20

	
	 ARTICLE VII
	  	 
Indemnification 
	  	 21

 
 

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Table of
contents 
(continued) 
 

	 	  	 	  	 Page

	 Section 7.1  
	  	 
General Indemnity 
	  	 21

	 Section 7.2  
	  	 
Indemnification Procedure 
	  	 21

	
	 ARTICLE VIII
	  	 
Miscellaneous 
	  	 22

	
	 Section 8.1  
	  	 
Fees and Expenses 
	  	 22

	 Section 8.2  
	  	 
Specific Enforcement; Consent to Jurisdiction. 
	  	 22

	 Section 8.3  
	  	 
Entire Agreement; Amendment 
	  	 23

	 Section 8.4  
	  	 
Notices 
	  	 23

	 Section 8.5  
	  	 
Waivers 
	  	 24

	 Section 8.6  
	  	 
Headings 
	  	 24

	 Section 8.7  
	  	 
Successors and Assigns 
	  	 24

	 Section 8.8  
	  	 
No Third Party Beneficiaries 
	  	 24

	 Section 8.9  
	  	 
Governing Law 
	  	 25

	 Section 8.10
	  	 
Survival 
	  	 25

	 Section 8.11
	  	 
Counterparts 
	  	 25

	 Section 8.12
	  	 
Publicity 
	  	 25

	 Section 8.13
	  	 
Severability 
	  	 25

	 Section 8.14
	  	 
Further Assurances 
	  	 25

	 Section 8.15
	  	 
Independent Nature of Purchasers’ Obligations and Rights 
	  	 25

 
 

-ii- 

 
SECURITIES
PURCHASE AGREEMENT 
 
This SECURITIES PURCHASE
AGREEMENT this (“Agreement”), dated as of May 29, 2003, by and among CytRx Corporation, a Delaware corporation (the “Company”), and the entities listed on Exhibit A hereto (each, a
“Purchaser” and collectively, the “Purchasers”), for the purchase and sale by the Purchasers of shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), and
warrants to purchase shares of Common Stock. 
 
The
parties hereto agree as follows: 
 
ARTICLE I

 
Purchase and Sale of Common Stock and
Warrants 
 
Section 1.1 Purchase and Sale of
Common Stock and Warrants. Upon the following terms and conditions, the Company shall issue and sell to the Purchasers, and each Purchaser shall, severally but not jointly, purchase from the Company that number of shares of Common Stock (the
“Shares”) and warrants to purchase shares of Common Stock equal to 25% of the number of Shares to be purchased by such Purchaser, in substantially the form attached hereto as Exhibit B (the “Warrants”), in
each case, set forth opposite such Purchaser’s name on Exhibit A hereto at a price per Share and related Warrants of $1.85 for an aggregate purchase price to the Company from all Purchasers of $5,440,000 (the “Purchase
Price”). The Company and the Purchasers are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities registration afforded by Section 4(2) of the U.S. Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder (the “Securities Act”), including Regulation D (“Regulation D”), and/or upon such other exemption from the registration requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder. 
 
Section 1.2 Purchase Price and Closing. The Company agrees to issue and sell to the Purchasers and, in consideration of and in express reliance upon the representations, warranties, covenants,
terms and conditions of this Agreement, the Purchasers, severally but not jointly, agree to purchase the number of Shares and Warrants set forth opposite their respective names on Exhibit A. The closing of the purchase and sale of the Shares
and Warrants to be acquired by the Purchasers from the Company under this Agreement shall take place at the offices of the Company located at 11726 San Vicente Boulevard, Suite 650, Los Angeles, California 90049 (the “Closing”) at
10:00 a.m., Pacific Time (i) on or before May 29, 2003, provided, that all of the conditions set forth in Article IV hereof and applicable to the Closing shall have been fulfilled or waived in accordance herewith, or (ii) at such other time
and place or on such date as the Purchasers and the Company may agree upon (the “Closing Date”). The entire Purchase Price shall be paid by the Purchasers in cash, by wire transfer or in readily available funds. 
 
Section 1.3 Warrants. At the Closing, the Company shall
issue to each Purchaser such number of Warrants to purchase shares of Common Stock as is set forth opposite 

 
such Purchaser’s name on
Exhibit A hereto. The Warrants shall be exercisable for five (5) years from the date of issuance and shall have an exercise price equal to the closing bid price of the Common Stock on Nasdaq (as reported by Bloomberg Financial Service) on the
last trading day prior to the Closing Date. 
 
Section 1.4 Warrant Shares. The Company has authorized and has reserved and covenants to continue to reserve, free of preemptive rights and other similar contractual rights of stockholders, a number of its authorized but
unissued shares of Common Stock equal to the aggregate number of shares of Common Stock necessary to effect the exercise of the Warrants. Any shares of Common Stock issuable upon exercise of the Warrants (and such shares when issued) are herein
referred to as the “Warrant Shares”. The Shares, the Warrants and the Warrant Shares are sometimes collectively referred to herein as the “Securities”. 
 
ARTICLE II 
 
Representations and Warranties 
 
Section 2.1 Representations and Warranties of the Company. In order to induce the Purchasers to enter into this Agreement and to
purchase the Shares and the Warrants, the Company hereby makes the following representations and warranties to the Purchasers: 
 
(a) Organization, Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted. The Company does not have any Subsidiaries (as defined in
Section 2.1(g)) or own securities of any kind in any other entity, except as set forth on Schedule 2.1(g) hereto. The Company and each such Subsidiary is duly qualified as a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have a Material
Adverse Effect. For the purposes of this Agreement, “Material Adverse Effect” means any adverse effect on the business, operations, properties, prospects or financial condition of the Company or its Subsidiaries and which is
material to such entity or other entities controlling or controlled by such entity or which is likely to materially hinder the performance by the Company of its material obligations hereunder and under the other Transaction Documents (as defined in
Section 2.1(b) hereof). 
 
(b) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Registration Rights Agreement, the Warrants, and the other agreements and documents contemplated hereby and thereby and
executed by the Company or to which the Company is party (collectively, the “Transaction Documents”), and to issue and sell the Shares and the Warrants in accordance with the terms hereof. The execution, delivery and performance of
the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly and validly authorized by all necessary corporate action, and, except as set forth in Schedule 2.1(b), no further
consent or authorization of the Company, its Board of Directors or its 
 

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stockholders is required. This
Agreement has been duly executed and delivered by the Company. The other Transaction Documents will have been duly executed and delivered by the Company at the Closing. Each of the Transaction Documents constitutes, or shall constitute when executed
and delivered, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 
 
(c) Capitalization. The authorized capital stock of the
Company and the shares thereof currently issued and outstanding as of May 27, 2003 are set forth on Schedule 2.1(c) hereto. All of the outstanding shares of the Company’s Common Stock and any other security of the Company have been duly
and validly authorized. Except as set forth on Schedule 2.1(c) hereto, no shares of Common Stock or any other security of the Company are entitled to preemptive rights or registration rights and there are no outstanding options, warrants,
scrip, rights to subscribe to, call or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company. Furthermore, except as set forth on Schedule 2.1(c) hereto,
there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, securities or rights convertible into shares of capital stock
of the Company. Except for customary transfer restrictions contained in agreements entered into by the Company in order to sell restricted securities or as provided on Schedule 2.1(c) hereto, the Company is not a party to or bound by any
agreement or understanding granting registration or anti-dilution rights to any person with respect to any of its equity or debt securities. Except as set forth on Schedule 2.1(c), the Company is not a party to, and it has no knowledge of,
any agreement or understanding restricting the voting or transfer of any shares of the capital stock of the Company. Except as set forth on Schedule 2.1(c) hereto, the offer and sale of all capital stock, convertible securities, rights,
warrants, or options of the Company issued prior to the Closing complied with all applicable federal and state securities laws, and no holder of such securities has a right of rescission or claim for damages with respect thereto which could have a
Material Adverse Effect. The Company has furnished or made available to the Purchasers true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (the “Certificate”), and the
Company’s Bylaws as in effect on the date hereof (the “Bylaws”). 
 
(d) Issuance of Securities. The Shares and the Warrants to be issued at the Closing have been duly authorized by all necessary corporate action and, when paid for or issued in accordance with
the terms hereof, the Shares shall be validly issued and outstanding, fully paid and nonassessable and free and clear of all liens, encumbrances and rights of refusal of any kind and the holders shall be entitled to all rights accorded to a holder
of Common Stock. When the Warrant Shares are issued and paid for in accordance with the terms of this Agreement and as set forth in the Warrants, such shares will be duly authorized by all necessary corporate action and validly issued and
outstanding, fully paid and nonassessable, free and clear of all liens, encumbrances and rights of refusal of any kind and the holders shall be entitled to all rights accorded to a holder of Common Stock. 
 

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(e) No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby do not and will not (i) violate any provision of the
Certificate or Bylaws or any Subsidiary’s comparable charter documents, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company or any of its Subsidiaries is a party or by which the
Company or any of its Subsidiaries’ respective properties or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property or asset of the Company or any of its Subsidiaries
under any agreement or any commitment to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or by which any of their respective properties or assets are bound, or (iv) result in a
violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or any of its Subsidiaries or by which any property or
asset of the Company or any of its Subsidiaries is bound or affected, except, in all cases other than violations pursuant to clauses (i) or (iv) (with respect to federal and state securities laws) above, for such conflicts, defaults, terminations,
amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted in violation of any laws, ordinances or
regulations of any governmental entity, except for possible violations which singularly or in the aggregate do not and will not have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is required under federal, state, foreign
or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under the Transaction
Documents or issue and sell the Shares, the Warrants or the Warrant Shares in accordance with the terms hereof or thereof (other than any filings which may be required to be made by the Company with the Securities and Exchange Commission (the
“Commission”) and/or the NASD prior to or subsequent to the Closing, or state securities administrators subsequent to the Closing, or any registration statement which may be filed pursuant hereto or thereto). 
 
(f) Commission Documents; Financial Statements. The
Common Stock is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, except as disclosed on Schedule 2.1(f) hereto, the Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange Act (all
of the foregoing, including filings incorporated by reference therein, being referred to herein as the “Commission Documents”). The Company has delivered or made available to the Purchasers true and complete copies of the Commission
Documents filed with the Commission since December 31, 2000. The Company has not provided to the Purchasers any material non-public information or other information which, according to applicable law, rule or regulation, should have been disclosed
publicly by the Company but which has not been so disclosed, other than with respect to the transactions contemplated by this Agreement. At the time of its filing, the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March
31, 2003 (the “Form 10-Q”) complied in all material respects with the requirements of the Exchange Act and the rules and regulations 
 

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of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations applicable to such documents, and the Form 10-Q did not contain 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 light of the circumstances under which they were made, not misleading. At the time of its filing, the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2002 (the
“Form 10-K”) complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder and other federal, state and local laws, rules and regulations
applicable to such documents, and, at the time of its filing, the Form 10-K did not contain 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 light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the Commission Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with generally accepted
accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the Notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects the financial position of the Company and its Subsidiaries as of the dates thereof and the results of
operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). 
 
(g) Subsidiaries. Schedule 2.1(g) hereto sets forth each Subsidiary of the Company, showing the jurisdiction of its
incorporation or organization and showing the percentage of each person’s ownership of the outstanding stock or other interests of such Subsidiary. For the purposes of this Agreement, “Subsidiary” shall mean any corporation or
other entity of which at least a majority of the securities or other ownership interest having ordinary voting power (absolutely or contingently) for the election of directors or other persons performing similar functions are at the time owned
directly or indirectly by the Company and/or any of its other Subsidiaries. All of the outstanding shares of capital stock of each Subsidiary have been duly authorized and validly issued, and are fully paid and nonassessable. There are no
outstanding preemptive, conversion or other rights, options, warrants or agreements granted or issued by or binding upon any Subsidiary for the purchase or acquisition of any shares of capital stock of any Subsidiary or any other securities
convertible into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock. Neither the Company nor any Subsidiary is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire
any shares of the capital stock of any Subsidiary or any convertible securities, rights, warrants or options of the type described in the preceding sentence except as set forth on Schedule 2.1(g) hereto. Neither the Company nor any Subsidiary
is party to, nor has any knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of any Subsidiary. 
 
(h) No Material Adverse Change. Since March 31, 2003, the Company has not experienced or suffered any Material Adverse Effect,
except as disclosed on Schedule 2.1(h) hereto. 
 

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(i) No
Undisclosed Liabilities. Except as disclosed on Schedule 2.1(i) hereto, neither the Company nor any of its Subsidiaries has any liabilities, obligations, claims or losses (whether liquidated or unliquidated, secured or unsecured,
absolute, accrued, contingent or otherwise) other than those set forth on the balance sheet included in the Form 10-Q or incurred in the ordinary course of the Company’s or its Subsidiaries respective businesses since March 31, 2003, and which,
individually or in the aggregate, do not or would not have a Material Adverse Effect on the Company or its Subsidiaries. 
 
(j) No Undisclosed Events or Circumstances. Since March 31, 2003, except as disclosed on Schedule 2.1(j) hereto, no event or
circumstance has occurred or exists with respect to the Company or its Subsidiaries or their respective businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure
or announcement by the Company but which has not been so publicly announced or disclosed. 
 
(k) Indebtedness. Schedule 2.1(k) hereto sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or
any Subsidiary has commitments. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) any indebtedness for borrowed money in excess of $100,000, (B) any obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course of business) in excess of $100,000, (C) all reimbursement or payment obligations with respect to letters of credit, surety
bonds and other similar instruments, (D) any obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) any
indebtedness in excess of $100,000 created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness
(even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection
with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease with a present value in excess of $100,000, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any
Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to
in clauses (A) through (G) above; and (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto in excess of $100,000 due under leases required to be capitalized in accordance with
GAAP. Except as disclosed on Schedule 2.1(k), neither the Company nor any Subsidiary is in default with respect to any Indebtedness. 
 

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(l) Title
to Assets. Each of the Company and the Subsidiaries has good and marketable title to all of its real and personal property, free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances of any nature
whatsoever, except for those indicated on Schedule 2.1(l) hereto or such that, individually or in the aggregate, do not have a Material Adverse Effect. All said leases of the Company and each of its Subsidiaries are valid and subsisting and
in full force and effect. 
 
(m) Actions
Pending. There is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company, threatened against the Company or any Subsidiary which questions the
validity of this Agreement or any of the other Transaction Documents or any of the transactions contemplated hereby or thereby or any action taken or to be taken pursuant hereto or thereto. Except as set forth on Schedule 2.1(m) hereto, there
is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company, threatened against or involving the Company, any Subsidiary or any of their respective
properties or assets, which individually or in the aggregate, would have a Material Adverse Effect. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the
Company or any Subsidiary or any officers or directors of the Company or any Subsidiary in their capacities as such, which individually, or in the aggregate, would have a Material Adverse Effect. 
 
(n) Compliance with Law. The business of the Company
and the Subsidiaries has been and is presently being conducted in accordance with all applicable federal, state and local governmental laws, rules, regulations and ordinances, except as set forth in the Commission Documents or on Schedule
2.1(n) hereto or such that, individually or in the aggregate, the noncompliance therewith would not have a Material Adverse Effect. The Company and each of its Subsidiaries have all franchises, permits, licenses, consents and other governmental
or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted by it unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations and
approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 
(o) Taxes. Except as set forth on Schedule 2.1(o) hereto, the Company and each of the Subsidiaries has accurately prepared
and filed all federal, state and other tax returns required by law to be filed by it, has paid or made provisions for the payment of all taxes shown to be due and all additional assessments, and adequate provisions have been and are reflected in the
financial statements of the Company and the Subsidiaries for all current taxes and other charges to which the Company or any Subsidiary is subject and which are not currently due and payable. Except as disclosed on Schedule 2.1(o) hereto,
none of the federal income tax returns of the Company or any Subsidiary have been audited by the Internal Revenue Service. The Company has no knowledge of any additional assessments, adjustments or contingent tax liability (whether federal or state)
of any nature whatsoever, whether pending or threatened against the Company or any Subsidiary for any period, nor of any basis for any such assessment, adjustment or contingency. 
 
(p) Certain Fees. Except as set forth on Schedule 2.1(p) hereto, the Company has not employed
any broker or finder or incurred any liability for any brokerage or investment 
 

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banking fees, commissions,
finders’ structuring fees, financial advisory fees or other similar fees in connection with the Transaction Documents. 
 
(q) Disclosure. To the best of the Company’s knowledge, neither this Agreement or the Schedules hereto nor any other
documents, certificates or instruments furnished to the Purchasers by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by this Agreement contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading. 
 
(r) Intellectual Property. Schedule 2.1(r) contains a complete and correct list of all patents,
trademarks, domain names (whether or not registered) and any patentable improvements or copyrightable derivative works thereof, websites and intellectual property rights relating thereto, service marks, trade names, copyrights, licenses and
authorizations, and all rights with respect to the foregoing (collectively, the “Proprietary Rights”), held by the Company or any of its Subsidiaries. The Company and each of the Subsidiaries owns or possesses all the Proprietary
Rights, which are necessary for the conduct of its business as now conducted without any conflict with the rights of others. As of the date of this Agreement, neither the Company nor any of its Subsidiaries has received any written notice that any
Proprietary Rights have been declared unenforceable or otherwise invalid by any court or governmental agency. As of the date of this Agreement, there is, to the knowledge of the Company, no material existing infringement, misuse or misappropriation
of any Proprietary Rights by others. From March 31, 2003 to the date of this Agreement, neither the Company nor any of its Subsidiaries has received any written notice alleging that the operation of the business of the Company or any of its
Subsidiaries infringes in any material respect upon the intellectual property rights of others. 
 
(s) Environmental Compliance. Except as disclosed on Schedule 2.1(s) hereto, the Company and each of its Subsidiaries have obtained all material approvals, authorization, certificates,
consents, licenses, orders and permits or other similar authorizations of all governmental authorities, or from any other person, that are required under any Environmental Laws. Schedule 2.1(s) hereto sets forth all material permits, licenses
and other authorizations issued under any Environmental Laws to the Company or its Subsidiaries. “Environmental Laws” shall mean all applicable laws relating to the protection of the environment including, without limitation, all
requirements pertaining to reporting, licensing, permitting, controlling, investigating or remediating emissions, discharges, releases or threatened releases of hazardous substances, chemical substances, pollutants, contaminants or toxic substances,
materials or wastes, whether solid, liquid or gaseous in nature, into the air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances, material or wastes, whether solid, liquid or gaseous in nature. Except as set forth on Schedule 2.1(s) hereto, the Company has all necessary governmental approvals
required under all Environmental Laws and used in its business or in the business of any of its Subsidiaries, except for such instances as would not individually or in the aggregate have a Material Adverse Effect. The Company and each of its
Subsidiaries are also in compliance with all other limitations, restrictions, conditions, standards, requirements, schedules and timetables required or imposed under all Environmental Laws. Except for such instances as 
 

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would not individually or in
the aggregate have a Material Adverse Effect, there are no past or present events, conditions, circumstances, incidents, actions or omissions relating to or in any way affecting the Company or its Subsidiaries that violate or may violate any
Environmental Law after the Closing or that may give rise to any Environmental Liabilities, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study or investigation (i) under any Environmental Law, or (ii) based on
or related to the manufacture, processing, distribution, use, treatment, storage (including, without limitation, underground storage tanks), disposal, transport or handling, or the emission, discharge, release or threatened release of any hazardous
substance. “Environmental Liabilities” means all liabilities of a person (whether such liabilities are owed by such person to governmental authorities, third parties or otherwise) whether currently in existence or arising hereafter
which arise under or relate to any Environmental Law. 
 
(t) Books and Records; Internal Accounting Controls. The books, records and documents of the Company and its Subsidiaries accurately reflect in all material respects the information relating to the business of the Company and
the Subsidiaries, the location and collection of their assets, and the nature of all transactions giving rise to the obligations or accounts receivable of the Company or any Subsidiary. The Company and each of its Subsidiaries maintain a system of
internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences. 
 
(u) Material Agreements. Except for the Transaction
Documents or as set forth on Schedule 2.1(u) hereto, or those that are included as exhibits to the Commission Documents, neither the Company nor any Subsidiary is a party to any written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement, a copy of which would be required to be filed with the Commission (collectively, “Material Agreements”) if the Company or any Subsidiary were registering securities under the Securities Act. The
Company and each of its Subsidiaries has in all material respects performed all the obligations required to be performed by them to date under the foregoing agreements, have received no notice of default and, to the best of the Company’s
knowledge, are not in default under any Material Agreement now in effect, the result of which could cause a Material Adverse Effect. No written or oral contract, instrument, agreement, commitment, obligation, plan or arrangement of the Company or of
any Subsidiary limits or shall limit the payment of dividends on its Common Stock. 
 
(v) Transactions with Affiliates. Except as set forth on Schedule 2.1(v) hereto, there are no loans, leases, agreements, contracts, royalty agreements, management contracts or
arrangements or other continuing transactions between (a) the Company, any Subsidiary or any of their respective customers or suppliers, on the one hand, and (b) on the other hand, any officer, employee, consultant or director of the Company, or any
of its Subsidiaries, or any person owning any capital stock of the Company or any Subsidiary or any member of the immediate family of such officer, employee, consultant, director or stockholder or any 
 

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corporation or other entity
controlled by such officer, employee, consultant, director or stockholder. 
 
(w) Securities Act of 1933. The Company has complied and will comply with all applicable federal and state securities laws in connection with the offer, issuance and sale of the Shares, the
Warrants and the Warrant Shares hereunder. Neither the Company nor anyone acting on its behalf, directly or indirectly, has or will sell, offer to sell or solicit offers to buy any of the Securities, or similar securities to, or solicit offers with
respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any person, or has taken or will take any action so as to bring the issuance and sale of any of the Securities under the registration provisions
of the Securities Act and applicable state securities laws. Neither the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities. 
 
(x) Governmental Approvals. Except as set forth on Schedule 2.1(x) hereto, and except for the filing of any notice prior or
subsequent to the Closing that may be required under applicable state and/or federal securities laws (which if required, shall be filed on a timely basis), no authorization, consent, approval, license, exemption of, filing or registration with any
court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary for, or in connection with, the execution or delivery of the Shares and the Warrants, or for the performance by the
Company of its obligations under the Transaction Documents. 
 
(y) Employees. Neither the Company nor any Subsidiary has any collective bargaining arrangements or agreements covering any of its employees. Except as set forth in the Commission Documents or on Schedule 2.1(y) hereto,
neither the Company nor any Subsidiary has any employment contract, agreement regarding proprietary information, non-competition agreement, non-solicitation agreement, confidentiality agreement, or any other similar contract or restrictive covenant,
relating to the right of any officer, employee or consultant to be employed or engaged by the Company or such Subsidiary. Since March 31, 2003, no officer, consultant or key employee of the Company or any Subsidiary whose termination, either
individually or in the aggregate, could have a Material Adverse Effect, has terminated or, to the knowledge of the Company, has any present intention of terminating his or her employment or engagement with the Company or any Subsidiary.

 
(z) Absence of Certain Developments.
Except as set forth in the Commission Documents or on Schedule 2.1(z) hereto, since March 31, 2003, neither the Company nor any Subsidiary has: 
 
(i) issued any stock, bonds or other corporate securities or any rights, options or warrants with respect thereto; 
 
(ii) borrowed any amount or incurred or become subject to
any liabilities (absolute or contingent) except current liabilities incurred in the ordinary course of business which are comparable in nature and amount to the current liabilities incurred in the 
 

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ordinary course of business
during the comparable portion of its prior fiscal year, as adjusted to reflect the current nature and volume of the Company’s or such Subsidiary’s business; 
 
(iii) discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or
contingent), other than current liabilities paid in the ordinary course of business; 
 
(iv) declared or made any payment or distribution of cash or other property to stockholders with respect to its stock, or purchased or redeemed, or made any agreements so to purchase or redeem, any
shares of its capital stock; 
 
(v) sold, assigned
or transferred any other tangible assets, or canceled any debts or claims, except in the ordinary course of business; 
 
(vi) sold, assigned or transferred any patent rights, trademarks, trade names, copyrights, trade secrets or other intangible assets or
intellectual property rights, or disclosed any proprietary confidential information to any person except in the ordinary course of business or to the Purchasers or their representatives; 
 
(vii) suffered any substantial losses or waived any rights of material value, whether or not in the ordinary
course of business, or suffered the loss of any material amount of prospective business; 
 
(viii) made any changes in employee compensation except in the ordinary course of business and consistent with past practices; 
 
(ix) made capital expenditures or commitments therefor that aggregate in excess of $25,000; 
 
(x) entered into any other transaction other than in the
ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course of business; 
 
(xi) made charitable contributions or pledges in excess of $25,000; 
 
(xii) suffered any material damage, destruction or casualty loss, whether or not covered by insurance;

 
(xiii) experienced any material problems with
labor or management in connection with the terms and conditions of their employment; 
 
(xiv) effected any two or more events of the foregoing kind which in the aggregate would cause a Material Adverse Effect; or 
 

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(xv) entered
into an agreement, written or otherwise, to take any of the foregoing actions. 
 
(aa) Use of Proceeds. Except as set forth on Schedule 2.1(aa), the proceeds from the sale of the Shares and the Warrants will be used by the Company for working capital purposes and,
except as set forth on Schedule 2.1(aa), shall not be used to repay any outstanding Indebtedness or any loans to any officer, director, affiliate or insider of the Company. 
 
(bb) Public Utility Holding Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the Public Utility Holding Company Act of 1935, as amended. The Company is not, and as a result of and immediately upon Closing will not be, an
“investment company” or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. 
 
(cc) ERISA. No liability to the Pension Benefit Guaranty Corporation has been incurred with respect to
any Plan by the Company or any of its Subsidiaries which is or would cause a Material Adverse Effect. The execution and delivery of this Agreement and the issue and sale of the Shares and the Warrants will not involve any transaction which is
subject to the prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”); provided that, if any Purchaser, or any
person or entity that owns a beneficial interest in any Purchaser, is an “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA) with respect to which the Company is a “party in interest” (within the meaning
of Section 3(14) of ERISA), the requirements of Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in this Section 2.1(cc), the term “Plan” shall mean an “employee pension benefit plan” (as defined in
Section 3 of ERISA) which is or has been established or maintained, or to which contributions are or have been made, by the Company or any Subsidiary or by any trade or business, whether or not incorporated, which, together with the Company or any
Subsidiary, is under common control, as described in Section 414(b) or (c) of the Code. 
 
(dd) Delisting Notification. The Company has not received a delisting notification from the NASDAQ Stock Market that has not been rescinded, and, to its knowledge, there are no existing facts or
circumstances that could give rise to the delisting of the Common Stock from the NASDAQ Stock Market. 
 
(ee) Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002
that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof, except where such noncompliance would not have, individually or in the
aggregate, a Material Adverse Effect. 
 
Section
2.2 Representations and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations and warranties to the Company with respect solely to itself and not with respect to any other Purchaser: 
 

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(a)
Organization and Standing of the Purchasers. If such Purchaser is an entity, such Purchaser is a corporation, limited liability company or partnership duly incorporated or organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization. 
 
(b) Authorization and Power. Such Purchaser has the requisite power and authority to enter into and perform the Transaction Documents and to purchase the Shares and Warrants being sold to it hereunder. The execution, delivery
and performance of the Transaction Documents by such Purchaser and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization of
such Purchaser or its Board of Directors, stockholders, or partners, as the case may be, is required. This Agreement has been duly authorized, executed and delivered by such Purchaser. The other Transaction Documents constitute, or shall constitute
when executed and delivered, valid and binding obligations of such Purchaser enforceable against such Purchaser in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 
 
(c) Acquisition for Investment. Such Purchaser is
purchasing the Shares and acquiring the Warrants solely for its own account for the purpose of investment and not with a view to or for sale in connection with the distribution thereof. Such Purchaser does not have a present intention to sell any of
the Securities, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of any of the Securities to or through any person or entity; provided, however, that by making the representations
herein and subject to Section 2.2(e) below, such Purchaser does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to pledge any of the Securities for margin purposes and/or to dispose of any of the
Securities at any time in accordance with federal and state securities laws applicable to such disposition. Such Purchaser acknowledges that it (i) has such knowledge and experience in financial and business matters such that such Purchaser is
capable of evaluating the merits and risks of its investment in the Company, (ii) is able to bear the financial risks associated with an investment in the Securities, and (iii) has been given full access to such records of the Company and the
Subsidiaries and to the officers of the Company and the Subsidiaries as it has deemed necessary or appropriate to conduct its due diligence investigation. 
 
(d) Rule 144. Such Purchaser understands that the Securities must be held indefinitely unless such Securities are registered under
the Securities Act or an exemption from registration is available. Such Purchaser acknowledges that it is familiar with Rule 144 of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such Purchaser has been advised that Rule 144 permits resales only under certain circumstances. Such Purchaser understands that to the extent that Rule 144 is not available, such Purchaser will be unable to sell any
Securities without either registration under the Securities Act or the existence of another exemption from such registration requirement. 
 
(e) General. Such Purchaser understands that the Securities are being offered and sold in reliance on a transactional exemption
from the registration requirements of federal and state securities laws and the Company is relying upon the truth and accuracy of the 
 

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representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Securities. Such Purchaser understands that no United
States federal or state agency or any government or governmental agency has passed upon or made any recommendation or endorsement of the Securities. 
 
(f) Opportunities for Additional Information. Such Purchaser acknowledges that such Purchaser has had the opportunity to ask
questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s
personal knowledge of the Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser, and such Purchaser desires to invest in the Company. 
 
(g) No General Solicitation. Such Purchaser
acknowledges that the Securities were not offered to such Purchaser by means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article,
notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing means of communications.

 
(h) Accredited Investor. Such Purchaser
is an accredited investor (as defined in Rule 501 of Regulation D), and such Purchaser has such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. Such Purchaser
acknowledges that an investment in the Securities is speculative and involves a high degree of risk. 
 
ARTICLE III 
 
Covenants 
 
The Company covenants with each Purchaser as follows, which covenants are for the benefit of each Purchaser and their respective permitted assignees. 
 
Section 3.1 Securities Compliance. The Company shall notify the Commission, in accordance with its
rules and regulations, of the transactions contemplated by any of the Transaction Documents, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Purchasers, or their respective subsequent holders. 
 
Section 3.2 Registration and Listing. The Company will cause its Common Stock to continue to be registered under Section 12(b) or 12(g) of the Exchange Act, will comply in all respects with its
reporting and filing obligations under the Exchange Act, will comply with all requirements related to any registration statement filed pursuant to this Agreement, and will not take any action or file any document (whether or not permitted by the
Securities Act or the rules promulgated thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the Exchange Act or Securities Act, except as 
 

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permitted herein. The Company
shall use its commercially reasonable best efforts to continue the quotation of its Common Stock on the NASDAQ Stock Market or any successor market. The Company will promptly file the “Listing Application” for, or in connection with, the
issuance and delivery of the Shares, the Warrants and the Warrant Shares. 
 
Section 3.3 Inspection Rights. In the event the Registration Statement (as defined in the Registration Rights Agreement) is not effective or has been suspended, the Company shall, subject to Section 3.9, permit,
during normal business hours and upon reasonable request and reasonable notice, a Purchaser or any employees, agents or representatives thereof, so long as a Purchaser shall be obligated hereunder to purchase the Shares or shall beneficially own the
Shares, or shall own Warrant Shares or the Warrants which, in the aggregate, represent more than two percent (2%) of the total combined voting power of all voting securities then outstanding, to examine and make reasonable copies of and extracts
from the records and books of account of, and visit and inspect, during the term of the Warrants, the properties, assets, operations and business of the Company and any Subsidiary, and to discuss the affairs, finances and accounts of the Company and
any Subsidiary with any of its officers, consultants, directors, and key employees. 
 
Section 3.4 Compliance with Laws. The Company shall comply, and cause each Subsidiary to comply, with all applicable laws, rules, regulations and orders, the noncompliance with which could have
a Material Adverse Effect. 
 
Section 3.5
Keeping of Records and Books of Account. The Company shall keep and cause each Subsidiary to keep adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently applied, reflecting all
financial transactions of the Company and its Subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business shall be
made. 
 
Section 3.6 Reporting Requirements.
The Company shall furnish two (2) copies of the following to each Purchaser in a timely manner so long as that Purchaser shall be obligated hereunder to purchase the Shares or shall beneficially own the Shares or Warrants, or shall own Warrant
Shares which, in the aggregate, represent more than one percent (1%) of the total combined voting power of all voting securities then outstanding: 
 
(a) Quarterly Reports filed with the Commission on Form 10-Q as soon as available, and in any event within forty-five (45) days after the
end of each of the first three (3) fiscal quarters of the Company, but in no event prior to the time that such Reports are publicly filed with the Commission or otherwise made publicly available; 
 
(b) Annual Reports filed with the Commission on Form 10-K as
soon as available, and in any event within ninety (90) days after the end of each fiscal year of the Company, but in no event prior to the time that such Reports are publicly filed with the Commission or otherwise made publicly available; and

 
(c) Copies of all notices and information,
including without limitation notices and proxy statements in connection with any meetings, that are provided to holders of shares of 
 

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Common Stock,
contemporaneously with the delivery of such notices or information to such holders of Common Stock. 
 
Section 3.7 Other Agreements. The Company shall not enter into any agreement in which the terms of such agreement would restrict or
impair the right or ability of the Company or any Subsidiary to perform under any Transaction Document. 
 
Section 3.8 Reservation of Shares. So long as the Warrants remain outstanding, the Company shall take all action necessary to at
all times have authorized, and reserved for the purpose of issuance, the maximum number of shares of Common Stock to effect the exercise of the Warrants. 
 
Section 3.9 Disclosure of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on the Business
Day immediately following the Closing Date, the Company shall file a Current Report on Form 8-K with the Commission describing the terms of the transactions contemplated by the Transaction Documents and including as exhibits to such Current Report
on Form 8-K this Agreement, the Warrants and the Registration Rights Agreement, and the schedules hereto and thereto in the form required by the Exchange Act (including all attachments, the “8-K Filing”). As of the time of the
filing of the 8-K Filing with the Commission, no Purchaser shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, that is
not disclosed in the 8-K Filing. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents not to, provide any Purchaser with any material, nonpublic information
regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with the Company without the express written consent of such Purchaser. Subject to the foregoing, neither the Company nor any Purchaser shall issue any
press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of any Purchaser, to make any press release or other
public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith, and (ii) as is required by applicable law and regulations, including the applicable rules and regulations of the
NASDAQ National Market or NASDAQ Small Cap Market (provided that in the case of clause (i) above, each Purchaser shall be notified by the Company (although the consent of such Purchaser shall not be required) in connection with any such press
release or other public disclosure prior to its release). 
 
Section 3.10 Delivery of Share Certificates. At Closing or as soon thereafter as reasonably possible (but in any event no later than three Business Days immediately following the Closing Date), the Company shall deliver to
each Purchaser certificates representing the Shares (in such denominations as each Purchaser may request) acquired by such Purchaser at the Closing. 
 
Section 3.11 No Shorting of Stock. From the date hereof until the Closing, no Purchaser shall sell short (or enter into any other
similar hedging transaction with respect to) the shares of the Company’s Common Stock. 
 

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Section 3.12 Subsequent Financings. Until such time as the Registration Statement
is effective, the Company covenants and agrees not to sell or issue, or offer to sell or issue, any securities of the Company (whether equity, debt or otherwise), including convertible and non-convertible securities, without the prior written
consent of Purchasers owning more than 50% of the Shares, which consent may be granted or denied in the sole and absolute discretion of the Purchasers; provided, however, that the foregoing covenant shall not apply to (i) shares of
Common Stock issued to strategic partners and/or in connection with a strategic merger or acquisition, (ii) shares of Common Stock or options to purchase shares of Common Stock issued to employees, officers, directors, consultants and vendors in
accordance with the Company’s equity incentive policies, or (iii) the conversion or exercise of convertible or exercisable securities issued or outstanding prior to the date hereof; provided, that, the conversion price or exercise
price shall not be reset to provide for the issuance of additional shares of Common Stock. 
 
ARTICLE IV 
 
Conditions 
 
Section 4.1 Conditions Precedent to the Obligation of the Company to Close and to Sell the Shares and Warrants. The obligation hereunder of the Company to close and issue and sell the Shares and the Warrants to the Purchasers
on the Closing Date is subject to the satisfaction or waiver, at or before the Closing, of the conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion.

 
(a) Accuracy of the Purchasers’
Representations and Warranties. The representations and warranties of each Purchaser shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time, except for representations
and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of such date. 
 
(b) Performance by the Purchasers. Each Purchaser shall have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchasers at or prior to the Closing Date. 
 
(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 
 
(d) Delivery of Purchase Price. The Purchase Price for the Shares and Warrants shall have been
delivered to the Company at the Closing. 
 
(e)
Delivery of Transaction Documents. The Transaction Documents to which the Purchasers are party shall have been duly executed and delivered by the Purchasers to the Company. 
 

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Section 4.2 Conditions Precedent to the Obligation of the Purchasers to Close and to
Purchase the Shares and Warrants. The obligation hereunder of the Purchasers to purchase the Shares and Warrants and consummate the transactions contemplated by this Agreement is subject to the satisfaction or waiver, at or before the Closing,
of each of the conditions set forth below. These conditions are for the Purchasers’ sole benefit and may be waived by the Purchasers at any time in their sole discretion. 
 
(a) Accuracy of the Company’s Representations and Warranties. Each of the representations and
warranties of the Company in this Agreement, the Warrants and the Registration Rights Agreement shall be true and correct in all material respects as of the Closing Date, except for representations and warranties that speak as of a particular date,
which shall be true and correct in all material respects as of such date. 
 
(b) Performance by the Company. The Company shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date. 
 
(c) No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the Commission (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior
to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets (“Bloomberg”) shall not have been suspended or limited, or minimum prices shall not have been
established on securities whose trades are reported by Bloomberg, or quoted by NASDAQ, nor shall a banking moratorium have been declared either by the United States or California State authorities, nor shall there have occurred any national or
international calamity or crisis of such magnitude in its effect on any financial market which, in each case, in the reasonable judgment of the Purchasers, makes it impracticable or inadvisable to purchase the Shares. 
 
(d) No Injunction. No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this
Agreement. 
 
(e) No Proceedings or
Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any Subsidiary, or any
of the officers, directors or affiliates of the Company or any Subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions. 
 
(f) Opinion of Counsel, Etc. The Purchasers shall have
received an opinion of counsel to the Company, dated the Closing Date, in the form of Exhibit C hereto, and such other certificates and documents as the Purchasers or their counsel shall reasonably require incident to the Closing.

 

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(g) Warrants. The Company shall have delivered to the Purchasers the originally
executed Warrants (in such denominations as each Purchaser may request) being acquired by the Purchasers at the Closing. 
 
(h) Resolutions. The Board of Directors of the Company shall have adopted resolutions consistent with Section 2.1(b) hereof in a
form reasonably acceptable to the Purchasers (the “Resolutions”). 
 
(i) Reservation of Shares. As of the Closing Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of effecting the issuance of the Shares
and the exercise of the Warrants, a number of shares of Common Stock equal to the number of Warrant Shares issuable upon exercise of the Warrants, assuming the Warrants were granted on the Closing Date (after giving effect to the Warrants to be
issued on the Closing Date and assuming the Warrants were fully exercisable on such date regardless of any limitation on the timing or amount of such exercises). 
 
(j) Secretary’s Certificate. The Company shall have delivered to the Purchasers a
secretary’s certificate, dated as of the Closing Date, as to (i) the Resolutions, (ii) the Certificate and the Bylaws, each as in effect at the Closing, and (iii) the authority and incumbency of the officers of the Company executing the
Transaction Documents and any other documents required to be executed or delivered in connection therewith. 
 
(k) Officer’s Certificate. On the Closing Date, the Company shall have delivered to the Purchasers a certificate of an
executive officer of the Company, dated as of the Closing Date, confirming the accuracy of the Company’s representations, warranties and covenants as of the Closing Date and confirming the compliance by the Company with the conditions precedent
set forth in this Section 4.2 as of the Closing Date. 
 
(l) Fees and Expenses. As of the Closing Date, all fees and expenses required to be paid by the Company shall have been or authorized to be paid by the Company as of the Closing Date. 
 
(m) Registration Rights Agreement. As of the Closing
Date, the parties shall have entered into the Registration Rights Agreement in the Form of Exhibit D attached hereto. 
 
(n) Material Adverse Effect. No Material Adverse Effect shall have occurred. 
 
ARTICLE V 
 
Certificate Legend 
 
Section 5.1 Legend. Each certificate representing the
Shares, the Warrants and the Warrant Shares shall be stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required by applicable state securities or “blue sky” laws): 
 

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THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
SECURITIES LAWS OR CYTRX CORPORATION SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
 
The Company agrees to reissue certificates representing any of
the Securities, without the legend set forth above, if at such time, prior to making any transfer of any such Securities, such holder thereof shall give written notice to the Company describing the manner and terms of such transfer and removal as
the Company may reasonably request. Such proposed transfer will not be effected until: (a) the Company has notified such holder that either (i) in the opinion of Company counsel, the registration of the Shares, the Warrants or Warrant Shares under
the Securities Act is not required in connection with such proposed transfer, or (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by the Company with the Commission and has become effective
under the Securities Act; and (b) the Company has notified such holder that either (i) in the opinion of Company counsel, the registration or qualification under the securities or “blue sky” laws of any state is not required in connection
with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected. The Company will use its best efforts to respond to any such notice from a holder within three (3) Business Days. In
the case of any proposed transfer under this Section 5.1, the Company will use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, in connection therewith, to
qualify to do business in any state where it is not then qualified or to take any action that would subject it to tax or to the general service of process in any state where it is not then subject. The restrictions on transfer contained in this
Section 5.1 shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Agreement. Notwithstanding the foregoing, the restrictions on transfer contained in this Section 5.1
shall not limit or prohibit any Purchaser’s right to pledge any of the Securities for margin purposes. 
 
ARTICLE VI 
 
Termination 
 
Section 6.1 Termination by Mutual Consent. This Agreement may be terminated at any time prior to the Closing Date by the mutual written consent of the Company and the Purchasers. 
 
Section 6.2 Effect of Termination. In the event of
termination by the Company or the Purchasers, written notice thereof shall forthwith be given to the other party and the transactions contemplated by this Agreement shall be terminated without further action by any 
 

-20- 

 
party. If this Agreement is
terminated as provided in Section 6.1 herein, this Agreement shall become void and of no further force and effect, except for Sections 8.1 and 8.2, and Article VII herein. Nothing in this Section 6.2 shall be deemed to release the Company or any
Purchaser from any liability for any breach under this Agreement, or to impair the rights of the Company or such Purchaser to compel specific performance by the other party of its obligations under this Agreement. 
 
ARTICLE VII 
 
Indemnification 
 
Section 7.1 General Indemnity. The Company agrees to
indemnify and hold harmless each Purchaser (and its respective directors, officers, employees, affiliates, agents, successors and assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by each Purchaser or any such person as a result of any inaccuracy in or breach of the representations, warranties or covenants made by the Company herein. The
Purchasers severally but not jointly agree to indemnify and hold harmless the Company and its directors, officers, employees, affiliates, agents, successors and assigns from and against any and all losses, liabilities, deficiencies, costs, damages
and expenses (including, without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by the Company as result of any inaccuracy in or breach of the representations, warranties or covenants made by the Purchasers herein.

 
Section 7.2 Indemnification Procedure.
Any party entitled to indemnification under this Article VII (an “indemnified party”) will give written notice to the indemnifying party of any matters giving rise to a claim for indemnification; provided, that the failure of any
party entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party of its obligations under this Article VII except to the extent that the indemnifying party is actually prejudiced by such failure
to give notice. In case any action, proceeding or claim is brought against an indemnified party in respect of which indemnification is sought hereunder, the indemnifying party shall be entitled to participate in and, unless in the reasonable
judgment of the indemnified party a conflict of interest between it and the indemnifying party may exist with respect to such action, proceeding or claim, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party.
In the event that the indemnifying party advises an indemnified party that it will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification notice to notify, in writing, such person of
its election to defend, settle or compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its defense at any time after it commences such defense), then the indemnified party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until the indemnifying party elects in writing to assume and does so assume the defense of any such claim, proceeding or action, the indemnified party’s costs and
expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification hereunder. The indemnified party shall cooperate fully with the indemnifying party in connection with
any negotiation or defense of any such action or claim by 
 

-21- 

 
the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to the indemnified party which relates to such action or claim. The indemnifying party shall keep the indemnified party fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. If the indemnifying party elects to defend any such action or claim, then the indemnified party shall be entitled to participate in such defense with counsel of its choice at its sole cost
and expense. The indemnifying party shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent. Notwithstanding anything in this Article VII to the contrary, the indemnifying party shall not,
without the indemnified party’s prior written consent, settle or compromise any claim or consent to entry of any judgment in respect thereof which imposes any future obligation on the indemnified party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the indemnified party of a release from all liability in respect of such claim. The indemnification required by this Article VII shall be made by periodic payments of the
amount thereof during the course of investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred, so long as the indemnified party irrevocably agrees to refund such moneys if it is ultimately determined
by a court of competent jurisdiction that such party was not entitled to indemnification. The indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the indemnified party against the indemnifying
party or others, and (b) any liabilities the indemnifying party may be subject to pursuant to the law. 
 
ARTICLE VIII 
 
Miscellaneous 
 
Section 8.1 Fees and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement; provided, however, that the Company shall pay all fees and expenses (including attorneys’ fees and expenses) incurred by the Purchasers in connection with the
preparation, negotiation, execution, delivery and performance of this Agreement and the other Transaction Documents and the transactions contemplated thereunder up to a maximum of $25,000, regardless of whether or not the Closing occurs (unless the
failure of the Closing to occur is a result of a breach by any Purchaser of this Agreement, in which event the Company shall not be required to pay any of such fees or expenses). In addition, the Company shall pay all reasonable fees and expenses
incurred by the Purchasers in connection with any amendments, modifications or waivers of this Agreement or any of the other Transaction Documents or incurred in connection with the enforcement of this Agreement and any of the other Transaction
Documents, following a breach by the Company of this Agreement or any of the other Transaction Documents, including, without limitation, all reasonable attorneys’ fees, disbursements and expenses. 
 
Section 8.2 Specific Enforcement; Consent to
Jurisdiction. 
 
(a) The Company and the
Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement or the other 
 

-22- 

 
Transaction Documents were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement or the other
Transaction Documents and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. 
 
(b) The Company and each Purchaser (i) hereby irrevocably
submit to the non-exclusive jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in the Borough of Manhattan, The City of New York, for the purposes of any
suit, action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the transactions contemplated hereby or thereby, and (ii) hereby waive, and agree not to assert in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. The Company and each
Purchaser consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section 8.2 shall affect or limit any right to serve process in any other manner permitted by law. The Company and the Purchasers hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Shares, this Agreement, the Registration Rights Agreement or the Warrants, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. 
 
Section 8.3 Entire Agreement; Amendment. This Agreement
and the Transaction Documents contain the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein or in the other Transaction Documents, neither the Company nor any
Purchaser make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of this
Agreement may be waived or amended other than by a written instrument signed by the Company and the holders of at least a majority in interest of the then-outstanding Shares, and no provision hereof may be waived other than by a written instrument
signed by the party against whom enforcement of any such amendment or waiver is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Shares then outstanding. No consideration shall be
offered or paid to any person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents or holders of Shares,
as the case may be. 
 
Section 8.4 Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), or
(b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to 
 

-23- 

such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be: 
 

	 If to the Company:
	 	 CytRx Corporation
 11726 San Vicente Boulevard, Suite 650
 Los Angeles, California 90049
 Attention: Steven A. Kriegsman
 Telecopier: (310) 826-5529
 Telephone: (310) 826-5648
	 	 
	
	 with copies (which copies
 shall not constitute notice
	 	 	 	 
	 to the Company) to:
	 	 Troy & Gould Professional Corporation
 1801 Century Park East, 16th Floor
 Los Angeles, California 90067-2367
 Attention: Sanford J. Hillsberg
 Telecopier: (310) 201-4746
 Telephone: (310) 553-4441
	 	 
	
	 If to any Purchaser:
	 	 At the address of such Purchaser set forth on Exhibit A to this
 Agreement.

 
Any
party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto. 
 
Section 8.5 Waivers. No waiver by any party of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it thereafter. 
 
Section 8.6 Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect
any of the provisions hereof. 
 
Section 8.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. After the Closing, the assignment by a party to this Agreement of any rights hereunder shall not affect the
obligations of such party under this Agreement. After the Closing, the Purchasers may assign the Shares, the Warrants and their rights under this Agreement and the other Transaction Documents and any other rights hereto and thereto without the
consent of the Company. 
 
Section 8.8 No 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 (other than
indemnified parties, as contemplated by Article VII). 
 

-24- 

Section 8.9 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving effect to the choice of law provisions. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

 
Section 8.10 Survival. The
representations and warranties of the Company and the Purchasers contained in Sections 2.1(o) and 2.1(s) shall survive indefinitely and those contained in Article II, with the exception of Sections 2.1(o) and 2.1(s), shall survive the execution and
delivery hereof and the Closing until the date two (2) years from the Closing Date, and the agreements and covenants set forth in Articles I, III, V, VII and VIII of this Agreement shall survive the execution and delivery hereof and the Closing
hereunder. 
 
Section 8.11 Counterparts.
This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties
hereto, it being understood that all parties need not sign the same counterpart. 
 
Section 8.12 Publicity. The Company agrees that it will not disclose, and will not include in any public announcement, the names of the Purchasers without the consent of the Purchasers in
accordance with Section 8.3, which consent shall not be unreasonably withheld or delayed, or unless and until such disclosure is required by law, rule or applicable regulation, and then only to the extent of such requirement. 
 
Section 8.13 Severability. The provisions of this
Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or
unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible. 
 
Section 8.14 Further Assurances. From and after the date of this Agreement, upon the request of the
Purchasers or the Company, the Company and each Purchaser shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes
of this Agreement, the Warrants and the Registration Rights Agreement. 
 
Section 8.15 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and
no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to
such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser confirms that it 
 

-25- 

has independently participated in the negotiation of the transactions contemplated hereby with the advice
of its own counsel and advisors. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 
 
[Remainder of page intentionally left blank. Signature pages to follow.] 
 

-26- 

 
IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written. 
 

	 CYTRX CORPORATION

	
	 By:
	 	

	 Name:
	 	 Steven A. Kriegsman

	 Title:
	 	 Chief Executive Officer

	 	 	 

 
[Signatures of Purchasers to follow on next pages.] 
 

-27- 

  PURCHASERS: 
 

	 
	
	 
	
	 
	
	 
	
	               By:_________________________________

	 

 
 
 
 
 
 

-28- 

 
EXHIBIT
A 
LIST OF PURCHASERS 
 

	 Names and Addresses of
 Purchasers

	    	 Number of Shares
 Purchased

	    	 Number of Warrants
 Purchased

	    	 Dollar Amount
 of Investment

 

A-1 

 
EXHIBIT
B 
FORM OF WARRANT 
 

B-1 

 
EXHIBIT
C 
FORM OF OPINION 
 
1. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has
the requisite corporate power to own, lease and operate its properties and assets, and to carry on its business as presently conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every
jurisdiction in which the failure to so qualify would have a Material Adverse Effect. 
 
2. The Company has the requisite corporate power and authority to enter into and perform its obligations under the Transaction Documents and to issue the Shares, the Warrants and the Warrant Shares.
The execution, delivery and performance of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly and validly authorized by all necessary corporate action and no further
consent or authorization of the Company or its Board of Directors is required. Each of the Transaction Documents have been duly executed and delivered, and the Shares and the Warrants have been duly executed, issued and delivered by the Company and
each of the Transaction Documents constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its respective terms. Neither the Shares nor the Warrant Shares are subject to any preemptive
rights under the Certificate or the Bylaws. 
 
3.
The Shares have been duly authorized and, when delivered against payment in full as provided in the Purchase Agreement, will be validly issued, fully paid and nonassessable. The Warrant Shares, have been duly authorized and reserved for issuance,
and, when delivered upon exercise or against payment in full as provided in the Warrants, will be validly issued, fully paid and nonassessable. 
 
4. The execution, delivery and performance of and compliance with the terms of the Transaction Documents and the issuance of the Shares,
the Warrants and the Warrant Shares do not (a) violate any provision of the Certificate or Bylaws, (b) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party and which is known to
us, (c) create or impose a lien, charge or encumbrance on any property of the Company under any agreement or any commitment known to us to which the Company is a party or by which the Company is bound or by which any of its respective properties or
assets are bound, or (d) result in a violation of any Federal, state, local or foreign statute, rule, regulation, order, judgment, injunction or decree (including Federal and state securities laws and regulations) applicable to the Company or by
which any property or asset of the Company is bound or affected, except, in all cases other than violations pursuant to clauses (a) and (d) above, for such conflicts, default, terminations, amendments, acceleration, cancellations and violations as
would not, individually or in the aggregate, have a Material Adverse Effect. 
 

C-1 

 
5. No consent,
approval or authorization of or designation, declaration or filing with any governmental authority on the part of the Company is required under Federal, state or local law, rule or regulation in connection with the valid execution, delivery and
performance of the Transaction Documents, or the offer, sale or issuance of the Shares, the Warrants or the Warrant Shares other than filings as may be required by applicable Federal and state securities laws and regulations and the NASD rules and
regulations. 
 
6. To our knowledge, there is no
action, suit, claim, investigation or proceeding pending or threatened against the Company which questions the validity of the Agreement or the transactions contemplated thereby or any action taken or to be taken pursuant thereto. There is no
action, suit, claim, investigation or proceeding pending, or to our knowledge, threatened, against or involving the Company or any of its properties or assets and which, if adversely determined, is reasonably likely to result in a Material Adverse
Effect. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the Company or any officers or directors of the Company in their capacities as such. 
 
7. The offer, issuance and sale of the Shares and the
Warrants, and the offer, issuance and sale of the Warrant Shares pursuant to the Warrants, are exempt from the registration requirements of the Securities Act of 1933, as amended. 
 

C-2 

 
EXHIBIT
D 
FORM OF REGISTRATION RIGHTS AGREEMENT 
 

D-1 

 
Schedule 2.1(b)

 
None. 
 
Schedule 2.1(c) 
 

	 Preferred Shares
	  	 
	 Shares Authorized
	  	 1,000

	 Shares Outstanding
	  	 none

	
	 Common Shares
	  	 
	 Shares Authorized
	  	 50,000,000

	 Shares Outstanding
	  	 23,448,768

 

	 Securities Convertible Into Common Shares
	  	 	  	 
	 	  	 Exercise Price

	  	 No. Shares

	 Stock Option Plans
	  	 $.25 – .31
	  	 30,000

	 	  	 $.71 –1.03
	  	 890,707

	 	  	 2.125 –7.75
	  	 7,499

	 	  	 	  	

	 	  	 	  	 928,206

	 Stock Purchase Warrants
	  	 $0.01
	  	 923,527

	 	  	 $0.20
	  	 1,075,000

	 	  	 $.72 –1.05
	  	 3,533,880

	 	  	 $1.50
	  	 250,000

	 	  	 	  	

	 	  	 	  	 5,782,407

	 	  	 	  	

	 Total Convertible Securities
	  	 	  	 6,710,613

	 	  	 	  	

 
Securities Entitled to Registration Rights 
 
In addition to the securities covered by the Company’s Form S-3 Registration Statement filed on November 1, 2002, the following securities are covered by registration rights: 
 

	 	(i)	 	An aggregate of 1,828,359 shares issued to the University of Massachusetts Medical School. 

 

	 	(ii)	 	An aggregate of 1,475,000 shares issuable upon exercise of warrants issued to investment banking and financial public relations firms. 

 

	 	(iii)	 	Cappello and assignee warrants – aggregate of 1,413,880 shares 

Commitments to Issue Additional Shares of Common Stock 
 
The Company has reached an agreement in principle with Rip
Grossman & Associates to issue that firm 100,000 shares of common stock as its fee in connection with the University of Massachusetts Medical School transaction 
 
The Company has reached an agreement in principle to issue 100,000 shares of common stock and warrants to
purchase an additional 200,000 shares of common stock to James Skalko under a proposed financial consulting agreement. 
 
Schedule 2.1(f) 
 
None. 
 
Schedule 2.1(g) 
 

	 	  	 	    	 % Ownership

	 Subsidiaries
	  	 	    	 
	 GGC Pharmaceuticals, Inc.
	  	 	    	 100%

	 Proceutics, Inc.
	  	 (inactive)
	    	 100%

	 CytRx Animal Health, Inc.
	  	 (inactive)
	    	 100%

	 Custom Adjuvants, Inc.
	  	 (inactive)
	    	 100%

	
	 Minority Owned Entities (held by GGC Pharmaceuticals)
	    	 
	 Blizzard Genomics, Inc.
	  	 	    	   40%

	 Psynomics, Inc.
	  	 	    	     5%

 
Schedule
2.1(h) 
 
None. 
 
Schedule 2.1(i) 
 
As described in the Company’s Form 10-Q for the quarter
ended March 31, 2003, the Company has committed to expend certain sums to sponsor research and development work at the University of Massachusetts Medical School. 
 
Schedule 2.1(j) 
 
None. 
 
Schedule 2.1(k) 
 
The Company continues to remain liable on its lease of the Company’s prior headquarters office space in Norcross, Georgia.

 
Schedule 2.1(l)

 
None. 
 
Schedule 2.1(m) 
 
None. 
 
Schedule 2.1(n) 
 
None. 
 
Schedule 2.1(o) 
 
None. 
 
Schedule 2.1(p) 
 
Cappello Capital Corp. and Cardinal Securities are serving as
placement agents and will receive cash fees and warrants in connection with this transaction. 
 
Schedule 2.1(r) 
 
Registered domain name – www.CytRx.com 
 
License Agreements 
 
Vical Incorporated 
Merck & Co., Inc. 
Carnegie Institution 
University of Massachusetts Medical School 
(seven license agreements covering pending and provisional patent applications) 
 
Trademarks, Patents and Patent
Applications 
 
See Exhibit A
to Schedule 2.1(r). 
 
Schedule 2.1(s) 
 
None. 
 
Schedule 2.1(u) 
 
The Company has entered into the following agreements that
will be filed with the Commission in the Company’s Form 10-Q for the quarter ended June 30, 2003: 
 

	 	(i)	 	A series of license agreements with the University of Massachusetts Medical School. 

	 	(ii)	 	Investment Banking Agreement with Cappello Capital Group. 

 

	 	(iii)	 	Investment Banking Agreement with J.P. Turner & Co. 

 

	 	(iv)	 	Investment Banking Agreement with Rockwell Asset Management. 

 

	 	(v)	 	Investment Banking Agreement with Cardinal Securities. 

 
Schedule 2.1(v) 
 
Professional Services Agreement between the Company and the Kriegsman Group 
 
Employment Agreement between the Company and Steven A. Kriegsman 
 
Investment Banking Agreement with Cappello Capital Corp.

 
Schedule 2.1(x) 
 
Notice of issuance of the Company’s shares required to
be delivered to Nasdaq prior to closing of transaction will be delivered after closing. 
 
Schedule 2.1(y) 
 
None. 
 
Schedule 2.1(z)

 
In April and May 2003, the Company issued a
total of 1,828,359 shares of common stock to the University of Massachusetts Medical School. 
 
In April 2003, the Company issued a warrant to purchase 400,000 shares of common stock to J.P. Turner & Co. 
 
In April 2003, the Company issued a warrant to purchase 400,000 shares of common stock to Rockwell Asset Management. 
 
In May 2003, the Company issued 25,000 shares of common stock
to Troy & Gould. 
 
Between April 1, 2003 and
May 27, 2003, the Company issued a total of 325,470 shares of common stock pursuant to the exercise of outstanding options and warrants. 

 
EXHIBIT
A 
 

	 K-S
 Matter
 No.

	  	 Client No.

	  	 Country

	  	 Title

	 	 Filing
 Date

	  	 Appl. Serial No.

	  	 Issue Date

	    	 Patent No.

	
	 216026
	  	 19720-0035
	  	 US
	  	 Method of Stimulating the Immune System
	 	 06/12/1991
	  	 107,358
	  	 08/10/1993
	    	 5,234,683

	
	 216034
	  	 19720-0043CA
	  	 Canada
	  	 Improved Fibrinolytic Composition
	 	 05/13/1987
	  	 537,052
	  	 03/24/1992
	    	 1,297,792

	
	 216043
	  	 19720-0051IL
	  	 Israel
	  	 Improved Fibrinolytic Composition
	 	 05/14/1987
	  	 82519
	  	 08/26/1992
	    	 P/82519

	
	 216044
	  	 19720-0052
	  	 US
	  	 Improved Fibrinolytic Composition
	 	 05/07/1987
	  	 07/045,459
	  	 01/31/1989
	    	 4,801,452

	 	  	 	  	 	  	 Combination with fibrinolytic
	 	 	  	 	  	 	    	 
	
	 216046
	  	 19720-0053
	  	 US
	  	 Improved Fibrinolytic Composition—Treating Tumors
	 	 12/21/1987
	  	 07/136,034
	  	 10/10/1989
	    	 4,873,083

	
	 216054
	  	 19720-0057
	  	 US
	  	 An Improved Method for Treating Burns
	 	 12/29/1988
	  	 07/291,925
	  	 11/07/1989
	    	 4,879,109

	
	 216055
	  	 19720-0058
	  	 US
	  	 An Improved Method for Treating Sickle Cell Anemia
	 	 01/13/1989
	  	 07/297,156
	  	 06/06/1989
	    	 4,837,014

	
	 216093
	  	 19720-0077
	  	 US
	  	 Antiinfective Compounds and Method of Use
	 	 06/01/1995
	  	 08/457,808
	  	 09/22/1998
	    	 5,811,088

	
	 216113
	  	 19720-0101
	  	 US
	  	 Method of Treating Ischemic Tissue
	 	 05/11/1990
	  	 07/522,193
	  	 02/18/1992
	    	 5,089,260

	
	 216119
	  	 19720-0110
	  	 US
	  	 Improved Method for Treating Damaged Tissue
	 	 06/01/1989
	  	 07/359,903
	  	 01/30/1990
	    	 4,897,263

 

	 216122
	 	 19720-0112
	 	 US
	  	 Method of Treating Tissue Damaged by Reperfusion Injury
	  	 05/04/1990
	 	 07/519,005
	 	 08/20/1991
	    	 5,041,288

	
	 216138
	 	 19720-0151
	 	 US
	  	 Improved Method of Performing Angioplasty Procedures
	  	 05/03/1990
	 	 07/518,510
	 	 05/21/1991
	    	 5,017,370

	
	 216144
	 	 19720-0162IE
	 	 Ireland
	  	 Injectable Pharmaceutical Composition for the Protection of Tissue Damaged by Ischemia
	  	 07/23/1992
	 	 922401
	 	 	    	 
	
	 216154
	 	 19720-0186
	 	 US
	  	 Method of Delivering Drugs to Damaged or Diseased Tissue
	  	 05/04/1990
	 	 07/519,148
	 	 07/09/1991
	    	 5,030,448

	
	 216225
	 	 19720-0222
	 	 US
	  	 Polyoxypropylene/Polyoxyethelene Copolymers with Improved Biological Activity
	  	 07/02/1993
	 	 08/087,136
	 	 04/18/2000
	    	 Re. 36,665

	
	 216226
	 	 19720-0223
	 	 US
	  	 Polyoxypropylene/Polyoxyethelene Copolymers with Improved Biological Activity
	  	 08/09/1994
	 	 08/292,803
	 	 10/22/1996
	    	 5,567,859

	
	 216231
	 	 19720-0224
	 	 US
	  	 Improved Antiinfective Polyoxypropylene/Polyoxyethelene Copolymers and Methods of Use
	  	 06/06/1995
	 	 08/468,137
	 	 10/07/1997
	    	 5,674,911

	
	 216232
	 	 19720-0225
	 	 US
	  	 Polyoxypropylene/Polyoxyethelene Copolymers with Improved Biological Activity
	  	 06/02/1995
	 	 08/460,192
	 	 12/09/1997
	    	 5,696,298

	
	 216233
	 	 19720-0226
	 	 US
	  	 Polyoxypropylene/Polyoxyethylene Copolymers with Improved Biological Activity
	  	 06/03/1996
	 	 08/657,161
	 	 11/25/1997
	    	 5,691,387

	
	 216234
	 	 19720-0227
	 	 US
	  	 Polyoxypropylene/Polyoxyethylene Copolymers with Improved Biological Activity
	  	 07/08/1997
	 	 08/889,342
	 	 11/23/1999
	    	 5,990,241

	
	 216235
	 	 19720-0228
	 	 US
	  	 Polyoxypropylene/Polyoxyethylene Copolymers with Improved Biological Activity
	  	 08/05/1999
	 	 09/368,855
	 	 03/19/2002
	    	 6,359,014

	
	 263913
	 	 19720-0229
	 	 US
	  	 Polyoxypropylene/Polyoxyethylene Copolymers with Improved Biological Activity
	  	 12/14/2001
	 	 10/017,223
	 	 	    	 

 

	
	 216263
	  	 19720-0430JP
	  	 Japan
	  	 Improved Fibrinolytic Composition
	  	 05/08/1987
	  	 62-503333
	  	 12/07/1994
	  	 1891157

	
	 216332
	  	 19720-0500AT
	  	 Austria
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 E 149 791

	
	 216333
	  	 19720-0500AU
	  	 Australia
	  	 Australia—Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological
Fluids
	  	 07/18/1990
	  	 48495/90
	  	 10/11/1993
	  	 637996

	
	 216334
	  	 19720-0500BE
	  	 Belgium
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216335
	  	 19720-0500CA
	  	 Canada
	  	 Canada—Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological
Fluids
	  	 12/29/1989
	  	 2,006,953
	  	 	  	 2,006,953

	
	 216336
	  	 19720-0500CH
	  	 Switzerland
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216337
	  	 19720-0500DE
	  	 Germany
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216339
	  	 19720-0500EP
	  	 EPO
	  	 EPO—Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological
Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 03/12/1997
	  	 409940

	
	 216340
	  	 19720-0500ES
	  	 Spain
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216342
	  	 19720-0500FR
	  	 France
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216343
	  	 19720-0500GB
	  	 United Kingdom
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

	
	 216345
	  	 19720-0500IT
	  	 Italy
	  	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	  	 08/22/1990
	  	 90 901 954.9
	  	 	  	 0 409 940

 

	
	 216347
	  	 19720-0500LU
	  	 Luxembourg
	 	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	 	 08/22/1990
	  	 90 901 954.9
	  	 	    	 0 409 940

	
	 216348
	  	 19720-0500NL
	  	 Netherlands
	 	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	 	 08/22/1990
	  	 90 901 954.9
	  	 	    	 0 409 940

	
	 216350
	  	 19720-0500SE
	  	 Sweden
	 	 Methods and Compositions for Treatment of Pathological Hydrophobic Interactions in Biological Fluids
	 	 08/22/1990
	  	 90 901 954.9
	  	 	    	 0 409 940

	
	 216352
	  	 19720-0501
	  	 US
	 	 Method of Treating Myocardial Damage
	 	 05/11/1990
	  	 07/522,168
	  	 07/02/1991
	    	 5,028,599

	
	 216354
	  	 19720-0502
	  	 US
	 	 Method of Treating Myocardial Damage
	 	 12/04/1991
	  	 07/802,331
	  	 03/30/1993
	    	 5,198,211

	
	 216356
	  	 19720-0511
	  	 US
	 	 Method of Treating Stroke
	 	 05/11/1990
	  	 07/522,297
	  	 09/10/1991
	    	 5,047,236

	
	 216358
	  	 19720-0513
	  	 US
	 	 Method of Treating Stroke
	 	 12/04/1992
	  	 07/985,746
	  	 08/31/1993
	    	 5,240,702

	
	 216359
	  	 19720-0520
	  	 US
	 	 Method of Treating Adult Respiratory Distress Syndrome
	 	 05/03/1990
	  	 07/518,348
	  	 03/05/1991
	    	 4,997,644

	
	 216377
	  	 19720-0573
	  	 US
	 	 Method of Treating Tumors
	 	 03/24/1995
	  	 08/409,549
	  	 07/15/1997
	    	 5,648,071

	
	 216409
	  	 19720-0613
	  	 US
	 	 Methods and Compositions for Reducing MultiDrug Resistance
	 	 05/19/1995
	  	 08/445,191
	  	 10/28/1997
	    	 5,681,812

	
	 216410
	  	 19720-0614
	  	 US
	 	 Methods and Compositions for Reducing MultiDrug Resistance
	 	 06/07/1995
	  	 08/480,582
	  	 07/07/1998
	    	 5,776,891

	
	 216411
	  	 19720-0615
	  	 US
	 	 Methods and Compositions for Reducing MultiDrug Resistance
	 	 06/07/1995
	  	 08/474,994
	  	 01/07/1997
	    	 5,591,715

	
	 216415
	  	 19720-0620AT
	  	 Austria
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	  	 94 931827.3
	  	 	    	 
	
	 	  	 19720-0620BE
	  	 Belgium
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	  	 94 931827.3
	  	 	    	 

 

	
	 216414
	 	 19720-0620CA
	 	 Canada
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/12/1996
	 	 2,174,122
	 	 	  	 
	
	 	 	 19720-0620CH
	 	 Switzerland
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620DE
	 	 Germany
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620DK
	 	 Denmark
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 216415
	 	 19720-0620EP
	 	 EPO
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620ES
	 	 Spain
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620FR
	 	 France
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620GB
	 	 United Kingdom
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620IE
	 	 Ireland
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 	 	 19720-0620IT
	 	 Italy
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 
	
	 216416
	 	 19720-0620JP
	 	 Japan
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/15/1996
	 	 7-512031
	 	 	  	 
	
	 216417
	 	 19720-0620KR
	 	 South Korea
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/15/1996
	 	 701930-1996
	 	 06/08/1999
	  	 218140

	
	 	 	 19720-0620NL
	 	 Netherlands
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 723440

	
	 	 	 19720-0620SE
	 	 Sweden
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	 	 04/30/1996
	 	 94 931827.3
	 	 	  	 

 

 

	 216422
	 	 19720-0624
	 	 US
	 	 Therapeutic Delivery
 Compositions and Methods of Use Thereof
	  	 12/09/1999
	 	 09/457,771
	 	 	  	 
	
	 261843
	 	 19720-0625
	 	 US
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	  	 07/31/2001
	 	 09/919,504
	 	 	  	 
	
	 262529
	 	 19720-0626
	 	 US
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	  	 08/14/2001
	 	 09/929,819
	 	 	  	 
	
	 276833
	 	 19720-0627WP
	 	 PCT
	 	 Therapeutic Delivery Compositions and Methods of Use Thereof
	  	 07/31/2002
	 	 PCT/US02/24425
	 	 	  	 
	
	 216433
	 	 19720-0650AT
	 	 Austria
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 05/29/2002
	  	 E218.066

	
	 216432
	 	 19720-0650CA
	 	 Canada
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 2,196,801
	 	 	  	 
	
	 216433
	 	 19720-0650DE
	 	 Germany
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 06/17/2002
	  	 774974

	
	 216433
	 	 19720-0650EP
	 	 EPO
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 05/29/2002
	  	 774974

	
	 216433
	 	 19720-0650FR
	 	 France
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 	  	 
	
	 	 	 19720-0650IE
	 	 Ireland
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 05/29/2002
	  	 774974

	
	 216433
	 	 19720-0650IT
	 	 Italy
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 08/14/2002
	  	 28003BE/2002

	
	 216434
	 	 19720-0650JP
	 	 Japan
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 8-507368
	 	 	  	 
	
	 	 	 19720-0650SE
	 	 Sweden
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	 	 95 929336.6
	 	 05/29/2002
	  	 774 974

	
	 269291
	 	 19720-0651EP
	 	 EPO
	 	 Novel Vaccine Adjuvant and Vaccine
	  	 11/23/2001
	 	 1127904.9
	 	 	  	 

 

 

	 277996
	  	 19720-0651HK
	  	 Hong Kong
	  	 Method for Making Polyoxypropylene/Polyoxyethylene Block Copolymers
	  	 11/23/2001
	  	 2106150.1
	  	 	  	 1044890A

	
	 216438
	  	 19720-0652
	  	 US
	  	 Novel Vaccine Adjuvant and Vaccine
	  	 08/09/1995
	  	 08/513,162
	  	 7/11/2000
	  	 6,086,899

	
	 216443
	  	 19720-0657
	  	 US
	  	 Novel Vaccine Adjuvant and Vaccine
	  	 12/28/1998
	  	 09/221,339
	  	 11/21/2000
	  	 6,149,922

	
	 216444
	  	 19720-0658
	  	 US
	  	 Novel Vaccine Adjuvant and Vaccine
	  	 03/21/2000
	  	 09/532,345
	  	 7/09/2002
	  	 6,416,947

	
	 271667
	  	 19720-0659
	  	 US
	  	 Novel Vaccine Adjuvant and Vaccine
	  	 04/02/2002
	  	 10/115332
	  	 	  	 
	
	 245350
	  	 22031-0065AT
	  	 Austria
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 E 157 259

	
	 245351
	  	 22031-0065AU
	  	 Australia
	  	 Improved Adjuvants and Vaccines
	  	 06/27/1991
	  	 US91/04716
	  	 4/24/1995
	  	 655593

	
	 245352
	  	 22031-0065BE
	  	 Belgium
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 536302

	
	 245354
	  	 22031-0065CA
	  	 Canada
	  	 Improved Adjuvants and Vaccines
	  	 12/22/1992
	  	 US91/04716
	  	 6/12/2001
	  	 20,860,397

	
	 245355
	  	 22031-0065CH
	  	 Switzerland
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 536302

	
	 245357
	  	 22031-0065DE
	  	 Germany
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 536302

	
	 245358
	  	 22031-0065DK
	  	 Denmark
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 536302

	
	 245359
	  	 22031-0065EP
	  	 EPO
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 US91/04716
	  	 8/27/1997
	  	 536302

	
	 245360
	  	 22031-0065ES
	  	 Spain
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 8/27/1997
	  	 536302

 

 

	 245361
	  	 22031-0065FR
	  	 France
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245362
	  	 22031-0065GB
	  	 Great Britain
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245363
	  	 22031-0065GR
	  	 Greece
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245364
	  	 22031-0065IE
	  	 Ireland
	  	 Improved Adjuvants and Vaccines
	  	 06/27/1991
	  	 91 913213.4
	  	 02/27/2002
	    	 82178

	
	 245366
	  	 22031-0065IT
	  	 Italy
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245367
	  	 22031-0065JP
	  	 Japan
	  	 Improved Adjuvants and Vaccines
	  	 12/28/1992
	  	 US91/04716
	  	 11/21/1996
	    	 2112600

	
	 245368
	  	 22031-0065KR
	  	 South Korea
	  	 Improved Adjuvants and Vaccines
	  	 12/26/1992
	  	 US91/04716
	  	 06/08/1999
	    	 218138

	
	 245369
	  	 22031-0065LU
	  	 Luxembourg
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245372
	  	 22031-0065NL
	  	 Netherlands
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245373
	  	 22031-0065NZ
	  	 New Zealand
	  	 Improved Adjuvants and Vaccines
	  	 06/26/1991
	  	 07/544,831
	  	 06/26/1991
	    	 238731

	
	 245375
	  	 22031-0065PT
	  	 Portugal
	  	 Improved Adjuvants and Vaccines
	  	 06/27/1991
	  	 07/544,831
	  	 09/03/1998
	    	 98119

	
	 245376
	  	 22031-0065SE
	  	 Sweden
	  	 Improved Adjuvants and Vaccines
	  	 12/21/1992
	  	 91 913213.4
	  	 08/27/1997
	    	 536302

	
	 245382
	  	 22031-0069
	  	 US
	  	 Methods and Vaccines Comprising Surface-Active Copolymers
	  	 04/11/1995
	  	 08/420,333
	  	 09/10/1996
	    	 5,554,372

	
	 245415
	  	 22031-0095
	  	 US
	  	 Multiple Emulsions and Methods of Preparation
	  	 08/16/1994
	  	 08/291,286
	  	 04/22/1997
	    	 5,622,649

 

	 245416
	  	 22031-0096
	  	 US
	  	 Multiple Emulsions and Methods of Preparation (Oral Vaccines)
	  	 01/20/1995
	  	 08/376,088
	  	 03/23/1999
	  	 5,885,590

	
	 245508
	  	 22170-0100CA
	  	 Canada
	  	 Biologically Active Copolymers
	  	 06/18/1986
	  	 745,917
	  	 02/05/1991
	  	 1,279,822

	
	 245510
	  	 22170-0100CL
	  	 Chile
	  	 Biologically Active Copolymers
	  	 07/07/1986
	  	 465-86
	  	 09/22/1989
	  	 36564

	
	 245512
	  	 22170-0100DE
	  	 Germany
	  	 Use of Biologically Active Copolymers for the Manufacture of a Medicament for Stimulating the Growth of an
Animal
	  	 02/16/1987
	  	 86 904 533.6
	  	 08/28/1991
	  	 0 228 448

	
	 245515
	  	 22170-0100ES
	  	 Spain
	  	 Biologically Active Copolymers
	  	 07/07/1986
	  	 86 904 533.6
	  	 11/03/1987
	  	 556.216(3)

	
	 245517
	  	 22170-0100FR
	  	 France
	  	 Use of Biologically Active Copolymers for the Manufacture of a Medicament for Stimulating the Growth of an
Animal
	  	 02/16/1987
	  	 86 904 533.6
	  	 08/28/1991
	  	 0 228 448

	
	 245518
	  	 22170-0100GB
	  	 United Kingdom
	  	 Use of Biologically Active Copolymers for the Manufacture of a Medicament for Stimulating the Growth of an
Animal
	  	 02/16/1987
	  	 86 904 533.6
	  	 08/28/1991
	  	 0 228 448

	
	 245526
	  	 22170-0100MX
	  	 Mexico
	  	 Biologically Active Copolymers
	  	 07/14/1986
	  	 3119
	  	 10/03/1994
	  	 176179

	
	 245527
	  	 22170-0100NL
	  	 Netherlands
	  	 Use of Biologically Active Copolymers for the Manufacture of a Medicament for Stimulating the Growth of an
Animal
	  	 02/16/1987
	  	 86 904 533.6
	  	 08/28/1991
	  	 0 228 448

	
	 245550
	  	 22170-0105
	  	 US
	  	 Biologically-Active Copolymers
	  	 10/09/1987
	  	 07/107,358
	  	 05/19/1992
	  	 5,114,708

	
	 245564
	  	 22170-0121
	  	 US
	  	 Growth Promoting Compositions and Methods of Use
	  	 08/20/1996
	  	 08/700,074
	  	 10/20/1998
	  	 5,824,322

 

	 Trademark
	 	 Case No.
	 	 Appln. No.
	 	 Reg. No.
	 	 Status
	 	 Filing Date
	 	 Reg. Date
	 	 Country
	 	 Owner
	  	 Class
	 	 Goods

	 TITERMAX
	 	 245427
	 	 557776
	 	 557776
	 	 Registered
	 	 14-Jun-1991
	 	 14-Jun-1991
	 	 Australia
	 	 Cytrx Corporation
	  	 5
	 	 Pharmaceutical, veterinary and sanitary preparations and substances; vaccines; adjuvants; vaccine adjuvants; all
included in class 5.

	 TITERMAX
	 	 245437
	 	 765008
	 	 502465
	 	 Registered
	 	 11-Jun-1991
	 	 11-Jun-1991
	 	 Benelux
	 	 Cytrx Corporation
	  	 5
	 	 Pharmaceutical, veterinary and sanitary preparations; dietetic substances adapted for medical use, food for babies;
plasters, materials for dressings; material for stopping teeth, dental wax; disinfectants; preparations for destroying vermin; fungicides,

	 TITERMAX
	 	 245428
	 	 683649
	 	 396820
	 	 Registered
	 	 11-Jun-1991
	 	 03-Apr-1992
	 	 Canada
	 	 Cytrx Corporation
	  	 	 	 Vaccine adjuvants.

	 TITERMAX
	 	 245430
	 	 VA4157/91
	 	 VR27591992
	 	 Registered
	 	 13-Jun-1991
	 	 10-Apr-1992
	 	 Denmark
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.

	 TITERMAX
	 	 245431
	 	 2745/91
	 	 120566
	 	 Registered
	 	 11-Jun-1991
	 	 20-Jul-1992
	 	 Finland
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.

	 TITERMAX
	 	 245432
	 	 290827
	 	 1670592
	 	 Registered
	 	 11-Jun-1991
	 	 11-Jun-1991
	 	 France
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.

	 TITERMAX
	 	 245434
	 	 2831/91
	 	 146885
	 	 Registered
	 	 11-Jun-1991
	 	 11-Jun-1991
	 	 Ireland
	 	 Cytrx Corporation
	  	 5
	 	 Pharmaceutical and veterinary preparations and substances; vaccines and vaccine adjuvants.

	 TITERMAX
	 	 245435
	 	 MI91C006616
	 	 626163
	 	 Registered
	 	 12-Sep-1991
	 	 12-Sep-1991
	 	 Italy
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.

	 TITERMAX
	 	 245436
	 	 3-60821
	 	 2569276
	 	 Registered
	 	 13-Jun-1991
	 	 31-Aug-1993
	 	 Japan
	 	 Cytrx Corporation
	  	 1
	 	 Vaccine rejuvants.

	 TITERMAX
	 	 245438
	 	 91-05228
	 	 250845
	 	 Registered
	 	 13-Jun-1991
	 	 20-Aug-1993
	 	 Sweden
	 	 Cytrx Corporation
	  	 5
	 	 Vaccines and vaccine adjuvants.

	 TITERMAX
	 	 245433
	 	 1467066
	 	 1467066
	 	 Registered
	 	 12-Jun-1991
	 	 12-Jun-1991
	 	 United Kingdom
	 	 Cytrx Corporation
	  	 5
	 	 Pharmaceutical, veterinary and sanitary preparations and substances; vaccines; adjuvants; vaccine adjuvants; all
included in Class 5.

	 TITERMAX
	 	 245426
	 	 74/081640
	 	 1695189
	 	 Registered
	 	 25-Jul-1990
	 	 16-Jun-1992
	 	 USA
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.

	 TITERMAX
	 	 216489
	 	 C42176/5WZ
	 	 2011164
	 	 Registered
	 	 04-Jul-1991
	 	 13-Mar-92
	 	 Germany
	 	 Cytrx Corporation
	  	 5
	 	 Vaccine adjuvants.Form of Registration Rights Agreement 5/29/2003

 
Exhibit 10.2

 
REGISTRATION RIGHTS AGREEMENT

 
This Registration Rights Agreement (this
“Agreement”) is made and entered into as of May 29, 2003, by and among CytRx Corporation, a Delaware corporation (the “Company”), and the persons and entities listed on Exhibit A hereto (each, a
“Purchaser” and, collectively, the “Purchasers”). 
 
WHEREAS, upon the terms and subject to the conditions of the Securities Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), the Company has agreed to issue and
sell shares of its Common Stock and Warrants to purchase shares of its Common Stock to the Purchasers; and 
 
WHEREAS, to induce the Purchasers to execute and deliver the Purchase Agreement and to purchase the Shares and the Warrants, the Company
has agreed to provide certain registration rights under the Securities Act of 1933, as amended, with respect to the Shares, the Warrants and the Warrant Shares (each as respectively defined in the Purchase Agreement). 
 
NOW, THEREFORE, in consideration of the representations,
warranties and agreements contained herein and other good and valuable consideration, the receipt and legal adequacy of which are hereby acknowledged by the parties, the Company and the Purchasers hereby agree as follows: 
 
1. Definitions. 
 
Capitalized terms used but not otherwise defined herein shall
have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 
 
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by
or under common control with such Person. For the purposes of this definition, “control,” when used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings
correlative to the foregoing. 
 
“Blackout
Period” shall have the meaning set forth in Section 3(m). 
 
“Board” shall have the meaning set forth in Section 3(m). 
 
“Business Day” means any day except Saturday, Sunday and any day which is a legal holiday or a day on which banking
institutions in the state of California generally are authorized or required by law or other government actions to close. 
 
“Commission” means the Securities and Exchange Commission. 

 
“Common Shares” shall have the meaning set forth in the definition of “Registrable Securities.” 
 
“Common Stock” means the Company’s Common Stock, $.001 par value. 
 
“Effectiveness Date” means with respect to
the Registration Statement the earlier of (i) the 90th day following the Closing Date, before which the Company will
use its commercially reasonable best efforts to cause the Registration Statement to become effective, and (ii) the date which is within five (5) Business Days after the date on which the Commission informs the Company in writing (a) that the
Commission will not review the Registration Statement, or (b) that the Company may request the acceleration of the effectiveness of the Registration Statement. 
 
“Effectiveness Period” shall have the meaning set forth in Section 2. 
 
“Event” shall have the meaning set forth in
Section 8(d). 
 
“Exchange Act”
means the Securities Exchange Act of 1934, as amended. 
 
“Holder” means, collectively, each holder from time to time of Registrable Securities including, without limitation, each Purchaser and its assignees. To the extent this Agreement refers to an election, consent,
waiver, request or approval of or by the Holder, such reference shall mean an election, consent, waiver, request or approval by the holders of a majority in interest of the then-outstanding Registrable Securities (on an as exercised basis).

 
“Indemnified Party” shall have
the meaning set forth in Section 6(c). 
 
“Indemnifying Party” shall have the meaning set forth in Section 6(c). 
 
“Liquidated Damages” shall have the meaning set forth in Section 8(d). 
 
“Losses” shall have the meaning set forth in
Section 6(a). 
 
“NASDAQ” shall
mean the NASDAQ Stock Market. 
 
“Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind. 
 
“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
 
“Prospectus” means the prospectus included in
the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities 
 

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covered by the Registration
Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus. 
 
“Registrable Securities” means (i) the shares of Common Stock issued or issuable pursuant to
the Purchase Agreement, and upon any stock split, stock dividend, recapitalization or similar event with respect to such shares of Common Stock and any other securities issued in exchange of or replacement of such shares of Common Stock
(collectively, the “Common Shares”); until in the case of any of the Common Shares (a) a Registration Statement covering such Common Share has been declared effective by the Commission and continues to be effective during the
Effectiveness Period, or (b) such Common Share is sold in compliance with Rule 144 or may be sold pursuant to Rule 144(k), after which time such Common Share shall not be a Registrable Security; (ii) the Warrants issued or issuable pursuant to the
Purchase Agreement until in the case of any of the Warrants (a) a Registration Statement covering such Warrant has been declared effective by the Commission and continues to be effective during the Effectiveness Period, (b) such Warrant is sold in
compliance with Rule 144 or may be sold pursuant to Rule 144(k), after which time such Warrant shall not be a Registrable Security, or (c) such Warrant is fully exercised for shares of Common Stock, after which time such Warrant shall not be
a Registrable Security; and (iii) the shares of Common Stock issued and issuable pursuant to the exercise of the Warrants, and upon any stock split, stock dividend, recapitalization or similar event with respect to such shares of Common Stock and
any other securities issued in exchange of or replacement of such shares of Common Stock (collectively, the “Warrant Shares”); until in the case of any of the Warrant Shares (a) a Registration Statement covering such Warrant Share
has been declared effective by the Commission and continues to be effective during the Effectiveness Period, or (b) such Warrant Share is sold in compliance with Rule 144 or may be sold pursuant to Rule 144(k), after which time such Warrant Share
shall not be a Registrable Security. 
 
“Registration Statement” means the registration statement, including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference in such registration statement, for the Shares, the Warrants and the Warrant Shares required to be filed by the Company with the Commission pursuant to this Agreement. 
 
“Required Filing Date” means the thirtieth
(30th) day immediately following the Closing Date. 
 
“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 
“Rule 158” means Rule 158 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 

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“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as
such Rule. 
 
“Securities Act”
means the Securities Act of 1933, as amended. 
 
“Special Counsel” means an attorney selected by and acting as special counsel to Holder. 
 
“Warrant Shares” shall have the meaning set forth in the definition of “Registrable Securities.” 
 
2. Registration. On or prior to the Required Filing
Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on
Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance with the Securities Act and the rules promulgated
thereunder) and shall contain (except if otherwise directed by the Purchasers) the “Plan of Distribution” attached hereto as Exhibit B. The Company shall (i) use its commercially reasonable best efforts to cause the
Registration Statement to be declared effective under the Securities Act (including filing with the Commission a request for acceleration of effectiveness within five (5) Business Days of the date that the Company is notified in writing by the
Commission that the Registration Statement will not be “reviewed,” or not be subject to further review) as soon as possible after the filing thereof, but in any event prior to the Effectiveness Date, and (ii) keep such Registration
Statement continuously effective under the Securities Act for a period of two years from the Effectiveness Date (the “Effectiveness Period”). 
 
3. Registration Procedures; Company’s Obligations. 
 
In connection with the registration of the Registrable Securities, the Company shall: 
 
(a) Prepare and file with the Commission on or prior to the
Required Filing Date, a Registration Statement on Form S-3 (or if the Company is not then eligible to register for resale the Registrable Securities on Form S-3 such registration shall be on another appropriate form in accordance with the Securities
Act and the Rules promulgated thereunder) in accordance with the method or methods of distribution thereof as specified by the Holder (except if otherwise directed by the Holder), and use its commercially reasonable best efforts to cause the
Registration Statement to become effective and remain effective as provided herein; provided, however, that not less than three (3) Business Days prior to the filing of the Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be incorporated therein by reference), the Company shall (i) furnish to the Holder and any Special Counsel, copies of all such documents proposed to be filed, which documents (other
than those incorporated by reference) will be subject to the timely review of and comment by such Special Counsel, and (ii) at the request of the Holder cause its officers and directors, counsel and independent certified public accountants to
respond to such inquiries as 
 

-4- 

 
shall be necessary, in the
reasonable opinion of such Special Counsel, to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement or any such Prospectus or any amendments or supplements thereto to
which the Holder or any Special Counsel shall reasonably object in writing within three (3) Business Days of their receipt thereof. 
 
(b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the
related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; (iii) respond
promptly to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and promptly provide the Holder true and complete copies of all correspondence from and to the Commission relating to the
Registration Statement; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the applicable
period in accordance with the intended methods of disposition by the Holder set forth in the Registration Statement as so amended or in such Prospectus as so supplemented. 
 
(c) Notify the Holder of Registrable Securities to be sold and any Special Counsel promptly (and, in the case
of (i)(A) below, not less than three (3) Business Days prior to such filing and, in the case of (i)(C) below, no later than the first Business Day following the date on which the Registration Statement becomes effective) and (if requested by any
such Person) confirm such notice in writing no later than three (3) Business Days following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed, (B) when the
Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional
information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for
such purpose; and (v) of the occurrence of any event that makes any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that
requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 

-5- 

 
The Company
shall promptly furnish to the Special Counsel, without charge, (i) any correspondence from the Commission or the Commission’s staff to the Company or its representatives relating to any Registration Statement, and (ii) promptly after the same
is prepared and filed with the Commission, a copy of any written response to the correspondence received from the Commission. 
 
(d) Use its commercially reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, (i) any order
suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any U.S. jurisdiction, at the earliest practicable moment.

 
(e) If requested by the Holder, (i) promptly
incorporate in a Prospectus supplement or post-effective amendment to the Registration Statement such information as the Company reasonably agrees should be included therein, and (ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment. 
 
(f) Furnish to the Holder and any Special Counsel, without charge, at least one conformed copy of each
Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those
previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission. 
 
(g) Promptly deliver to the Holder and any Special Counsel, without charge, as many copies of the Registration Statement, Prospectus or
Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request; and the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by the selling
Holder in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 
 
(h) Prior to any public offering of Registrable Securities, use its commercially reasonable best efforts to register or qualify or
cooperate with the selling Holder and any Special Counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky
laws of such jurisdictions within the United States as the Holder reasonably requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or subject the Company to any tax in any such
jurisdiction where it is not then so subject. 
 
(i) Cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to a Registration Statement 
 

-6- 

 
and to enable such Registrable
Securities to be in such denominations and registered in such names as the Holder may request at least two (2) Business Days prior to any sale of Registrable Securities. 
 
(j) Upon the occurrence of any event contemplated by Section 3(c)(v), promptly prepare a supplement or
amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading. 
 
(k) Use its commercially reasonable best efforts to cause all Registrable Securities relating to such Registration Statement to be quoted by NASDAQ and any other securities exchange, quotation system, market or over-the-counter
bulletin board, if any, on which the same securities issued by the Company are then listed as and when required pursuant to the Purchase Agreement. 
 
(l) Comply in all material respects with all applicable rules and regulations of the Commission and make generally available to its
security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than forty-five (45) days after the end of any twelve (12) month period (or ninety (90) days after the end of any twelve (12)
month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company after the effective date of the Registration Statement, which statement shall conform to the requirements of Rule 158. 
 
(m) If (i) there is material non-public information regarding
the Company which the Company’s Board of Directors (the “Board”) reasonably determines not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose, or (ii) there is a
significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the
Company which the Board reasonably determines not to be in the Company’s best interest to disclose and which the Company would be required to disclose under the Registration Statement, then the Company may suspend effectiveness of a
Registration Statement and suspend the sale of Registrable Securities under a Registration Statement one (1) time every three (3) months or three (3) times in any twelve month period, provided that the Company may not suspend its obligation for more
than thirty (30) days in the aggregate in any twelve month period if suspension is for any of the reasons listed above or sixty (60) days in the aggregate in any twelve month period for any other reason (each, a “Blackout Period”);
provided, however, that no such suspension shall be permitted for more than twenty (20) consecutive days, arising out of the same set of facts, circumstances or transactions. 
 
(n) Within two (2) Business Days after the Registration Statement which includes the Registrable Securities
is ordered effective by the Commission, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such 
 

-7- 

 
Registrable Securities (with
copies to the Holder whose Registrable Securities are included in such Registration Statement) confirmation that the Registration Statement has been declared effective by the Commission in the form attached hereto as Exhibit C. 
 
4. Registration Procedures; Holder’s Obligations

 
In connection with the registration of the
Registrable Securities, the Holder shall: 
 
(a) If
the Registration Statement refers to the Holder by name or otherwise as the holder of any securities of the Company, have the right to require (if such reference to the Holder by name or otherwise is not required by the Securities Act or any similar
federal statute then in force) the deletion of the reference to the Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required. 
 
(b) (i) not sell any Registrable Securities under the
Registration Statement until it has received copies of the Prospectus as then amended or supplemented as contemplated in Section 3(g) and notice from the Company that such Registration Statement and any post-effective amendments thereto have become
effective as contemplated by Section 3(c), (ii) comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement, and (iii) furnish
to the Company information regarding such Holder and the distribution of such Registrable Securities as is required by law to be disclosed in the Registration Statement, and the Company may exclude from such registration the Registrable Securities
of the Holder if it fails to furnish such information within a reasonable time prior to the filing of each Registration Statement, supplemented Prospectus and/or amended Registration Statement. 
 
(c) upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(m), forthwith discontinue disposition of such Registrable Securities under the Registration Statement until the Holder’s receipt of the copies
of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(j), or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of
any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. 
 
5. Registration Expenses 
 
All reasonable fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the
Company whether or not the Registration Statement is filed or becomes effective and whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include,
without limitation, the following: (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with NASDAQ and each securities exchange or other market on which Registrable
Securities are required hereunder to be listed, (B) with respect to filings required to be made with the Commission, and (C) in compliance with state securities or Blue Sky laws); (ii) printing 
 

-8- 

 
expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is requested by the holders of a majority of the Registrable Securities included in the Registration Statement);
(iii) messenger, telephone and delivery expenses; (iv) fees and disbursements of counsel for the Company; and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by
this Agreement, including, without limitation, the Company’s independent public accountants (including the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or comfort
letters). In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit, and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. The
Company shall not be responsible for the payment of any commissions or other expenses incurred by the Holder in connection with their sales of Registrable Securities or for the fees of any Special Counsel. 
 
6. Indemnification 
 
(a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless each Purchaser, its permitted assignees, officers, directors, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a
pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees, each Person who controls any such Purchaser or permitted assignee (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, agents and employees of each such controlling Person, and the respective successors, assigns, estate and personal representatives of each of the foregoing, to the fullest extent permitted by applicable law,
from and against any and all claims, losses, damages, liabilities, penalties, judgments, costs (including, without limitation, costs of investigation) and expenses (including, without limitation, reasonable attorneys’ fees and expenses)
(collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus, as supplemented or amended, if applicable, or
arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of
the circumstances under which they were made) not misleading, except (i) to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding the Holder furnished in writing to the Company by
the Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, or (ii) as a result of the failure of the Holder to deliver a Prospectus, as amended or supplemented,
to a purchaser in connection with an offer or sale (provided that copies of the Prospectus, as amended or supplemented, have been provided to the Holder by the Company for delivery to such purchaser). The Company shall notify the Holder promptly of
the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement. Such indemnity shall remain in full force and effect regardless of any investigation made by or
on behalf of an 
 

-9- 

 
Indemnified Party (as defined
in Section 6(c) hereof) and shall survive the transfer of the Registrable Securities by the Holder. 
 
(b) Indemnification by Purchaser. Each Purchaser and its permitted assignees shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees
of such controlling Persons, and the respective successors, assigns, estate and personal representatives of each of the foregoing, to the fullest extent permitted by applicable law, from and against any and all Losses, as incurred, arising out of or
relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus, as supplemented or amended, if applicable, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent,
but only to the extent, that (i) such untrue statement or omission is contained in or omitted from any information so furnished in writing by the Holder or the Special Counsel to the Company specifically for inclusion in the Registration Statement
or such Prospectus, and (ii) such information was reasonably relied upon by the Company for use in the Registration Statement, such Prospectus or such form of prospectus or, to the extent that such information relates to the Holder or the
Holder’s proposed method of distribution of Registrable Securities, was reviewed and expressly approved in writing by the Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus Supplement.
Notwithstanding anything to the contrary contained herein, the Holder shall be liable under this Section 6(b) for only that amount as does not exceed the net proceeds to the Holder as a result of the sale of Registrable Securities pursuant to such
Registration Statement. 
 
(c) Conduct of
Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity pursuant to Section 6(a) or 6(b) hereunder (an “Indemnified Party”), such Indemnified Party promptly shall
notify the Person from whom indemnity is sought (the “Indemnifying Party) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and
the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely
prejudiced the Indemnifying Party. 
 
An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i)
the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in
any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a

 

-10- 

 
conflict of interest is likely
to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be unreasonably withheld, conditioned or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which consent shall not unreasonably
be withheld, conditioned or delayed, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on
claims that are the subject matter of such Proceeding. 
 
All reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Business Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not
entitled to indemnification hereunder or pursuant to applicable law). 
 
(d) Contribution. If a claim for indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses,
in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or
omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable attorneys’ or other
reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for under Section 6(a) or 6(b) was available to such
party in accordance with its terms. Notwithstanding anything to the contrary contained herein, the Holder shall be liable or required to contribute under this Section 6(d) for only that amount as does not exceed the net proceeds to the Holder as a
result of the sale of Registrable Securities pursuant to the Registration Statement. 
 

-11- 

 
The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to
in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. 
 
The indemnity and
contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
 
7. Rule 144. 
 
As long as the Holder owns Registrable Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act and to promptly furnish the Holder with true and complete copies of all such filings. As
long as the Holder owns Registrable Securities, if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holder and make publicly available in accordance with Rule
144(c) promulgated under the Securities Act annual and quarterly financial statements, together with a discussion and analysis of such financial statements in form and substance substantially similar to those that would otherwise be required to be
included in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act. The Company
further covenants that it will take such further action as the Holder may reasonably request, all to the extent required from time to time to enable the Holder to sell Warrants, Common Shares and Warrant Shares without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including providing any legal opinions of counsel to the Company referred to in the Purchase Agreement. Upon the request of any Holder,
the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such requirements. 
 
8. Miscellaneous. 
 
(a) Remedies. The remedies provided in this Agreement and the Purchase Agreement are cumulative and not exclusive of any remedies
provided by law. In the event of a breach by the Company or by the Holder of any of their obligations under this Agreement, the Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and the Holder agree that monetary damages would not provide adequate compensation for any losses incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 
(b) No Inconsistent Agreements. Neither
the Company nor any of its Affiliates has as of the date hereof entered into, nor shall the Company or any of its Affiliates, on 
 

-12- 

 
or after the date of this
Agreement, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holder in this Agreement or otherwise conflicts with the provisions hereof. Without limiting the generality of the foregoing,
without the written consent of the Holder, the Company shall not grant to any Person the right to request the Company to register any securities of the Company under the Securities Act if the rights so granted are inconsistent with the rights
granted to the Holder set forth herein, or otherwise prevent the Company with complying with all of its obligations hereunder. 
 
(c) No Piggyback on Registrations. Neither the Company nor any of its security holders (other than the Holder in such capacity
pursuant hereto) may include securities of the Company in the Registration Statement; provided, however, that securities held by other security holders the resale of which the Company is contractually obligated to register under the
Securities Act as of the date of this Agreement may be included in the Registration Statement. 
 
(d) Failure to File Registration Statement and Other Events. The Company and the Holder agree that the Holder will suffer damages if the Registration Statement is not filed on or prior to the
Required Filing Date or is not declared effective by the Commission on or prior to the Effectiveness Date and maintained in the manner contemplated herein during the Effectiveness Period or if certain other events occur. The Company and the Holder
further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if (i) the Registration Statement is not filed on or prior to the Required Filing Date, or is not declared effective by the Commission
on or prior to the Effectiveness Date, or (ii) the Company fails to file with the Commission a request for acceleration within five (5) Business Days of the date that the Company is notified in writing by the Commission that a Registration Statement
will not be “reviewed,” or not subject to further review, or (iii) the Registration Statement is filed with and declared effective by the Commission but thereafter ceases to be effective or available as to all Registrable Securities at any
time during the Effectiveness Period, without being succeeded within a reasonable period by a subsequent Registration Statement filed with and declared effective by the Commission (any such failure or breach being referred to as an
“Event”), the Company shall pay as liquidated damages for such failure or breach and not as a penalty (the “Liquidated Damages”) to the Holder an amount equal to three percent (3%) of the purchase price of the
Common Stock paid by the Holder pursuant to the Purchase Agreement for each thirty (30) day period during which any Event described in subsection (i) above occurs and is continuing, and two percent (2%) of such purchase price for each thirty (30)
day period during which any Event described in subsection (ii) or (iii) above occurs and is continuing, pro rated for any period less than thirty (30) days, following the Event until the applicable Event has been cured; provided, however, the
Holder will waive any Liquidated Damages resulting from the Registration Statement not being declared effective by the Commission on or prior to the Effectiveness Date if the Company cures such failure or breach prior to the end of the first thirty
(30) day period thereafter. Notwithstanding the foregoing, in no event shall the Company be required to pay aggregate Liquidated Damages under this Section 8(d) in excess of eight percent (8%) of the purchase price of the Common Stock paid by the
Holder pursuant to the Purchase Agreement. Payments to be made pursuant to this Section 8(d) shall be due and payable immediately upon demand in cash. The parties agree that the Liquidated Damages represent a reasonable estimate on the part of the
parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holder if the Registration Statement is not filed on or prior to the Required Filing Date or has not been declared effective by the Commission on or
prior to 
 

-13- 

 
the Effectiveness Date and
maintained in the manner contemplated herein during the Effectiveness Period. 
 
(e) Consent to Jurisdiction. The Company and each Purchaser (i) hereby irrevocably submit to the non-exclusive jurisdiction of the United States District Court for the Southern District of New
York and the courts of the State of New York located in the Borough of Manhattan, The City of New York, for the purposes of any suit, action or proceeding arising out of or relating to this Agreement or the Purchase Agreement, and (ii) hereby waive,
and agree not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. The Company and each Purchaser consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 8(e) shall affect or limit any right to serve process in any other manner permitted by law. 
 
(f) Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and
the Purchasers. 
 
(g) Notices. Any and all
notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earlier of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified for notice prior to 5:00 p.m., Pacific Time, on a Business Day, (ii) the first Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice later than 5:00 p.m., Pacific Time, on any date and earlier than 11:59 p.m., Pacific Time, on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight
courier service, or (iv) actual receipt by the party to whom such notice is required to be given. 
 

	 	(x)	 	if to the Company: 

 
CytRx Corporation 
11726 San Vicente Boulevard, Suite 650 
Los Angeles,
California 90049 
Attention: Steven A. Kriegsman 
Telecopier: (310) 826-5529 
Telephone: (310) 826-5648 
 
with a copy to: 
 
Troy & Gould Professional Corporation 
1801 Century Park East, 16th Floor 
 

-14- 

 
Los Angeles, California 90067-2367 
Attention: Sanford J. Hillsberg 
Telecopier: (310) 201-4746 
Telephone: (310) 553-4441 
 

	 	(y)	 	if to any Purchaser: 

 
At the address of such Purchaser set forth on Exhibit A to this Agreement. 
 
or to such other address or addresses or facsimile number or numbers as any
such party may most recently have designated in writing to the other parties hereto by such notice. 
 
(h) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns and shall inure to the benefit of the Holder and its successors and assigns. The Company may not assign this Agreement or any of its respective rights or obligations hereunder without the prior written consent of the Purchasers.
Each Purchaser may assign its rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement. 
 
(i) Assignment of Registration Rights. The rights of the Holder hereunder, including the right to have the Company register for
resale Registrable Securities in accordance with the terms of this Agreement, shall be assignable by each Holder to any transferee of the Holder of all or a portion of the shares of Registrable Securities if: (i) the Holder agrees in writing with
the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished
with written notice of (A) the name and address of such transferee or assignee, and (B) the securities with respect to which such registration rights are being transferred or assigned; (iii) following such transfer or assignment the further
disposition of such securities by the transferee or assignees is restricted under the Securities Act and applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this
Section, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions of this Agreement; and (v) such transfer shall have been made in accordance with the applicable requirements of the Purchase Agreement and
shall be for no less than 10% of the Registrable Securities. In addition, the Holder shall have the right to assign its rights hereunder to any other Person with the prior written consent of the Company, which consent shall not be unreasonably
withheld, conditioned or delayed. The rights to assignment shall apply to the Holder (and to subsequent) successors and assigns. In the event of an assignment pursuant to this Section 8(i), the Purchaser shall pay all incremental costs and expenses
incurred by the Company in connection with filing a Registration Statement (or an amendment to the Registration Statement) to register the shares of Registrable Securities assigned to any assignee or transferee of the Purchaser. 
 
(j) Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same Agreement. In the event that any signature is 
 

-15- 

 
delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 
(k) Governing Law. This Agreement shall
be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of law thereof. This Agreement shall not be interpreted or construed with any presumption against the party causing this
Agreement to be drafted. 
 
(l) Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. 
 
(m) Termination. This Agreement shall terminate on the date on which all remaining Registrable Securities may be sold without
restriction pursuant to Rule 144(k) of the Securities Act. 
 
(n) Severability. If any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable in any respect, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 
(o) Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof. 
 
[Remainder of page intentionally left blank. Signature pages to follow.] 
 
 

-16- 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized persons as of the date first indicated above. 
 

	 CYTRX CORPORATION

	
	 By:
	 	  

	 Name:
	 	 Steven A. Kriegsman

	 Title:
	 	 Chief Executive Officer

 
[Signatures of Purchasers to follow on next pages.] 

 
                 PURCHASERS: 
 

	 
	
	 
	
	 
	
	 
	
	             By:__________________________________

	 	 	 

 
EXHIBIT
A 
PURCHASERS 
 
 

A-1 

EXHIBIT B 
PLAN OF DISTRIBUTION 
 
We are registering the shares of common stock and the warrants on behalf of the selling stockholders. The common stock and the warrants may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at prices related to the prevailing market prices, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected at various times in one or more of the following
transactions, or in other kinds of transactions: 
 

	 	•	 	transactions on the NASDAQ Stock Market or on any national securities exchange or U.S. inter-dealer system of a registered national securities association on which
the common stock and the warrants may be listed or quoted at the time of sale; 

 

	 	•	 	in the over-the-counter market; 

 

	 	•	 	in private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; 

 

	 	•	 	in connection with short sales of the shares; 

 

	 	•	 	by pledge to secure or in payment of debt and other obligations; 

 

	 	•	 	through the writing of options, whether the options are listed on an options exchange or otherwise; 

 

	 	•	 	in connection with the writing of non-traded and exchange-traded call options, in hedge transactions and in settlement of other transactions in standardized or
over-the-counter options; or 

 

	 	•	 	through a combination of any of the above transactions. 

 
The selling stockholders and their successors, including their transferees, pledgees or donees or their successors, may sell the common
stock and the warrants directly to purchasers or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the selling stockholders or the purchasers. These discounts,
concessions or commissions as to any particular underwriter, broker-dealer or agent may be in excess of those customary in the types of transactions involved. 
 
The selling stockholders also may engage in short sales against the box, puts and calls and other transactions in our securities or
derivatives of our securities and may sell or deliver shares in connection with these trades. 
 
In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 of the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.

 

B-1 

 
The selling
stockholders may from time to time pledge or grant a security interest in some or all of the shares of common stock and warrants owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may
offer and sell the shares of common stock from time to time under this prospectus after we have filed an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. 
 
The selling stockholders also may transfer the shares of common stock and warrants in other circumstances, in which case the transferees,
pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the shares of common stock and warrants from time to time under this prospectus after we have filed an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.

 
The selling stockholders and any broker-dealers
or agents that are involved in selling the shares of common stock and warrants may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such
broker-dealers or agents and any profit on the resale of the shares of common stock or warrants purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. 
 
We entered into a registration rights agreement for the
benefit of the selling stockholders to register the common stock and the warrants under applicable federal and state securities laws. The registration rights agreement provides for cross-indemnification of the selling stockholders and us and our
respective directors, officers and controlling persons against specific liabilities in connection with the offer and sale of the common stock and the warrants, including liabilities under the Securities Act. We will pay substantially all of the
expenses incurred by the selling stockholders incident to the registration of the common stock and the warrants.  
 
The selling stockholders have advised us that they have not entered into any agreements, understandings or arrangements with any
underwriters or broker-dealers regarding the sale of their shares of common stock or warrants, nor is there an underwriter or coordinating broker acting in connection with a proposed sale of shares of common stock or warrants by any selling
stockholder. If we are notified by any selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of shares of common stock or warrants, if required, we will file a supplement to this prospectus. If the
selling stockholders use this prospectus for any sale of the shares of common stock or warrants, they will be subject to the prospectus delivery requirements of the Securities Act. 
 
The anti-manipulation rules of Regulation M under the Securities Exchange Act may apply to sales of our
common stock and activities of the selling stockholders. 
 
 

B-2 

 
EXHIBIT
C 
 
FORM OF NOTICE OF EFFECTIVENESS OF
REGISTRATION STATEMENT 
 
[Name and address of Transfer Agent]                          
                          
 

	
	 	 	 	 
	
	
	 	 	 	 
	
	
	 	 	 	 

Attn:                                    
                         
 

	 	Re:	 	CytRx Corporation 

 
Ladies and Gentlemen: 
 
We are counsel to CytRx Corporation, a Delaware corporation (the “Company”), and have represented the Company in
connection with that certain Securities Purchase Agreement (the “Purchase Agreement”), dated as of May 29, 2003, by and among the Company and the purchasers (the “Purchasers” and the “Holders”)
named therein pursuant to which the Company issued to the Purchasers shares (the “Shares”) of its Common Stock, $0.001 par value. Pursuant to the Purchase Agreement, the Company has also entered into a Registration Rights Agreement
with the Purchasers (the “Registration Rights Agreement”), dated as of May 29, 2003, pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement),
including the Shares, under the Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on
                          , 2003, the Company filed a Registration Statement on Form S-3 (File No.
333-            ) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the resale of the Registrable
Securities which names the Holders as selling stockholders thereunder. 
 
In connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at
[ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has been issued or that any
proceedings for that purpose are pending before, or threatened by, the SEC and, accordingly, the Registrable Securities are available for resale under the 1933 Act in the manner specified in, and pursuant to the terms of, the Registration Statement.

 

	 Very truly yours,

	
	 By:
	 	  

	 	 	 

 
cc: [PURCHASERS] 
 

C-1

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