Document:

Exhibit 10.5

 

 

THIS OPTION HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS
REGISTERED PURSUANT TO APPLICABLE PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR EXEMPT FROM THE REGISTRATION REQUIREMENTS
THEREOF.

 

AMENDED AND RESTATED

GENEREX BIOTECHNOLOGY CORPORATION

2006 STOCK PLAN

NONQUALIFIED STOCK OPTION GRANT

 

This STOCK OPTION GRANT,
dated as of October 31, 2013 (the “Date of Grant”), is delivered by Generex Biotechnology Corporation (the “Company”)
to Mark Fletcher, an employee of the Company (the “Grantee”).

 

RECITALS

 

A.The Amended and Restated
Generex Biotechnology Corporation 2006 Stock Plan (the “Plan”) provides for the grant of options to purchase
shares of common stock of the Company. The Board of Directors of the Company (the “Board”) has decided to make
a stock option grant. A copy of the Plan is attached as Exhibit A to this Agreement. Capitalized terms used in this Agreement
and not otherwise defined shall have the meanings assigned such terms in the Plan.

 

B.The Board is authorized
to appoint a committee or individual to administer the Plan. If a committee or individual is appointed, all references in this
Agreement to the “Board” shall be deemed to refer to the committee or individual.

 

NOW, THEREFORE, the parties
to this Agreement, intending to be legally bound hereby, agree as follows:

 

1.Grant of Option.

 

(a)Subject to the terms
and conditions set forth in this Agreement and in the Plan, the Company hereby grants to the Grantee an incentive stock option
(the “Option”) to purchase up to eighteen hundred fifty-four thousand, six hundred and forty (1,854,640)
shares of common stock of the Company (“Shares”) at an exercise price of $0.001 per Share. The Option
shall become exercisable according to Paragraph 2 below.

 

(b)Under the terms
and conditions contained in the Plan, the Option is granted as a nonqualified stock option and is not an incentive stock options
under section 422 of the Internal Revenue Code of 1986, as amended.

 

2.Exercisability of Option.
The Option shall be exercisable as set forth in the following schedule provided that the Grantee is employed by or providing service
to the Company (as defined in the Plan) on the applicable date of exercise: 1,854,640 shares will be exercisable as of January
1, 2014.

 

3.Term of Option.

 

(a)The Option shall
have a term of five (5) years from the Date of Grant and shall terminate at the expiration of that period, unless it is terminated
at an earlier date pursuant to the provisions of this Agreement or the Plan.

 

(b)Unless otherwise
specified by the Board, the Option shall automatically terminate on the date on which the Grantee ceases to be employed or provide
service to the Company for any reason, except for the happening of any of the events described in Paragraph 3(c).

 

(c)The Option shall
automatically upon the happening of the first of the following events:

 

(i)The date
on which the Board determines that the Grantee has engaged in conduct that constitutes Cause at any time while the Grantee is employed
by or providing service to the Company. In addition, notwithstanding the other provisions of this Paragraph 3, if the Board determines
that the Grantee has engaged in conduct that constitutes Cause after the Grantee’s termination of employment or service for
any reason, the Option shall immediately terminate.

 

(ii)The expiration
of the 90-day period after the Grantee ceases to provide services to the Company, as a result of a termination of service without
Cause or if the Grantee voluntarily terminated employment or service and provided the Company with at least 90 days advance written
notice of the effective date of such termination of employment or service with the Company.

 

(iii)The
expiration of the one-year period after the Grantee ceases to provide services to the Company on account of the Grantee’s
Disability.

 

(iv)The expiration
of the one-year period after the Grantee ceases to be employed by or provide services to the Company, if the Grantee dies while
employed by or in the service of the Company.

 

Notwithstanding the foregoing, in no event
may the Option be exercised after the date that is five (5) years from the Date of Grant. Any portion of the Option that is not
exercisable at the time the Grantee ceases to be employed by or provide service to the Company shall immediately terminate.

 

4.Exercise Procedures.

 

(a)Subject to the provisions
of the foregoing Paragraphs, the Grantee may exercise part or all of the exercisable Option by giving the Board written notice
of intent to exercise in the manner provided in this Agreement and Section 5(h) of the Plan, specifying the number of whole Shares
as to which the Option is to be exercised. On the delivery date, the Grantee shall pay the exercise price (i) in cash, (ii) with
the approval of the Board, by delivering Shares of the Company which shall be valued at their fair market value on the date of
delivery, (iii) payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board,
which procedures may or may not be available, or (iv) by such other method as the Board may approve. The Board may impose from
time to time such limitations as it deems appropriate on the use of Shares of the Company to exercise the Option.

 

(b)All obligations
of the Company under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts
required to be withheld for any taxes, if applicable. Subject to Board approval, the Grantee may elect to satisfy any income tax
withholding obligation of the Company with respect to the Option by having Shares withheld up to an amount that does not exceed
the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.

 

(c)The obligation of
the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules, and regulations and such
approvals by governmental agencies as may be deemed appropriate by the Board, including such actions as Company counsel shall deem
necessary or appropriate to comply with relevant securities laws and regulations.

 

5.[Intentionally Omitted.]

 

6.Change of Control. The
provisions of the Plan applicable to a Change of Control shall apply to the Option, and, in the event of a Change of Control, the
Board may take such actions as it deems appropriate pursuant to the Plan.

 

7.Cancellation and Rescission of
Options. The Grantee acknowledges and understands that the Option is subject to the cancellation and rescission provisions
of Section 12 of the Plan.

 

8.Restrictions on Exercise.
Only the Grantee may exercise the Option during the Grantee’s lifetime. After the Grantee’s death, the Option shall
be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the Grantee, or by the
person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the extent that the
Option is exercisable pursuant to this Agreement.

 

9.Grant Subject to Plan Provisions.
This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be
interpreted in accordance with the Plan. The grant and exercise of the Option are subject to the provisions of the Plan and to
interpretations, regulations and determinations concerning the Plan established from time to time by the Board in accordance with
the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect to
withholding taxes, (ii) the registration, qualification or listing of the Shares, (iii) changes in capitalization of the Company
and (iv) other requirements of applicable law. The Board shall have the authority to interpret and construe the Option pursuant
to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

 

10.No Employment or Other Rights.
The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ or service of the Company
and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any
time. The right of the Company to terminate at will the Grantee’s employment or service at any time for any reason is specifically
reserved.

 

11.No Stockholder Rights.
Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s death,
shall have any of the rights and privileges of a stockholder with respect to the Shares subject to the Option, until certificates
for Shares have been issued upon the exercise of the Option.

 

12.Assignment and Transfers.
The rights and interests of the Grantee under this Agreement may not be sold, assigned, encumbered or otherwise transferred except,
in the event of the death of the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by the
Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as provided
for in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests
hereby conferred, the Company may terminate the Option by notice to the Grantee, and the Option and all rights hereunder shall
thereupon become null and void. The rights and protections of the Company hereunder shall extend to any successors or assigns of
the Company and to the Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without
the Grantee’s consent.

 

13.Notice. Any notice to
the Company provided for in this instrument shall be addressed to the Company in care of the President, 555 Richmond Street West,
Suite 604, Toronto, Ontario, Canada, M5V 3B1, and any notice to the Grantee shall be addressed to such Grantee at the current address
shown on the books of the Company, or to such other address as the Grantee may designate to the Company in writing. Any notice
shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and
deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service or Canada Post.

 

[Signatures Appear on Following Page]

 

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused its duly authorized officers to execute and attest this Agreement, and the Grantee has executed this Agreement,
effective as of the Date of Grant.

 

 

	 	GENEREX BIOTECHNOLOGY CORPORATION
		 	
	 	Per: 	/s/ Stephen Fellows
	 	Name: 	Stephen Fellows
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
		 Per:	/s/ Mark Fletcher
	 	 Name:	Mark A. Fletcher
	 	 Title:	Chief Executive Officer and General Counsel
	 	 	

	 	ACCEPTED:
		 	
	 	/s/ Mark Fletcher	
	 	Mark Fletcher, GranteeExhibit 10.6

 

 

THIS OPTION HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS
REGISTERED PURSUANT TO APPLICABLE PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR EXEMPT FROM THE REGISTRATION REQUIREMENTS
THEREOF.

 

AMENDED AND RESTATED

GENEREX BIOTECHNOLOGY CORPORATION

2006 STOCK PLAN

NONQUALIFIED STOCK OPTION GRANT

 

This STOCK OPTION GRANT,
dated as of October 31, 2013 (the “Date of Grant”), is delivered by Generex Biotechnology Corporation (the “Company”)
to Brian McGee, a non-employee director of the Company (the “Grantee”).

 

RECITALS

 

A.The Amended and Restated
Generex Biotechnology Corporation 2006 Stock Plan (the “Plan”) provides for the grant of options to purchase
shares of common stock of the Company. The Board of Directors of the Company (the “Board”) has decided to make
a stock option grant. A copy of the Plan is attached as Exhibit A to this Agreement. Capitalized terms used in this Agreement
and not otherwise defined shall have the meanings assigned such terms in the Plan.

 

B.The Board is authorized
to appoint a committee or individual to administer the Plan. If a committee or individual is appointed, all references in this
Agreement to the “Board” shall be deemed to refer to the committee or individual.

 

NOW, THEREFORE, the parties
to this Agreement, intending to be legally bound hereby, agree as follows:

 

1.Grant of Option.

 

(a)Subject to the terms
and conditions set forth in this Agreement and in the Plan, the Company hereby grants to the Grantee an incentive stock option
(the “Option”) to purchase up to four hundred ninety thousand, eight hundred and four (490,804) shares
of common stock of the Company (“Shares”) at an exercise price of $0.001 per Share. The Option shall
become exercisable according to Paragraph 2 below.

 

(b)Under the terms
and conditions contained in the Plan, the Option is granted as a nonqualified stock option and is not an incentive stock options
under section 422 of the Internal Revenue Code of 1986, as amended.

 

2.Exercisability of Option.
The Option shall be exercisable as set forth in the following schedule provided that the Grantee is providing service to the Company
as a member of the Board (as defined in the Plan) on the applicable date of exercise: 490,804 shares will be exercisable
as of January 1, 2014.

 

3.Term of Option.

 

(a)The Option shall
have a term of five (5) years from the Date of Grant and shall terminate at the expiration of that period, unless it is terminated
at an earlier date pursuant to the provisions of this Agreement or the Plan.

 

(b)Unless otherwise
specified by the Board, the Option shall automatically terminate on the date on which the Grantee ceases to provide service to
the Company for any reason, except for the happening of any of the events described in Paragraph 3(c).

 

(c)The Option shall
automatically upon the happening of the first of the following events:

 

(i)The date
on which the Board determines that the Grantee has engaged in conduct that constitutes Cause at any time while the Grantee is providing
service to the Company. In addition, notwithstanding the other provisions of this Paragraph 3, if the Board determines that the
Grantee has engaged in conduct that constitutes Cause after the Grantee’s termination of service for any reason, the Option
shall immediately terminate.

 

(ii)The expiration
of the 90-day period after the Grantee ceases to provide services to the Company, as a result of a termination of service without
Cause or if the Grantee voluntarily terminated service and provided the Company with at least 90 days advance written notice of
the effective date of such termination of service with the Company.

 

(iii)The
expiration of the one-year period after the Grantee ceases to provide services to the Company on account of the Grantee’s
Disability.

 

(iv)The expiration
of the one-year period after the Grantee ceases to provide services to the Company, if the Grantee dies while in the service of
the Company.

 

Notwithstanding the foregoing, in no event
may the Option be exercised after the date that is five (5) years from the Date of Grant. Any portion of the Option that is not
exercisable at the time the Grantee ceases to provide service to the Company shall immediately terminate.

 

4.Exercise Procedures.

 

(a)Subject to the provisions
of the foregoing Paragraphs, the Grantee may exercise part or all of the exercisable Option by giving the Board written notice
of intent to exercise in the manner provided in this Agreement and Section 5(h) of the Plan, specifying the number of whole Shares
as to which the Option is to be exercised. On the delivery date, the Grantee shall pay the exercise price (i) in cash, (ii) with
the approval of the Board, by delivering Shares of the Company which shall be valued at their fair market value on the date of
delivery, (iii) payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board,
which procedures may or may not be available, or (iv) by such other method as the Board may approve. The Board may impose from
time to time such limitations as it deems appropriate on the use of Shares of the Company to exercise the Option.

 

(b)All obligations
of the Company under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts
required to be withheld for any taxes, if applicable. Subject to Board approval, the Grantee may elect to satisfy any income tax
withholding obligation of the Company with respect to the Option by having Shares withheld up to an amount that does not exceed
the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.

 

(c)The obligation of
the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules, and regulations and such
approvals by governmental agencies as may be deemed appropriate by the Board, including such actions as Company counsel shall deem
necessary or appropriate to comply with relevant securities laws and regulations.

 

5.[Intentionally Omitted.]

 

6.Change of Control. The
provisions of the Plan applicable to a Change of Control shall apply to the Option, and, in the event of a Change of Control, the
Board may take such actions as it deems appropriate pursuant to the Plan.

 

7.Cancellation and Rescission of
Options. The Grantee acknowledges and understands that the Option is subject to the cancellation and rescission provisions
of Section 12 of the Plan.

 

8.Restrictions on Exercise.
Only the Grantee may exercise the Option during the Grantee’s lifetime. After the Grantee’s death, the Option shall
be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the Grantee, or by the
person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the extent that the
Option is exercisable pursuant to this Agreement.

 

9.Grant Subject to Plan Provisions.
This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be
interpreted in accordance with the Plan. The grant and exercise of the Option are subject to the provisions of the Plan and to
interpretations, regulations and determinations concerning the Plan established from time to time by the Board in accordance with
the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect to
withholding taxes, (ii) the registration, qualification or listing of the Shares, (iii) changes in capitalization of the Company
and (iv) other requirements of applicable law. The Board shall have the authority to interpret and construe the Option pursuant
to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

 

10.No Employment or Other Rights.
The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ or service of the Company
and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any
time. The right of the Company to terminate at will the Grantee’s employment or service at any time for any reason is specifically
reserved.

 

11.No Stockholder Rights.
Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s death,
shall have any of the rights and privileges of a stockholder with respect to the Shares subject to the Option, until certificates
for Shares have been issued upon the exercise of the Option.

 

12.Assignment and Transfers.
The rights and interests of the Grantee under this Agreement may not be sold, assigned, encumbered or otherwise transferred except,
in the event of the death of the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by the
Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as provided
for in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests
hereby conferred, the Company may terminate the Option by notice to the Grantee, and the Option and all rights hereunder shall
thereupon become null and void. The rights and protections of the Company hereunder shall extend to any successors or assigns of
the Company and to the Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without
the Grantee’s consent.

 

13.Notice. Any notice to
the Company provided for in this instrument shall be addressed to the Company in care of the President, 555 Richmond Street West,
Suite 604, Toronto, Ontario, Canada, M5V 3B1, and any notice to the Grantee shall be addressed to such Grantee at the current address
shown on the books of the Company, or to such other address as the Grantee may designate to the Company in writing. Any notice
shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and
deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service or Canada Post.

 

[Signatures Appear on Following Page]

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused its duly authorized officers to execute and attest this Agreement, and the Grantee has executed this Agreement,
effective as of the Date of Grant.

 

 

	 	GENEREX BIOTECHNOLOGY CORPORATION
		 	
	 	Per: 	/s/ Stephen Fellows
	 	Name: 	Stephen Fellows
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
		 Per:	/s/ Mark Fletcher
	 	 Name:	Mark A. Fletcher
	 	 Title:	Chief Executive Officer and General Counsel
	 	 	

	 	ACCEPTED:
		 	
	 	/s/ Brian McGee	
	 	Brian McGee, Grantee

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